Provides that for taxable years beginning on or after January first, two thousand nineteen, a qualified taxpayer will be able to claim a refundable credit up to two hundred fifty dollars for eligible losses incurred from the interruption in the payment of their wages or salary due to an action by a payroll service company; defines terms; makes related provisions.
STATE OF NEW YORK
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6724--A
2019-2020 Regular Sessions
IN SENATE
September 18, 2019
___________
Introduced by Sen. BENJAMIN -- read twice and ordered printed, and when
printed to be committed to the Committee on Rules -- recommitted to
the Committee on Budget and Revenue in accordance with Senate Rule 6,
sec. 8 -- committee discharged, bill amended, ordered reprinted as
amended and recommitted to said committee
AN ACT to amend the tax law, in relation to the losses from payroll
interruption credit; and providing for the repeal of such provisions
upon expiration thereof
The People of the State of New York, represented in Senate and Assem-bly, do enact as follows:
1 Section 1. Section 606 of the tax law is amended by adding a new
2 subsection (kkk) to read as follows:
3 (kkk) Losses from payroll interruption credit. (1) For taxable years
4 beginning on or after January first, two thousand nineteen, a qualified
5 taxpayer will be able to claim a refundable credit up to two hundred
6 fifty dollars for eligible losses incurred from the interruption in the
7 payment of their wages or salary due to an action by a payroll service
8 company or an automated clearing house processor.
9 (2) For purposes of this subsection, the following definitions shall
10 apply:
11 (i) "qualified taxpayer" shall mean a resident of New York with a
12 federal adjusted gross income up to ninety thousand dollars if filing as
13 a single, head of household, or qualified widow(er) filer or one hundred
14 eighty thousand dollars if married filing jointly.
15 (ii) "eligible losses" shall mean any penalties or fees incurred due
16 to having a loss of wages or salary due to the delay, withdrawal or loss
17 of a paycheck or paychecks due to the actions of a payroll company or an
18 automated clearing house processor, including but not limited to fees
19 and penalties for an overdrawn bank account, late rent payment, late
20 loan payments, or other losses.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[] is old law to be omitted.
LBD13815-02-0
S. 6724--A 2
1 (iii) "payroll service company" means a company contracted by the
2 qualified taxpayer's employer to handle responsibilities including but
3 not limited to setting up and making adjustments to direct deposit
4 accounts, calculating payroll taxes and ensuring correct deductions are
5 made, providing electronic payroll records to employees and employers,
6 and ensuring compliance with all state and federal laws governing
7 payroll and payroll deductions.
8 (iv) "automated clearing house processor" means a company responsible
9 for processing payments on an automated clearing house network.
10 (v) "automated clearing house network" means any electronic network
11 utilized to make electronic fund transfers governed by rules and regu-
12 lations established by the national automated clearing house association
13 (NACHA).
14 (3) Proof of claim. The commissioner may require a qualified taxpayer
15 to furnish information necessary to prove that the eligible losses being
16 claimed are the result of a specific interruption in the payment of
17 wages and salary to the taxpayer, as determined by the commissioner.
18 (4) If the amount of the credit allowed under this subsection for any
19 taxable year shall exceed the taxpayer's tax for such year, the excess
20 shall be treated as an overpayment of tax to be credited or refunded in
21 accordance with the provisions of section six hundred eighty-six of this
22 article, provided, however, that no interest shall be paid thereon.
23 (5) Credit recapture. For provisions requiring recapture of credit,
24 see section forty-four of this chapter.
25 § 2. This act shall take effect immediately and shall apply to taxable
26 years beginning on and after January 1, 2019 and shall expire and be
27 deemed repealed January 1, 2021.