House Co-Sponsorship Memoranda

House of Representatives
Session of 2019 - 2020 Regular Session

Posted:	August 23, 2019 08:53 AM
From:	Representative Michael J. Driscoll
To:	All House members
Subject:	Protecting Employers and Employees from Payroll Processor Fraud

When an employer decides to save themselves time and resources by hiring a payroll processor, the employer and their employees should have confidence that the payroll processor will fulfill their responsibilities and pay the correct taxes. When payroll processing fraud occurs, our local businesses and their employees feel the greatest pain because they are now responsible to pay any unpaid taxes, which they previously paid and entrusted to their payroll processor. As a solution to this problem, I am introducing legislation which would require a payroll processor operating in Pennsylvania to be bonded to cover any financial mistakes or fraudulent activity. Through these bonds, a processor’s clients would be protected in the event of errors or criminal activity, such as theft or fraud. Annual reporting will be required to the Department of Revenue to ensure proper coverage is maintained. I ask that you support this legislation and join me in helping protect Pennsylvania businesses and our workers from undue hardship when a payroll processor or one of its employees commits fraud.
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Introduced as HB1976