LD 1843
pg. 2
Page 1 of 12 PUBLIC Law Chapter 668 Page 3 of 12
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LR 2668
Item 1

 
A.__Funds received from that employer; and

 
B.__The aggregate amounts disbursed for:

 
(1)__Payroll;

 
(2)__Each category of local, state and federal tax; and

 
(3)__Unemployment compensation premiums.

 
4.__Disclosure of methods of verification.__On a regular basis
not less frequently than quarterly, a payroll processor shall
clearly and conspicuously and in easily understood language
disclose to each employer for which it provides payroll
processing services the specific method or methods whereby each
employer can contact state and federal tax and unemployment
insurance authorities, including but not limited to Internet
address and toll-free telephone number information, to verify
that payments have been made and properly credited on behalf of
the employer.

 
5. Disclosure of limitations of surety bond.__Whenever a
payroll processor promotes, markets or advertises itself or its
services and uses the phrase "bonded with the State" or "fully
bonded" or other language that in the opinion of the
administrator would lead an employer to believe that the bond
coverage provides full compensation for potential losses should
the payroll processor fail to make required payments or become
insolvent, the payroll processor shall also include a clear and
conspicuous disclaimer stating that use of the language
referencing bonding does not signify or ensure that the bond will
cover all potential claims if the payroll processor fails to
comply with its responsibilities under this chapter.__A payroll
processor also shall provide this disclaimer to an employer
before contracting for payroll processing services to that
employer.

 
6.__Notices of nonpayment to be sent to employers.__A payroll
processor may not designate itself as the sole recipient of
notices from state or federal authorities for nonpayment of taxes
or unemployment insurance contributions.__A payroll processor
shall ensure that such notices are provided directly to the
affected employers.

 
7.__Exception.__A payroll processor that does not have the
authority to access, control, direct, transfer or disburse a
client's funds is not subject to this section.


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