Bill > HB1976

This bill requires payroll processors in Pennsylvania to annually provide proof of fidelity insurance or surety bonds to the Secretary of Revenue. The minimum coverage amounts are either twice the highest weekly payroll processed in the previous year or $5 million, whichever is less, for fidelity insurance, and the total of all federal, state, and local tax payments and unemployment insurance premiums processed in the highest three-month period of the previous year or $50,000, whichever is greater (but not to exceed $500,000), for surety bonds. Payroll processors who fail to secure sufficient bonding can be fined $1,000 for the first offense and $5,000 for each subsequent offense, with the proceeds going to the state's General Fund.