Bill > HB497

This bill requires payroll processors in Pennsylvania to annually provide proof of fidelity insurance or surety bonds to the Secretary of Revenue. Payroll processors must have fidelity insurance or a surety bond equal to the highest three-month period of tax payments and unemployment insurance premiums they processed in the previous year, up to $500,000. Payroll processors who fail to comply will be fined $1,000 for the first offense and $5,000 for each subsequent offense. The bill aims to protect employers and government agencies by ensuring payroll processors have appropriate insurance and bonding to cover tax payments and other obligations.