Bill > HB764

This bill, the Payroll Bond Act, requires payroll processors in Pennsylvania to annually provide proof of fidelity insurance or surety bonds to the Secretary of Revenue. The fidelity insurance or surety bonds must cover an amount equal to two times the highest weekly payroll processed by the payroll processor in the preceding year, or $5 million, whichever is less. Additionally, payroll processors must provide a surety bond in an amount equal to the total of all federal, state, and local tax payments and unemployment insurance premiums processed on behalf of employers in the three-month period of highest volume during the previous calendar year, or $50,000, whichever is greater, but not to exceed $500,000. Payroll processors who fail to secure sufficient bonding can be fined $1,000 for the first offense and $5,000 for each subsequent offense.