Bill > A03141

This bill amends the New York tax law to clarify how professional employer organizations (PEOs) calculate their business income base for tax apportionment purposes. Specifically, the bill requires PEOs to include in their receipts the amounts they receive related to wages, benefits, employee expenses, and associated employment taxes for worksite employees, but only if these amounts are part of the calculation of the business income base. A professional employer organization is a company that provides comprehensive HR services to businesses, including payroll management, benefits administration, and employment tax handling. The amendment ensures that when PEOs are determining their tax apportionment (how much of their business income is taxable in New York), they must include these employee-related expense reimbursements in their calculations. The bill is retroactive, applying to taxable years beginning on or after January 1, 2015, which suggests it is clarifying an existing tax treatment rather than introducing a completely new tax approach.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/A3141