Bill > S03330

This bill amends the tax law to clarify how professional employer organizations (PEOs) calculate their business income for tax apportionment purposes. Specifically, the bill requires PEOs to include in their receipts calculations the amounts they receive related to wages, benefits, employee expenses, and employment taxes paid on behalf of their client's worksite employees, but only if these amounts are included in the calculation of their business income base. A professional employer organization is a company that provides comprehensive HR services to businesses, including payroll processing, benefits administration, and employment tax management. The bill ensures that when PEOs calculate their state tax apportionment (the method for determining how much of their income is taxable in a particular state), they must include these pass-through employee-related expenses in their total receipts. The amendments apply to taxable years beginning on or after January 1, 2015, and are designed to provide more consistent and transparent tax reporting for this specific type of business service.

Budget and Finance

https://www.nysenate.gov/legislation/bills/2025/S3330