Bill > S04188

This bill establishes a new crime called "misappropriation of payroll funds," which occurs when someone knowingly takes money intended for employee wages or payroll taxes and intentionally prevents it from being used for those purposes. Payroll taxes are the taxes employers are required to withhold from employee paychecks and remit to the government. The bill clarifies that a temporary delay in transferring funds, if it's part of an agreement between a payroll company and an employer to investigate suspicious transactions, will not be considered misappropriation. It also states that payroll processing companies are not liable if an employer fails to provide enough money. This new offense is classified as a Class A misdemeanor, which is a serious but less severe type of criminal offense.

Housing and Urban Affairs

https://www.nysenate.gov/legislation/bills/2025/S4188