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2009 SESSION

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HB 2114 Payroll processing services; require provider to register annually with Commissioner of Agriculture.

Introduced by: Paul F. Nichols | all patrons    ...    notes | add to my profiles

SUMMARY AS INTRODUCED:

Payroll processing services.  Requires providers of payroll processing services to register annually with the Commissioner of Agriculture and Consumer Services or, if they are regulated financial institutions or subsidiaries thereof, with the Commissioner of Financial Institutions, and to post surety bonds in amounts equal to the withholdings of income taxes and unemployment compensation taxes that the payroll processers expect to process during the ensuing year. A payroll processor that does not have the authority to access, control, direct, transfer, or disburse a client's funds is not subject to the surety bond requirement. Payroll processors with such authority will be required to provide clients with reports, no less frequently than quarterly, that account for funds received and disbursed. The measure also addresses procedures, including the appointment of a receiver, in the event a payroll processor ceases to conduct business, either voluntarily or involuntarily. These requirements become effective on July 1, 2013, for any person that is providing payroll processing services on July 1, 2009. For any person that commences providing payroll processing services after July 1, 2009, the requirements become effective on the fourth anniversary of the date that the person commenced providing such services.


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