Bill Text: NY S06724 | 2019-2020 | General Assembly | Amended

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Bill Title: Provides that for taxable years beginning on or after January first, two thousand nineteen, a qualified taxpayer will be able to claim a refundable credit up to two hundred fifty dollars for eligible losses incurred from the interruption in the payment of their wages or salary due to an action by a payroll service company; defines terms; makes related provisions.

Spectrum: Partisan Bill (Democrat 2-0)

Status: (Introduced - Dead) 2020-12-28 - COMMITTED TO RULES [S06724 Detail]

Download: New_York-2019-S06724-Amended.html

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                STATE OF NEW YORK
        ________________________________________________________________________

                                         6724--A

                               2019-2020 Regular Sessions

                    IN SENATE

                                   September 18, 2019
                                       ___________

        Introduced  by Sen. BENJAMIN -- read twice and ordered printed, and when
          printed to be committed to the Committee on Rules  --  recommitted  to
          the  Committee on Budget and Revenue in accordance with Senate Rule 6,
          sec. 8 -- committee discharged, bill  amended,  ordered  reprinted  as
          amended and recommitted to said committee

        AN  ACT  to  amend  the  tax law, in relation to the losses from payroll
          interruption credit; and providing for the repeal of  such  provisions
          upon expiration thereof

          The  People of the State of New York, represented in Senate and Assem-
        bly, do enact as follows:

     1    Section 1. Section 606 of the tax law  is  amended  by  adding  a  new
     2  subsection (kkk) to read as follows:
     3    (kkk)  Losses  from payroll interruption credit. (1) For taxable years
     4  beginning on or after January first, two thousand nineteen, a  qualified
     5  taxpayer  will  be  able  to claim a refundable credit up to two hundred
     6  fifty dollars for eligible losses incurred from the interruption in  the
     7  payment  of  their wages or salary due to an action by a payroll service
     8  company or an automated clearing house processor.
     9    (2) For purposes of this subsection, the following  definitions  shall
    10  apply:
    11    (i)  "qualified  taxpayer"  shall  mean  a resident of New York with a
    12  federal adjusted gross income up to ninety thousand dollars if filing as
    13  a single, head of household, or qualified widow(er) filer or one hundred
    14  eighty thousand dollars if married filing jointly.
    15    (ii) "eligible losses" shall mean any penalties or fees  incurred  due
    16  to having a loss of wages or salary due to the delay, withdrawal or loss
    17  of a paycheck or paychecks due to the actions of a payroll company or an
    18  automated  clearing  house  processor, including but not limited to fees
    19  and penalties for an overdrawn bank account,  late  rent  payment,  late
    20  loan payments, or other losses.

         EXPLANATION--Matter in italics (underscored) is new; matter in brackets
                              [ ] is old law to be omitted.
                                                                   LBD13815-02-0
        S. 6724--A                          2

     1    (iii)  "payroll  service  company"  means  a company contracted by the
     2  qualified taxpayer's employer to handle responsibilities  including  but
     3  not  limited  to  setting  up  and  making adjustments to direct deposit
     4  accounts, calculating payroll taxes and ensuring correct deductions  are
     5  made,  providing  electronic payroll records to employees and employers,
     6  and ensuring compliance  with  all  state  and  federal  laws  governing
     7  payroll and payroll deductions.
     8    (iv)  "automated clearing house processor" means a company responsible
     9  for processing payments on an automated clearing house network.
    10    (v) "automated clearing house network" means  any  electronic  network
    11  utilized  to  make electronic fund transfers governed by rules and regu-
    12  lations established by the national automated clearing house association
    13  (NACHA).
    14    (3) Proof of claim. The commissioner may require a qualified  taxpayer
    15  to furnish information necessary to prove that the eligible losses being
    16  claimed  are  the  result  of  a specific interruption in the payment of
    17  wages and salary to the taxpayer, as determined by the commissioner.
    18    (4) If the amount of the credit allowed under this subsection for  any
    19  taxable  year  shall exceed the taxpayer's tax for such year, the excess
    20  shall be treated as an overpayment of tax to be credited or refunded  in
    21  accordance with the provisions of section six hundred eighty-six of this
    22  article, provided, however, that no interest shall be paid thereon.
    23    (5)  Credit  recapture.  For provisions requiring recapture of credit,
    24  see section forty-four of this chapter.
    25    § 2. This act shall take effect immediately and shall apply to taxable
    26  years beginning on and after January 1, 2019 and  shall  expire  and  be
    27  deemed repealed January 1, 2021.