Bill
LC 3441
Overview: Bill Number: LC 3441, Title: Preclude non-profit officers from personal liability for unpaid tax withholding, Status: (LC) Draft in Assembly, Introduced: December 14, 202
Overview: Bill Number: LC 3441, Title: Preclude non-profit officers from personal liability for unpaid tax withholding, Status: (LC) Draft in Assembly, Introduced: December 14, 2024
Purpose and Intent: The purpose of this bill is to protect non-profit organization officers from personal liability for unpaid employee tax withholding, provided they have acted in good faith and without gross negligence. The intent is to encourage qualified individuals to serve on non-profit boards without fear of undue personal financial risk.
Key Provisions:
- Exempts non-profit officers from personal liability for unpaid employee income tax, Social Security, and Medicare withholding, as long as they have acted in good faith
- Maintains personal liability for officers who are found to have acted with gross negligence or intentional misconduct
- Applies retroactively to cover past unpaid withholding, provided the officer meets the good faith criteria
- Requires non-profits to maintain appropriate tax withholding and payment procedures
Affected Parties and Impacts:
- Non-profit organization officers, who will have reduced personal financial risk for unpaid withholding
- Non-profit organizations, which may find it easier to recruit qualified board members
- Employees of non-profits, who could be impacted if withholding issues arise due to officer negligence
Procedural and Timeline Considerations:
The bill is currently in the draft stage and under consideration by the state assembly. If passed, the law would likely take effect within 6 months to allow non-profits to review their procedures.
Compiled from official sources — confirm details with the bill’s official record.
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