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Bill

S 9755

Requires a payroll services business to compile and provide annual wage and tax statements and/or year-end forms to clients

2025 Regular Session Introduced by Zellnor Myrie and 3 co-sponsors

Payroll services firms must proactively provide clients’ and employees’ annual wage and tax statements (W-2s) and year-end forms without cost or delay.

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Bill Summary · S 9755

Bill Summary: S 9755 (2025-2026) – New York

Title

Requires a payroll services business to compile and provide annual wage and tax statements and/or year-end forms to clients

Purpose and Intent

  • To ensure that clients of payroll services businesses receive their annual wage and tax statements (e.g., W-2s) and year-end forms directly and without added cost or delay.
  • To prohibit withholding, delaying, or failing to deliver these essential documents as part of any contract or agreement with a client.

Key Provisions

  1. New Requirement for Payroll Services Contracts (Section 394-j)

    • A payroll services business entering into a contract with a client must, as a condition of the contract, compile and provide:
      • The client’s and the client’s employees’ annual wage and tax statements (including W-2 forms).
      • Any year-end forms.
    • These documents must be provided without additional cost or delay.
    • The business may not, through any financial dispute or other dispute with the client, withhold, delay, or fail to deliver these statements and forms.

  2. Remedies and Damages (Section 394-j(2))

    • A client (and the client’s employees damaged by a violation) may sue to recover damages for violations of this section.
    • The provision clarifies that employees cannot sue the client for damages caused by a payroll services business’s violation; only the payroll services business is subject to damages recovery for this violation.

  3. Definition of “Payroll Services Business” (Section 394-j(3))

    • A payroll services business is defined as:
      • A business (not including an office of a certified public accountant) engaged in: 1) Collecting information on hours worked, pay rates, deductions, and other payroll data from clients; and 2) Using that information to generate paychecks, payroll reports, and tax filings.
    • The section allows the use of data processing and tabulating techniques as part of providing services.

  4. Effective Date (Section 394-j(4))

    • The act takes effect on the 90th day after it becomes law.

Who Would Be Affected

  • Employers and organizations that contract payroll services (e.g., payroll processing firms) meeting the above definition.
  • Clients (employers) and their employees who rely on payroll services for wage statements and year-end forms.
  • The bill excludes offices of certified public accountants from the definition of “payroll services business.”

Procedural and Timeline Aspects

  • Enactment timeline: The act would take effect 90 days after becoming law.
  • Enforcement: Allows clients and their employees harmed by violations to sue for damages; the payroll services business would face potential damages recovery.

Practical Impact

  • Increased obligation on payroll services providers to proactively generate and deliver annual wage statements and year-end forms to clients and employees without extra charge.
  • Potential shift in dispute resolution, with damages available to clients/employers (not employees) for noncompliance.
  • Clear definitional scope to prevent ambiguity about which entities must comply.

Considerations for Stakeholders

  • Payroll services providers: Assess contracts and workflows to ensure timely preparation and delivery of W-2s and year-end forms.
  • Employers/Clients: Verify that their contracts with payroll services include explicit commitments to provide required documents without cost or delay.
  • Employees: Benefit from timely receipt of wage statements, facilitating tax filing and record-keeping.

If you’d like, I can compare this bill to similar existing New York or federal requirements or provide a quick glossary of the key terms (e.g., W-2, year-end forms) for non-expert readers.

Compiled from official sources — confirm details with the bill’s official record.

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