Relates to professional employer organization services

Provides that receipts from other services and other business receipts, taxpayers, and combined groups including members, engaged in providing professional employer organization services shall include with such receipts amounts received with respect to wages, benefits, and other employee expenses disbursed to or for the benefit of a client's worksite employees and the related employment taxes if the amounts received are included in the calculation of the business income base or the combined business income base, respectively.

VETO MESSAGE - No. 123 TO THE ASSEMBLY: I am returning herewith, without my approval, the following bill: Assembly Bill Number 3141, entitled: "AN ACT to amend the tax law, in relation to taxpayers, and combined groups including members, engaged in providing professional employer organization services" NOT APPROVED This bill would allow professional employer organizations ("PEOs") to include certain reimbursements received from their clients in their Article 9-A business apportionment factor. This bill's retroactive and selective changes to the Tax Law, which override the regulations implementing corporate tax reform, compromise the predictability and transparency those existing reforms. The proposed amendment conflicts with the essential objectives of corporate tax reform and would destabilize the corporate tax framework that has remained consistent since 2015. Moreover, this bill could...