Relates to professional employer organization services, the official text

S T A T E   O F   N E W   Y O R K
 ________________________________________________________________________
 
                                   3141
 
                        2025-2026 Regular Sessions
 
                           I N  A S S E M B L Y
 
                             January 23, 2025
                                ___________
 
 Introduced by M. of A. LUNSFORD, JENSEN -- read once and referred to the
   Committee on Ways and Means
 
 AN  ACT  to  amend  the  tax law, in relation to taxpayers, and combined
   groups including members, engaged in providing  professional  employer
   organization services

   THE  PEOPLE OF THE STATE OF NEW YORK, REPRESENTED IN SENATE AND ASSEM-
 BLY, DO ENACT AS FOLLOWS:
 
   Section 1. Paragraph (a) of subdivision 10 of section 210-A of the tax
 law, as added by section 16 of part A of chapter 59 of the laws of 2014,
 is amended to read as follows:
   (a)  Receipts  from  other  services  and  other  business   receipts.
 Receipts from services not addressed in subdivisions one through nine of
 this  section and other business receipts not addressed in such subdivi-
 sions shall be included in the numerator of the  apportionment  fraction
 if  the location of the customer is within the state. Such receipts from
 customers within and without the state are included in  the  denominator
 of  the  apportionment fraction. FOR PURPOSES OF THIS PARAGRAPH, TAXPAY-
 ERS, AND COMBINED GROUPS INCLUDING MEMBERS, ENGAGED IN PROVIDING PROFES-
 SIONAL 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  EMPLOY-
 EES  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. Whether the receipts are included in
 the  numerator  of the apportionment fraction is determined according to
 the hierarchy of method set forth in paragraph (b) of this  subdivision.
 The  taxpayer must exercise due diligence under each method described in
 such paragraph (b) before rejecting it and proceeding to the next method
 in the hierarchy, and must base its determination on  information  known
 to  the taxpayer or information that would be known to the taxpayer upon
 reasonable inquiry.
   § 2. This act shall take effect immediately and shall apply to taxable
 years beginning on and after January 1, 2015.
 
  EXPLANATION--Matter in ITALICS (underscored) is new; matter in brackets
                       [ ] is old law to be omitted.
                                                            LBD03263-01-5