State Rep. Mike Driscoll (D-Philadelphia) recently announced that he introduced legislation to help protect Pennsylvania employers and workers from payroll processing fraud and mistakes on the part of payroll processing companies.
House Bill 1976 would require payroll processing companies operating in Pennsylvania to be fiscally bonded to cover any financial mistakes or fraudulent activity. This would protect businesses served by payroll processors in the event of errors or criminal activity.
“Pennsylvanians work hard, and they should not have to worry whether the proper taxes are being taken out of their paychecks,” Driscoll said. “Yet, there are some payroll processors that could create errors, resulting in both workers and employers paying in the end. My legislation is designed to help avoid such issues and make the processors be responsible for their financial mistakes.”
Under the legislation, payroll processing companies would be required to report annually to the Department of Revenue to ensure they maintain proper bond coverage. If found not to have adequate coverage, a processor would be fined $1,000 for the first offense and $5,000 for each subsequent offense.