IN HB1047

Payroll service providers must offer business clients the option to hold their funds in a client-owned bank account insured by FDIC or National Credit Union Share Insurance Fund, rather than in the provider's account

Payroll service providers must obtain a performance bond equal to each business client's total annual estimated payroll taxes

Contracts for third-party payroll services must require providers to reimburse clients for penalties and interest if the provider's errors cause late tax deposits

Effective date: July 1, 2026