New York Assembly Bill A11282

New York 2025-2026 Regular Session

• Introduced: 5/6/26
• Refer: 5/6/26
• Report Pass: 5/11/26
• Refer: 5/11/26
• Report Pass: 5/28/26
• Refer: 5/28/26

Caption

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

Summary

A11282 would add a new section to the General Business Law requiring certain payroll services businesses, as a condition of their contracts with clients, to compile and provide annual wage and tax statements and other year-end forms, including W-2s, for the client and the client’s employees. The bill says these documents must be provided without additional cost or delay, and that a financial dispute or other disagreement between the payroll provider and the client cannot be used as a reason to withhold, delay, or fail to deliver the forms. The bill also defines “payroll services business” for this purpose as a business that collects payroll data and uses it to generate paychecks, payroll reports, and tax filings, while excluding offices of certified public accountants and businesses that also provide accounting, bookkeeping, or billing services. It authorizes civil penalties of up to $1,000 for a first violation and up to $1,500 for each later violation, and it would take effect 90 days after becoming law.

Impact

If enacted, the bill would create a new consumer/business compliance obligation in New York’s General Business Law for payroll service providers, making timely delivery of W-2s and other year-end tax forms a statutory requirement rather than only a contractual matter. It would give clients and their employees stronger protection against payroll vendors withholding tax documents during billing or service disputes, and it would expose noncompliant providers to civil penalties enforced under state law.

Sentiment

The available voting history suggests generally favorable sentiment toward the bill in committee, with strong majority votes to advance it from the Assembly Consumer Affairs and Protection Committee and then from the Assembly Codes Committee. The bill appears to have been viewed as a practical protection for clients and workers who depend on payroll vendors for tax reporting, with no recorded committee transcript indicating organized opposition in the materials provided.

Contention

The main point of contention appears to be the scope of the mandate and the penalties imposed on payroll services businesses, especially whether a vendor should be barred from using document delivery as leverage in a payment or contract dispute. Another likely issue is the bill’s definition of covered businesses, which excludes CPAs and firms that also provide accounting, bookkeeping, or billing services, potentially limiting the reach of the new requirements. The recorded votes show some dissent, indicating at least some concern about the regulatory burden or enforcement approach, even though the measure advanced with clear support.