What's happening
This bill extends the minimum wage reimbursement tax credit to include seasonal employees working 90 days or less per year.
Why it matters
Expands eligibility for the minimum wage reimbursement tax credit. to include not just student employees aged 16–19, but any seasonal worker employed for 90 days or less—broadening the benefit to a wider range of employers and workers, including those outside of typical youth summer jobs.
Could significantly reduce labor costs for businesses with fluctuating or seasonal staffing needs. (such as farms, resorts, and event venues), potentially encouraging more hiring of short-term workers.
Might increase job opportunities for adults and non-students seeking seasonal or temporary employment. , since employers will have a new financial incentive to hire them at the minimum wage.
Intends to take effect retroactively for taxable years beginning January 1, 2019. , which could allow businesses to claim the credit for eligible seasonal employees already hired that year, potentially resulting in immediate tax relief.
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Headline styles
Tax Credit for Seasonal Workers
Plain English, a few words. Used as the page title.
Sponsors
1 Co-sponsor
History
- Referred to investigations and government operations
- Referred to investigations and government operations
Companion bill
The same bill in the other chamber. A bill becomes law when one version passes both houses and the governor signs it, so either number can carry it.
Tax Credit for Seasonal Workers
In Assembly Committee · Ways And Means · Sponsor Aileen Gunther
Full text
1 pageUnderlined is new[Struck] is removedOfficial text on nysenate.gov ↗
STATE OF NEW YORK
1292
2019-2020 Regular Sessions
IN SENATE
January 14, 2019
Introduced by Sen. FUNKE -- read twice and ordered printed, and when printed to be committed to the Committee on Investigations and Government Operations
AN ACT to amend the tax law, in relation to extending the minimum wage reimbursement credit to seasonal employees
The People of the State of New York, represented in Senate and Assembly, do enact as follows:
Section 1. Subdivision (b) of section 38 of the tax law, as added by section 1 of part EE of chapter 59 of the laws of 2013, is amended to read as follows:
(b) An eligible employer is a corporation (including a New York S corporation), a sole proprietorship, a limited liability company or a partnership. An eligible employee is an individual who is (i) employed by an eligible employer in New York state, (ii) paid at the minimum wage rate as defined in article nineteen of the labor law during the taxable year by the eligible employer, (iii) between the ages of sixteen and nineteen during the period in which he or she is paid at such minimum wage rate by the eligible employer, [and] (iv) a student during the period in which he or she is paid at such minimum wage rate by the taxpayer, and (v) notwithstanding the provisions of paragraphs (iii) and (iv) of this subdivision, an eligible employee shall also mean any employee who meets the criteria set forth in paragraphs (i) and (ii) of this subdivision who is temporarily employed for a period of ninety days or less in a calendar year; provided, however, that the provisions of this paragraph shall be applicable to taxable years beginning on and after January first, two thousand nineteen.
§ 2. This act shall take effect immediately.
EXPLANATION--Matter in italics (underscored) is new; matter in brackets
[ ] is old law to be omitted.
LBD01458-01-9
Reflowed for reading: line numbers and page breaks removed. Cite the official text.
Sponsor's memo
Title of bill
An act to amend the tax law, in relation to extending the minimum wage reimbursement credit to seasonal employees
Purpose
Relates to a tax credit for minimum wages paid to seasonal employees
Summary of specific provisions
Section one: amends the tax law to add a temporary employee working for 90 days or less to those employees eligible for the minimum wage reimbursement credit
Section two: sets forth the effective date
Justification
The legislation would create a tax credit for employers that hire mini- mum wage workers for seasonal employment, expanding on the minimum wage reimbursement tax credit that was created in 2013 in contemplation of that years statewide minimum wage increase. As the State recently enacted a tiered minimum wage increase through 2021, the State should similarly offer and expand this tax credit so that more employers can access the credit while maintaining the current workforce. This expan- sion of the credit is needed to support industries such as the tourism in the state, who depend on seasonal success to promote our great state. Specifically, the tourism industry in New York is the fourth largest employer among all industries throughout the state, sustaining 764,000 jobs with total income in excess of $33.1 billion. The industry is able to generate even more employment and income for residents through the hiring of many seasonal employees for the many seasonal establishments that are open only during the limited time throughout the year. Expand- ing this credit to include these seasonal employees, lessens the finan- cial and governmental burden place on those businesses who provide so much to their localities in terms of economic developmen t and promotion. Furthermore more, the expansion of the minimum wage reimbursement credit will apply only to those workers employed in posi- tions for 90 days or less during a calendar year.
Prior legislative history
New Bill
Fiscal implications
None
Effective date
This act shall take effect immediately.
Summaries, headlines and scores are AI-generated from the official bill text. How we score bills. Source: NYS Open Legislation.