 
                STATE OF NEW YORK
        ________________________________________________________________________
 
                                          3141
 
                               2025-2026 Regular Sessions
 
                   IN ASSEMBLY
 
                                    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:
 
     1    Section 1. Paragraph (a) of subdivision 10 of section 210-A of the tax
     2  law, as added by section 16 of part A of chapter 59 of the laws of 2014,
     3  is amended to read as follows:
     4    (a)  Receipts  from  other  services  and  other  business   receipts.
     5  Receipts from services not addressed in subdivisions one through nine of
     6  this  section and other business receipts not addressed in such subdivi-
     7  sions shall be included in the numerator of the  apportionment  fraction
     8  if  the location of the customer is within the state. Such receipts from
     9  customers within and without the state are included in  the  denominator
    10  of  the  apportionment fraction. For purposes of this paragraph, taxpay-
    11  ers, and combined groups including members, engaged in providing profes-
    12  sional employer organization services shall include with  such  receipts
    13  amounts  received  with  respect  to wages, benefits, and other employee
    14  expenses disbursed to or for the benefit of a client's worksite  employ-
    15  ees  and  the  related  employment  taxes  if  the  amounts received are
    16  included in the calculation of the business income base or the  combined
    17  business income base, respectively. Whether the receipts are included in
    18  the  numerator  of the apportionment fraction is determined according to
    19  the hierarchy of method set forth in paragraph (b) of this  subdivision.
    20  The  taxpayer must exercise due diligence under each method described in
    21  such paragraph (b) before rejecting it and proceeding to the next method
    22  in the hierarchy, and must base its determination on  information  known
    23  to  the taxpayer or information that would be known to the taxpayer upon
    24  reasonable inquiry.
    25    § 2. This act shall take effect immediately and shall apply to taxable
    26  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
Relates to professional employer organization services

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