N.Y. Banking Law § 96-b: Payroll payment by banks or trust companies

§ 96-b. Payroll payment by banks or trust companies. l. Every bank

and trust company shall have the power to enter into contracts with any

municipal corporation, school district, district corporation, town or

county improvement district, public authority, or public corporation to

receive in a single payment, for each pay period, the total payroll of

such corporations, districts or authorities and deposit the same in

accordance with the terms of such contract, which shall include

provision for deposits for withholding, retirement and insurance, if

any.

2. The amount due each employee shall be disbursed or credited in

accordance with the directions of each employee to saving or checking

accounts, or loan or mortgage accounts within such bank or trust company

or to a single account in another bank or trust company or savings bank

or savings and loan association or may be payable in cash or by check to

such employee.