N.Y. Labor Law § 921: Minimum net worth, bonding and reporting

§ 921. Minimum net worth, bonding and reporting. 1. Every initial

registration and subsequent annual reporting shall be accompanied by a

reviewed or an audited financial statement of the professional employer

organization's most recent fiscal year end and prepared within one

hundred eighty days prior to the date of application or renewal by an

independent certified public accountant in accordance with generally

accepted accounting principles, which statement shall show a minimum net

worth of seventy-five thousand dollars, and shall be accompanied by a

cover letter from the independent certified public accountant that the

professional employer organization has satisfied the requirements of

this section. A professional employer organization group may submit

combined or consolidated audited or reviewed financial statements to

meet the requirements of this section. Where the group or the group's

parent submits a combined or consolidated statement, the statement shall

include supplemental consolidating or combining schedules covering each

professional employer organization registered under the group.

2. As a substitute for the requirement set forth in subdivision one of

this section, the department may require that the professional employer

organization deposit in a depository designated by the department a bond

or securities with a minimum market value of seventy-five thousand

dollars. The securities so deposited shall include authorizations to the

department to sell those securities in an amount sufficient to pay any

taxes, wages, benefits or other entitlement due a worksite employee, if

the professional employer organization does not make those payments when

due. Any bond or securities deposited under this subdivision shall not

be included for the purpose of calculation of net worth required by

subdivision one of this section.

3. Every professional employer organization shall submit to the

department, within sixty days after the end of each calendar quarter, a

statement by an independent certified public accountant that all

applicable federal and state payroll taxes have been paid on a timely

basis for that quarter.

4. All records, reports and other information obtained from a

professional employer organization under this article, except to the

extent necessary for the proper administration by the department of this

article and all applicable labor laws, shall be confidential and shall

not be published or open to public inspection other than to public

employees in the performance of their public duties.

5. The department may rescind, suspend or revoke a registration for

failure to comply with this article. Should a registrant wish to contest

an action of the department, the department may require such additional

financial assurances or bond required to protect the interests of the

state and its citizens during the course of the appeal. Two or more

violations by a professional employer organization, of any kind, of this

article within any five year period shall be grounds for revocation of a

registration and no new registration shall be granted for a period of

two years to such professional employer organization or to any person

who was or should have been listed by such professional employer

organization at the time of registration in compliance with paragraph

(e) of subdivision one of section nine hundred nineteen of this article.