{"data":{"id":"us-in/ic-6-8.1-18-4","jurisdiction":"us-in","citation":"IC 6-8.1-18-4","heading":"Payroll service provider; permitted to retain income generated on client funds","body":"Sec. 4. Notwithstanding section 3(b)(2) of this chapter, a payroll service provider shall be permitted to retain any income generated on client funds while held in a payroll service provider's legal possession pending remittance to authorized payees if the client agreement expressly permits it and the payroll service provider:\n(1) complies with the National Automated Clearing House Association rules;\n(2) maintains bank and custodial accounts for client funds that are segregated from any operating funds of the payroll service provider; and\n(3) either:\n(A) is a publicly held company (subject to Securities and Exchange Commission reporting, public company accounting standards, and audit requirements);\n(B) is subject to federal or Indiana financial regulatory oversight related to the handling of client funds;\n(C) is subject to review by partner financial institutions at least annually; or\n(D) conducts annual SOC 1 or SOC 2 reports of security and integrity controls.","path":["TITLE 6. TAXATION","ARTICLE 8.1. DEPARTMENT OF STATE REVENUE; TAX ADMINISTRATION","Chapter 18. Payroll Service Provider Registration"],"source_url":"https://iga.in.gov/ic/2026/Title_6.html#6-8.1-18-4","current_through":"2026","vintage":"2026","retrieved_at":"2026-09-09T01:51:39Z","sha256":"bb46fb1a9bb0a34ed2dbfa342ed287be070aac541879b0e26af074cd0af7d038","source_id":"us-in","stale":false,"prev":"us-in/ic-6-8.1-18-3","next":"us-in/ic-6-8.1-18-5"},"notice":"GroundRules: Original legal text. Not legal advice."}