Section 361.996

Title XXIV BUSINESS AND FINANCIAL INSTITUTIONS

Chapter 361

Effective - 28 Aug 2024   

  361.996.  Disclosures for payroll processing services. — 1.  A licensee that provides payroll processing services shall:

  (1)  Issue reports to clients detailing client payroll obligations in advance of the payroll funds being deducted from an account; and

  (2)  Make available worker paystubs or an equivalent statement to workers.

  2.  Subsection 1 of this section shall not apply to a licensee providing payroll processing services if the licensee's client designates the intended recipients to the licensee and is responsible for providing the disclosures required by subdivision (2) of subsection 1 of this section.

  3. A licensee may appoint an agent to provide payroll processing services for which the agent would otherwise need to be licensed, provided that:

  (1)  There is a written agreement between the licensee and the agent that directs the agent to provide payroll processing services on the licensee's behalf;

  (2)   The licensee holds the agent out to employees and other licensees as providing payroll processing services on the licensee's behalf; and

  (3)   The licensee's obligation to the payee, including an employee or any other party entitled to receive funds, from the payroll processing services provided by the agent shall not be extinguished if the agent fails to remit the funds to the proper recipient.

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(L. 2024 S.B. 1359)