Sec. 3. (a) The department shall require each payroll service provider to annually register with the department in the manner prescribed by the department.

lawyer at desk

Ask a legal question, get an answer ASAP!
Click here to chat with a lawyer about your rights.

Terms Used In Indiana Code 6-8.1-18-3

  • Fraud: Intentional deception resulting in injury to another.
  • Liabilities: The aggregate of all debts and other legal obligations of a particular person or legal entity.
  • payroll service provider: means a third party service provider that is authorized to prepare and file returns, withdraw funds and hold the funds in the payroll service provider's bank account, remit payment, and take other similar reporting and compliance actions on behalf of a business client with regard to that client's tax withholding and remittance duties under IC 6-3-4-8. See Indiana Code 6-8.1-18-1
     (b) The department shall prescribe the annual registration form to be used by a registrant under subsection (a). The form must require at least the following:

(1) A list of all responsible persons of the payroll service provider that provide third party payroll services.

(2) A certification and acknowledgment by the payroll service provider that the bank account that is used by the payroll service provider for employer withholding tax deposits shall only be used for employer withholding tax liabilities and other payroll obligations of client employers that the payroll service provider is holding and is required to remit to the appropriate agency, employee of the employer, or other payee as authorized by the employer, and may not be used for any other purpose (other than using the account as a sweep account under section 4 of this chapter), including for the payment of operating expenses or personal use, and that a payroll service provider’s withdrawal or use of funds in the account for any other purpose constitutes fraud.

As added by P.L.97-2021, SEC.2.

  Previous section
Next section  
 Chapter 18 Contents