Indiana Code 6-8.1-18-5. Payroll service provider; required contract provisions; third party payroll services
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Terms Used In Indiana Code 6-8.1-18-5
- Contract: A legal written agreement that becomes binding when signed.
- 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
Sec. 5. A contract entered into by a business client with a payroll service provider for third party payroll services must include a provision that substantially specifies that if the payroll service provider fails to deposit a business client’s employer withholding taxes when due, and the failure is caused by an error or omission of the payroll service provider and not by the business client, the payroll service provider shall be required to reimburse the business client for the business client’s payment of any penalties or interest assessed by the department as a result of the failure.
As added by P.L.97-2021, SEC.2.