Driscoll introduces legislation to help protect Pa. workers, businesses

Rep. Michael Driscoll    October 31, 2019 | 11:50 AM

HARRISBURG, Oct. 31 – State Rep. Mike Driscoll, D-Phila., today announced he has introduced legislation that would help protect Pennsylvania employers and their workers from payroll processing fraud.

House Bill 1976 would require a payroll processing company operating in the commonwealth to be fiscally bonded to cover any financial mistakes or fraudulent activity. The businesses served by the payroll processor would be protected in the event of errors or criminal activity.

“Pennsylvanians work hard, and they should not have to worry whether the proper taxes are being taken out of their paychecks. Yet, there are some payroll processors that could create errors, resulting in both workers and employers paying in the end,” Driscoll said. “My legislation is designed to help avoid such issues and make the processors be responsible for their financial mistakes.”

Under the legislation, the processing company would have to report annually to the Department of Revenue to ensure proper bond coverage is maintained. If found to not have proper coverage, a payroll processor would be fined $1,000 for the first offense and $5,000 for each subsequent offense.

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