Indiana § 6-8.1-18-4 Payroll service provider; permitted to retain income generated on client
funds

Indiana Statutes

§ 6-8.1-18-4 — Payroll service provider; permitted to retain income generated on client funds

Indiana § 6-8.1-18-4

Art. 8.1DEPARTMENT OF STATE REVENUE; TAX

Ch. 18Payroll Service Provider Registration

This text of Indiana § 6-8.1-18-4 (Payroll service provider; permitted to retain income generated on client funds) is published on Counsel Stack Legal Research, covering Indiana primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook

Ind. Code § 6-8.1-18-4 (2026).

Text

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:

(1)complies with the National Automated Clearing House Association rules;

(2)maintains bank and custodial accounts for client funds that are segregated from any operating funds of the payroll service provider; and

(3)either:

(A)is a publicly held company (subject to Securities and Exchange Commission reporting, public company accounting standards, and audit requirements);

(B)is subject to federal or Indiana financial regulatory oversight related to the handling of clien

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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:
(1) complies with the National Automated Clearing House
Association rules;
(2) maintains bank and custodial accounts for client funds that are
segregated from any operating funds of the payroll service
provider; and
(3) either:
(A) is a publicly held company (subject to Securities and
Exchange Commission reporting, public company accounting
standards, and audit requirements);
(B) is subject to federal or Indiana financial regulatory
oversight related to the handling of client funds;
(C) is subject to review by partner financial institutions at least
annually; or
(D) conducts annual SOC 1 or SOC 2 reports of security and
integrity controls.