§ 921 — Minimum net worth, bonding and reporting

§ 921. Minimum net worth, bonding and reporting. 1. Every initial\nregistration and subsequent annual reporting shall be accompanied by a\nreviewed or an audited financial statement of the professional employer\norganization's most recent fiscal year end and prepared within one\nhundred eighty days prior to the date of application or renewal by an\nindependent certified public accountant in accordance with generally\naccepted accounting principles, which statement shall show a minimum net\nworth of seventy-five thousand dollars, and shall be accompanied by a\ncover letter from the independent certified public accountant that the\nprofessional employer organization has satisfied the requirements of\nthis section. A professional employer organization group may submit\ncombined or consolidated audited or reviewed financial statements to\nmeet the requirements of this section. Where the group or the group's\nparent submits a combined or consolidated statement, the statement shall\ninclude supplemental consolidating or combining schedules covering each\nprofessional employer organization registered under the group.\n 2. As a substitute for the requirement set forth in subdivision one of\nthis section, the department may require that the professional employer\norganization deposit in a depository designated by the department a bond\nor securities with a minimum market value of seventy-five thousand\ndollars. The securities so deposited shall include authorizations to the\ndepartment to sell those securities in an amount sufficient to pay any\ntaxes, wages, benefits or other entitlement due a worksite employee, if\nthe professional employer organization does not make those payments when\ndue. Any bond or securities deposited under this subdivision shall not\nbe included for the purpose of calculation of net worth required by\nsubdivision one of this section.\n 3. Every professional employer organization shall submit to the\ndepartment, within sixty days after the end of each calendar quarter, a\nstatement by an independent certified public accountant that all\napplicable federal and state payroll taxes have been paid on a timely\nbasis for that quarter.\n 4. All records, reports and other information obtained from a\nprofessional employer organization under this article, except to the\nextent necessary for the proper administration by the department of this\narticle and all applicable labor laws, shall be confidential and shall\nnot be published or open to public inspection other than to public\nemployees in the performance of their public duties.\n 5. The department may rescind, suspend or revoke a registration for\nfailure to comply with this article. Should a registrant wish to contest\nan action of the department, the department may require such additional\nfinancial assurances or bond required to protect the interests of the\nstate and its citizens during the course of the appeal. Two or more\nviolations by a professional employer organization, of any kind, of this\narticle within any five year period shall be grounds for revocation of a\nregistration and no new registration shall be granted for a period of\ntwo years to such professional employer organization or to any person\nwho was or should have been listed by such professional employer\norganization at the time of registration in compliance with paragraph\n(e) of subdivision one of section nine hundred nineteen of this article.\n