HB1047

Indiana HB1047 regulates payroll service providers by requiring them to offer clients the option to hold funds in their own bank accounts and to.

Indiana HB1047 mandates that payroll service providers allow business clients to hold their funds in bank accounts owned by the clients, rather than in the provider's account. These accounts must be insured by the Federal Deposit Insurance Corporation or the National Credit Union Share Insurance Fund. Additionally, payroll service providers must obtain a performance bond equal to the business client's total annual estimated payroll taxes. This bill aims to protect business clients' funds and ensure financial responsibility from payroll service providers. Effective July 1, 2026.