HB1795

Pennsylvania HB1795 requires payroll processors to provide proof of fidelity insurance and surety bonds annually and imposes penalties for.

Pennsylvania HB1795, known as the Payroll Bond Act, mandates that payroll processors provide annual proof of fidelity insurance or surety bonds. These bonds must be in the form of a fidelity bond, employee dishonesty bond, third-party fidelity coverage, or liability insurance, including crime coverage. The bond amount must be at least twice the highest weekly payroll processed by the payroll processor in the preceding year, up to a maximum of $5,000,000. Surety companies must notify the Secretary of Revenue when a bond is canceled, terminated, or lapses.