NY Lab L § 921 (2021)
2021 New York Laws LAB - Labor Article 31 - New York Professional Employer Act 921 - Minimum Net Worth, Bonding and Reporting.

§  921.  Minimum  net  worth,  bonding and reporting. 1. Every initial   registration and subsequent annual reporting shall be accompanied  by  a   reviewed  or an audited financial statement of the professional employer   organization's most recent fiscal  year  end  and  prepared  within  one   hundred  eighty  days  prior to the date of application or renewal by an   independent certified public accountant  in  accordance  with  generally   accepted accounting principles, which statement shall show a minimum net   worth  of  seventy-five  thousand dollars, and shall be accompanied by a   cover letter from the independent certified public accountant  that  the   professional  employer  organization  has  satisfied the requirements of   this section. A professional  employer  organization  group  may  submit   combined  or  consolidated  audited  or reviewed financial statements to   meet the requirements of this section. Where the group  or  the  group's   parent submits a combined or consolidated statement, the statement shall   include  supplemental consolidating or combining schedules covering each   professional employer organization registered under the group.2. As a substitute for the requirement set forth in subdivision one of   this section, the department may require that the professional  employer   organization deposit in a depository designated by the department a bond   or  securities  with  a  minimum  market  value of seventy-five thousand   dollars. The securities so deposited shall include authorizations to the   department to sell those securities in an amount sufficient to  pay  any   taxes,  wages, benefits or other entitlement due a worksite employee, if   the professional employer organization does not make those payments when   due. Any bond or securities deposited under this subdivision  shall  not   be  included  for  the  purpose  of calculation of net worth required by   subdivision one of this section.3. Every  professional  employer  organization  shall  submit  to  the   department,  within sixty days after the end of each calendar quarter, a   statement  by  an  independent  certified  public  accountant  that  all   applicable  federal  and  state payroll taxes have been paid on a timely   basis for that quarter.4.  All  records,  reports  and  other  information  obtained  from  a   professional  employer  organization  under  this article, except to the   extent necessary for the proper administration by the department of this   article and all applicable labor laws, shall be confidential  and  shall   not  be  published  or  open  to  public inspection other than to public   employees in the performance of their public duties.5. The department may rescind, suspend or revoke  a  registration  for   failure to comply with this article. Should a registrant wish to contest   an  action of the department, the department may require such additional   financial assurances or bond required to protect the  interests  of  the   state  and  its  citizens  during  the course of the appeal. Two or more   violations by a professional employer organization, of any kind, of this   article within any five year period shall be grounds for revocation of a   registration and no new registration shall be granted for  a  period  of   two  years  to  such professional employer organization or to any person   who was or  should  have  been  listed  by  such  professional  employer   organization  at  the  time of registration in compliance with paragraph   (e) of subdivision one of section nine hundred nineteen of this article.