Paychex faces tax regulation battle

Paychex is facing a significant challenge regarding New York’s tax regulations on income apportionment. The New York Department of Taxation and Finance has argued that Paychex’s claim should be dismissed due to an audit settlement that prevents the company from pursuing its case. In a memorandum dated September 6th, the agency stated that Paychex’s assertion that the regulations “arbitrarily exclude from receipts a portion of the service consideration received by” professional employer organizations is unfounded. The dispute highlights the complexities of tax regulations affecting payroll service providers.