Paychex Wants New York Tax Regulations Annulled Without Trial

Paychex Inc. asked a New York trial court to nix tax regulations on apportioning income without holding a trial, arguing the challenged provisions intentionally targeted its operations.

The payroll services provider told a state trial court in July that the New York Department of Taxation and Finance’s December 2023 regulations “arbitrarily exclude from receipts a portion of the service consideration received by” professional employer organizations like itself. The department moved for summary judgment, telling the New York Supreme Court, Albany County, in a Sept. 6 memorandum that an audit settlement between the parties precludes Paychex from pursuing its claims.

“The ...