N.Y. Tax Law § 678 — Liability of third parties paying or providing for wages

§ 678. Liability of third parties paying or providing for wages.--(a)\nDirect payment by third party.--If a lender, surety or other person, who\nis not an employer with respect to an employee or group of employees,\npays wages directly to such an employee or group of employees, employed\nby one or more employers, or to an agent on behalf of such employee or\nemployees, such lender, surety or other person shall be liable for the\namount of taxes (together with interest) required to be deducted and\nwithheld from such wages by the employer.\n (b) Funds supplied to employer by third parties.--If a lender, surety\nor other person supplies funds to or for the account of an employer for\nthe specific purpose of paying wages of the employees of such employer,\nwith actual notice or knowledge that such employer does not intend to or\nwill not be able to make timely payment or deposit of the amounts of tax\nrequired by this article to be deducted and withheld by such employer\nfrom such wages, such lender, surety or other person shall be liable for\nthe amount of the taxes (together with interest) which are not paid over\nto the tax commission by such employer with respect to such wages.\nHowever, the liability of such lender, surety or other person shall be\nlimited to an amount equal to twenty-five percent of the amount so\nsupplied to or for the account of such employer for such purpose.\n (c) Effect of payment.--Any amounts paid to the tax commission\npursuant to this section shall be credited against the liability of the\nemployer.\n