OFFICE OF FISCAL ANALYSIS

Legislative Office Building, Room 5200

Hartford, CT 06106 (860) 240-0200

http://www.cga.ct.gov/ofa

sSB-211

AN ACT ALLOWING EMPLOYERS TO PAY WAGES USING PAYROLL CARDS.

OFA Fiscal Note

State Impact: None

Municipal Impact:

Municipalities

Effect

FY 17 $

FY 18 $

Various Municipalities

Savings

Potential

Potential

Explanation

The bill allows employers to pay their employees via payroll cards under certain conditions. This does not result in any fiscal impact to the state, but does result in a potential savings associated with reduced printing and mailing costs to any municipality that may choose to implement such a program.

The state currently provides electronic access for employees to their itemized earnings summary. In addition, the state does not currently provide wages through payroll cards. As the bill does not require employers to provide wages by payroll card, this provision does not result in a fiscal impact to the state.

The bill also allows the labor commissioner to study payroll card use and the actual incidence of associated fees and report to the legislature. It is anticipated that, should such a study be undertaken, it would be accommodated utilizing existing staff and at no additional cost to the agency.

There is no cost to the Department of Labor to adopt or enforce regulations concerning the bill.

The Out Years

The annualized ongoing fiscal impact identified above would continue into the future subject to inflation.