The state Senate on Tuesday is set to take up a package of bills meant to strengthen regulations and penalties for payroll companies after an upstate firm suddenly shut its doors last year, leaving businesses and their employees in the lurch. 

The legislation includes creating criminal penalties for intentional misappropriating payroll and tax funds. Another bill would hold a company liable when an employee wrongfully misses a paycheck. A third bill clarifies wage theft guidelines, while lawmakers also want the Department Financial Services to review regulations guiding payroll firms. 

The bills are being passed in the Democratic-controlled chamber after a payroll company based in Clifton Park, MyPayrollHR, suddenly shut down last year. The company's CEO was arrested in September and charged with fraud.

But the damage from the firm's closure was immediate, with employees of client companies not being paid.

“New Yorkers deserve the peace of mind that they will be paid for their hard work,” said Senate Majority Leader Andrea Stewart-Cousins. “The crisis caused by MyPayrollHR revealed gaping holes in payroll service policies and severely damaged our confidence in the entire payroll industry. The bills advanced by the Senate will help ensure greater oversight and accountability on this industry that millions of New Yorkers rely on to receive their paychecks. I applaud my colleagues for their swift action protecting workers and safeguarding against future payroll company-caused problems."