Paychex v. New York: Procedure before substance

Looking up modern office buildings blue skyLooking up modern office buildings blue sky

Paychex v. New York: Procedure before substance

August 18, 2026

United States
United States
United States

In this episode of the SALT Shaker Podcast, hosts and Partners Jeremy Gove and Chelsea Marmor discuss the New York Appellate Division’s recent decision in Paychex v. Department of Taxation and Finance. Although the underlying dispute concerns whether certain reimbursement receipts should be included in New York’s business apportionment factor, neither the trial court nor the Appellate Division reached that issue. Instead, both courts dismissed the case on procedural grounds.

Jeremy and Chelsea walk through the distinction between the two courts’ ripeness and exhaustion of administrative remedies analysis, explaining the Appellate Division’s basis for concluding Paychex’s challenge was not ripe for review, and explore how both courts analyzed the retroactive application of New York’s corporate tax reform regulations to Paychex. They also discuss what the decision means for taxpayers considering challenges to New York tax regulations and why the substantive fight still lies ahead.

Plus, Jeremy and Chelsea debate whether Fridays are overrated or underrated.

The materials on the Eversheds Sutherland website are for general information purposes only and do not constitute legal advice. While reasonable care is taken to ensure accuracy, the materials may not reflect the most current legal developments. Eversheds Sutherland disclaims liability for actions taken based on the materials. Always consult a qualified lawyer for specific legal matters. To view the full disclaimer, see our Terms and Conditions or Disclaimer section in the footer. Eversheds Sutherland is a provider of legal and other services operating through various separate and distinct legal entities. For further information about these entities and Eversheds Sutherlands' structure please see the Legal Notice page of this website.

Services

Key contacts

jeremygove@eversheds-sutherland.com

Jeremy P. Gove

Partner

New York, United States

chelseamarmor@eversheds-sutherland.com

Chelsea E. Marmor

Partner

New York, United States

Latest Insights

Latest News

Latest Events

Black solar panels

legal updates

August 20, 2026

Eversheds Sutherland advises on major renewable energy investment in Syria

Contemporary office buildings courtyard modern architecture glass facade

legal updates

August 19, 2026

Commercially Connected shorts 19 August 2026

Modern office building glass facade exterior

legal updates

August 12, 2026

Commercially Connected shorts 12 August 2026

grass and trees in a park

legal updates

August 11, 2026

Global Sustainability & ESG Insights - July 2026

© Eversheds Sutherland 2026. All rights reserved. Eversheds Sutherland is a provider of legal and other services operating through various separate and distinct legal entities. For further information about these entities and Eversheds Sutherlands' structure please see the Legal Notice page of this website.

Eversheds Sutherland is the name and brand under which the members of Eversheds Sutherland Limited (Eversheds Sutherland (International) LLP and Eversheds Sutherland (US) LLP) and their respective controlled, managed or affiliated firms and the members of Eversheds Sutherland (Europe) Limited and Eversheds Sutherland (Africa) Limited (each an "Eversheds Sutherland Entity" and together the "Eversheds Sutherland Entities") provide legal or other services to clients around the world. Eversheds Sutherland Entities are constituted and regulated in accordance with relevant local regulatory and legal requirements. The use of the name Eversheds Sutherland, is for description purposes only and does not imply that the Eversheds Sutherland Entities are in a partnership or are part of a global entity. The responsibility for the provision of services to the client is defined in the terms of engagement between the instructed firm and the client. For further information about these Eversheds Sutherland Entities and Eversheds Sutherlands’ structure please see the Legal Notices page of this website. For information on Konexo please also see the Legal Notices page of this website.