By Yarbrough H.B. No. 2086 77R8141 PB-D A BILL TO BE ENTITLED 1-1 AN ACT 1-2 relating to wages used to compute unemployment compensation taxes. 1-3 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: 1-4 SECTION 1. Section 201.082, Labor Code, is amended to read as 1-5 follows: 1-6 Sec. 201.082. EXCEPTIONS TO WAGES. In this subtitle, "wages" 1-7 does not include: 1-8 (1) that part of the remuneration paid by an employer 1-9 to an individual for employment during a calendar year that exceeds 1-10 remuneration to the individual, excluding remuneration under 1-11 another subdivision of this section, by the employer, of: 1-12 (A) $9,000, for a calendar year before calendar 1-13 year 2002; 1-14 (B) $10,000, for calendar year 2002; 1-15 (C) $11,000, for calendar year 2003; 1-16 (D) $12,000, for calendar year 2004; 1-17 (E) $13,000, for calendar year 2005; 1-18 (F) $14,000, for calendar year 2006; and 1-19 (G) $15,000, for a calendar year after calendar 1-20 year 2006; 1-21 (2) a payment, including an amount the employer pays 1-22 for insurance or an annuity or pays into a fund for the payment of 1-23 insurance or an annuity, that is made to or for an employee or the 1-24 employee's dependent under a plan the employer established for 2-1 employees generally, or a class of employees, including or 2-2 excluding the employee's dependents, for: 2-3 (A) retirement; 2-4 (B) sickness or accident disability; 2-5 (C) medical or hospitalization expenses in 2-6 connection with sickness or accident disability; or 2-7 (D) expenses related to death; 2-8 (3) a payment made to an individual employee for 2-9 retirement, including an amount an employer pays for insurance or 2-10 an annuity or pays into a fund for the payment of insurance or an 2-11 annuity; 2-12 (4) a payment for sickness or accident disability, or 2-13 medical or hospitalization expenses for sickness or accident 2-14 disability, an employer makes to or for an individual employee 2-15 after the expiration of six calendar months after the last calendar 2-16 month the employee worked for the employer; 2-17 (5) a payment made to or for an employee or the 2-18 employee's beneficiary: 2-19 (A) from or to a trust defined by Section 2-20 401(a), Internal Revenue Code of 1986 (26 U.S.C. Section 401(a)), 2-21 that is exempt from tax under Section 501(a), Internal Revenue Code 2-22 of 1986 (26 U.S.C. Section 501(a)), at the time of payment, unless 2-23 the payment is made to an employee of the trust as remuneration for 2-24 service as an employee and not as a beneficiary of the trust; or 2-25 (B) under or to an annuity plan that, at the 2-26 time of the payment, is a plan described by Section 403(a), 2-27 Internal Revenue Code of 1986 (26 U.S.C. Section 403(a)); 3-1 (6) a tax an employer pays, without deduction from the 3-2 remuneration of the employee, that is imposed on the employee under 3-3 Section 3101, Internal Revenue Code of 1986 (26 U.S.C. Section 3-4 3101); 3-5 (7) noncash remuneration paid to an employee for 3-6 service not in the course of the employer's business; 3-7 (8) a payment, except vacation or sick pay, made to an 3-8 employee after the month the employee is 65 years of age, if the 3-9 employee did not work for the employer in the period for which the 3-10 payment is made; or 3-11 (9) the part of remuneration from a single employer 3-12 for services in a calendar year that exceeds the amount applicable 3-13 to the year under Subdivision (1) for which contributions have been 3-14 paid under a state unemployment law. 3-15 SECTION 2. This Act takes effect September 1, 2001. 3-16 COMMITTEE AMENDMENT NO. 1 3-17 Amend page 1, line 15, to add the following: 3-18 after 2003; add the wording "and" 3-19 (D) $12,000 for a calendar year after calendar 3-20 year 2003; 3-21 Then delete lines 17, 18 and 19. 3-22 Yarbrough