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.