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A BILL TO BE ENTITLED
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AN ACT
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relating to the exclusion of subcontracting payments made by a |
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staff leasing services company in determining total revenue for |
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purposes of the franchise tax. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 171.1011(k), Tax Code, is amended to |
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read as follows: |
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(k) A taxable entity that is a staff leasing services |
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company shall exclude from its total revenue: |
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(1) payments received from a client company for wages, |
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payroll taxes on those wages, employee benefits, and workers' |
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compensation benefits for the assigned employees of the client |
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company; and |
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(2) subcontracting payments made by the taxable entity |
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to nonemployee agents for the performance of services on behalf of |
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the taxable entity. |
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SECTION 2. This Act applies only to a report originally due |
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on or after the effective date of this Act. |
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SECTION 3. This Act takes effect January 1, 2012. |