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A BILL TO BE ENTITLED
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AN ACT
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relating to the payment of unemployment taxes under a staff leasing |
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services contract. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Section 91.044, Labor Code, is amended to read as |
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follows: |
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Sec. 91.044. UNEMPLOYMENT TAXES; PAYROLL. (a) A license |
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holder is the employer of an assigned employee for purposes of |
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Subtitle A, Title 4, and, except for wages subject to Section |
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91.032(c), for purposes of Chapter 61. |
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(a-1) A license holder shall report and pay all |
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contributions and withholdings required under Subtitle A, Title 4, |
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using: |
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(1) the client company's state employer account |
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number; and |
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(2) the experience rating of the client company or, if |
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the client company is not eligible for an experience rating, the |
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initial contribution rate prescribed for a new employer. |
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(a-2) In addition to any other reports required to be filed |
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by law, a license holder shall report quarterly to the Texas |
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Workforce Commission on a form prescribed by the Texas Workforce |
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Commission the name, address, telephone number, federal income tax |
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identification number, and classification code as described in the |
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"Standard Industrial Classification Manual" published by the |
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United States Office of Management and Budget of each client |
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company. |
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(b) For purposes of Subtitle A, Title 4, in the event of the |
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termination of a contract between a license holder and a client |
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company [or the failure by a staff leasing entity to submit reports
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or make tax payments as required by that subtitle], starting on the |
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date of termination of the contract, the contracting client company |
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is the employer of an assigned employee for purposes of Subtitle A, |
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Title 4, and Chapter 61. |
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(c) A client company under Subsection (b) shall report and |
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pay all contributions and withholdings required under Subtitle A, |
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Title 4, using the client company's experience rating or, if the |
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client company is not eligible for an experience rating, the |
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initial contribution rate prescribed for [shall be treated as] a |
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new employer [without a previous experience record unless that
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client company is otherwise eligible for an experience rating]. |
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SECTION 2. The change in law made by this Act applies only |
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to contributions and withholdings required under Subtitle A, Title |
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4, Labor Code, due for employment services rendered on or after |
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January 1, 2014. |
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SECTION 3. This Act takes effect September 1, 2013. |