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