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A BILL TO BE ENTITLED
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AN ACT
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relating to unemployment contributions paid by a common paymaster |
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on behalf of more than one employer. |
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BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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SECTION 1. Subchapter A, Chapter 204, Labor Code, is |
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amended by adding Section 204.011 to read as follows: |
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Sec. 204.011. COMMON PAYMASTER. (a) In this section, |
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"common paymaster" has the meaning assigned by 26 C.F.R. Section |
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31.3121(s)-1. |
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(b) Notwithstanding Section 201.046, a common paymaster may |
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report wages and pay contributions to the commission on behalf of |
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each employer served by the common paymaster. |
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(c) An employee who provides services for more than one |
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employer served by a common paymaster is considered to be employed |
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by a single employing unit for purposes of determining taxable |
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wages of that employee. The taxable wages must be apportioned among |
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the employers in proportion to the amount of time the employee spent |
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working with each employer during the reporting period. |
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(d) This section does not affect the tax rate applied to |
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each employer served by the common paymaster. |
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(e) The commission shall adopt rules to implement this |
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section. |
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SECTION 2. The Texas Workforce Commission shall adopt rules |
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necessary to implement Section 204.011, Labor Code, as added by |
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this Act, not later than December 1, 2019. |
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SECTION 3. The change in law made by this Act applies only |
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to wages paid for services provided on or after January 1, 2020. |
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Wages paid for services provided before that date are governed by |
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the law in effect immediately before the effective date of this Act, |
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and the former law is continued in effect for that purpose. |
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SECTION 4. This Act takes effect September 1, 2019. |