Texas House Bill HB2322

Texas 2019 - 86th Regular

Caption

Relating to unemployment contributions paid by a common paymaster on behalf of more than one employer.

Impact

The legislation particularly affects how taxable wages are calculated for employees who provide services to multiple employers. By considering these employees as part of a single employing unit when it comes to taxable wages, it helps to streamline accounting practices for common paymasters. This means that the taxable wages must be divided among the employers based on the time the employee spent working for each, which should ease the administrative burden on companies utilizing shared payroll services.

Summary

House Bill 2322 addresses the issue of unemployment contributions for employees who work for multiple employers under a common paymaster. The bill introduces an amendment to the Labor Code, specifically Section 204.011, which allows a common paymaster to report wages and pay contributions for each employer they serve. This change is intended to simplify the reporting process for employers while ensuring compliance with state labor regulations. The definition of 'common paymaster' is aligned with federal regulations, ensuring consistency between state and federal law.

Contention

While the bill aims to facilitate a more efficient payroll system, it may raise questions regarding how accurately the time spent by employees with each employer can be tracked and reported. Critics may argue that this could lead to complications, especially in cases where employee hours are not precisely recorded. Furthermore, constituents and legislators with a focus on labor rights might express concerns about the implications this has on employment classification and potential impacts on benefits and entitlements for part-time or multiple-job holders.