82R10966 CBH-F
By: Murphy H.B. No. 2645
A BILL TO BE ENTITLED
AN ACT
relating to the exclusion of subcontracting payments made by a
staff leasing services company in determining total revenue for
purposes of the franchise tax.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Section 171.1011(k), Tax Code, is amended to
read as follows:
(k) A taxable entity that is a staff leasing services
company shall exclude from its total revenue:
(1) payments received from a client company for wages,
payroll taxes on those wages, employee benefits, and workers'
compensation benefits for the assigned employees of the client
company; and
(2) subcontracting payments made by the taxable entity
to nonemployee agents for the performance of services on behalf of
the taxable entity.
SECTION 2. This Act applies only to a report originally due
on or after the effective date of this Act.
SECTION 3. This Act takes effect January 1, 2012.