83R8932 JSC-F
By: Fraser S.B. No. 959
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.