| 1 | 1 | | 86R11274 JSC-F |
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| 2 | 2 | | By: Vo H.B. No. 2322 |
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| 3 | 3 | | |
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| 4 | 4 | | |
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| 5 | 5 | | A BILL TO BE ENTITLED |
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| 6 | 6 | | AN ACT |
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| 7 | 7 | | relating to unemployment contributions paid by a common paymaster |
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| 8 | 8 | | on behalf of more than one employer. |
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| 9 | 9 | | BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS: |
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| 10 | 10 | | SECTION 1. Subchapter A, Chapter 204, Labor Code, is |
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| 11 | 11 | | amended by adding Section 204.011 to read as follows: |
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| 12 | 12 | | Sec. 204.011. COMMON PAYMASTER. (a) In this section, |
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| 13 | 13 | | "common paymaster" has the meaning assigned by 26 C.F.R. Section |
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| 14 | 14 | | 31.3121(s)-1. |
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| 15 | 15 | | (b) Notwithstanding Section 201.046, a common paymaster may |
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| 16 | 16 | | report wages and pay contributions to the commission on behalf of |
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| 17 | 17 | | each employer served by the common paymaster. |
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| 18 | 18 | | (c) An employee who provides services for more than one |
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| 19 | 19 | | employer served by a common paymaster is considered to be employed |
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| 20 | 20 | | by a single employing unit for purposes of determining taxable |
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| 21 | 21 | | wages of that employee. The taxable wages must be apportioned among |
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| 22 | 22 | | the employers in proportion to the amount of time the employee spent |
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| 23 | 23 | | working with each employer during the reporting period. |
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| 24 | 24 | | (d) This section does not affect the tax rate applied to |
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| 25 | 25 | | each employer served by the common paymaster. |
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| 26 | 26 | | (e) The commission shall adopt rules to implement this |
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| 27 | 27 | | section. |
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| 28 | 28 | | SECTION 2. The Texas Workforce Commission shall adopt rules |
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| 29 | 29 | | necessary to implement Section 204.011, Labor Code, as added by |
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| 30 | 30 | | this Act, not later than December 1, 2019. |
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| 31 | 31 | | SECTION 3. The change in law made by this Act applies only |
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| 32 | 32 | | to wages paid for services provided on or after January 1, 2020. |
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| 33 | 33 | | Wages paid for services provided before that date are governed by |
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| 34 | 34 | | the law in effect immediately before the effective date of this Act, |
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| 35 | 35 | | and the former law is continued in effect for that purpose. |
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| 36 | 36 | | SECTION 4. This Act takes effect September 1, 2019. |
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