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