89R19198 TYPED
By: LaHood H.B. No. 5545
A BILL TO BE ENTITLED
AN ACT
relating to the consideration of wage replacement benefits in the
nature of workers' compensation.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:
SECTION 1. Subchapter A, Chapter 406, Labor Code, is
amended by adding Section 406.0025 to read as follows:
Sec. 406.0025. CONSIDERATION OF WAGE REPLACEMENT BENEFITS
IN THE NATURE OF WORKERS' COMPENSATION.
Wage replacement disability benefits paid by an employer that does
not carry workers' compensation insurance to an employee who is
unable to return to work due to an injury in the course and scope of
employment are considered payments made under a statute in the
nature of a workers' compensation statute solely for the purpose of
being excluded from taxable income for federal income and
employment tax purposes.
SECTION 2. The enactment of this Act is a clarification of
existing law and does not imply that existing law may be construed
as inconsistent with the law as amended by this Act.
SECTION 3. This Act takes effect September 1, 2025.