Bill

HB 3150

84(R) - 2015
House Economic & Small Business Development
Read Bill & Check Bill Status
House Economic & Small Business Development
Economic & Small Business Development
Taxation

Vote Recommendation

Yes
  • Neutral
  • Neutral
  • Neutral
  • Positive
  • Neutral

Author(s)

Dan Huberty

Co-Author(s)

Todd Hunter

Bill Caption

Relating to the calculation of taxable wages paid by a professional employer organization for purposes of the Texas Unemployment Compensation Act.

Fiscal Notes

No significant fiscal implication to the State is anticipated.

Bill Analysis

HB 3150 would amend Chapter 91 (Professional Employer Organizations) of the Labor Code. Specifically, this legislation would allow a license holder to apply the maximum amount of taxable wages for a new employee for wages that were paid to that employee by a former employer. However, this only applies if the former employer has a working agreement with the license holder (the new employer) for professional employer services.

Lastly, this legislation would require license holders to use the North American Industry Classification System (NAIC) in their quarterly reports to the Texas Workforce Commission (TWC). 

Vote Recommendation Notes

05/24/15 update:

An amendment was introduced and adopted on the House floor that would require that, if the U.S. secretary of labor holds that the newly created provisions in this bill do not conform with federal statutes, the commission would have to administer these provisions to conform with federal statutes until the legislature has the opportunity to amend the law.

We continue to support this bill.

The second chamber sponsor is Senator Brandon Creighton.

First chamber recommendation:

According to the bill's statement of purpose for the bill, there is currently a case of double taxation because unemployment insurance contributions (as set by the wage-base for a calendar year) are currently collected in excess of the calendar year wage-base.

House Bill 3150 would modify the way the taxable wages paid by a professional employer organization are calculated for purposes of the Texas Unemployment Compensation Act. The bill aims to correct this problem and could reduce the scope of government. We support House Bill 3150.