Texas Labor Code Title 4, Chapter 204 - Contributions
SUBCHAPTER A GENERAL PROVISIONS
- Texas Section 204.001 - Definition
In this chapter, "manual" means the North American Industrial Classification System Manual published by the United States Office of Management and Budget. Acts 1993, 73rd...
- Texas Section 204.002 - Contribution Required
(a) An employer shall pay a contribution on wages for employment paid during a calendar year or the portion of the calendar year in which...
- Texas Section 204.003 - Contribution Not Deducted From Wages
An employer may not deduct any part of a contribution from the wages of an individual in the employer's employ. Acts 1993, 73rd Leg., ch....
- Texas Section 204.004 - Assignment To Major Group
The commission shall assign each employer to a major group in accordance with the definitions contained in the manual. Acts 1993, 73rd Leg., ch. 269,...
- Texas Section 204.005 - Establishment Of Major Group Contribution Rate
(a) For each calendar year, the commission shall establish by industry an average contribution rate for each major group. (b) The commission shall determine the...
- Texas Section 204.006 - Initial Contribution Rate
(a) A person's contribution rate for the calendar year in which the person becomes an employer is the greater of: (1) the rate established for...
- Texas Section 204.007 - Special Rate; Certain Employers Engaged In Agriculture
(a) This section applies to an employer identified by the commission as classified in the manual as: (1) Number 115114, crop preparation services for market;...
- Texas Section 204.008 - Time Benefits Are Paid
For the purpose of this chapter, benefits are paid at the time the claim for the benefits is certified by the commission to the comptroller...
- Texas Section 204.009 - Application To Labor Agent
(a) A labor agent who furnishes a farm and ranch laborer is liable for the payment of a tax under this subtitle as if the...
SUBCHAPTER B CHARGEBACKS
- Texas Section 204.010 - Payment Of Contributions By Indian Tribes
An Indian tribe that is subject to this subtitle shall pay contributions under the same terms and conditions as any other subject employer unless the...
- Texas Section 204.021 - Chargebacks
(a) The amount of benefits paid to a claimant for a benefit year shall be charged to the accounts of each of the claimant's employers...
- Texas Section 204.022 - Exclusions From Chargebacks
Sec. 204.022. EXCLUSIONS FROM CHARGEBACKS. (a) Benefits computed on benefit wage credits of an employee or former employee may not be charged to the account...
- Texas Section 204.023 - Notice Sent At Time Benefits Paid
The commission shall mail to an employer a notice of the employer's maximum potential chargebacks when benefits are first paid if: (1) notice of an...
- Texas Section 204.024 - Protest Of Potential Chargebacks
To protest a potential chargeback, an employer to whom notice is mailed under Section 204.023 must mail to the commission at Austin a protest not...
- Texas Section 204.025 - Decision And Administrative Review Of Protest
(a) An examiner promptly shall decide the issues involved in a timely protest filed under Section 204.024 and shall mail a notice of the decision...
- Texas Section 204.026 - Judicial Review Of Protest
(a) An employer may appeal an administrative determination made under Section 204.025 after the employer has exhausted the employer's administrative remedies, not including a motion...
SUBCHAPTER C GENERAL TAX RATE FOR EXPERIENCE-RATED EMPLOYERS
- Texas Section 204.027 - Notice, Protest, And Appeal--notice Sent At Time Of Claim
(a) If notice of the claim was sent to an employer under Section 208.002, the commission shall mail the employer a notice of the amount...
- Texas Section 204.041 - Tax On Experience-rated Employers
(a) Each employer whose account has been chargeable with benefits throughout four or more consecutive calendar quarters shall pay contributions at the rate prescribed by...
- Texas Section 204.042 - Tax Rate Table
Sec. 204.042. TAX RATE TABLE. If thereplenishmentratio isand the employer's benefit ratio does not exceed:1.000.000.100.200.300.400.500.600.700.800.90. . .1.200.000.080.160.250.330.410.500.580.660.751.210.000.080.160.240.330.410.490.570.660.741.220.000.080.160.240.320.400.490.570.650.731.230.000.080.160.240.320.400.480.560.650.731.240.000.080.160.240.320.400.480.560.640.721.250.000.080.160.240.320.400.480.560.640.721.260.000.070.150.230.310.390.470.550.630.711.270.000.070.150.230.310.390.470.550.620.701.280.000.070.150.230.310.390.460.540.620.701.290.000.070.150.230.310.380.460.540.620.691.300.000.070.150.230.300.380.460.530.610.691.310.000.070.150.220.300.380.450.530.610.681.320.000.070.150.220.300.370.450.530.600.681.330.000.070.150.220.300.370.450.530.600.671.340.000.070.140.220.290.370.440.520.590.671.350.000.070.140.220.290.370.440.510.590.661.360.000.070.140.220.290.360.440.510.580.661.370.000.070.140.210.290.360.430.510.580.651.380.000.070.140.210.280.360.430.500.570.651.390.000.070.140.210.280.350.430.500.570.641.400.000.070.140.210.280.350.420.500.570.641.410.000.070.140.210.280.350.420.490.560.631.420.000.070.140.210.280.350.420.490.560.631.430.000.060.130.200.270.340.410.480.550.621.440.000.060.130.200.270.340.410.480.550.621.450.000.060.130.200.270.340.410.480.550.621.460.000.060.130.200.270.340.410.470.540.621.470.000.060.130.200.270.340.400.470.540.611.480.000.060.130.200.270.330.400.470.540.601.490.000.060.130.200.260.330.400.460.530.601.500.000.060.130.200.260.330.400.460.530.601.510.000.060.130.190.260.330.390.460.520.591.520.000.060.130.190.260.320.390.460.520.591.530.000.060.130.190.260.320.390.450.520.581.540.000.060.120.190.250.320.380.450.510.581.550.000.060.120.190.250.320.380.450.510.581.560.000.060.120.190.250.320.380.440.510.571.570.000.060.120.190.250.310.380.440.500.571.580.000.060.120.180.250.310.370.440.500.561.590.000.060.120.180.250.310.370.440.500.561.600.000.060.120.180.250.310.370.430.500.56the employer's tax rate is: 0.00%0.1%0.2%0.3%0.4%0.5%0.6%0.7%0.8%0.9% Acts 1993, 73rd...
- Texas Section 204.043 - Extension Of Tax Rate Table Up To Six Percent
(a) The commission shall extend the table in Section 204.042 by providing additional replenishment ratios, benefit ratios, and tax rates up to six percent. (b)...
- Texas Section 204.044 - Benefit Ratio
(a) The benefit ratio for an employer is equal to the total amounts of the employer's chargebacks for the 36 consecutive months preceding the tax...
- Texas Section 204.045 - Replenishment Ratio
(a) The replenishment ratio for a calendar year is computed by: (1) dividing the numerator described in Subsection (b) by the denominator described in Subsection...
- Texas Section 204.046 - Effectively Charged Benefits
(a) A benefit is not effectively charged if it is: (1) not charged to an employer's account; (2) charged to an employer's account after the...
- Texas Section 204.047 - Tax Rate Computation Date For Experience Tax Rate
(a) The computation date for the tax rate for the contribution under Section 204.041 is October 1 of the year preceding the calendar year in...
SUBCHAPTER D ADJUSTMENTS TO TAX RATE FOR EXPERIENCE-RATED EMPLOYERS
- Texas Section 204.048 - Voluntary Contributions
(a) Notwithstanding any other provision of this subtitle, an employer for whom the commission has computed an experience rate as of October 1 of a...
- Texas Section 204.061 - Ceiling And Floor Of Compensation Fund
In computing the tax rates under this subchapter: (1) the ceiling of the compensation fund is two percent of the total taxable wages for the...
- Texas Section 204.062 - Replenishment Tax
(a) In addition to the general tax computed under Subchapter C, an employer entitled to an experience rate shall pay a replenishment tax at the...
- Texas Section 204.0625 - Adjustment To Replenishment Tax Rate
On and after January 1, 2006, the replenishment tax rate computed under Section 204.062 shall be adjusted to a rate computed by subtracting one-tenth of...
- Texas Section 204.063 - Deficit Assessment
(a) If the amount of money in the compensation fund on a tax rate computation date is less than the floor of the compensation fund,...
- Texas Section 204.064 - Deficit Ratio
(a) The deficit ratio is computed by: (1) dividing the numerator computed under Subsection (b) by the denominator described by Subsection (c); and (2) rounding...
- Texas Section 204.065 - Use Of Surplus
(a) If the amount in the compensation fund on a tax rate computation date is more than the ceiling of the compensation fund, the commission...
- Texas Section 204.0651 - Surplus Credit
(a) The commission may use any portion of the surplus under Section 204.065 that is not used to pay bond obligations to compute a surplus...
- Texas Section 204.0652 - Surplus Credit Rate
(a) If the commission does not compute a surplus credit under Section 204.0651, the commission may use any portion of the surplus under Section 204.065...
- Texas Section 204.066 - Surplus Ratio
(a) The surplus ratio is computed by: (1) dividing the numerator computed under Subsection (b) by the denominator described by Subsection (c); and (2) rounding...
SUBCHAPTER E ACQUISITION OF EXPERIENCE-RATED EMPLOYER
- Texas Section 204.067 - Adjustments To Rate
The commission, at its own discretion, may adjust a rate under this subchapter. Added by Acts 2007, 80th Leg., R.S., Ch. 34 (S.B. 679), Sec....
- Texas Section 204.081 - Definitions
(a) In this subchapter: (1) "Compensation experience" includes the period that benefit wage credits or benefits have been chargeable and any other factor under Subchapter...
- Texas Section 204.082 - Effective Date Of Acquisition
For purposes of this subchapter, an acquisition is effective on the first day of the calendar quarter in which the acquisition occurs. Acts 1993, 73rd...
- Texas Section 204.083 - Acquisition Of All Or Part Of Experience-rated Organization, Trade, Or Business; Transfer Of Compensation Experience
The transfer of the predecessor employer's compensation experience to the successor employer is required if the predecessor employing unit transfers, through any means, all or...
- Texas Section 204.084 - Acquisition Of Part Of Experience-rated Organization, Trade, Or Business: Approval Of Transfer Of Compensation Experience Without Substantially Common Management Or Control Or Substantially Common Ownership; Contribution Rate
(a) If an employing unit acquires or otherwise receives, through any means, part of the organization, trade, or business of an employer, and transfer of...
- Texas Section 204.085 - Contribution Rate For Successor Employers When Substantially Common Management Or Control Or Substantially Common Ownership Exists; Certain Partial Acquisitions
(a) Except as provided by Subsection (d), in the case of a partial acquisition for which the transfer of compensation experience is required under Section...
- Texas Section 204.0851 - Contribution Rate For Successor Employers When Substantially Common Management Or Control Or Substantially Common Ownership Exists; Other Acquisitions
(a) For a transfer of compensation experience required by Section 204.083 other than a transfer described by Section 204.085(a), the contribution rate shall be computed...
- Texas Section 204.086 - Collection Of Contribution, Penalty, Or Interest From Successor Employer
(a) An individual or employing unit that acquires the organization, trade, or business or substantially all of the assets of an organization, trade, or business...
- Texas Section 204.0861 - Surplus Credit For Successor Employing Units
(a) In this section, "surplus credit" means a credit described by Section 204.0651. (b) A successor employing unit to which compensation experience is transferred under...
- Texas Section 204.087 - Offense; Criminal And Civil Penalties
(a) A person commits an offense if the person recklessly, knowingly, or intentionally defeats, evades, or circumvents a provision of this subchapter or if the...
- Texas Section 204.088 - Procedures To Identify Experience-rating Transfers
The commission by rule shall establish procedures to identify the transfer or acquisition of a business for the purposes of this subchapter. Added by Acts...
SUBCHAPTER F SPECIAL CONTRIBUTIONS FOR GOVERNMENTAL EMPLOYERS
- Texas Section 204.089 - Conformity With Federal Regulations
The commission shall administer this subchapter in conformity with any regulations prescribed by the United States Secretary of Labor relating to experience-rating transfers. Added by...
- Texas Section 204.101 - Contribution From Governmental Employer
A governmental employer shall pay a contribution in accordance with this subchapter and rules adopted by the commission on wages paid for employment during each...
- Texas Section 204.102 - Contribution Not Deduction From Wages
A contribution paid by a governmental employer may not be deducted from the wages of individuals in the employer's employ. Acts 1993, 73rd Leg., ch....
- Texas Section 204.103 - Rate Of Contributions For Governmental Employers
(a) The rate of the contribution required under Section 204.101 for each calendar year is equal to the greater of: (1) one-tenth of one percent;...
- Texas Section 204.104 - Accounting For Governmental Employers
The commission shall account separately for benefits paid and contributions collected under this subchapter, and these benefits and contributions may not be used in determining...
- Texas Section 204.105 - Past Due Contributions
(a) A governmental employer that fails to pay a contribution due under this subchapter on the date it is due as prescribed by the commission...
SUBCHAPTER G EMPLOYMENT AND TRAINING INVESTMENT ASSESSMENT; FUNDS
- Texas Section 204.106 - Reports And Records
(a) A governmental employer shall keep records and file reports with the commission relating to individuals in its employ as required by rules adopted by...
- Texas Section 204.121 - Employment And Training Investment Assessment
(a) In addition to any other taxes imposed under this subtitle, an employment and training investment assessment is imposed on or after January 1, 2006,...
- Texas Section 204.122 - Holding Fund
(a) The employment and training investment holding fund is a special trust fund outside of the state treasury in the custody of the comptroller separate...
- Texas Section 204.123 - Transfer To Skills Development Fund, Training Stabilization Fund, And Compensation Fund
(a) If, on September 1 of a year, the commission determines that the amount in the compensation fund will exceed 100 percent of its floor...
Last modified: September 28, 2016