Principle Criteria
Free Enterprise
Property Rights
Personal Responsibility
Limited Government
Individual Liberty
Digest
SB 2989 clarifies that wage replacement benefits paid to employees by employers who do not carry workers’ compensation insurance are considered equivalent to workers’ compensation benefits solely for federal tax purposes. The change ensures these benefits remain excluded from taxable income for federal tax and employment purposes, but does not alter Texas law regarding employer liability.
Author (1)
Charles Schwertner