Petition for Writ of Mandamus - Filed - Supreme Court of Texas

TAX CODE CHAPTER 171. FRANCHISE TAX
http://www.statutes.legis.state.tx.us/Docs/TX/htm/TX.171.htm
Page 45 of 88
6/25/2012
combined group may not subtract in relation to that person a
total of more than $300,000, or the amount determined under Section
171.006, per 12-month period on which margin is based.
(c-1) Subject to Section 171.1014, a taxable entity that elects
to subtract compensation for the purpose of computing its taxable
margin under Section 171.101 may not subtract any wages or cash
compensation paid to an undocumented worker. As used in this
section "undocumented worker" means a person who is not lawfully
entitled to be present and employed in the United States.
(d) A taxable entity that is a staff leasing services company:
(1) may not include as wages or cash compensation payments
described by Section 171.1011(k); and
(2) shall determine compensation as provided by this
section only for the taxable entity's own employees that are not
assigned employees.
(e) Subject to the other provisions of this section, in
determining compensation, a taxable entity that is a client company
that contracts with a staff leasing services company for assigned
employees:
(1) shall include payments made to the staff leasing
services company for wages and benefits for the assigned employees as
if the assigned employees were actual employees of the entity;
(2) may not include an administrative fee charged by the
staff leasing services company for the provision of the assigned
employees; and
(3) may not include any other amount in relation to the
assigned employees, including payroll taxes.
(f) A taxable entity that is a management company:
(1) may not include as wages or cash compensation any
amounts reimbursed by a managed entity; and
(2) shall determine compensation as provided by this
section for only those wage and compensation payments that are not
reimbursed by a managed entity.
(g) A taxable entity that is a managed entity shall include
reimbursements made to the management company for wages and
compensation as if the reimbursed amounts had been paid to employees
of the managed entity.
(h) Subject to Section 171.1014, a taxable entity that elects