In 1989, House Bill 1941 passed in the 71st
Legislative session provided for collection of
delinquent contributions, penalties or interest
by serving a notice of assessment on the defaulting
employer. This notice of assessment states the
amount of contribution, penalties or interest
outstanding. If the employer does not seek judicial
review, the assessment is final and is recorded
as a judgment against the employer. If the employer
initiates judicial review, the account is referred
to the Attorney General for collection action.
NOTE: Chapter 213 Subchapter C of the Texas Unemployment
Compensation Act outlines the collection methods.
See Procedures Manual, Chapter 4 - Collection
of Contribution by Civil Suit or Notice of Assessment
for additional information.
This section discusses the aspects of the law
that specifically apply to refunds.
Sections 213.071 and 213.072 authorize refunds,
to an employer, of taxes and/or penalties erroneously
collected and provide a time limit on applications
for refund. Further details are set forth in
Rule Number 815.12.
The Commission is prohibited from paying interest
on taxes or penalties resulting from overpayments
or adjustments.
All refunds for tax and penalties are payable
from the Clearing Fund (#936).
Requests for refunds will be verified by the
State Comptroller to determine if additional
tax liabilities or indebtedness is owed to the
state. (Vendor Hold)
COMMENT: If the amount of the refund is $1,000.00
or greater, the employer must have a Payee Identification
Number, consisting of fourteen (14) digits, issued
by the State Comptroller. If a Payee Identification
Number is not located for the employer, the Refunds
Unit will attempt to obtain one for the employer.
If, for any reason, a Payee Identification Number
cannot be obtained for the employer, the refund
will be denied and a letter will be sent informing
the employer. It is then the employer's responsibility
to communicate directly with the State Comptroller
before reapplying for the refund.
If the amount of refund is $999.99 or less, Payee
Identification Number is not required.
See Procedures Manual, Chapter 4 - Credit or
Refund of Overpayment for additional information.
This section discusses the aspects of the law
that specifically apply to electric cooperatives.
Corporations with the words 'Electric Cooperatives,
Inc.' in their names are created under a special
statute, Article 1528-b, Revised Civil Statutes
of Texas. Section 30 of this article reads as
follows:
Corporations formed hereunder shall pay annually
on or before May 1, to the Secretary of State,
a license fee of Ten Dollars ($10.00) and such
corporations shall be exempt from all other excise
taxes of whatsoever kind or nature.
Services performed for this type of corporation
are deemed to be 'employment,' but we cannot
require these corporations to pay taxes.
The Commission will accept contributions from
electric cooperative corporations if they volunteer
to pay taxes. The standard 'Application for Voluntary
Election of Coverage' form is not appropriate
for this purpose.
See Procedures Manual, Chapter 1 - Voluntary
Election Section (C-1 and C-1FR) for additional
information.
