| [ 1.14.1 - STA Screen Processing ] |
The U. S. Department of Labor instructed the Commission (in 1995) to classify Indian Tribal Councils
as exempt for State Unemployment Tax purposes. Prior to that time, most Indian Tribal Councils were
classified as political subdivisions. They were reported and paying unemployment taxes to the State
of Texas and their employees were eligible for unemployment benefits.
After April 1995, in order to continue coverage for their employees the Indian Tribal Councils are
required to voluntarily elect coverage under the Texas Unemployment Compensation Act.
This option is open to the Indian Tribal Councils ONLY. Companies operating on Indian land
are still covered by the TUCA.
HB 2029 – Federally-recognized Indian Tribes & their instrumentalities are eligible to
be reimbursing.
Service performed in the employ of a federally-recognized Indian tribe or any of its instrumentalities
will be considered as "employment." All other Indian tribes may continue to choose to voluntarily
elect coverage but will otherwise be exempt. If not federally-recognized, they can volunteer under
section 201.024 (see Chapter
1 - “New Accounts 201.024”). Ownership type is “06”.
List of Federally recognized Indian tribes: http://www.loc.gov/catdir/cpso/biaind.pdf
If federally-recognized then they are automatically liable if they have employment. They are subject
under 201.025 since they are liable for FUTA.
Document FTC when establishing a federally recognized Indian Tribe account. The comment must
state that the 45 day letter (reimbursement letter for Indian Tribes), “Advantages and Disadvantages
of Reimbursement in Lieu of Taxes” and C-6A were sent to the employer along with the C-198
letter.
Note: If the account is already established and no C-198 will be sent, send the 45 day letter (reimbursement
letter for Indian Tribes), “Advantages and Disadvantages of Reimbursement in Lieu of Taxes” and
C-6A. Document FTC.
If they elect to reimburse, ownership code will be changed to "21". A reimbursing account
number will be assigned (see Chapter
2 - “Changing from Taxed to Reimbursing”).
