Free 05-176 Revised Texas Franchise Tax Staff Leasing Services Company Report - Texas

05-176 (1-08)

PRINT FORM

CLEAR FIELDS

REVISED TEXAS FRANCHISE TAX
STAFF LEASING SERVICES COMPANY REPORT (Chapter 91)

CLIENT COMPANY
Name

STAFF LEASING SERVICES COMPANY
Name

Federal Employer Identification Number (FEIN)

Federal Employer Identification Number (FEIN)

Mailing address

Mailing address

City

State

ZIP code

City

State

ZIP code

Accounting period covered by this report: Calendar Year 20
MONTH DAY YEAR MONTH DAY YEAR

· DO NOT SEND THIS COMPLETED REPORT TO THE COMPTROLLER OF PUBLIC ACCOUNTS.

Fiscal Year from

to
ASSIGNED EMPLOYEE TOTAL AMOUNT PAID IN WAGES & CASH COMPENSATION TOTAL AMOUNT PAID

TOTAL AMOUNT PAID FOR DEDUCTIBLE BENEFITS

$

05-176 (Back)(1-08)

PURPOSE OF THIS REPORT Texas Tax Code §171.2125 requires a staff leasing services company to provide the information contained in this report to a client company. The report contains information a client company will need to calculate compensation and cost of goods sold on the client company's franchise tax report. This form is for use only by a staff leasing services company or professional employer organization licensed under Chapter 91 of the Texas Labor Code. A staff leasing services company is required to provide the information in this report to a client company only if the client company requests it. For an annual franchise tax report due May 15, this information must be provided to the client company no later than February 28 or the thirtieth day from the date of request, whichever is later. For all other franchise tax reports, this information must be provided no later than the thirtieth day from the date of request. A staff leasing services company may provide this information to a client company by filling in this report or by using their own printed form or electronic document that is substantially similar to this form. The information may be delivered in hard copy or electronically. INSTRUCTIONS TO CLIENT COMPANIES This report does not reflect the exact amount of compensation or cost of goods sold for your company. Compensation or costs of goods sold for your company may be more or less than the amounts shown in this report. This report also does not affect your choice between the compensation or cost of goods sold deduction, or your eligibility for or choice of the EZ computation. This form is for your information in preparing your franchise tax report, and you should keep this report in your files in case of an audit. Do not send this report to the Comptroller's Office with your franchise tax report. Accounting Period Covered by this Report. The amounts in this report are based on the accounting period specified by the client company. The client company should provide the accounting period beginning and ending dates to the staff leasing services company at the time the report is requested. The accounting period specified by the client company should be the same as the accounting period covered by the franchise tax report for which this information is requested. Assigned Employee. Each Assigned Employee is listed by name and/or by the last four digits of the Assigned Employee's Social Security Number. Total Amount Paid in Wages & Cash Compensation is provided for purposes of calculating compensation under Texas Tax Code §171.1013 "Determination of Compensation." The amount reported for each Assigned Employee is the amount of wages and any other cash compensation paid to the Assigned Employee by the Staff Leasing Services Company. You may include the amount reported to you on this form in the calculation of compensation on your franchise tax report to the same extent you would be permitted to include the amount in compensation if you employed the Assigned Employee directly rather than through a staff leasing arrangement. However, the actual amount includible in compensation for an Assigned Employee may be more or less than the amount reported on this form. Total Amount Paid in Wages & Cash Compensation does not take into account the limitation on compensation provided in Texas Tax Code § 171.1013(c), it does not include amounts you paid directly to an Assigned Employee, and it does not include amounts you paid to a person who is not an assigned employee. Total Amount Paid for Deductible Benefits is provided for purposes of calculating compensation under Texas Tax Code §171.1013. The amount reported is the cost of all benefits provided by your staff leasing services company to Assigned Employees that are includible in compensation. You may include the entire amount reported to you on this form in the calculation of compensation on your franchise tax report. If you provided additional benefits to Assigned Employees or to persons who are not assigned employees, those amounts are not included in this report. You must determine whether those additional benefits should be included in your compensation calculation. Total Amount Paid for all Deductible Benefits is not applicable in calculating cost of goods sold. Total Amount Paid is provided for purposes of calculating the labor costs portion of the cost of goods sold deduction under Texas Tax Code §171.1012. Total Amount Paid includes all amounts you paid to the staff leasing services company for the Assigned Employee. You may include the amount reported to you on this form in the calculation of cost of goods sold on your franchise tax report to the same extent you would be permitted to include the amount in cost of goods sold if you employed the Assigned Employee directly rather than through a staff leasing arrangement. However, the actual amount includible in cost of goods sold for an Assigned Employee may be more or less than the amount reported on this form. This report includes all amounts paid for an Assigned Employee without regard to whether the Assigned Employee's labor is of a type includible in cost of goods sold (direct, indirect, etc.). Also, this report includes only amounts paid to your staff leasing services company for Assigned Employees. If you have any additional costs related to Assigned Employees or to persons who are not assigned employees, those amounts are not included in this report. INSTRUCTIONS TO STAFF LEASING SERVICES COMPANIES Send the information in this report only to the client company and retain a copy in your files in case of an audit. Do not send this report or the information contained in it to the Comptroller's Office. Accounting Period Covered by this Report. The amounts in this report should be based on the accounting period specified by the client company. Assigned Employee. List each Assigned Employee by name and/or by the last four digits of the Assigned Employee's Social Security Number. Use as many additional sheets as necessary to include all Assigned Employees of the client company. Total Amount Paid in Wages & Cash Compensation. Include the total amount of wages and cash compensation paid by you to the Assigned Employee without regard to the limitation on compensation provided in Texas Tax Code §171.1013(c). Wages & Cash Compensation includes amounts reported for Medicare wages and tips on Form W-2; net distributive income from certain partnerships, limited liability companies and S corporations to natural persons; and stock awards and stock options deducted for federal income tax purposes. Wages & Cash Compensation does not include your administrative fee, payments to independent contractors on Forms 1099, an employer's share of payroll taxes, or wages or cash compensation paid to undocumented workers. See Texas Tax Code §171.1013(a) and Comptroller Rule 3.589(b)(9) for a definition of wages and cash compensation. Total Amount Paid for Deductible Benefits. Include the total amount paid to you by the client company for all benefits provided by you to all Assigned Employees of the client company, but only to the extent those benefits are deductible by you for federal income tax purposes. Do not include the employer's share of payroll taxes or your administrative fee in relation to those benefits. Total Amount Paid. Include all amounts paid to you by the client company for each Assigned Employee, including amounts paid to you for gross wages, the employer's share of employment taxes, benefits (whether or not deductible for federal income tax purposes), and your administrative fee in relation to the Assigned Employee.