,T'EE ATTORNEY GENERAL 

ow TEXAS 

AUSTIN.TE- 
Honorable Orville S. Carpenter. %gb Z 

manager. For the pe.rt-time mamaguriol wcrk. the company paid itr manag”s a regular saleryi for Vie oellicg 

of insurance. it p4id them the c\utornay commfseioa. 

“The comprg paid contributions to t.hLc Ccmmnimicn 

upoa the total combined salary and comxnis~inn romuneratim of the managers for the period Janwry 1.1537 - hGrch 

31. 193% 00 July 20. E37. the company made l pplkatton 

to the Commfuion for refund d all coatributions paid upon 

commiuioM paid to manngore fer selling iIUurW&ce during 

the period &et mentioned. admitting that contributionr 

baaed on ‘the salary portlam of the rcmuaeratior. of swh 

managcn were properly mode. The application is based 

up06 the compunf~ contention that Subsection 1s (8) (6) (I), 

being hrticlo STtlb-17 (0) (6) (I), LL appUc8blc to the period 

of time under coluideratiaq doe8 not impost upon the company any liability for contributions ga Bucb commiuhna 

u oppoud to salary. 

‘Oa February 9,lCff. the Attorney Cenerrl of Texre. 

through w. 35. -McbAilha. Auistant Attorney Goueral, held 

that the Legislature Mended to exempt from contributions 

only the compensation of tb.ose agate who arc paid entirely 

on a commluba baeie and that coatrtbutiano on both salrry 

a a d c o mmb slo oa f l acll agoat ia tlrr, .orithxl9f agoats &oW 

drrcribcd were ye&red. We wtid Lb.8 to have this qtleatioa rtemuidered ud be furahhed with your opinion u to 

whether the Coayniuioa may refuad coatributious pald upon 

cotnmlssion paid to the l bove described htsurancc agents 

wbu compenration con&ted of both s&ary uxl coanmicpleas. 

‘Regulation No. 47. dealing rith i~~ormtce qgcnto rod 

quoted la ta+ opialoo dated February Y.1937, wu curled 

over verbatim u iieguhtion 33 in the Keg-datioar &opted 

by the CammIssion 011 July a, 8937. Re@otion No. 38, 

adopted July f,1537, deals with refuade. It was supereeded 

on September 5, lSifS, by the prusont Rqfulation NV. 39.” 

Prior to April 1. 1539. 5ubuctiou (r) (5) of Section lci of the 

Texas Unemployment Compoasation Act, same being ids 1536, 44th 

Leg., frd C.S., page lCc;S, Cii. 482. read as followo: 

‘In determining l mpleyoes uader this Act and ia determ* employer8 under thio Act, end tn determiuinp 

wager aader tbic Act. aeitber term *ball tackada employmeat of or sewice by agent8 of iaeurrsce canpenies who 
Ksnor8ble Grvillt 3. Carpenter, gags 3 

collect their compuu~ticm on a commission basis (fixpsalqd +rll 1, 19 34): 

The contributiow ia quo8tien were paid upon the combiard 

l alrry end commio.sioa rernuncrati~w of tlwrr ageat who acted io L 

dusl cafkclty, t&at of agent aad maaager, for the puriod between Jammy 1.15’97. and h:rrch fl, 1938. Therefore. the above quoted Subectioa et the Uaemplaqmrat Compan8atioa Act W*B ia effect when the 

coatrfbutiow ia qwrtloa wore Hid. 

Ia in opini& rendered on Febwnr7 4.1537. an Assistant 

Attorney Gowral ruled that the Lcgirlature iateaded to exempt onlg 

those employee8 rccriviag c~atiop 8olel9 oa 8 CofXJmiBSiOn 

bacis. ;re q wtq fr o m l id O$aion. fa p*rt, u followc: 

ëThe qwstian presented fn th il s c tto n is whether 

the Legislature Intended to exempt from ceatributloa8 

only those agentn p&id entirely OL a commi8rlon bari8 

or all *peats paid in wy part hy eommi88ion. It is my 

opinion that the kgklature fateaded to exempt c&y 

tho60 employee8 recciviag compoasatloa 8olely oa eommluioa. To hold otberwi8e waald h;r*e UK effect of 

exempting 141 the apnts of iasurraca compaaiu who 

collect y portion ol their compqWatlw on m commirsioa ba818, no matter how nmall the eommluim or bo~w 

la r tge he l a lo r y. 

No0t a dIy o etrb ; isubsecticm s rxempt ia sur a a c e 

comp8aiu from payment of contributieas aa comrnicrioaa but aIso exampta such weat u employee8 uader 

th iAs c t, a 8tld wlemplgrs r a s l sqdoyun under tb 

Act. Thlo world allow fauarsace comp8aW an opportu8ity to pay ail tbelr ageat a 8mall commluiw, which 

providial they did aot have u maay u eight other 8mployee8. weuld l aablc them to 8toid eontributioas under 

the Texas Uaernplsymont c0m$#S8tlaor /.ct.- 

Ths.Tcx88 Unemployment Compon8aUon Act. a8 it read prior 

to April I, 1939, rtprdred tlmt tbc employer paid coatributicn6 011 the 

remuneralloo paid to its empbyee8. Thi8 would include tbo 8&lry 

paid to tbc ineurwwr l aleamm for Us maaagarial dutlos. The above 

mtnttowd ,kct clearly excludes the payment sf coalributioaa otl the, 

comduioan of inswancc agents tr relaemea vbo are comperuated 

on a commission basis, 

Sfacr the Act excladea the paymeat of c-rib&ion8 by the 

employer ea the couunfeeioa paid to agents who are compen8ated GUI 

a commiaeion bash, we are of the opinion that the coatributha or tar 
APPROVRD ro)i la, 1948 

(Sgd.) Guld c.. Mau 

ATTOUIVEY 6ElyrRAL OF 

rrxAs