Texas Administrative Code › Title 34 - PUBLIC FINANCE › Part 1 - COMPTROLLER OF PUBLIC ACCOUNTS › Chapter 3 - TAX ADMINISTRATION › Subchapter O - STATE AND LOCAL SALES AND USE TAXES › Section 3.364 - Services by Employees

Current through Reg. 49, No. 28; July 12, 2024
(a) Definitions.
				  The following words and terms, when used in this section, shall have the
				  following meanings, unless the context clearly indicates otherwise.
(1) Affiliated group--Entities in which a
				  controlling interest is owned by a common owner or owners, either corporate or
				  noncorporate, or by one or more of the member entities.
(2) Client--Any person who enters into a
				  professional employer services agreement with a professional employer
				  organization.
(3) Coemployer--A
				  professional employer organization or a client that is a party to a
				  coemployment relationship.
(4)
				  Coemployment relationship--A contractual relationship between a client and a
				  professional employer organization that involves the sharing of employment
				  responsibilities with or allocation of employment responsibilities to covered
				  employees in accordance with a professional employer services agreement and the
				  provisions of Labor Code, Chapter 91.
(5) Covered employee--An individual having a
				  coemployment relationship with a professional employer organization and a
				  client. The term does not include an independent contractor, a temporary common
				  worker as defined by Labor Code, Chapter 92, or an employee providing temporary
				  help.
(6) Controlling interest--
(A) for a corporation, either more than 50%,
				  owned directly or indirectly, of the total combined voting power of all classes
				  of stock of the corporation, or more than 50%, owned directly or indirectly, of
				  the beneficial ownership interest in the voting stock of the corporation;
(B) for a partnership,
				  association, trust, or other entity other than a limited liability company,
				  more than 50%, owned directly or indirectly, of the capital, profits, or
				  beneficial interest in the partnership, association, trust, or other entity;
				  and
(C) for a limited liability
				  company, either more than 50%, owned directly or indirectly, of the total
				  membership interest of the limited liability company or more than 50%, owned
				  directly or indirectly, of the beneficial ownership interest in the membership
				  interest of the limited liability company.
(7) Host employer--The employer who owns,
				  manages, or controls the property or worksite where a temporary employee
				  performs a service.
(8) Independent
				  contractor--A person who contracts to perform work or provide a service for the
				  benefit of another and who:
(A) is paid by the
				  job, not by the hour or some other time measured basis;
(B) is free to hire as many helpers as the
				  person desires and to determine what each helper will be paid;
(C) is free to work for other customers, or
				  to send helpers to work for other customers, while under contract to the hiring
				  customer; and
(D) is in control of
				  the details of the work and the right to terminate the employment of its
				  employees.
(9)
				  Professional employer organization--A business entity that offers professional
				  employer services and is licensed under Labor Code, Chapter 91.
(10) Professional employer services--Services
				  provided to a client by a professional employer organization through a
				  coemployment relationship when a majority of the employees providing services
				  to the client, or to a division or work unit of the client, are covered
				  employees. The term does not include:
(A)
				  temporary employees;
(B) the
				  provision of services by an independent contractor;
(C) the provision of services that otherwise
				  meet the definition of "professional employer services" by one person solely to
				  other persons who are related to the service provider by common ownership;
				  or
(D) services provided by a
				  temporary common worker employer as defined by Labor Code, Chapter
				  92.
(11) Temporary
				  employee--An employee of a temporary employment service.
(12) Temporary employment service--A person,
				  corporation, organization, or other legal entity that employs individuals for
				  the purpose of assigning those individuals to a host employer to support or
				  supplement the host employer's workforce in a special work situation,
				  including:
(A) an employee absence;
(B) a temporary skill shortage;
(C) a seasonal workload; or
(D) a special assignment or
				  project.