HB5545 - Relating to the consideration of certain wage replacement disability benefits received by an injured employee as benefits in the nature of workers' compensation for certain federal tax purposes.

  89R25052 RDS-F     By: LaHood H.B. No. 5545     Substitute the following for H.B. No. 5545:     By:  Button C.S.H.B. No. 5545       A BILL TO BE ENTITLED   AN ACT   relating to the consideration of certain wage replacement   disability benefits received by an injured employee as benefits in   the nature of workers' compensation for certain federal tax   purposes.          BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF TEXAS:          SECTION 1.  Subchapter A, Chapter 406, Labor Code, is   amended by adding Section 406.0025 to read as follows:           Sec.   406.0025.     CONSIDERATION OF CERTAIN WAGE REPLACEMENT   DISABILITY BENEFITS AS WORKERS' COMPENSATION BENEFITS.   A wage   replacement disability benefit paid by an employer that does not   carry a workers'   compensation insurance policy to an employee who   sustained an injury in the course and scope of employment and is   unable to return to work because of the injury is considered to be a   payment made under a statute in the nature of a workers'   compensation statute solely for the purpose of determining whether   the benefit is excluded from taxable income for purposes of federal   income and employment taxes.          SECTION 2.  The enactment of this Act is a clarification of   existing law and does not imply that existing law may be construed   as inconsistent with the law as amended by this Act.          SECTION 3.  This Act takes effect September 1, 2025.