Page 15 - Texas Franchise Tax Handbook
P. 15
Calculation of the Tax (5/7)
Compensation
The compensation deduction
includes the following:
• W-2 wages and cash compensation
paid to officers, directors, owners,
partners and employees (including
net distributive income to natural
A B persons) for the 12-month period
upon which the tax is based, subject
F C to the inflation-adjusted per
person wage and cash compensation
limitation; and
E D • benefits provided to all personnel
to the extent deductible for federal
income tax purposes, including
workers’ compensation, health care
and retirement benefits.
Compensation does not include
1099 labor or payroll taxes paid by
the employer.
.
