Magnifying Glass
Back to Workers' Compensation Daily Headlines

Memo Explains Texas Tax Implications of Designated Doctor Exams

18 Nov, 2022 Frank Ferreri

                               

Austin, TX (WorkersCompensation.com) -- While it's probably not the first thing that comes to mind when someone says "workers' compensation," tax law is often implicated when insurance carriers pay out on covered bills.

As the Texas Division of Workers' Compensation recently highlighted in a memo, when it comes to medical examinations, sales and use taxes could be involved.

The memo, which was issued in the wake of a Private Letter Ruling from the Texas Comptroller of Public Accounts, emphasized that charges from designated doctor exams under state law are subject to state sales and use tax.

"The Comptroller concluded that designated doctor exams ordered by the Texas Department of Insurance, Division of Workers’ Compensation (DWC) are taxable insurance services," the memo explained. "Designated doctors are responsible for collecting and remitting sales and use tax on charges to workers’ compensation insurance carriers for designated doctor exams."

Neither the state nor the injured employee pay for any portion of a designated doctor exam -- only the carrier does.

What if the paying entity is tax exempt?

"Designated doctors may accept an exemption certificate instead of collecting tax on exams for exempt governmental entities ... such as self-insured political subdivisions or religious, educational, and public service organizations," the memo clarified.

To stay current on Texas rules and regulations as well as all 53 U.S. jurisdictions, visit WorkCompResearch

 

 

 

 

 

  • california case management case management focus claims compensability compliance compliance corner courts covid do you know the rule exclusive remedy florida glossary check Healthcare health care hr homeroom insurance insurers iowa kentucky leadership medical NCCI new jersey new york ohio opioids osha pennsylvania Safety simply research state info technology texas violence WDYT west virginia what do you think women's history month workcompcollege workers' comp 101 workers' recovery workers' compensation contact information Workplace Safety Workplace Violence

    • Read Also

    Ergonomics and Workplace Modifications: Reducing Strain and Preventing Injuries 

    Ergonomics and workplace modifications are essential components of a proactive workers’ compensation program. An ergonomically sound workplace reduces physical strain on employees, minimizes the risk of injury, and fosters a healthier, more productive workforce. For […]
    Air Industry Facing Continued Threats as Peak Holiday Travel Period Arrives

    Houston, TX (WorkersCompensation.com) – Airlines and air industry employees continue to face threats as the busiest periods of the holiday travel season nears. Since 2021, the airline industry has seen a rash of threatening and/or […]
    Developing an Injury Prevention Plan: A Strategic Approach to Workplace Safety 

    Preventing injuries is the ultimate goal of workers' compensation. While accidents may seem inevitable, a proactive injury prevention plan can significantly reduce risks, protect employees, and enhance organizational efficiency. This fourth article in the Workers’ […]

    About The Author

    • Frank Ferreri

      Frank Ferreri, M.A., J.D. covers workers' compensation legal issues. He has published books, articles, and other material on multiple areas of employment, insurance, and disability law. Frank received his master's degree from the University of South Florida and juris doctor from the University of Florida Levin College of Law. Frank encourages everyone to consider helping out the Kind Souls Foundation and Kids' Chance of America.

    More by This Author

    California Round-Up

    California content on WorkersCompensation.com is brought to you by Quiescence Congregate Living Health Facility. What are Workers’ Compensation ‘Benefits’ in California? (12/18/24)What you'll learn: Definitions of terms pertinent to benefits available to workers in California under […]
    What are Workers’ Compensation ‘Benefits’ in California?

    Glossary Check If someone was talking about "benefits" in California, would you know what they are? The Golden State spells them out on the state-required Notice to Employees poster, which Simply Research subscribers have access […]
    Injured D.C. Worker Gets 2nd Chance to Test Exclusive Remedy Limits

    Case File While a worker injured on the job didn't present evidence regarding whether Washington, D.C.'s exclusive remedy rules should apply, an appeals court found that the lower court was too hasty in deciding that […]

    Read More

    Ergonomics and Workplace Modifications: Reducing Strain and Preventing Injuries 

    Ergonomics and workplace modifications are essential components of a proactive workers’ compensation program. An ergonomically sound workplace reduces physical strain on employees, minimizes the risk of injury, and fosters a healthier, more productive workforce. For […]
    Air Industry Facing Continued Threats as Peak Holiday Travel Period Arrives

    Houston, TX (WorkersCompensation.com) – Airlines and air industry employees continue to face threats as the busiest periods of the holiday travel season nears. Since 2021, the airline industry has seen a rash of threatening and/or […]
    Developing an Injury Prevention Plan: A Strategic Approach to Workplace Safety 

    Preventing injuries is the ultimate goal of workers' compensation. While accidents may seem inevitable, a proactive injury prevention plan can significantly reduce risks, protect employees, and enhance organizational efficiency. This fourth article in the Workers’ […]
    Air Traffic Controller Shortage May Create Delays for Christmas Travelers  

    Labor Landscape A continued shortage of air traffic controllers may cause delays and long lines at airports nationwide as more than 7 million Americans begin their Christmas vacation journeys, according to Robert Strauss, a professor […]
    Empowering Your Workforce: The Role of Employee Training and Awareness in Workers’ Compensation 

    Prevention is always better than reaction, a principle well understood in workers' compensation. A strong safety culture and a well-structured safety program are vital. Still, even the best-laid plans can only fall short with engaged, […]
    Senate Investigation Finds that Amazon Manipulated Injury Data

    Washington, DC (WorkersCompensation.com) – An investigation into Amazon led by U.S. Sen. Bernie Sanders (I-Vt.) found that the company manipulated workplace injury reports by discouraging workers from seeking outside medical care. Additionally, the Congressional investigation found that […]