Tax tips are provided as a resource for helpful hints and time-saving suggestions when registering, filing and paying your unemployment taxes and managing your unemployment tax account.

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March 2018

Don’t Share Your User ID

The user-ID you set up in the Unemployment Tax Services (UTS) System will be set up in your name and will be your user-ID.  You can associate your user-ID with one or more tax accounts.  However, the user-ID will belong to you, not to any of the tax accounts that you may associate it with.  Any time that user-ID is used to file a report in any tax account that it is associated with, it is the legal equivalent to your electronic signature on that electronic document. 

You should never allow anyone else to log in to the UTS system using your user-ID.  You are the only person who should ever use it.  If anyone else needs to access this tax account and file reports or take other actions, they should set up their own user-ID and associate it with this tax account.  A tax account can have any number of user-ID’s associated with it, but each person who needs to access the tax account should have their own user-ID set up in their own name.

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February 2018

Why am I being Audited?

The Texas Workforce Commission is responsible for the effective administration of the Texas Unemployment Compensation Act (TUCA). The Tax Department does conduct routine audits of businesses to ensure compliance with unemployment laws. This helps provide for a level playing field among businesses by enforcing tax compliance equitably. Since part of the tax rate calculation is used to replenish the unemployment trust fund, it is important that all liable employers pay the correct amount of taxes due for their employees.

Employer Audits may be based on random selection, referrals from other departments, other state and federal agencies, and the public.

The primary objectives of an unemployment insurance employer tax audit are to:

  • Ensure compliance with the taxing provisions of the Texas Unemployment Compensation Act.
  • Foster understanding by employers of the unemployment compensation law.
  • Establish a relationship between TWC and the employer through the distribution of information related to the unemployment insurance program.

Note: Information obtained by TWC in an audit is not published and is not open to public inspection.  

Learn more about the Unemployment Insurance Employer Tax Audits

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January 2018

Update User Profile

Registered users of Unemployment Tax Services, the free Texas Workforce Commission (TWC) online system, should update their profile any time they change their email address. Maintaining an updated email address and phone number allows you to reset your password by email instead of having to call for assistance. TWC also uses the email address and telephone number as a means of communicating with employers.

Updating a profile is quick and easy. After logging in to Unemployment Tax Services, select the “My Profile” link from the upper right hand corner of any page. Next, enter the new email address and/or phone number and then submit.

To ensure that emails are received and not filtered, users should add the TWC email addresses taxserv@twc.state.tx.us and tax@twc.state.tx.us to their address book.

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December 2017

Texas Workforce Commission
Unemployment Insurance Tax Rates for 2018

Dear Employer:

Texas continues to see business growth and a strong economic environment. The bonds Texas Workforce Commission (TWC) sold in 2014 to avoid high Tax rates were retired in July. The good news for Texas employers is that the 2018 Tax rates will not include an obligation assessment.

The decline in unemployment claim activity over the last year brought the unemployment trust fund balance above the statutory floor. For this reason, Tax rates in 2018 will not include a deficit tax. Overall employers can expect to pay less unemployment tax next year.

The components of your 2018 tax rate are:

  • The general tax – based on claims against your account.  If TWC has paid benefits to former employees who were laid off or separated through no fault of their own in the past three years, you will pay the general tax.
  • The replenishment tax – charged to all experience rated employers to cover unemployment claims not charged to a specific employer.  This tax tends to rise following economic downturns when claims increase and businesses close.
  • The employment and training investment assessment – a flat tax of 0.1 percent, paid by all employers, used to fund the skills training program.

You may be able to reduce your taxes for 2018.  If TWC paid benefits to your employees who were laid off or separated through no fault of their own, you may find it beneficial to “buy down” the tax rate.  Please visit our web site at www.texasworkforce.org and click on the Businesses and Employers menu link for more information or access the voluntary contribution analysis through Unemployment Tax Services.

At TWC, we work hard to minimize your unemployment insurance costs. In addition to lowering the tax burden, TWC is taking an aggressive approach to eliminate fraud, waste, and abuse of all kinds in the programs the agency administers. By reporting new hires immediately to the state Attorney General’s office, responding promptly to notices when a former employee applies for unemployment benefits and responding to earnings information requests on claimants, you can help us avoid overpayments and fraud which costs all employers.

TWC works closely with local workforce development boards across Texas to fill job openings with qualified unemployed workers, and we fund training to upgrade the skills of workers to better match area employers’ needs.  TWC also works closely with economic development organizations to support existing Texas companies and to bring new business to the state.  We pledge our continued efforts in helping to keep taxes as low as possible in order to promote a thriving Texas economy.

Texas Workforce Commission
Austin, Texas 78778

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November 2017

Notice To Employers

In accordance with Texas Labor Code 104.004 (a) and HB 2360 passed during the 81st Texas Legislative Regular Session, employers (a person who employs 1 or more employees) must notify all of their employees (an individual who is employed by an employer for compensation) of the federal earned income tax credit (EITC) general eligibility requirements, no later than March 1 of each year.  The EITC is a refundable federal income tax credit for low-to-moderate income working individuals and families.

How may an Employer provide notice to its employees?

  1. In person;
  2. Electronically at the employee’s last known e-mail address;
  3. Through a flyer included, in writing or electronically as a payroll stuffer; or
  4. By mailing the information to the employee at the employee’s last known address by United States first class mail.

Employers may use IRS Notice 797 or a written statement with the same wording as IRS Notice 797 when notifying employees.  IRS – Notice 797 provides employees with the basic information for EITC. For more information and guidelines visit: http://www.eitc.irs.gov/Partner-Toolkit/employer .

There are several websites created to assist employees with additional information, eligibility requirements, general overview and income guidelines for EITC.

For more information, go to:  http://www.eitc.irs.gov/  or http://www.twc.state.tx.us/welref/wrjseek.html.

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October 2017

Hurricane Harvey Information for Employers

In the aftermath of Hurricane Harvey, employers have been asking important questions.  The Commissioner Representing Employers’ Office has developed a list of the most frequently asked questions.

Please use the following link to view the questions and answers.


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September 2017

Have You Sold Your Business?

The Texas Unemployment Compensation Act requires that the Texas Workforce Commission investigate and potentially establish new tax accounts for employers who purchase an active business with employees. Please notify the Commission when you sell your business. This is easily accomplished using the Unemployment Tax Services System when you close your Tax account.

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August 2017

Appeals Information is Moving

Effective August 31, 2017, Appeals information will be moved from Unemployment Tax Services (UTS) to the Employer Benefits Services (EBS) system.  To review Appeals information on EBS beginning August 31, use the link below to access the EBS system.  You will need to use your UI Benefit User ID and password to log in.  Your UTS User ID and password will not work to access the EBS system.
The following link will take you to the EBS system logon page:  https://apps.twc.state.tx.us/EBS/security/logon.do
For more information regarding the Unemployment Benefits Appeals process, please visit our website at

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July 2017

What does it mean to be “independent”?

In regard to Texas unemployment taxes, being independent means being free from direction and control.  Texas law presumes that workers are employees unless the business can demonstrate otherwise. Independent contractors provide services, but in doing so they are free from the direction and control of the business.  

View the list of factors PDF used by the Texas Workforce Commission in making a determination.

Please note that the Texas Unemployment Compensation Act does not exempt a worker from the definition of employment simply because of his temporary or part-time status.  Employers are responsible for reporting wages paid to any temporary or part-time employees, including students who are not otherwise exempt.

Please contact the Tax Department at tax@twc.state.tx.us if you have questions about employee/contractor classifications or if you have information about other employers who are misclassifying their workers.

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June 2017

Business Changes

It is important that TWC be notified of any change in your business. By doing so you can:

  • avoid penalties for failure to maintain or submit required reports,
  • enable TWC to make a prompt ruling on the unemployment tax rate in the event of a merger, acquisition or other change in ownership, and
  • minimize the risks of unusual problems with your account.

Changes to the makeup of your business or a change in address can be reported to TWC by:

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May 2017

Your User-ID is the Key

User IDs and passwords function as security for your online tax account(s).   Your User ID and password combination is required to ‘open’ your access to UTS each time you log on.

Your user-ID belongs to you.  It does not belong to any tax accounts that you may have associated it with.  The user-ID serves as your electronic signature for any actions taken with your user-ID. A single tax account can have any number of user-IDs associated with it, but each person who needs to access the tax account must have his/her own individual user-ID to be in full compliance with the law.

Do not share your password with anyone.  We may request your user-ID and tax account number to be able to assist you, but we will never request your password.

Never attempt to log on to a tax account with anyone else’s user-ID - even if they gave you permission to do so.  A user-ID should never be “passed on” to a new person if the person who set it up no longer needs it.  Registering for your own user-ID takes only a few minutes and is the best way to distinguish your online activity from anyone else’s.

If you forget your User-ID or password, having current profile information will be crucial.  Keep your User-ID profile current by logging in to UTS and selecting “My Profile” in the top right hand corner.   Click on Personal Information to update your email address.  Click on Security Information to update your security questions and answers.

You are the key to safeguarding your account information. 


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April 2017

Awareness Survey for Employers

Texas Workforce Commission is always seeking to improve our services.  Soon, randomly selected employers will receive an email survey from UT IOC.  We encourage your participation which will help us improve the quality of services we provide our employer community.  We appreciate your response by April 30.  If you have any questions, please contact customer service at 800-628-5115.

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