Audit Questions
What authorizes the Texas Workforce Commission to audit the records of employers in the State of Texas?
Answer: Section 301.081 of the Texas Unemployment Compensation Act.
What are the primary objectives of the Tax Audit Program?
Answer: The primary objectives are to:
- Insure compliance with the taxing provisions of the Texas Unemployment Compensation Act
- Foster understanding by employers of the unemployment compensation law
- Maintain good agency - employer relationships through dissemination of information pertaining to the overall employment security program.
What records are reviewed by the Field Auditor?
Answer: A field auditor reviews employer's acknowledged payroll and searches the records for misclassified wages. These records include:
- All Cancelled Checks
- Time Cards
- Cash Vouchers
- Cash Disbursement Journal
- General Ledger
- Individual Earnings Records
- Check Register
- Payroll Journal
- TWC Tax Reports
- IRS Form 940
- W-3 and W-2s
- IRS Forms 1099, 1096 and Master Vendor Files
- Petty Cash
- Chart of Accounts
- Profit and Loss Statement
- Corporate Minutes
- Federal Tax Return (1040, 1120, 1120S, etc...)
- Any other records which may reflect services.
Please e-mail questions or comments to tax@twc.state.tx.us
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