Especially for Employers of Domestic Workers

What is domestic employment and who must pay?

If you employ someone performing domestic service, you may be responsible for state unemployment tax, depending upon the amount of wages paid to those workers. Generally, domestic service is defined as work performed in or about a private home and includes services performed by caretakers, companions, baby sitters, cooks, waiters, butlers, housekeepers, watchmen, maids, nursemaids, nannies, valets, janitors, laundresses, gardeners, footmen, grooms, seamstresses, handymen, chauffeurs of automobiles for family use, private secretaries, tutors and librarians. Those employers who pay a total of $1,000.00 or more in total cash wages during any calendar quarter must pay state unemployment tax on those wages paid during that entire year and following years.

How do I register?

Employers of domestic workers who pay $1,000.00 or more in any quarter and who are not registered to pay state unemployment tax in Texas may register using Unemployment Tax Registration. By completing the information requested on that web site, employers can receive a TWC unemployment tax account number immediately.

How do I report wages paid to domestic employees?

Once employers are registered for a TWC unemployment tax account number, there are three options for reporting wages paid to domestic employees:

1. Quarterly reporting forms are mailed each quarter, during the month prior to the month the report is due. These forms are pre-printed with your individual account information and may be used for reporting,
   
   
2. TWC offers Unemployment Tax Services which enables users to file and pay their state unemployment taxes. Registration for Unemployment Tax Services is quick and easy.
   
   
3. Those who report only domestic workers to TWC may elect to file and pay their state unemployment tax annually. By filing the Annual Election Form by December 31, employers may file the following year's reports annually. For example, an election to file Calendar Year 2009 reports annually must be filed on or before December 31, 2008. The Calendar Year 2009 report can then be filed in January of 2010. Once an election is made to file annually, Domestic Employers need not file the election again as long as they employ only domestic employees.