[ 1.2.1 - Requirement to Report ] [ 1.2.2 - The Purpose of a Status Report ] [ 1.2.3 - Current Status Report Form ] [ 1.2.4 - Completing the Status Report - Form C-1 or C-1FR ] [ 1.2.5 - Establishing Community/Separate Property ] [ 1.2.6 - Completing the Amended Status Report ] [ 1.2.7 - Signatures on Status Reports ] [ 1.2.8 - Filing Instructions for Status Reports ]

This section explains the purpose, different types, and completion of the Status Report.

A newly subject employer must file a Form C-1, Status Report or complete the electronic registration process on the Unemployment Tax System within ten (10) days from its subject date. Furthermore, an out-of-state employing unit must file a Status Report within ten (10) days of the date on which it commences or enters into business in Texas or acquires another such business or substantially all the assets thereof in Texas.

The purpose of a Status Report is to:

1. Identify the authorized representative of the business.
   
   
2. Identify the section of the law under which the employer becomes liable and the date of liability.
   
   
3. Identify the nature of the business.
   
   
4. Notify the Commission of a change in any of the information previously submitted.

These status reports are used as follows:

1. A C-1 is used to establish liability for regular and domestic employers.
2. A C-1FR is used to establish liability for a Farm and Ranch employer.
3. A C-1P is used to establish liability for a Political Subdivision.
4. A C-1SA is used to establish liability for a State Agency.
5. A C-1AM is used to amend previously filed C-1's, update tax files, acknowledge acquisitions, reopen, or close an account, and may be required by audit procedures.

[ 1.2.4.1 - Federal Employer ID Number ] [ 1.2.4.2 - Type of Ownership ] [ 1.2.4.3 - Owners or Officers Information ] [ 1.2.4.4 - Business Location in Texas ] [ 1.2.4.5 - If the Business is a Corporation Enter ] [ 1.2.4.6 - Employment Section (Status Report or Farm & Ranch Status Report ] [ 1.2.4.7 - Domestic Employment ] [ 1.2.4.8 - Nature of Business ] [ 1.2.4.9 - Voluntary Election Section ]

A properly completed Status Report is defined as a Status Document that contains sufficient ownership and liability information required to establish, reopen or amend a tax account.

IMPORTANT: Signature date must be on or after the first wages date

Enter the employer’s Federal Employer Identification Number (FEIN) as provided by the Internal Revenue Service (IRS) for all employers, including domestic employers.

DO NOT enter the employer’s Social Security Number (SSN) in this box.

Employers should go to the IRS website www.irs.gov for additional information on obtaining a FEIN.

[ 1.2.4.2.1 - Corporation, Professional Assoc (PA), Limited Liability Company (LLC), Professional Limited Liability Company (PLLC) ] [ 1.2.4.2.2 - Partnership, Limited Partnerships (LP/LTD), Limited Liability Partnerships (LLP) ] [ 1.2.4.2.3 - Individual (Sole Proprietor) ] [ 1.2.4.2.4 - Estate ] [ 1.2.4.2.5 - Trust ] [ 1.2.4.2.6 - Mailing Address ] [ 1.2.4.2.7 - Business Address where Records or Payrolls are kept ]

Select the correct type of ownership. Corporation, Professional Association (PA), Professional Corporation (PC)

• Corporation is styled in the corporate name.
  
  
• Professional Association (PA) is styled in the association name.
  
  
• Limited Liability Company (LLC) or Professional Limited Liability Company (PLLC) is styled in the LLC or PLLC name. The business name styling must include "Limited Liability Company," "Limited Co," "LTD Co," "LLC" or "LC," or "PLLC." The names of the members, managers, or officers should not be used to style the account.

• Partnership is styled with all the partners' names if they can be listed without abbreviating them. If not use one partner's name followed by ET AL.
  
  
• Limited Partnership (LP/LTD) is styled by putting the general partner's name on Item 4 followed by "ET AL". The dba will indicate limited partnership in the name.
  
  
• Limited Liability Partnership (LLP) is styled with the names of the partners. The dba will indicated Limited Liability Partnership.

• A sole proprietor or individual is styled with the first name, middle initial and last name.
  
  
• A sole proprietorship involving community property held by a husband and wife will be styled with the names of both individuals. However at the employer's request (verbal or written), the account can be styled in only one spouse's name, so long as the business is community property and status report show both names.

• An individual account in which the individual is now deceased and the business is closed will be styled with the word "Estate" following their name.
  
  
• If the business of a deceased person continues to operate, a new account will be established and will be styled with the name of the executor and the deceased person's name, followed by the word "Estate".

A trust is styled with the name of the trust and the mailing address should be addressed in care of the trustee (using the "%" symbol).

The status report contains information for the mailing address for the employer. All addresses will be authenticated in the overnight tax run.

• If there is a different address enter the address.
  
  
• If the mailing address is a PO Box, then enter a physical address where the records or payroll information can be found.
  
  
• If the Payroll records address is the same as the Mailing address the Payroll record information may be left blank.

• Owner/Officer information should be completed for each owner, officer, or partner of the business. This will include their name and title. It should also include SSN and residential address information.
  
  If there are more than 3 entries, the additional information should be listed on a separate piece of paper and attached to the report. Include the TWC account number and employer's name on the top of the attachment.
  
  
• All partners should be listed on the status report since each one is liable for the taxes due. General Partners must be listed on the status report. A separate list of Limited Partners is desired but not required.

• The status report should show the employer's trade or business name(s), the location (street address, city, and county), kind of business and number of employees for each location.
  
  
• If additional lines are needed they should be included on a separate sheet of paper and attached to the report. Include the TWC account number and employer's name on the top of the attachment.
  
  
• Because the entry-level tax rates are assigned by NAICS ( North American Industrial Classification System) codes, the "kind of business" of business should be on the Status Report.

• The corporation information for any entity that has a corporate charter on file with the Secretary of State.
  
  This section includes the Charter Number, State Incorporated, Date of Incorporation, Registered Agent's Name, and Original Corporate Name if different than Item #4 and the Registered Agent's Address.

These Items determine the liability status for the employer. Each entry must contain the appropriate Month, Day, and Year.

Acquisition information will include the date of acquisition, name and address of previous owner, previous owner's TWC account number, and what portion of the business was acquired (all or part). If part, specify what part of the business was acquired. (Ex. 1 or 3 locations or 80% of assets)

Crew Leader information on the C-1FR should be marked if applicable.

Comments: Bookkeeping or Housekeeping on a Farm or Ranch. If the services are performed for the "home" in a farm and ranch situation then these services are domestic employment. If the services are done "entirely on and for the farm and ranch" then the services are classified as Farm and Ranch Employment.

If appropriate, complete the Domestic-Household employment Section. This entry should be the ending date (Month, Day, Year) of the first calendar quarter in which the employer paid gross cash wages of $1000 or more to employees performing domestic services.

Domestic employment is defined as:

Work performed in a private home*by a baby sitter, butler, caretaker, chauffeur, companion, cook, footman, furnaceman, gardener, governess, groom, handyman, housekeeper, houseman, janitor, laundress, maid, nurses**, nursemaid, seamstress, sitter, waiter, watchman, or valet.

*The term 'private home' is defined as the place of abode of an individual or family. If the home is utilized primarily for the purpose of supplying board and/or lodging to the public as a business enterprise, such as a bed and breakfast operation, it ceases to be a private home.

**Nurses working in a private home under the direction and control of the homeowner would be considered "domestic employment". However, a nurse taking care of a resident in a nursing home would not be considered domestic employment.

Complete the Nature of Activity Section and list the principal products or services in order of importance. NOTE: List the most important product or service first.

This should be a description of the employer's business and what products or services the employer provides.

Section 206.002 of the TUCA allows an employer that is not liable under some other part of the TUCA to Voluntarily Elect coverage for their employees for not less than 2 calendar years. An employing unit can volunteer in the year for which the employing unit wants to volunteer, and no later than the first quarter of the following year.

Comments: TWC procedure is not to accept a voluntary election for the previous year after March 31. However TWC will accept voluntary election for the current year any time after the employer has paid first wages.

Exceptions to this are:

1) TWC will allow an employer to volunteer when they are not subject to TUCA under a specific exemption, but are subject to FUTA. (i.e. Courier Services, Delivery Drivers, Trademarks, Bingo Operators, Rural Electric Cooperatives).

2) Churches are not allowed to volunteer.

3) Sole Proprietors are not allowed to volunteer their spouses, parents, and/or children under the age of 21. 4) Partners are not allowed to volunteer themselves.

TWC will accept voluntary elections in prior years in order to allow an authorized representative to obtain a FUTA credit.

A voluntary election is for a period of not less than two years. When the election is approved (by the Status Section), the employing unit becomes an employer as of the date of first wages of the election year, and thereafter is subject to all the provisions of the Act to the same extent as other employers. The employing unit will continue to be an employer until such time as an Application for Termination of Coverage is filed and approved.

The Status Report must be signed and should be dated by an owner, partner, officer or an individual with written authorization in order for liability to be established under Section 201.024 of the TUCA. The liability date will be the signature date. If the Status Report is not dated then the receipt date will be used as the liability date.

If a sole proprietorship composed of husband and wife ceases because of divorce, then a new account must be established for the former spouse who continues to operate the business. The experience would transfer to the individual who operates the business. Section 204.083, total acquisition of compensation experience applies.

In a divorce, employer accounts that are operated as separate property would require no change. The account should be documented to reflect this information.

If a divorce occurs where there was more than one business being operated as community property and each spouse received a separate part of the operation, a new account will be assigned to each spouse (if liability is incurred). Each spouse will be required to file a partial transfer in order to transfer his or her identifiable experience. The effective date used will be the date of the final divorce decree unless there is a different date specified by the Court Order.

If it is determined that the business is community property, the preferred method is for both names to be listed on the status report and the account styled in both names.

A sole proprietorship involving community property jointly held by a husband and wife will be styled with the names of both individuals, with the following exception. At the employer's request (verbal or written) the account may be styled in only one name, as long as the business is community property and the Status Report shows both names. Account documentation will include the name and title (unless documented elsewhere) of the individual requesting the styling change.

If the business is not community property, i.e. separate property, the account will be styled in the individual owner's name only. The Status Report should reflect that the business is separate property. In addition, an explanation will be placed on the account.

If a spouse dies and the community property business goes to the surviving spouse without going through an Estate, an amended Status Report will be secured and the account restyled in the surviving spouse's name. In the case of domestic employment only, simply restyle the account. No community property investigation will be necessary. (If the State Office receives adequate written information from the surviving spouse a field assignment will not be made to secure a Status Report.)

If the community property goes to an Estate or to other heirs, a new account will be established.

If an individual operating a sole proprietorship marries, the investigating Accounts Examiner will:

1. Determine if the business remains separate property.
2. Determine if the business was commingled with community property.
3. Secure an amended Status Report to indicate the current situation.
4. Restyle the account if necessary.

If two individuals with separate businesses marry, the investigating Accounts Examiner will:

1. Determine if the businesses remain separate property.
2. Determine if the businesses were commingled with community property. If so, close both existing accounts, establish a new account and show acquisition by the new account with Section 204.083 applicable.

If a divorce proceeding is not final and a new account was established incorrectly:

1. If the rate transferred - take no action.
2. If the rate does not transfer - error out the successor account and reopen the predecessor account, transferring all reports and/or money as necessary. The reason for this is that there is no change in the legal entity since the divorce did not finalize.

[ 1.2.6.1 - Identification Section ] [ 1.2.6.2 - Acquisition Section ] [ 1.2.6.3 - Reopen Section ] [ 1.2.6.4 - Suspend Section ]

The Amended Status Report is primarily used to:

• Amend previously filed Status Reports,
  
  
• To update ownership/address information,
  
  
• Record acquisitions,
  
  
• Record community property changes,
  
  
• Reopen an account,
  
  
• Close an account, and
  
  
• Support required audit procedures.
  

The following section provides additional information in completion of the C-1AM

This section contains the basic account identification such as the name, phone number, mailing address, address for payroll records, ownership and business location information. All Items should be completed as appropriate.

Acquisition information will include the date of acquisition, name and address of the previous owner, previous owner's TWC account number, and what portion of the business was acquired (all or part). If part, specify what part of the business was acquired. (Ex: 1 of 3 locations or 80% of assets)

Reopen information will include the date the employer resumed employing someone in Texas and the date the employer resumed paying wages in Texas.

The Suspend Section will include the date on which someone last performed services in Texas and the date when final wages were paid. Indicate the reason why employment in Texas was discontinued.

[ 1.2.7.1 - Initial Liability Determination ] [ 1.2.7.2 - Changes to Initial Determination ] [ 1.2.7.3 - Not-Liable Accts ]

The preferred authorized signature on ANY Status Report (liable or non-liable) is that of an owner, officer, partner or an individual for whom a valid written authorization is on file with the Texas Workforce Commission.

The Internet Registration System does not require a signature, but identifies the name and e-mail address of the individual submitting the registration.

Signature date must be on or after the first wages date.

[ 1.2.7.1.1 - Signed Status Report ] [ 1.2.7.1.2 - Audited or Reviewed Records - Status Report ]

A tax account may be made liable based on a properly completed status report that shows liability and has an Authorized Signature.

A tax account may be made liable based on a properly completed Status Report that does not have an Authorized Signature when an Accounts Examiner has sufficient information to determine ownership, determine the first wages date and determine liability under the TUCA.

The examiner will:

1. Sign the Status Report,
   
   
2. Provide the employer a copy of the signed Status Report,
   
   
3. Document the account.

An account can be reopened with:

1. A C-3 with an authorized signature or
   
2. A C-3 (signed or unsigned) with money or
   
3. A Phone call and FTC documentation.
   

Any account styling differences will be investigated.

When information is received via a phone call indicating that an account needs to be reopened, the account will be documented explaining why the account was reopened.

NOTE: An Amended Status Report is needed when there is a change in officer/owner information.

When an inactive account is reopened the employer will get a new C-198 letter and the account will show the new C-198 letter date. If there are any report(s) due they will be allowed a 10 day extended due date, Late report penalty will be computed for any report(s) received after the report due date.

Status needs a Status Report because:

• Tax needs to verify liability dates. The tax report does not indicate when the entity first paid wages in Texas or when liability was met.
  
  
• Tax needs to verify and obtain ownership information.
  
  
• The Status Report provides information on possible predecessors and transfer of experience.
  
  
• Type of liability can only be determined by a Status Report. There would be no way of determining if John Doe has regular or domestic employment solely on a Tax Report.
  
  
• The Status Report is a source document that Tax Performance System (TPS) reviewer would need to have when reviewing Tax work.
  

All pertinent information on the Status Report should be completed. This includes: name, mailing address, telephone numbers, ownership information to include social security numbers and residence address, first date of employment, first payment of wages, liability date, predecessor information, and proper signature.