In General:
'Federal Certifications' is a term in general use to describe certifications
by the Commission to the U. S. Treasury Department on Treasury Form 940.
Each year the Commission certifies as to the taxable payroll, the tax rate
and the amount of taxes paid by an employer into the Texas Fund. Our certification
is used by the Treasury Department to verify credits claimed by the employer
against taxes due under the Federal Unemployment Tax Act.
Certifications are made when the Treasury Department makes a request or
when an employer requests that a certification be sent. Certifications will
be requested by using the Federal Certification Screen (AFC). If special
mailing instructions are required or the field tax office needs to deliver
the certification, call the Accounts Sections, Customer Service Unit to
arrange special handing.
NOTE: Federal Certifications are also used in 940 assignments.
See Procedures Manual, Chapter 7 - 940 - IRS Form 940 Assignments for additional
details on 940 Assignments.
See Procedures Manual, Chapter 5 - AFC (Federal Certification) Screen for
additional details on the AFC Screen.
This section discusses the aspects of the law that specifically apply to
due dates for reports and remittances.
In accordance with the authority granted in Section 204.002 to prescribe
the due dates of taxes and reimbursements, Commission Rule 815.109 was adopted
and provides, in part:
Comment: The Rule, in effect, provides, a ‘grace period’ to the
last day of the month next following the due date, as tax and reimbursements
do not become delinquent until after that day.
Commission Rule Number 815.109 authorizes the extension of the due date
for payment of contributions or reimbursements, and Rule Number 815.107
authorizes the extension of the due date for filing a report ‘for good
cause shown.’
Rule Number 815.109 (e) provides, in part:
Rule Number 815.107 (b)(3) provides, in part:
An extension, as provided in the Rules, must be ‘in writing’
and must be authorized by the Agency or its duly authorized representative.
As previously stated, under Rule 815.109 the due date may be extended 60
days beyond the original due date for a quarter. Reports may be made and
taxes may be paid during an additional thirty days following this extended
due date. For example, if the commission -- in writing -- extends the due
date of the fourth quarter of 1996 to March 1, 1997 (60 days past the original
due date of January 1, 1997). The quarterly report may be made and taxes
paid on or before the 30th day following such extended due date,
or until April 1, 1997. It should be noted that the extended due date that
is shown on the Detail Quarter (ADT) screen for the account for the fourth
quarter of 1996 would show the April 1, 1997 date, since that is the final
due date that the report and taxes may be received by the commission without
assessment of penalties under Sections 213.021 and 213.022. However, the
extension of the due date will not automatically cancel a service charge
for search assessed under Rule 815.107. In this fourth quarter of 1996 due
date extension example, the Section 213.022 penalty is applicable on March
17, 1997, and will increase on April 1, 1997, April 17, 1997, and May 17,
1997. Section 213.021 penalty is applicable on March 17, 1997, and will
increase on the seventeenth day of each successive month until the penalty
reaches 37.5 percent or until the tax is paid in full.
It is far more common for the commission to extend the due date for the
report without extending the date for payment of the tax. Using the previous
example, if the report due date for the fourth quarter of 1996 was extended
to March 1, 1997 (with a final due date of March 16, 1997), but the date
to pay the tax was not extended, and the employer submitted their report
and remittance on March 16, 1997, they would not have been assessed a report
penalty. However, interest penalty would have been assessed on February
1, 1997, and March 1, 1997, because the payment of the tax was required
on or before January 31, 1997, to have been considered timely.
The actual date of payment is used for experience rating and FUTA credit
purposes as they are not affected by a due date extension. The employer
may lose some FUTA credit since the payment was made after the January 31,1997
deadline.
The receipt date is the date the report or payment is actually received
by a Commission representative if delivered in person or the date shown
by the postmark date on the envelope containing the report or payment.
If the due date for a report or tax payment falls on Saturday, Sunday or
a legal holiday on which Commission offices are closed, reports and payments
are considered timely if they are hand delivered (or the envelope is postmarked)
the following business day.
Example: If October 31 falls on Sunday a third
quarter report and tax are considered timely
received if they are mailed in an envelope which
is postmarked November 1. This applies only to
current quarterly reports and payment and their
original due dates. Once the due date has passed,
the Saturday, Sunday or holiday rule no longer
applies.
NOTE: Current quarterly reports are defined as the report due for the current
quarter.
Example: A new employer is granted a report extended due date of October
31st which falls on a Sunday for all reports that are considered due. The
employer owes the first, second and third quarter reports. The reports are
received on Monday November 1st. Only the current quarterly report (third
quarter) is considered timely.
This section discusses the aspects of the law that specifically apply to
interest.
Section 213.025 was amended effective September 1, 1989, to provide, in
part as follows:
Note: Debt owed under an assessment if not contested by the employer is
granted/treated the same as a judgment.
Subsection 14(a) (now 213.025) was amended effective October 1, 1967, to
provide, in part as follows:
