[ Tax Law Manual - TOC ] [ Ch 1 - Employing Unit ] [ Ch 2 - Employment ] [ Ch 3 - Employer ] [ Ch 4 - Taxes ] [ Ch 5 - Reports & Records ]
[ 5.1 - Required Reports ] [ 5.2 - Employer Penalties ] [ 5.3 - Authority to Prepare Reports ] [ 5.4 - Receipt Date of Reports ] [ 5.5 - Records ] [ 5.6 - Service Charges ] [ 5.7 - Signatures ] [ 5.8 - Admissibility of Reports in Court ] [ 5.9 - Statement in Civil Action ] [ 5.10 - Investigative and Subpoena Powers ] [ 5.11 - Penalty for Disclosure of Information ] [ 5.12 - Reports Prepared by Employing Units ] [ 5.13 - Reimbursing Employers ] [ 5.14 - Tax Department Forms in Current Usage ] [ Ch 5 - Index ]
Chapter 5: Reports and Records	comments to: Tax Department

5.3 Authority To Prepare Reports

[ 5.3.1 - Audit of Employer ] [ 5.3.2 - Estimated Taxable Wages ]

This section discusses the aspects of the law that apply to the authority to prepare reports.

5.3.1 Audit of Employer

Under Section 213.055(a):

The commission may determine the amount of a contribution due and prepare a report for an employer who does not properly pay a contribution or submit a report.

COMMENT: The commission may determine that such action is necessary because of an employer's inability or unwillingness to prepare correct reports or because of a need for quickly obtaining certain information

5.3.2 Estimated Taxable Wages

Under Section 213.056:

If an employer does not submit a report, the commission may estimate taxable wages paid by the employer during the period covered by the report. In making this estimate, the commission may use any available source of information.
Collection of taxes owed on estimated reports proceeds as if the wages had been properly reported by the employer.

COMMENTS:

This section authorizes the commission to estimate taxable wages from any sources of information available to it and to proceed to collect taxes and penalties on the basis of such estimates as if the wages had been reported by the employer.
The commission is also given statutory authority to establish a claimant's wages by Section 207.004 which provides, in part:
If an employer fails to report, when requested by the commission, wages that were paid to an individual during a base period, the commission may determine the amount of benefit wage credits for the individual for the base period from the best information obtained by the commission.
For practical purposes the tax department will estimate total and taxable wages at the same time.

Note: The commission currently determines the amount of benefit wage credit, if not forth coming from the employer during the Appeal Process.

5.4 Receipt Date of Reports

[ 5.4.1 - Rule Number 815.102 ]

This section discusses the aspects of the law that apply to the receipt date of reports.

Reports received through the mail shall be deemed to have been filed as of the date shown by the postmark on the envelope properly addressed to the commission's office and containing the report.

5.4.1 Rule Number 815.102

Rule 815.102 states how to determine mailing (postmark) dates.

Whenever an individual or an employing unit reports or applies to the Agency in writing upon an Agency form, for purposes of determining the date the writing is submitted, the following dates shall control, in the order listed:

the United States Postal Service postmark date, if legible;
the postal meter date, if legible;
a writing received in an envelope without a legible postmark or postal meter date shall be considered to have been sent three business days before receipt by the Agency, or on the date of the writing, if the date of the writing is less than three days earlier than date of receipt; or
if the mailing envelope is lost after delivery to the Agency, the date on the writing shall control. If the writing is undated, the date the writing was sent shall be three business days before receipt by the Agency, subject to sworn testimony establishing the mailing date.

The date the payment of contributions or reimbursements are received shall be determined in accordance with the provisions of this section.
If the writing was filed in an electronic form approved by the Agency in writing, the date and time stamp the transmission was received by the Agency shall establish the mailing date.
If delivered by a common carrier (i.e., Federal Express, Purolator, or other common carrier) the receipt date shall be the date the writing is delivered to the Common Carrier.
If delivered in person, the date the writing is delivered to the Agency's Central Tax Office in Austin or any Agency Tax Office located throughout the state.

The provisions of 815.102 were adopted to be effective November 6, 2000, replacing section 815.2

5.5 Records

[ 5.5.1 - Employing Unit Shall Keep ] [ 5.5.2 - Inspection of ] [ 5.5.3 - Contents of Employer Records ]

This section discusses the aspects of the law that apply to the records kept by an employing unit.

5.5.1 Employing Unit Shall Keep

Section 301.081(a) of the TUCA states:

Each employing unit shall keep employment records containing information prescribed by the commission and as necessary for the proper administration of this title.

5.5.2 Inspection of

Section 301.081(a) of the TUCA states:

The records are open to inspection and may be copied by the commission or authorized representative of the commission at any reasonable time and as often as necessary.

5.5.3 Contents of Employer Records

Section 815.106 of the Rules lists the details of records for employing units.

Each employing unit shall keep true and accurate employment and payroll records, that shall include, the name and correct address of the employing unit, and the name and address of each branch or division or establishment operated, owned, or maintained by the employing unit at different locations in Texas, and the following information for each and every individual performing services for it:

the individual's name, address, and social security number;
the dates on which the individual performed services for the employing unit and the state or states in which the services were performed;
the amount of wages paid to the individual for each separate payroll period, date of payment of the wages, and amounts or remuneration paid to the individual for each separate payroll period other than "wages," as defined in the Act; and
whether, during any payroll period the individual worked less than full time, and if so, the hours and dates worked.

Each employing unit shall keep, in addition to the records required by subsection (a) of this section, the records that shall establish and reflect the ownership and any changes of ownership of the employing unit, the correct address where the headquarters of the employing unit is located, and the correct mailing address of the employing unit. The records shall also show clearly the address at which the records are available for inspection or audit by representatives of the Agency. The records shall show the addresses of owners of the employing unit; or in the event the employing unit is a corporation or an unincorporated organization, the records shall show the addresses of directors, officers, and any individuals on whom subpoenas, legal processes, or citations may be served in Texas. In the event the employing unit is a member of a group account, the records shall show the address of the group representative.
Wages paid for services excluded from the definition of "employment" under the Act shall be separately reflected in the employing unit's records so as to show the time of the service and remuneration for the service that is separate from taxable wages. With respect to pay periods in which an individual performs services excluded from the term "employment" as well as service which is "employment," the employing unit's record shall reflect the hours spent in the excluded service and the hours spent in "employment."If any remuneration other than monetary wages is paid to or is received by an individual with respect to services performed by the individual for the employer, the record shall show the total amount of cash wages and the cash value of any other remuneration.
Each reimbursing employer (including the individual component members comprising a group account) shall maintain the records prescribed in this section.
Each governmental employer (including the independent component employers comprising the group account) shall maintain the records prescribed in this section.
Component members of a group account shall furnish payroll and other information necessary to the group representative for the representative to prepare consolidated reports for the group.
All records shall be kept and maintained as to establish clearly the correctness of all reports which the employing unit is required to file with the Agency and shall be readily accessible to authorized representatives of the Agency within the geographical boundaries of the State of Texas; and in the event the records are not maintained or are not available within Texas, the employing unit shall pay to the Agency the expenses and costs incurred when a representative of the Agency is required to go outside the State of Texas to inspect or audit the employing unit's records.
Each employing unit, upon request by the Agency, shall furnish a job description of duties performed by any individual or group of individuals who are performing or have performed services for the employing unit.
The records prescribed by this subchapter and the Act shall be preserved for four years.

The provisions of 815.106 were adopted to be effective November 6, 2000, replacing section 815.6.

Texas Workforce Commission | Unemployment Tax

Last Revision: May 07, 2009

Chapter 5: Reports and Records