Often it is necessary to reopen an account which has been inactivated. The account might have been properly closed or it might have been closed in error. In addition it may be appropriate to reopen an account by adding a new type of employment. Accounts may be reopened by using the STA screen or Form C-10. The STA screen should be used whenever possible. This procedure details how to reopen accounts.
Accounts may be reopened on the basis of a Status Report, Amended Status Report, Quarterly Report or any type of written correspondence from an Employer or their representative.
Accounts may also be reopened on the basis of a phone call from the Employer or their representative. If a phone call indicates that an account should be reopened, verify the authority of the caller. Also, ask caller if address or phone number need to be updated. If updating address or phone number, document the name and title of person making request.
If the caller's authority can be verified, update the FTC screen to document the conversation and reopen the account.
If the caller's authority cannot be verified, do not reopen the account. Tell the caller to submit the reopen request in writing.
If a phone call indicates that an account should be reopened at some future date, do not attempt to reopen the account. Instruct the caller to mail a C-1AM after they resume paying wages. Mail or fax the caller the C-1AM or tell the employer they can download form from the Texas Workforce Commission (TWC) website.
If the account is closed and shows two or more partial acquisitions (P-JA-A and/or P-PA-A) you will need to review the RAT and RDT screens to make sure no charges/experience (taxable wages) remain on the account. If you are not sure, consult with your supervisor who in turn may need to discuss it with the Experience Rating Unit. If no charges/experience (taxable wages) remain in the account, then a C-111 account will have to be assigned because the account no longer has any experience associated with it.
If a C-111 account is not needed, the account can be reopened. Accounts which are totally acquired by a successor account with no transfer of experience can be reopened.
To reopen an account resuming operations under an employment type for which it is already "Liable":
Access the STA Screen
NOTE: A Day 1 and Day 2 process is needed if amending suspend/final wages dates as well as reopening.
| Day 1 | REG SUSPD DT DOM SUSPD DT AGR SUSPD DT |
AGR=> 1, 2, OR 3 |
NORPTDUE NORPTDUE NOPRTDUE |
| Press <PF5> to add the record. | |||
| Day 2 | REG ACTVE DT DOM ACTVE DT AGR ACTVE DT |
AGR=> 1, 2, OR 3 |
1ST WGS 1ST WGS 1ST WGS |
| Key RPTS YY | |||
| Press <PF5> to add the record. | |||
Employer must become liable under liability provisions 201.021, 201.027 or 201.028.
Access the STA Screen
An account suspended in error should never be reopened by deleting the erroneous close information. Deleting erroneous close information causes the system to compute a 10 day extended due date for each calendar quarter within the statute of limitations. If an account is suspended in error, the account should be reactivated by keying reopen dates. The "Activate" and "First Wages After Resumption" dates should be the day following the "Inactivate" date. For example, if an account is erroneously suspended on 1-1-08 with a "Final Wages" date of 12-31-07 the account should be reopened as of 1-2-08. As another example, consider an account erroneously suspended on 5-15-08 with a "Final Wages" date of 5-15-08. The account should be reopened as of 5-16-08.
To reopen an account which was suspended in error:
Access the STA Screen
An account closed as "Established in Error" should not be reopened unless a special circumstance has developed. These special circumstances are to be considered on a case by case basis and must be approved by the Section Manager or Assistant Section Manager.
To reopen an account closed as "Established in Error":
Check the account to make sure it did not go back to pending. If the account went to pending you must re-establish the account under the original liability.
After checking SER, it is sometimes necessary to reopen an account which has been "Terminated". This type of transaction takes two days to perform. The "Termination" date must be removed on the first day. On the second day the reopen information can be keyed. For information see Chapter 2 - "Termination of Coverage".
To reopen a "Terminated" account:
DAY 1
Access the STA screen
DAY 2
Access the STA screen
Some accounts become liable under section 201.022 but do not have employment at the time of the acquisition.
Access the STA screen
If the account has a first chargeable quarter 9-99 enter a new chargeable quarter, start counting
from wages resume date. If the account has a first chargeable quarter other than 9-99 then just
reopen the account. See Chapter
1 - "First Chargeable Quarter Calculation".
Enter reopen dates under the appropriate employment type.
If the Employer is reopening under farm and ranch employment enter the appropriate liability provision.
NOTES: When reopening an account use the guidelines below.
Never delete suspend dates to reopen account. Re-opening account this way will give every
delinquent quarter on the account an extended due date.
Re-opening accounts will give employer a 10 day extended due date and employer will receive a new C-198
liability letter.
If account was erroneously re-opened and should have remained closed, pull and destroy C-198 liability
letter, schedule of reports due, C-3’s, employer poster and mailing labels.
To get an extended due date, account must be re-opened in one tax run and suspended in another tax run.
If account is re-opened and closed in the same tax run, the employer will not get an extended due date
for delinquent reports or C-198 liability letter.
If you reopen and close an account in the same tax run and need extended due dates assigned to the new
quarters of report liability, it is necessary to e-mail ADP & Audit and request manual extension
of the due dates.
