[ 6.9.1 - Confidential Information Defined ][ 6.9.2 - Information Release & Informants ][ 6.9.3 - Confidential Information Release ][ 6.9.4 - Confidential Information & Investigation ]

Under the Open Records Act, the public is entitled to all information obtained by state agencies, unless the information is specifically exempted or identified as such by the Office of the Attorney General or the courts. Since TWC is a state agency we are subject to the Open Records Act, but most Tax records are exempt from public disclosure.

Most information supplied by employers to TWC in connection with the administration of the TUCA is confidential. The public in not entitled to information about a specific unemployment claim, employer tax account, or individual wage record.

Confidential information includes:

Employer account number
Employer name
Employer address
Employer tax rate
Employer ownership & officer information
Employer specific liability information
Employer NAICS code
Employer quarterly wages
Employer account amounts due or credits
Employer's number of employees
Whether or not an employer has filed Quarterly Reports
Whether or not an employer has a TWC account number

Employers have the right to view all information contained in their file including data from computer screens, microfilm and imaged documents. Unless proper precautions are taken, employers can gain access to information which reveals an informant's identity. (See Chapter 6 - "Complaints of Noncompliance"). TWC is compelled to release tangible information only. If the identity of an informant is known, but not contained in Commission records, the Commission is under no obligation.

When an informant requests their identity be kept confidential:

1. Instruct the informant to report to TWC anonymously.
   
   
2. Do not have imaged a document without first obscuring the information that reveals the informant's identity.
   
   
3. Do not send the document to Field Tax for investigation without first obscuring the information that reveals the identity of an informant.
   
   
4. Do not make note of an informant's identity on Commission records. This includes the FTC screen and assignments sent to Field Tax.

A Status section employee should never release confidential information by telephone or in writing unless absolutely certain that a party is authorized to receive the information. Spouses, parents and relatives of an employer have no greater right than the general public to receive confidential information.

Improper release of confidential information carries disciplinary action and criminal liability penalties.

TWC has numerous information sharing agreements with other state and Federal agencies. If you are unfamiliar with the agreement with a particular agency and are not sure what and to whom the information can be shared, contact your supervisor for guidance. TWC and the Texas Department of Licensing and Regulation (TDLR) regularly contact each other regarding staff leasing issues and our contract with them permits exchange and release of information over the phone, although most requests are in writing.

Federal agencies and state agencies other than TDLR should be instructed to secure confidential information through the Open Records Department.

When a caller requests confidential information it is often difficult to determine whether or not they are authorized to receive the information. Status section personnel should take the following precautions when in receipt of a call requesting confidential information:

1. Ask for the caller's name.
   
   
2. If the caller claims to be the employer, verify the owner's, officers, or attorney-in-fact's identity using their social security number or other information, and release the requested information.
   
   If the caller is unable to comply with the request, do not release the confidential information.
   
   Tell the caller that our records are confidential and that we will mail the requested information to the tax address of record.
   
   
3. If the caller is not the employer or their authorized representative (representative must have an approved written authorization on the system), do not release the confidential information.
   
   Tell the caller that our records are confidential and that we will mail the requested information to the tax address of record.
   
   When in receipt of a written request for confidential information:

When conducting a Tax investigation it is often necessary to call or write to the employer's bookkeeper, CPA or attorney. In fact, employers routinely refer Status matters to these agents who act on their behalf. If an exchange of information is initiated by Status, it is permissible to release confidential information as required to conduct the investigation. Use the following scenarios as a guide for the release of confidential information.

Situation 1

You call an employer regarding an assignment. The employer cannot help you and says that you should call her bookkeeper.

Solution 1

It is permissible to call the bookkeeper. Since the employer referred you to the bookkeeper, it is permissible to release confidential information to the extent required to complete the assignment.

Situation 2

You call an employer to determine tax liability. The employer cannot help you and says that he will have his attorney call you back.

Solution 2

The attorney calls you back. It is permissible to release confidential information to the extent required to determine tax liability for the employer.

Situation 3

You receive a call from a CPA who claims to represent a liable TWC employer. The CPA states that she needs to know her client's tax rate. You have not spoken to the CPA prior to the call. There is no written authorization on file for the CPA.

Solution 3

Do not release the tax rate. Status did not initiate an exchange of information with the CPA. Additionally, there is no way to verify that the CPA is acting on the employer's behalf. Explain that our records are confidential and offer to mail a tax rate notice to the employer's address of record.

Situation 4

You receive a letter from a payroll company asking whether or not an acquisition has been processed. The payroll company asks that our response be directed to their address. The payroll company does not have an approved written authorization on the system.

Solution 4

Do not correspond to the payroll company at their address. Status did not initiate the exchange of information and the payroll company does not have an approved written authorization on the system. Mail the requested information to the employer's address of record.