Status Manual graphic

[ Status Procedures Manual - TOC ] [ Ch 1 - New Accounts ] [ Ch 2 - Changes to Accounts ] [ Ch 3 - Special Accounts ] [ Ch 4 - Other Units, Sections & Departments ] [ Ch 5 - Letters ] [ Ch 6 - Investigations & Assistance ] [ Ch 7 - Partial Transfer Applications ] [ Ch 8 - Traces ] [ Ch 9 - Special Reporting Situations ] [ Ch 10 - Account Numbers ] [ Ch 11 - Appeals Decisions and Hearings ] [ Ch 12 - Document Processing ] [ Ch 13 - Error Reports & Query List Instructions ] [ Ch 14 - Tax Performance System ] [ Ch 15 - Experience Rating Unit ] [ Ch 16 - SUTA Dumping Detection ]
[ 6.1 - Status Transaction Error Sheet & Assisting Field Tax Examiners ] [ 6.2 - Bingo ] [ 6.3 - C-3s Reflecting No Liability ] [ 6.4 - Community Property ] [ 6.5 - Complaints of Noncompliance ] [ 6.6 - Contract Labor ] [ 6.7 - Field Tax Assignments ] [ 6.8 - Magnetic Media Assistance ] [ 6.9 - Open Records Act ] [ 6.10 - Out-of-State Agency Assistance ] [ 6.11 - Common Paymaster and Payrolling ] [ 6.12 - Requesting Help from another State ] [ 6.13 - Requests for Walk-in Assistance ] [ 6.14 - Returned Mail ] [ 6.15 - Staff Leasing ] [ 6.16 - Statute of Limitations ] [ 6.17 - Signatures ] [ 6.18 - 940 Assignments ]

Chapter 6:  Investigations & Assistance

comments to: Tax Department

6.18     940 Assignments

[ 6.18.1 - 940 Certification Account Assignments ][ 6.18.2 - Actions Prior to March ][ 6.18.3 - Completing the 940 Assignment - After March ]

6.18.1     940 Certification Account Assignments

In November the 940 Assignments appear on the FTI as a system unreleased assignment. The assignment log reflects the names and account numbers of those out-of-state employers/employing units that have reported Federal Unemployment Taxes in prior years.

A pending account number, with a Type 940 code on TDO, was generated for each Federal Identification Number (FEIN) that could not be matched to a TWC account number. A letter and a Status Report were mailed to each employer/employing unit.

Wait until at least March of the next year before attempting to work these assignments. This will give the employers time to respond. On June 1 of the following year the assignments will be released. The 940 assignment should be completed within 3 months of the release date. Deadline to complete 940 assignments timely is August 31.

6.18.2     Actions Prior to March

If an employer calls or sends a letter regarding the 940 and FEIN letter, take the following actions:

  1. Determine if the employer is liable under the TUCA.

  2. If the employer is not liable, make the account not liable and document FTC explaining the reason and who you talked to.  Also the phone number and title, if possible.

  3. If liability is determined and the employer has not registered with TWC, document FTC and have the employer submit the Status report to the State Office. Get the caller's name, phone number and title, if possible and include in the comments.

  4. If a liable active account is found for the employer, determine what FEIN should be reflected on the STS screen.

    Record the FEIN on the active account using the SNC screen. The number should either replace the previous number or be placed in memory only for 940 certification purposes.

    Make the pending account an error account, delete FEIN and show correct account number.

  5. The Status Operations Unit (SOU) unit will pull 940 certification letters returned by in-state employers when the letters have the notation "No employees".

    The letters will be sent out to the local Field Tax Office.

    The Status Section will work all phone calls received. We will not refer the employer to the local Field Tax Office.

  6. If an account is changed to not liable, liable or error, clear the assignment on the FTA screen if it is in your number series.

6.18.3    Completing the 940 Assignment - After March

  1. Look up the account on the EMF.

  2. Conduct an Alpha Search for possible duplicate accounts. Search by name, address, and FEIN.

  3. If we do not have a telephone number or do Google search of the name on the account is possible. Might need to search more than one sight (411.com, infospace, etc.). Secretary of State is also a good source to find officers or address if unable to find a phone number. Do not use Directory Assistance.

  4. If no liable account is found, contact the employer and:
  1. Determine if the employer had employees in Texas.
  2. Find out where the employees´ wages were reported.
  3. Determine why the wages were not reported to Texas.
  4. Determine if the employer is liable in Texas.
  5. Obtain a C-1 from the employer by fax or e-mail if they are liable and make the account liable.
  6. If the employer is not liable in Texas, change the account from pending to Not Liable and document FTC.
  7. If unable to locate or reach the employer, make the account not liable and document FTC.
  8. If it is determined that the employer is liable but will not submit a C-1:
  1. Make the account not liable and document FTC, if the assignment list indicates multi-state.
  2. Make the account not liable and document FTC, if the wages on the assignment list are less than $1500.
  3. Document FTC that the employer has not submitted a Status Report.
  1. If the account is found:
  1. Contact the employer and determine the correct FEIN. Determine if there has been an ownership change. (This is not required if the FEIN is blank.)  If it has been determined that there was an ownership change then proceed with obtaining a C-1. See Chapter 1 – "New Accounts".
  2. Change the pending 940 account to error if it is a duplicate and delete the FEIN, only if a new account is not needed.
  3. Add the 940 FEIN if the account does not have an FEIN or correct the FEIN if it is incorrect.
  4. Put 940 FEIN in memory only if the account has correct FEIN.
  1. Document FTC detailing the findings.

  2. Clear the assignment on the FTA screen.

  3. To clear the FTI assignments, see Chapter 2 – "FTI Assignments".
first previous next last Tax Menu

Texas Workforce Commission  |  Unemployment Tax

Last Revision: October 19, 2011