TWC Tax Department Quarterly Report Inserts

Minimizing UI Tax Rates

The Texas Workforce Commission encourages all Texas employers to take note of two ways you can help minimize increases to your unemployment tax rates. Frequently overlooked, is employer participation in The Attorney General's "new-hire" reporting system. This data-sharing is critical to helping TWC detect individuals that are receiving unemployment insurance (UI) benefits after they have returned to work.

In addition, employers can help by responding to the Request for Earnings Information notice. TWC conducts a quarterly wage check using individual wages reported by employers to the agency and cross checks those wages with individuals that are receiving UI benefits. If an individual was receiving UI benefits and an employer reported wages for the individual during the same quarter, TWC mails a "Request for Earnings Information" to the employer. The request is to determine if the individual was employed during week(s) claimed.

Failure to report new hires and/or respond to "Request for Earnings Information" can cause the undetected improper payment of benefits. These improper payments can lead to a higher tax rate. Tax rates are calculated based on the amount of benefits paid to your former employees along with a statewide factor that includes all benefit payments. Please help us avoid these overpayments and unnecessary impacts to your tax rate by helping TWC identify these overpayments. We will continue to work hard in keeping your tax rates at the lowest possible level.