Previous TWC Tax Department Quarterly Report Inserts

Earned Income Tax Credit

In accordance with Texas Labor Code 104.004 (a) and HB 2360 passed during the 81st Texas Legislative Regular Session, employers (a person who employs 1 or more employees) must notify all of their employees (an individual who is employed by an employer for compensation) of the federal earned income tax credit (EITC) general eligibility requirements, no later than March 1 of each year. The EITC is a refundable federal income tax credit for low to moderate income working individuals and families.

How may an Employer provide notice to its employees?

1. In person;
2. Electronically at the employee's last know e-mail address;
3. Through a flyer included, in writing or electronically, as a payroll stuffer; or
4. By mailing the information to the employee at the employee's last known address by United States first class mail.

Employers may use IRS Notice 797, or a written statement with the same wording as IRS Notice 797 when notifying employees. IRS - Notice 797 provides employees with the basic information for EITC.

There are several websites created to assist employees with additional information, eligibility requirements, general overview and income guidelines for EITC.

For more information, go to: http://www.eitc.irs.gov/central/Preview2009/ or, http://www.twc.state.tx.us/welref/wrjseek.html

Extended Benefits

Notice to Regular Taxed Employers: The Emergency Unemployment Compensation and Extended Benefits now in effect for unemployed workers are 100% federally funded. Charges for these benefits will not figure into your state tax rate.

Governmental employers and political subdivisions are liable for Extended Benefits charges, but not for Emergency Unemployment Compensation. Charges for Extended Benefits will be incorporated in the calculation of the governmental tax rate or appear on your quarterly invoices.

Texas Minimum Wage Increase

Section 62.051 of the Texas Minimum Wage Act automatically adopts the federal minimum wage as the Texas minimum wage. In 2007, Congress passed, and the President signed, legislation increasing the federal minimum wage for 2007, 2008 and 2009. Effective July 24, 2009, both the federal and Texas minimum hourly wages will increase to $7.25 per hour.

Electronic Reporting Required

Employers with 10 or more employees are required to use magnetic or electronic media to report their wages. TWC offers an Internet application, Unemployment Tax Services, for filers reporting 500 or fewer employees and a software application known as QuickFile for filers reporting any number of employees. Visit www.texasworkforce.org for more information about electronic filing.

Unemployment Tax Services

Using Unemployment Tax Services, employers can:

a) Submit quarterly wage reports
b) Pay unemployment tax
c) View tax account information
d) Update tax account information
e) Adjust previously filed wage reports
f) Request Forms

The Unemployment Tax Services system uses the same level of encrypted data transmission security as the IRS, banking industry and other high level security systems.

For more information about Unemployment Tax Services, go to http://www.twc.state.tx.us/ui/tax/emtaxinfo.html.

Important Information About Layoffs

TWC certainly hopes that your business is weathering these tough times, but if you are in the unfortunate position of having to downsize, these tips can help both you and your employees.

• If you are laying off 10 or more employees, use our Mass Claims program. Visit our online information at http://www.twc.state.tx.us/ui/bnfts/masscinfo.html. Filing a mass claim eliminates the need for employees to apply individually, and for you, the employer, to respond to each claim individually.
• Individual employees can apply for benefits, request payment, register for work search and view their claim status online at http://www.texasworkforce.org. Encourage laid off employees to do as much on line as possible; it saves phone calls to our overloaded telephone lines.
• When you receive notice that an employee has applied for benefits, respond immediately, rather than waiting for the full 14 days. The quick response will speed payments to your ex-employees.

Employers!

TWC Training Funds Available for Employees who are Vets

• The Texas Workforce Commission (TWC) has created the $1 million Returning Veterans Skills Training Fund to provide employer-driven skills training for recently separated veterans.
• Private Texas employers can submit applications for veterans training in most any field by partnering with established training providers. From aerospace to welding, manufacturing to health care, training should meet the specific needs of Texas employers and upgrade the skills of Texas workers who are returning veterans.
• To apply, download the grant application at http://www.texasworkforce.org/svcs/funds/vet_scholarship.html and return it electronically to vet.scholarproject@twc.state.tx.us through Nov. 1, 2010. Training grants will not exceed $1,000 per veteran. For more information, contact George Bousquet at (512) 936-0401 or George.Bousquet@twc.state.tx.us.

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