Previous TWC Tax Department Quarterly Report Inserts

Don't miss out on WOTC federal income tax credits!

Many employers are unaware of the potential federal tax savings available through the Work Opportunity Tax Credit (WOTC) program.

Hiring from these groups of job seekers can mean direct federal tax savings to employers ranging from $1,200 to $9,000 per qualifying employee.

• Veterans who are unemployed, disabled, or receiving food stamps
• Temporary Assistance for Needy Families (TANF) recipients
• Ex-felons
• Residents of empowerment zones/renewal communities or rural renewal counties
• Vocational rehabilitation referrals
• Summer youth residing in empowerment zones or renewal communities
• SNAP (formerly food stamp) benefit recipients
• Supplemental Security Income (SSI) recipients
• Long-term TANF recipients
• Disconnected youth

Employers do not need to know whether a new hire falls into one of these groups. The Texas Workforce Commission certifies eligibility for the tax credit. For information on the potential tax savings, visit our Web site at http://www.twc.state.tx.us/svcs/wotc/wotc.html or call 1-800-659-6879.

Employer Satisfaction - Technical Programs

Attention Employers: In an effort to improve the education which your employees receive, the Texas Higher Education Coordinating Board is collecting information regarding employer satisfaction from businesses around the state who have hired graduates of technical programs from in-state community and technical colleges. Please take a few moments to share your experiences by completing the brief survey for each of the program areas in which your employees have been trained. This survey will take no more than 5 minutes to complete. Logon at https://www1.thecb.state.tx.us/apps/workforcesurvey

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.

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