Previous TWC Tax Department Quarterly Report Inserts

Texas Veterans Leadership Program

Texas employers have a tremendous resource of skilled labor in the men and women who are returning to Texas after serving in Iraq and Afghanistan. After years of serving our country, military personnel may need assistance transitioning from active duty to civilian life. The Texas Workforce Commission (TWC) has created the Texas Veterans Leadership Program, a referral network to help our returning veterans.

Many employers recognize the value military service brings to the workplace. Veterans bring experience, skills, and leadership abilities that strengthen the Texas workforce. By contacting TWC about available jobs, employers like you will be essential to the program's success. For information on the Texas Veterans Leadership Program, visit www.texasworkforce.org.

The Texas Veterans Leadership Program is modeled on the Vietnam Veterans Leadership Program established by TWC Chairman Tom Pauken, himself a Vietnam veteran, during the Reagan administration.

Retired U.S. Marine Corps Gunnery Sgt. Jason K. Doran will lead the Texas Veterans Leadership Program. During his 20-year career, Doran earned the Silver Star, Navy Commendation Medal, Navy Achievement Medal with Combat "V", and two Combat Action Ribbons. His service included Operation Iraqi Freedom, Desert Shield/Storm in the Middle East, and Operation Noble Obelisk and Guardian Retrieval in Africa, JTF-6 Counter Drug Operations, and service in the Philippines and Korea.

Texas veterans will lead this initiative and actively seek out their peers returning from Iraq and Afghanistan to assist them with necessary employment, training and outreach services. TWC is seeking qualified veterans outreach candidates to help their fellow veterans find success in the next phase of their lives.

Texas values Vets. We appreciate the service they have provided us; now we can provide them with this comprehensive program that will put them in a job or career that can utilize their skills, knowledge, and experience. You will be hearing more about this program in the coming months, and we hope you will be a partner in this effort to serve those who have given so much to us.

It's good business to hire veterans.

Veterans Returning to the Workplace

As many brave men and women return home from serving our country in the armed forces, the Texas Workforce Commission (TWC) reminds employers of veterans returning from federal military service of their obligation to reemploy those workers.

The Uniformed Services Employment and Reemployment Act (USERRA) is intended to encourage non-career uniformed service. The nation can enjoy the protection of that service, while maintaining a balance with the needs of private and public employers who also depend on these same individuals. Under USERRA, employers are required to provide employees with a military service obligation time away from the job to meet that obligation. USERRA covers all employers, public and private, regardless of size. For questions or technical assistance, Texas employers may contact Veterans' Employment and Training Service at (512) 463-2814 or mckinny.john@dol.gov More information about USERRA can be found online at http://www.dol.gov/elaws/userra.htm.

Many Texas employers recognize the value that military experience brings to the workplace. On WorkInTexas.com, the online job matching Web site from Texas Workforce Solutions, employers can easily identify veterans who are returning to civilian lives by looking for special symbols placed next to veterans' job applications. Since the launch of WorkInTexas.com in June 2004, more than 73,000 veterans have found jobs, and they are among the hundreds of thousands of job seekers who have found work through the site. In contrast, a person's military or veteran's status cannot be used as a tool to screen out potential employees.

It is the distinct privilege of TWC and the 28 local workforce development boards to offer our services to all Texans and especially to our veterans. Information about all we have to offer can be found at www.texasworkforce.org or in the government pages of your phone book under Texas Workforce.

Employee vs. Contract Labor: Clarifying Business Reporting Responsibilities

For Texas employers, Unemployment Insurance (UI) tax payments are based on the number of direct employees. Knowing the difference between employee and independent contractor means dollars saved and tax penalties avoided. Texas law presumes that workers are employees unless the business can demonstrate otherwise. If TWC determines that an individual who has been classified as an independent contractor really is an employee, then back taxes, penalties and interest are assessed.

An employee is someone over whose work the business owner exercises direction and control. Examples that indicate a worker is an employee include but are not limited to:

• Pay is by hourly/weekly/monthly wage or salary or commission, rather than by the job.
• The worker is often trained initially and given instructions about when, where and how the work is to be performed.
• The worker's job is an integral part of the business's overall operation, and the success of the business depends on the worker's services.

An independent contractor is self-employed, bearing responsibility for his or her own expenses, as well as working at his or her own discretion. Examples that indicate a worker is a contractor include but are not limited to:

• Work is not on a continuous basis, but rather on a job-to-job basis.
• The contractor usually has a significant investment and can make a profit or suffer a loss.
• The contractor supplies his or her own tools and equipment.

TWC will audit a business when necessary to ensure that employee wages are being reported and that proper taxes are being paid on those wages.

The 20-factor common law test that TWC uses to determine if an individual is an employee or independent contractor can be found on the TWC Web site at http://www.texasworkforce.org/ui/tax/forms/c8.pdf.

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 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.

Introducing Unemployment Tax Services

Unemployment Tax Services replaced Employer Tax Information Online (ETIO) and expanded the services provided to employers. Enhanced features include: wage record file upload, increased employee reporting capacity, sort by employee information, taxable wage calculation and view tax account activity.

Employers that pay state unemployment taxes are required to display a TWC poster at each worksite. This poster offers employees general information regarding scheduled paydays, Texas Payday Law requirements, and unemployment benefits.

TWC Posters

Need more posters? Order them online, free of charge, using the new Unemployment Tax Services system! To order:

• Log in to http://www.twc.state.tx.us/ui/tax/emtaxinfo.html
• Click the Account Info tab.
• Click Request Forms from the Quick Links list and submit the required information.

To order posters by fax, send your TWC account number, mailing address, and the number of English and/or Spanish posters you need to (512) 936-3205. You may also order posters by calling (512) 463-2747 or your local TWC office. You must be an active employer to obtain replacement posters.