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Effective January 1, 2014, a penalty will be imposed on any employer who contracts for services with a governmental entity and who fails to properly classify their workers. This penalty applies to subcontractors as well.
Contractors and subcontractors who fail to properly classify individuals performing work under a governmental contract will be penalized $200 for each misclassified worker. Governmental entities may want to include information about the misclassification penalty in their contracts with entities that are providing services covered by this new requirement.
The Texas Workforce Commission’s document “Employment Status – A Comparative Approach” uses a 20-point comparative approach to assist employers with proper worker classification. The document can serve as a guide in determining if a worker is an employee or an independent contractor. It can be found at: http://www.twc.state.tx.us/ui/tax/forms/c8.pdf
If you have questions about the worker misclassification penalty or about proper classification of your workers, please contact your nearest Texas Workforce Commission Tax office. A list of all local Tax offices can be found at: http://www.twc.state.tx.us/ui/tax/unemployment-tax-contacts.html
Everyone likes quick wins. Here are three easy actions you can take to help reduce your unemployment tax rates and protect the integrity of the unemployment benefits program.
Report new hires immediately to the state Attorney General’s (AG) office. The AG’s office uses this information to locate parents who should be paying child support and TWC uses the same information to cut down on claimant fraud and overpayments. Report the date your employee started work as the new hire date. To report, go to www.employer.oag.state.tx.us or call 1-888-TEX-Hire (839-4473).
Respond promptly and completely to a notice that a former employee has applied for unemployment benefits. We need your detailed separation information to make the right decision about paying benefits. Your notice tells you how to respond online, by telephone or by mail.
Respond promptly to an earnings information request. We reduce the claimant’s weekly benefits by the amount of money the claimant earned. You can respond online or by mail. Instructions are on the form.
When a former employee files for unemployment benefits and names you as their last work, TWC sends you a Notice of Application for Unemployment Benefits. You or your agent should respond to the notice if you have information which could affect that person’s right to benefits and you wish to protest the claim.
Recent changes to the Texas Unemployment Compensation Act to comply with federal law require that employers remain charged for benefits if TWC finds the employers’ response to the notice was untimely or inadequate and there is a reversal in the determination to pay benefits. This applies if there is a prior pattern (two or more) of such responses from the employer or the employer’s agent.
To ensure response is adequate, and avoid potential charges to your account, you or your agent should provide details directly related to the reason the former employee separated from the job. If TWC requests additional information, make sure you respond.
Effective with the 1st quarter of 2014, all employers must report wages electronically and make their tax payments electronically unless they have been granted a hardship waiver for one or both requirements. Hardship waivers must be requested in writing and must explain why the waiver is necessary.
TWC offers employers and their representatives, two free electronic methods for filing reports: Unemployment Tax System (UTS) and QuickFile. For more information on electronic methods and available private company accounting software programs, go to our web-site at: http://www.twc.state.tx.us/ui/tax/c3.html
TWC offers three electronic methods for making payments: ACH Debit from a bank account, Electronic Funds Transfer (EFT) and Credit Card. For more information about electronic payments please go to our website at: http://www.twc.state.tx.us/ui/tax/qtrpayoptions.html
Please contact your local tax representative listed below, for additional information about filing your report or paying your taxes electronically. To find your closest tax office, please go to: http://www.twc.state.tx.us/ui/tax/unemployment-tax-contacts.html#Unemployment_Tax_Offices.
Filing reports electronically improves the accuracy and efficiency of quarterly wage report information. Texas Workforce Commission (TWC) offers employers and their representatives, two free electronic methods for filing reports:
Unemployment Tax Services and QuickFile. For more information on electronic methods please go to our web-site at: http://www.twc.state.tx.us/ui/tax/c3.html.
Electronic payment of unemployment taxes is secure and assures prompt processing of payment information. TWC offers all employers three electronic methods for making payments: ACH Debit from a bank account, Electronic Funds Transfer (EFT) and Credit Card. For more information about electronic payments please go to our web-site at: http://www.twc.state.tx.us/ui/tax/qtrpayoptions.html.
Effective January 1, 2014, the Texas Unemployment Compensation Act authorizes TWC to assess a $200 per worker penalty for government contractors who misclassify their workers.
Various state and federal labor laws require employers to display posters at the workplace. Although these posters may be purchased from consultants, they are available, free of charge, from the governing agencies. Please visit our web site at http://www.twc.state.tx.us/ui/lablaw/posters.html to find a current list of available posters.
If you have acquired all or part of another TWC account, please enter the information in the acquisitions section of your registration. Texas law requires that we record an acquisition when you have acquired all or part, by any means, of the organization, trade, business, or workforce of another liable employer.
An acquisition includes:
If you need assistance or have questions concerning acquisitions, please contact Tax Status at firstname.lastname@example.org.
Post 9/11-era military veterans who are newly hired may be eligible to participate in the Texas Workforce Commission's newest training opportunity, Skills for Veterans, through their employers.
Private businesses, including private nonprofit hospitals, can apply to TWC for training offered by their local community or technical college, or the Texas Engineering Extension Service (TEEX). The training upgrades skills of newly hired veterans who have returned home and entered the workforce. The grant pays up to $1,450 in tuition and fees to the college to be used in a 12-month period. This covers tuition and fees for training of eligible permanent, full-time employees.
For more information about , as well as an application, visit http://www.twc.state.tx.us/svcs/funds/skills-veterans-initiative.html.
For assistance or to contact a TWC Outreach and Project Development team member, email SkillsforVeterans@twc.state.tx.us or call 877-463-1777.
Last Verified: December 03, 2014
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