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Tax tips are provided as a resource for helpful hints and time-saving suggestions when registering, filing and paying your unemployment taxes and managing your unemployment tax account.
Unemployment Tax Services processes the daily business twice daily. The processing typically occurs at 6:30 p.m. (Central Standard Time) and again at Midnight. During processing we do not allow the system to accept new information. To ensure that you do not encounter any issues when filing your reports, we encourage you to file your reports before 6:00 p.m.
As the last days of the month are always going to be the busiest; you may decide to avoid the last minute rush by filing earlier in the month.
Any user of Unemployment Tax Services may remove their access to tax account(s) without intervention by TWC staff. This feature greatly benefits bookkeepers who may change clients and who tend to be the sole user with access to the employer unemployment tax account.
The following steps should be taken by users to remove their association from an employer tax account:
If you have questions about the self-removal process, contact your nearest Unemployment Tax Office.
House Bill 2015, signed by the Governor on June 14, 2013, and effective on January 1, 2014, authorizes a penalty to be imposed on a person who contracts for services with a governmental entity and who fails to properly classify their workers. This 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 individual that has been misclassified. Governmental entities may want to include information on this new misclassification penalty in their contracts with entities that are providing services covered by this new requirement.
Workers should be properly classified as employees or independent contractors. These penalties could be assessed as early as May 1, 2014.
Review our 20-point comparative approach as a guide to determine if a worker is an employee or an independent contractor.
Misclassification of certain workers is outlined in the Texas Unemployment Tax Act (TUCA), Section 214.008.
If you have questions about penalties for worker misclassifications, please contact your nearest Texas Workforce Commission Tax office.
Effective with the 1st quarter of 2014, all employers must report wages and make their tax payments electronically.
Filing reports and paying taxes electronically, benefits both you the employer and your state government by saving time, paper and resources. To learn more about electronic reporting methods, visit the Employer’s Quarterly Wage Report Filing Options page. For information on electronic payment methods, visit the Payment Options for Unemployment Tax page.
If you have questions about filing and paying electronically, please contact your nearest Tax office for assistance.
Unemployment Tax Services offers a self-reset password process for users who have either forgotten or revoked their password.
The Reset Password program is automatically invoked when the user revokes their password or fails to correctly answer their security question after two attempts.
For assistance with resetting your password, please contact your nearest Texas Workforce Commission Tax office.
Unemployment Tax Services is the Texas Workforce Commission’s free Internet system that allows employers with 1,000 or fewer employees to manage their unemployment tax account online.
Along with filing and paying unemployment taxes and it numerous other features, the Unemployment Tax Services system:
For more information about account administration, requesting access and permissions for the Unemployment Tax Services system, visit the Accessing an Unemployment Tax Account – Frequently Asked Questions page.
The annual report and contribution for domestic accounts that have requested annual filing is due on or before January 31, 2014.
The online version of the annual report is available now for those domestic employers who elected to file and pay their state unemployment tax annually. TWC encourages Annual Domestic Filers to file their annual report and pay their tax due online by using Unemployment Tax Services, a free online service. During the quick and simple registration process, new users create a User ID and password that will be used each time they access the online system. To register for access and to learn about other online services, visit our Unemployment Tax Services website.
Tax Rate notices have been mailed. When you receive your notice, please forward a copy to your Service Agent, CPA, or bookkeeper so they can update their files. If you use "QuickFile or Intuit" you will need to update your software to show the correct Tax Rate.
With continued economic growth and prosperity in our state, Texas Workforce Commission (TWC) has taken steps to minimize increases in the overall unemployment insurance tax bill to Texas employers and to make responsible decisions that will result in savings to businesses in Texas.
At the end of 2010, TWC sold bonds through the Texas Public Finance Authority in order to avoid interest that would have become due on federal advances. Although employers will see an obligation assessment added to the unemployment tax bills to repay the bonds, we are keeping employers’ taxes as low as possible by spreading this over a period of several years. The bonds, originally due to mature in July 2020, are on schedule to be retired in July 2017.
The components of your 2014 tax rate are:
You may be able to reduce your taxes for 2014. If TWC paid benefits to your employees who were laid off or separated through no fault of their own, you may find it beneficial to “buy down” the tax rate. Please visit our web site at www.texasworkforce.org and click on the Businesses and Employers menu link for more information or access the voluntary contribution analysis through Unemployment Tax Services.
At TWC, we work hard to minimize your unemployment insurance costs. In addition to lowering the tax burden, TWC is taking an aggressive approach to eliminate fraud, waste, and abuse of all kinds in the programs the agency administers. By reporting new hires immediately to the state Attorney General’s office, responding promptly to notices when a former employee applies for unemployment benefits and responding to earnings information requests on claimants, you can help us avoid overpayments and fraud which costs all employers.
TWC works closely with local workforce development boards across Texas to fill job openings with qualified unemployed workers, and we fund training to upgrade the skills of workers to better match area employers’ needs. TWC also works closely with economic development organizations to support existing Texas companies and to bring new business to the state. We pledge our continued efforts in helping to keep taxes as low as possible and mitigating the effects on your business.
Texas Workforce Commission
Austin, Texas 78778
Filing wage reports and paying taxes electronically is secure and has never been easier.
The Texas Workforce Commission (TWC) offers employers and their representatives’ two free electronic methods for filing reports: Unemployment Tax Services and QuickFile. There are also commercial software programs available through private companies that allow employer to upload wage reports based on information in their payroll records. For more information on all methods available for filing wage reports, please visit our Employer’s Quarterly Wage Report Filing Options page.
In addition, TWC offers three electronic methods for making payments: ACH Debit from a bank account, Electronic Funds Transfer (EFT) and Credit Card. Payments scheduled over the Internet for automated account debit can be scheduled anytime within the current month for payment and edited or deleted prior to processing by TWC. For more information about all available payment methods, visit our Payment Options for Unemployment Tax page.
For additional information about filing and paying your taxes electronically, please contact your nearest Texas Workforce Commission Tax office.
Computation of the 2014 unemployment insurance tax rate is based on your employment experience for the past twelve calendar quarters. Benefit payments charged to your tax account and taxable wages, which you have reported and on which you have paid taxes, are used in the computation.
The Labor Code, Texas Unemployment Compensation Act, provides that only taxable wages on which taxes have been paid by October 31, 2013 can be used to compute your tax rate. If you have unreported wages or unpaid taxes that are due from the twelve quarters proceeding October 1, 2013, you are encouraged to submit your report(s) and payment by October 31, 2013. Failure to pay unemployment insurance taxes may cause your 2014 tax rate to increase.
The Texas Payday Law poster is required by the Texas Payday Law, Texas Labor Code, Chapter 61.
If a business is not liable under the Texas Unemployment Compensation Act, but as a Texas employer is subject to the Texas Payday Law, use the Texas Payday Law poster links below, or request it at 800-832-9243 or 512-475-2670.
If a business's employees are entitled to file for state unemployment benefits and are also covered by the Texas Payday Law, request the poster that combines both laws: Texas Unemployment Compensation Act and the Texas Payday Law.
You can request posters online using Unemployment Tax Services. If you prefer, you can fax your request to 512-936-3205. When faxing a request for posters, please include your Texas Workforce Commission Tax account number, your address for mailing posters, and the number of posters you need printed in English and in Spanish (Spanish-language posters are not a requirement). You can also order posters by calling 512-463-2747 or any TWC local tax office.
To view a comprehensive listing and links to workplace posters, visit our Posters at the Workplace page.
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.
Last Verified: July 02, 2014
Auxiliary aids and services are available upon request to individuals with disabilities.
Deaf, hard-of-hearing or speech-impaired customers may contact Relay Texas: 800-735-2989 (TTY) and 711 (Voice). Equal opportunity is the law.
Texas Workforce Commission Values: Community, Responsibility, Innovation, Accountability, Commitment to Excellence and Partnership.