Tax Department Quarterly Announcements

Overview

This page contains information about programs and services that can benefit your business.

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2nd Quarter 2016

Worker Misclassification

Misclassification of workers as independent contractors is a serious issue in Texas as it is across the United States. Most sources agree that while some businesses misclassify their workers as independent contractors in error, often businesses misclassify their workers intentionally in order to reduce labor costs and to avoid paying state and federal taxes.

The Texas Workforce Commission (TWC) actively works with Texas businesses to reduce the impact of worker misclassification on all Texas employers. If you have questions about worker classification or if you know of a potential misclassified worker situation, we want to hear from you.

The Tax Department of TWC is also available to meet with business groups and employer organizations to provide information on how to properly classify workers.

To report misclassification or to schedule a Tax presentation, please contact us at: TaxTEU@twc.state.tx.us

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1st Quarter 2016

Employer Benefit Services-Don’t Wait on Mail Delivery-Get Notices Faster!

TWC announces Employer Benefits Services (EBS), a new service offering employers more online options. The first service available through EBS is Electronic Correspondence (EC), which allows employers to access a number of unemployment benefit documents electronically through a secure, online mailbox. These electronic documents include time-sensitive determinations as well as claim information and notices. EBS allows employers to view, print, and save documents. See www.texasworkforce.org/EBS for more information.  To eliminate excess paper, simply logon sign up for electronic correspondence. Services being explored for the future, but not yet available, include appeals correspondence, tax notices or forms, and the ability to respond to claim notices. The ability to respond to claim notices is not available through EBS yet, but it is ready through SIDES.

SIDES:

Take advantage of TWC’s new paperless electronic submission program to receive and respond to claim notices faster. The State Information Data Exchange System (SIDES) Web Services and SIDES E-Response provide employers and Third-Party Administrators (TPAs) with easy-to-use, secure electronic formats to quickly and efficiently respond to unemployment benefit claim notices. SIDES Web Services and SIDES E-Response also allow you to attach documents with your response, confirm your documents were received, and eliminate paper unemployment notices. To sign up, email your FEIN number and Texas account number to your SIDES-E Response representative at: SIDESERESPONSE@twc.state.tx.us. For additional information, visit the SIDES website at: http://info.uisides.org/.

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4th Quarter 2015

Notice to Employers

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 one 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 1st 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 known 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. For more information and guidelines visit: http://www.eitc.irs.gov/Partner-Toolkit/employer .

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: www.eitc.irs.gov/ or, www.twc.state.tx.us/welref/wrjseek.html .

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3rd Quarter 2015

2015 Legislation Impacting Reimbursing Employers

Effective for claims filed after September 6, 2015, Reimbursing employer - mostly governmental and no- profit organizations – will have new protest rights for Unemployment Insurance (UI) claims.

The Texas Legislature passed and the Governor signed House Bill (HB) 3373 giving Reimbursing employers- authorization to protest a UI claim if a worker was discharger for misconduct or the worker voluntarily left their employment without good cause.

HB 3373 also allows Reimbursing employers to contest billings and to request hearings under the Texas Workforce Commission’s dispute resolution process.

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