Tax Department Quarterly Announcements

Overview

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

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1st Quarter 2015

Tax Report Due Dates

Texas has almost 500,000 employers filing reports and paying taxes each quarter. Employers are encouraged to file as early as possible.

For Wages Paid During Calendar Quarter Ends Report Due Date Penalties Accrue After
Jan, Feb, Mar March 31 April 1 April 30
April, May, Jun June 30 July 1 July 31
Jul, Aug, Sep September 30 October 1 October 31
Oct, Nov, Dec December 31 January 1 January 31

If the due date for a report or tax payment falls on Saturday, Sunday or a legal holiday on which Texas Workforce Commission offices are closed, reports and payments are considered timely if they are received on or before the following business day.

Reminder – Only employers with granted electronic hardship waivers can submit reports and payments by mail.

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4th Quarter 2014

Worker Misclassification Penalty

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

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3rd Quarter 2014

Want a quick win?

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.

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2nd Quarter 2014

Notice of Change in Law: New Requirements for Responding to a Notice of Application for Unemployment Benefits

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.

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1st Quarter 2014

New Reporting and Payment Requirements

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.

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