On this page:
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.
Registered users of Unemployment Tax Services, the free Texas Workforce Commission (TWC) online system, should update their profile any time they change their email address. Maintaining an updated email address allows you to reset your password by email instead of having to call for assistance. TWC also uses the email address as a means of communicating with employers.
Updating a profile is quick and easy. After logging in to Unemployment Tax Services, select the “My Profile” link from the upper right hand corner of any page. Next, enter the new email address and then submit.
Domestic employers who elected to file and pay their state unemployment tax annually are encouraged to file their annual report and pay their tax due online by using Unemployment Tax Services (UTS).
However, if your account was inactive during any part of a calendar year and was reopened during the same calendar year, you will not be able to file your annual report using UTS for that year. Instead, please complete a C-3DOM form and mail it to: Cashier - Texas Workforce Commission, P.O. Box 149037, Austin, TX 78714-9037.
To obtain Form C-3DOM or if you need additional assistance, please contact our Status Department at firstname.lastname@example.org or 512- 463-2731.
The annual report and contribution for domestic accounts that have requested annual filing is due on or before January 31, 2017.
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.
Domestic employers electing to file reports annually will receive 2017 tax rates in March of 2017.
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.
Texas continues to see business growth and a strong economic environment. Texas Workforce Commission (TWC) works 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 2014, 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 associated with 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 good news is the bonds are on schedule to retire in July 2017.
Because unemployment claim activity has outpaced tax collection from employers, the balance in the compensation trust fund has fallen below the statutory level established in the Texas Unemployment Compensation Act (TUCA). As a result, Section 204.063 of TUCA adds a deficit tax when the fund balance is below the floor of the compensation fund, in order to replenish the fund.
The components of your 2017 tax rate are:
You may be able to reduce your taxes for 2017. 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 http://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 in order to promote a thriving Texas economy.
Texas Workforce Commission
Austin, Texas 78778
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 1 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 1 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: http://www.eitc.irs.gov/ or http://www.twc.state.tx.us/welref/wrjseek.html.
Unemployment Tax Service Account Administrators may remove themselves from association with an account using the following process:
For assistance with other Unemployment Tax Services issues, please contact your nearest Texas Workforce Commission Tax office: http://www.texasworkforce.org/taxcontacts
Texas employers must display one or more required posters. Workplace compliance posters requirements vary from one employer to another depending upon the type of business and number of employees.
To view a comprehensive listing and to find links to workplace posters, visit our web site at: http://www.twc.state.tx.us/businesses/posters-workplace
Employers do not need to purchase required posters from private vendors. Government-issued compliance posters do not have to be laminated to satisfy an employer's regulatory obligation. Posters can be printed free of charge by going to the TWC web site.
A Limited Liability Company is a unique legal entity that meets the definition of an employer.
Any persons receiving remuneration for services rendered to a Limited Liability Company – including owners or members – are defined as employees and their wages are reportable and taxable.
Distributions of profits based on formulas established in the Limited Liability Company's articles of organization are exempt from reporting to TWC.
Federal law and IRS classification has no bearing on the state interpretation of an LLC in Texas since LLCs were recognized in Texas under state legislative action. For a detailed explanation of the Tax Department’s interpretation of this issue, please visit the following link:
If you have questions or concerns about this issue, please contact your regional tax representative: http://www.twc.state.tx.us/unemployment-tax-contact-information#Unemployment_Tax_Offices
Employers must submit their employers’ quarterly wage reports electronically in the month that follows each calendar quarter (April, July, October and January). The employer must report the gross wages of each employee paid during the quarter.
Taxable wages are calculated and tax is paid only on the first $9000.00 of wages paid to each employee during the calendar year. Employers should ensure they are properly calculating the wage base used to compute their unemployment taxes.
Use of Unemployment Tax Services to file wage reports will ensure proper calculation of the wage base as long as the employee wage information has been entered correctly.
By using Unemployment Tax Services you:
• Eliminate overpayment of unemployment taxes;
• Help resolve the misreporting of information to the Internal Revenue Service regarding your unemployment tax account;
• Help eliminate the need for corrections to your tax account.
If you have questions, please contact your nearest tax office.
The Texas Workforce Commission (TWC) Tax Department receives periodic requests from employers, employers’ designated representatives and the IRS for re-certification of TWC tax accounts.
• Please be aware that TWC can only verify to the IRS information that we have received.
• Account information should be verified by logging into Unemployment Tax Services
• It is the employer’s responsibility to update changes to the TWC tax account.
• Request a 940 Certification using the Unemployment Tax Services System or by emailing email@example.com
Summer is fast approaching and students will soon be out in full-force looking for part-time or temporary summer jobs.
Please note that the Texas Unemployment Compensation Act does not exempt a worker from the definition of employment simply because of his temporary or part-time status. Employers are responsible for reporting wages paid to any temporary or part-time employees, including students.
If you employ students under a Distributive Education (DE) or Vocational Office Education (VOE) contract with a school, please remember that the exemption from employment for those students applies during the contract dates included in the academic school year only. Services provided outside of those dates, i.e. in the summer, by those students are reportable as wages.
If you need help finding workers, consider registering with WorkinTexas.com, our no cost job-matching service. We can help you find the best candidate to fit your needs.
Let’s have a great summer and keep Texas working.
Unemployment Tax Services offers a self-reset password process for users who have either forgotten or revoked their password.
The Reset Password page automatically appears when a user revokes their password or fails to correctly answer their security question after two attempts.
The Unemployment Insurance State Information Data Exchange System (SIDES) Web Services and SIDES E-Response allow users to quickly and efficiently respond to unemployment benefit claim notices. The systems allow users to attach documents to their response, confirm receipt of the documents, and eliminate paper notices. To find out more information about the SIDES program please visit the SIDES web site at http://info.uisides.org/ or contact a TWC SIDES E-Response representative at SIDESERESPONSE@twc.state.tx.us