Domestic Employment

An employing unit is subject under TUCA if it paid cash wages of $1000.00 or more in a calendar quarter for domestic services.  Once subject, domestic employers must pay state unemployment tax on those wages paid during that entire year and following years.

Domestic employment is defined as work performed in a private home, a college club, or a chapter of a college fraternity or sorority. However, such work must be performed as part of the upkeep of the home, club or chapter, and not on behalf of a home-based business.

Generally, work performed in domestic employment  includes services performed by caretakers, companions, baby sitters, cooks, waiters, butlers, housekeepers, housemen, housemothers, watchmen, governesses, maids, nursemaids, valets, janitors, laundresses, furnacemen, gardeners, footmen, grooms, seamstresses, handymen, chauffeurs of automobiles for family use, private secretaries, tutors and librarians.

Employers of domestic workers who are not registered to pay state unemployment tax in Texas may register using Unemployment Tax Registration.  By completing the information requested on that web site, employers can receive a TWC unemployment tax account number immediately.

Once employers are registered for a TWC unemployment tax account number, there are a few options for reporting wages paid for domestic employees:

1. Quarterly reporting forms are mailed each quarter, during the month prior to the month the report is due. These forms are pre-printed with your individual account information and may be used for reporting.
   
   
2. TWC offers Unemployment Tax Services which enables users to file and pay their state unemployment taxes. Registration for Unemployment Tax Services is quick and easy.  
   
   
3. Those who report only domestic workers to TWC may elect to file and pay their state unemployment tax annually. By filing the Annual Election Form by December 31, employers may file the following year's reports annually. For example, an election to file Calendar Year 2011 reports annually must be filed on or before December 31, 2010. The Calendar Year 2011 report can then be filed in January of 2012. Once an election is made to file annually, Domestic Employers need not file the election again as long as they employ only domestic employees. Even if you elect to file annually, you may be required to provide wage information in order to verify claimant wages on an “as needed” basis.  Domestic employers who meet this criterion can file the annual report using Unemployment Tax Services or mail in the completed, Domestic Employer's Annual Report (Form C3DOM).