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[ Tax Law Manual - TOC ] [ Ch 1 - Employing Unit ] [ Ch 2 - Employment ] [ Ch 3 - Employer ] [ Ch 4 - Taxes ] [ Ch 5 - Reports & Records ]
[ 3.1 - General Definition ] [ 3.2 - Section 201.021 ] [ 3.3 - Successor - Section 201-022 ] [ 3.4 - 501(c)(3) Employer ] [ 3.5 - Employing Unit has Filed an Election ] [ 3.6 - Employing Unit Liable Under FUTA ] [ 3.7 - Political Subdivision Employers ] [ 3.8 - Domestic Employers ] [ 3.9 - Farm and Ranch ] [ 3.10 - Staff Leasing ] [ 3.11 - Termination of Coverage ] [ 3.12 - Alternate Subject Dates ] [ 3.13 - Precedent Cases ] [ Ch 3 - Index ]

Chapter 3:  Employer

comments to: Tax Department

3.1     General Definition Of Employer

The definition of the word "employer" in the Texas Unemployment Compensation Act differs from the usual definition of the word. An "employer," as such word is used in the Act, is liable for payment of tax on wages paid during periods when the employing unit has such "employer" status or is liable for reimbursement of benefits paid during periods when the employing unit has such "employer" status. As provided in Subchapter C of the Act, an employing unit qualifies as an "employer" in nine ways:

An employer is any individual or employing unit who:

  1. Employs one (1) or more individuals in employment for twenty (20) weeks during a calendar year or pays wages of $1,500 or more in a calendar quarter, or

  2. Is a successor to an employer, or

  3. Is a nonprofit employer as described in Section 501 (c)(3) of the Internal Revenue Code of 1986 and employs four (4) or more employees for twenty (20) weeks in a calendar year, or

  4. Has filed a Commission approved election of coverage, or

  5. Is liable for payment of taxes under the Federal Unemployment Tax Act, or

  6. Is not otherwise covered under this Act, but is required to be so by the Federal Unemployment Tax Act, or

  7. Is a state or political subdivision thereof, or

  8. Employs domestic employees and pays $1,000.00 in a calendar quarter, or

  9. Employs farm or ranch employees in accordance with the following:

Section 201.028 (Effective January 1, 1987)

  1. Employs seasonal farm or ranch labor on a truck farm, orchard or vineyard, or

  2. Employs three or more employees in farm or ranch labor for twenty (20) weeks or pays $6,250.00 in cash wages in a calendar quarter, or

  3. Employs migrant farm or ranch labor, or

  4. Employs seasonal farm or ranch workers if the seasonal farm or ranch workers work at the same time, same location and do the same work as the migrant workers.

Section 201.028 (Effective January 1, 1986):

  1. Employs seasonal farm or ranch labor on a truck farm, orchard or vineyard, or

  2. Employs four employees in farm or ranch labor for twenty (20) weeks or pays $7,500.00 in cash wages in a calendar quarter (three employees or $6,250.00 beginning January 1, 1987), or

  3. Employs migrant farm or ranch labor, or

  4. Employs seasonal farm or ranch workers if the seasonal farm or ranch workers work at the same time, same location and do the same work as the migrant workers.

Section 201.028 (Prior to January 1, 1986)

Agricultural employers who employ as many as ten (10) employees for twenty weeks, or pay as much as $20,000.00 in cash wages in a calendar quarter.

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Texas Workforce Commission  |  Unemployment Tax

Last Revision: July 25, 2012