Most Common Reporting Problems
l. Filing Reports when no wages are paid.
Until TWC is notified that an account is to be placed on an inactive basis, quarterly reports must be timely filed, reflecting no remuneration for such calendar quarter.
2. Calculating $9000.00 taxable wage base.
Taxable wages are calculated and tax paid only on the first $9000.00 of wages paid to each employee during the calendar year.
Taxable Wage Example |
||||
| Computation as follows: | ||||
| 1st Qtr Total | 1st Qtr Taxable | 2nd Qtr Total | 2nd Qtr Taxable | |
| Employee A | 5000.00 | 5000.00 | 5000.00 | 4000.00 |
| Employee B | 10000.00 | 9000.00 | 10000.00 | -0- |
| LINE 13 Total Wages | 15000.00 | 15000.00 | ||
| LINE 14 Taxable Wages | 14,000.00 | 4000.00 | ||
Employee A did not reach the $9000 annual limit in the first quarter, so the first quarter, so the total wages are all taxable. During the second quarter Employee A reached the $9000 annual limit, so only the $4000 it took to reach the limit are taxable. ($5000 + $4000=$9000).
Employee B reached the $9000 annual limit in the first quarter. This employee has taxable wages of $9000 for the first quarter but will have zero taxable wages for the remaining quarters of the year.
3. Correcting errors on previously filed reports.
Form C-5, Adjustment Report, is required to amend incorrect data previously filed on Form C-3, Employer's Quarterly Report. Form C-7, Wages List Adjustment Schedule, is required to amend data previously filed on Form C-4, Employer's Quarterly Report Continuation Sheet. Adjustment Forms C-5 and C-7 can be downloaded from the Tax Forms page at http://www.twc.state.tx.us/ui/tax/taxinstruct.html.
4. Computing taxable wages based on transfer of compensation experience.
Taxable wages reported by predecessor accounts may be used in arriving at the $9000.00 taxable wage base for the successor account during the same calendar year provided there has been a transfer of compensation experience between accounts.
5. Determination of the correct tax rate from the Employer's Quarterly Report.
The tax rate is located in Item 4 on the Employer's Quarterly Report (Form C-3).
6. Completing Wages List detail.
All elements of the Wages List must be completed to include each employee's social security number, name, and total wage amount paid during the calendar quarter. Including all information will assure that your records are accurately used in assigning claimant benefit wages, determining proper chargebacks, and computing accurate tax rates and quarterly contribution due.
7. Filing multiple reports for a calendar quarter:
- A single TWC Employer Quarterly Wage Report must be submitted for each calendar quarter regardless of the number of employees or work sites that may exist.
- Tax is computed on the taxable wage amount reported for the entire employee roster.
- Tax may not be properly computed and credited to the employer tax account where multiple reports are submitted for one calendar quarter.
- Accurate and timely reporting and payment are critical to annual tax rate computations and federal offset credit.
Please e-mail questions or comments to tax@twc.state.tx.us
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