Unemployment Tax — Program Overview

The Unemployment Tax program collects wage information and unemployment taxes from employers subject to the Texas Unemployment Compensation Act (TUCA). The taxes support the Unemployment Compensation Fund, a reserve from which unemployment benefits are paid to eligible claimants.

Quarterly wage reports and taxes must be filed and paid by the last day of the month following the end of the calendar quarter. TWC Tax Report/Remittance Due Dates and Mailing Instructions provides specific due dates for quarterly and annual domestic reports and remittances.

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Customers

Texas employers who are required to report wages and pay unemployment taxes are defined in What is a Subject Employer? Employers must register with the Texas Workforce Commission (TWC) within ten days of becoming subject to the Texas Unemployment Compensation Act.

Unemployment Tax and Unemployment Claim Management have more information for Businesses and Employers.

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Authority & Funding

The Texas Workforce Commission (TWC) administers the Unemployment Tax program in Texas. Unemployment Insurance (UI) is a partnership between the federal and state governments. The U.S. Department of Labor oversees the UI program. At the state level, the Senate Committee on Economic Development and the House Economic and Small Business Development Committee oversee the UI program.

Employer-paid state unemployment taxes and reimbursements pay for state unemployment benefits. The U.S. Department of Labor allocates funds from the Federal Unemployment Tax (FUTA) to the states to pay for administrative and operational costs.

The Texas Unemployment Compensation Act (TUCA) and other state and federal laws and regulations govern the Unemployment Tax program. Additional laws include:

• Chapter 23 - Federal Unemployment Tax Act (FUTA)
• TWC Rules, by Chapter
• Unemployment Insurance Rules - TX Admin Code

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