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Texas employers have the option of voluntarily paying all or part of their share of employer unemployment benefit chargebacks or unemployment benefits paid to their former employees, in order to lower their state unemployment tax rate. If you elect to pay all or part of your chargebacks, the Texas Workforce Commission recalculates your effective tax rate and issues a revised tax rate notice.
Each December, TWC notifies employers of their tax rate for the coming year. We include a Voluntary Contribution Election (Form C-24) with the annual Tax Rate Notice (Form C-22) for accounts charged with unemployment benefits within the three-year computation period. Each employer can analyze their individual account history and determine whether or not the voluntary contribution election is cost effective. The desired contribution amount must be postmarked or received by TWC no more than 60 calendar days after the employer's annual Tax Rate Notice date.
The amount of a voluntary contribution may be equal to all or part of the chargebacks used in the rate computation. Partial contributions are applied first to your most recent chargebacks. The election may not be withdrawn once TWC has recomputed the tax rate. If an adjustment to taxable wages or benefit charges for the three-year computation period occurs after the voluntary contribution has been made, the original resulting recomputed tax rate may be affected.
Because every employer account contains unique taxable wage and chargeback information, we recommend that employers exercise careful consideration before participating in the voluntary contribution option.
The TWC Voluntary Contribution Analysis tool is available from mid-December to April 30. You may use it to determine if making a voluntary contribution is advantageous for your business.
For most employers, annual rate notices along with the voluntary contribution election form are mailed in mid-December. Employers making a voluntary contribution must submit the election no later than 60 days after the date of the rate notice. Employers paying by mail should include a copy of the Voluntary Contribution Analysis calculation results with their payment.
Employers registered with Unemployment Tax Services may access the Voluntary Contribution Analysis page from the My Home tab by selecting the Voluntary Contribution Analysis link located under Quick Links. Registered employers will have rate data pre-filled and will be able to make a Voluntary Contribution payment online. The Voluntary Contribution Analysis is available from mid-December to early February in Unemployment Tax Services.
No voluntary contributions may be made after April 30th regardless of the date of your annual Tax Rate Notice.
Make a voluntary contribution payment using any of the methods listed below.
Online: Unemployment Tax Services
TWC Tax Department
P.O. Box 149037
Austin, TX 78714-9037
By commercial carrier or courier:
TWC Tax Department
101 E 15th St, Rm 514
Austin, TX 78778-0001
To a TWC Tax Office
If the last date for payment falls on a Saturday, Sunday, or a legal holiday on which TWC is closed, the payment may be made on the next regular business day.
Last Verified: November 06, 2013
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