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Overview
Employers are required to report Unemployment Insurance (UI) wages and pay quarterly UI taxes electronically, as set forth in Texas Workforce Commission (TWC) Rules 815.107 and 815.109. TWC will continue to work diligently with employers who need assistance complying with these Rules, however employers must remember that failing to file and pay electronically may subject them to penalties as prescribed in Sections 213.023 and 213.024 of the Texas Unemployment Compensation Act (TUCA). Any employer paying $250,000.00 or more in tax liability in a state fiscal year (September 1st through August 31st) is required to pay by electronic funds transfer.
Electronic Payment Methods
TWC offers three electronic methods for payment of unemployment taxes:
- Automated Clearing House (ACH) debit from a bank account
- Electronic Funds Transfer (EFT)
- Credit Card
Online payments are quick, easy and secure through the Unemployment Tax Services or TEXNET Electronic Funds Transfer (EFT) systems. The TEXNET system also allows payment by phone. The Unemployment Tax Services system allows payment by ACH debit and credit card. Payment using ACH debit is free.
Other Payment Methods
The Check, Cashier’s Check, Money Order and Cash payment options are only authorized for use by employers who have approved hardship waivers on file with the Commission.
A hardship waiver is granted to employers who either:
- do not have a computer or
- do not have access to the Internet.
For additional information about waivers or filing your report or paying your taxes electronically, please contact your nearest tax office.
Automated Clearing House Debit
ACH debit is a free electronic service that allows employers to initiate the transfer of money from their financial institution to pay unemployment taxes to TWC.
Benefits of Using ACH Debit
- Free service
- Environment friendly
- Payments received quickly
- Enter a future payment date up through the end of the current month
Requirements for Using ACH Debit
Using ACH debit requires registration to access the Unemployment Tax Services system. During the quick and simple registration process, you create a User ID and password to use each time you access the online system. To register and to learn about other online services, visit Unemployment Tax Services.
Users other than account administrators must have the necessary permission granted to make an ACH debit payment in Unemployment Tax Services.
How to Schedule an ACH Payment
- Logon to Unemployment Tax Services, or create a User ID and password.
- Associate your TWC tax account number with your User ID and password.
- Select the Payments tab and then select the Bank Account (Online ACH Debit) option.
- Enter banking information, payment amount and payment date.
- Submit payment to receive payment confirmation and confirmation email.
Things You Should Know About Scheduling an ACH Debit
- An ACH debit payment can be made on the same day if the payment is scheduled before 10:00 a.m. Central Time. TWC processes all ACH debit transactions at 10:00 a.m. each business day. All payments scheduled after 10:00 a.m. will be processed on the next business day.
- Some banks require that ACH debit payments be pre-authorized as part of their ACH Fraud Protection Service. This service may prevent online banking transactions from applying to your bank account, unless you provide your bank with customer information. If you have any doubts about your bank's policy, contact them prior to submitting an ACH debit payment to TWC. Since the Texas Comptroller of Public Accounts processes all bank transactions for the Texas Workforce Commission, use the following Company Name and Company ID:
- Company Name: Texas Comptroller of Public Accounts
- Company ID: 2146000320
- An ACH debit payment that is rejected by your bank may cause the unemployment tax payment to be late and subject to interest charges. TWC will notify you by mail with the reason your bank rejected the ACH debit payment. You can review the payment and bank information online to see if the bank account number and routing numbers were entered correctly. If all the information is correct, contact your bank before submitting another ACH debit payment to TWC. Refer to Common Reasons for ACH Debit Payment Returns.
- Scheduled ACH debit payment information (e.g., amount, scheduled date, source bank account) can be changed as long as the payment is still in Scheduled status. A payment that has been processed by the Unemployment Tax Services system cannot be changed. TWC processes all ACH debit transactions at 10:00 a.m. Central Time each business day.
- We take the Unemployment Tax Services system offline for a few minutes each evening to process the data collected that day, as we are required by law to process the data on a daily basis. We schedule the downtime late in the evening, when the transaction volume is at its lowest. The expected downtime is only a few minutes but the time varies depending on the number of transactions being processed. When you get the message "system unavailable," wait a few minutes before trying to use the system again. We encourage employers to file wage reports and pay online before the due date to ensure that their entries are on time. Late reports and payments may result in interest and payment penalties.
TEXNET Electronic Funds Transfer (EFT)
TEXNET, the State of Texas electronic payment network, allows employers to submit their tax payments using EFT. For additional information, visit the Texas Comptroller of Public Accounts.
Any employer may choose to transfer current tax payments by EFT using the Texas Comptroller of Public Account’s TEXNET system. However, employers paying $250,000.00 or more in tax liability in a state fiscal year (September 1st through August 31st) are required to make payments by EFT.
Benefits of Using TEXNET EFT
- Environment friendly
- Payments received quickly
- Payment information can be transmitted online or by phone
- Payment date may be scheduled up to 30 days in the future
Requirements for Using TEXNET EFT
TEXNET users register by accessing the Texas Comptroller of Public Accounts website or by calling the TEXNET Hotline at 800-531-5441 extension 3-3010.
How to Use TEXNET EFT
Log on to the TEXNET system and enter payment information, or call 800-531-5441 and follow the phone prompts.
Things You Should Know About TEXNET EFT
For payments of $1,000,000 or less, a payor has until 10:00 a.m. (CT) on the due date to initiate the transaction in the TEXNET System to be consider timely. Payments above $1,000,000 must be initiated in the TEXNET System by 8:00 p.m. (CT) on the business day before the due date.
For Assistance with TEXNET EFT
For questions regarding formatting and transmitting payment records, or changes to contact or banking information, contact the State Comptroller of Public Accounts at 800-531-5441 extension 3-3010.
For general questions about TEXNET EFT payment, contact the Texas Workforce Commission Revenue and Trust Management Department at 512-936-0300 or by email at eft.taxpmt@twc.texas.gov.
Credit Card
Submit your quarterly unemployment tax payments using your American Express, Discover, MasterCard or Visa credit card. You make credit card payments via the Unemployment Tax Services system, but the service is provided by Texas.gov, the official state of Texas website. The price of the online payment by credit card service includes funds that support the ongoing operations and enhancements of Texas.gov, which is provided by a third party in partnership with the State. Those funds are not part of the TWC tax payment amount and are not kept by TWC.
Benefits of Paying by Credit Card
- Quick and convenient
- Earn credit card rewards from credit card companies that offer the benefit
Requirements for Using a Credit Card
- To use this service, new users must register for access to the Unemployment Tax Services system. During the quick and simple registration process, users create a User ID and password to use each time they access the online system. To register and to learn about other online services, visit Unemployment Tax Services.
- Users must have the Make Payment permission to make a credit card payment using Unemployment Tax Services.
How to Make a Credit Card Payment
- Create a User ID and password for access to Unemployment Tax Services.
- Associate your TWC tax account number with your User ID and password.
- Select the Payments tab and then select the Credit Card option.
- Enter the credit card payment amount.
- Select the Next button to proceed to the Texas.gov website, where you will enter credit card information and submit the payment.
- Select the Make Payment button to return to TWC’s Unemployment Tax Services system, where you can obtain a payment confirmation.
Things You Should Know About Making a Credit Card Payment
- TWC uses the Texas.gov website to provide credit card payment service. The price of this service includes funds that support the ongoing operations and enhancement of Texas.gov. Those funds are not part of the TWC Tax payment amount and are not kept by TWC.
- If a credit card payment is reversed, the full amount is credited to the employer including the funds secured by Texas.gov that support their ongoing operations and enhancements. TWC is assessed the amount of these funds based on the reversal of the payment. Consequently, TWC charges the amount of the funds back to the employer tax account. TWC is not authorized to pay the funds when an employer reverses a credit card payment.
- It may take up to two business days for a credit card payment to be applied to your TWC tax account.
- Credit card payments on unemployment tax accounts are not eligible for partial or full refunds until 180 days after the credit card payment date.
- Credit card payments cannot be applied to settle Payday Law wage claims.
- TWC will not provide a release of a State Tax Lien, Abstract of Judgment, Abstract of Assessment, or warrants held by the Comptroller of Public Accounts until 180 days after the credit card payment date.
- Credit card payments cannot be applied to bankruptcy delinquencies.
- TWC does not save credit card information. Direct questions regarding credit card transactions to Texas.gov help at 877-452-9060. Have your trace number available when you call.
- We take the Unemployment Tax Services system offline for a few minutes each evening to process the data collected that day, as we are required by law to process the data on a daily basis. We schedule the downtime late in the evening, when the transaction volume is at its lowest. The expected downtime is only a few minutes but the time varies depending on the number of transactions being processed. When you get the message "system unavailable," wait a few minutes before trying to use the system again. We encourage employers to file and pay before the due date to avoid late filing penalties and late payment interest.
Check, Cashier’s Check & Money Order
Employers who are not required to pay using EFT or who have an approved hardship waiver on file with TWC may make a payment by mail using a check, cashier’s check or money order.
Requirements for Making a Payment Using a Check, Cashier’s Check or Money Order
- Make checks and money orders payable to "Texas Workforce Commission."
- Record the employer's TWC tax account number on the face of the check or money order to assure proper application of the payment.
- When submitting a check or money order to pay other tax-related liabilities (e.g., prior quarter tax, penalties, interest, tax lien, judgment or assessment, etc.), note on the face of the payment the reason for the payment or include correspondence with detailed payment instructions.
- The check or money order payment must be postmarked by the last day of the filing month to be considered timely. This will prevent late payment interest charges.
How to Make a Payment by Personal Check, Cashier’s Check or Money Order
Payments may be mailed to the Texas Workforce Commission at:
Texas Workforce Commission
P.O. Box 149037
Austin, TX 78714-9037
Timing for Release of Tax Lien, Judgment or Assessment
If your tax account is secured by a tax lien, judgment or assessment, the amount of time required for a release varies with the tax payment option you choose.
For assistance regarding releases, call the TWC Collections Section at 512-463-9698 or email collections.taxreleases@twc.texas.gov.
Treasury Offset Program (TOP) Collection
Federal law requires TWC to collect specific types of unemployment benefit debt from both claimants and employers.
If you have any past-due Unemployment Insurance contributions or reimbursements, or related interest, penalties or fees (collectively known as UI taxes), your personal or business federal Internal Revenue Service (IRS) tax refunds may be subject to reduction by the debt amount.
The Treasury Offset Program (TOP) is a federal program that collects past due debts owed to federal and state agencies by capturing IRS tax refunds to offset these debts. TWC issues letters to employers who have UI tax debts that are subject to collection through TOP. This includes all business types including corporations, partnerships and sole-proprietorships.
Collection through TOP is only initiated after UI tax debts have been delinquent for a year and other collection notices or actions have failed. If you have a debt that is subject to TOP, TWC will mail a letter showing the amount your business owes, along with instructions on how to avoid referral to collection. You must complete one of the following actions within 60 days of the mail date of the letter to avoid collection through TOP:
- Submit full payment of the amount indicated
- Submit documentation showing that you have paid the debt in full
- Submit documentation explaining why the amount is not subject to TOP referral, such as a bankruptcy ruling
Send payment or documentation to:
TOP Overpayment Collections
P.O. Box 149007
Austin, TX 78714-9007
As part of the TOP collection process, TWC is required to notify you of our intent to refer the debt to TOP for collection 60 days before referral in order to give you the opportunity to either make payment or explain why the debt should not be considered subject to TOP collection. If you have already paid the amount in question or have addressed the debt in a bankruptcy filing, you will need to provide information regarding these actions.
For additional information on TOP, you can review the Bureau of the Fiscal Service websites:
For laws relating to TOP you can visit:
