Tax Department Quarterly Announcements

Overview

This page contains information about programs and services that can benefit your business.

Return to Top

4th Quarter 2020

Where to Report Workers

The Texas Workforce Commission (TWC) uses the following sequence of tests to determine where an employer should report their workers and pay unemployment taxes:
 
  • Location of Services
  • Employee's Base of Operation
  • Place of Direction and Control
  • Location of Employee's Home Address
  • Services Outside of the United States
To view the TWC Location of Services Checklist and determine where to report your workers, please go to our webpage Location of Services Checklist.

Return to Top

3rd Quarter 2020

Texas Workforce Commission Tax Audit

The primary objectives of a TWC unemployment insurance employer tax
audit are to:
 
  • Ensure compliance with the taxing provisions of the Texas Unemployment Compensation Act.
  • Foster understanding by employers of the unemployment compensation law.
  • Establish a relationship between TWC and the employer through the distribution of information related to the unemployment insurance program.
A TWC Tax auditor reviews an employer's acknowledged payroll and searches the records for misclassified workers and wages.
 
Employment and payroll information that TWC obtains during the audit will not be published and is not open to public inspection.

 

Return to Top

2nd Quarter 2020

Verify Worker Social Security Numbers

Verify Worker Social Security Number using The Social Security Number Verification Service provided by the Social Security Administration.
 
Employers Should Verify Names and SSNs Online because:
 
Correct names and SSNs on wage reports are the keys to the successful processing of your quarterly tax report submissions and calculation of taxes due.
 
Verification will prevent the need to make tax report corrections.
 
Correct worker information will prevent investigations when former employees file for Unemployment Benefits.

 

Return to Top

1st Quarter 2020

2020 Unemployment Insurance (UI) Tax Rates

2020 tax rates were mailed to Texas employers in December 2019.
 
Employer-paid UI taxes replenish the Texas Unemployment Compensation Trust Fund, which
provides temporary income for Texas workers who lose their jobs through no fault of
their own.
 
The 2020 standard minimum UI tax rate is 0.31 percent which is down from 0.36 percent
in CY 2019. An employer paying the standard mimimum tax will pay $27.90 per employee
in CY 2020 on the first $9,000 in wages per employee compared with $32.40 per
employee in CY 2019.
 
The average unemploymenmt insurance (UI) tax rate for experience-rated employers will be
0.93 percent for 2020, dropping to its lowest point since 2009.
 
The maximum UI tax rate, paid by 4.5 percent of Texas employers, will be 6.31 percent,
decreasing from CY 2019 at 6.36 percent.
 
For more information about tax rates please vis our webpage Unemployment Insurance Tax Rates.

Return to Top