Overview

Tax tips are provided as a resource for helpful hints and time-saving suggestions when registering, filing and paying your unemployment taxes and managing your unemployment tax account.

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July 2021

Updated 2021 Tax Rates Message

 

The Texas Workforce Commission (TWC) delayed issuing 2021 tax rates in order to keep them as low as possible for Texas employers.  Click here to see TWC’s news release about the tax rates.

2021 tax rates are being issued, and the mailing will be completed by the 1st week of July. 

View Tax Rates Online

 

Employers can review the 2021 tax rate online using the Unemployment Tax Services (UTS). Once you have logged in to your account on the UTS system (see link below), please click on the “Account Info” tab at the top of the page, and then select the “Tax Rate Summary” link in the Quick Links box on the left to view your tax rate information for the last several years. 

Chargebacks

 

Chargebacks, if any, that have impacted your tax rate can be viewed by going to the Report Filing tab at the top, and then selecting Chargeback History from the Quick Links box on the left. 

If you believe that any of the Chargebacks are incorrectly charged to your account, you have three of the following options on how to file a protest:

Option 1
The Texas Workforce Commission (TWC) encourages employers to respond to Employer Unemployment Notices using the Employer Benefits Services (EBS) portal.  Access to a Notice of Application or Notice of Maximum Potential Chargeback through the EBS portal allows employers to view, respond to, and submit the notices electronically. If you determine you have been charged for a claim you were not aware of, access electronic correspondence history in EBS. User guide links are below:  
 
This online feature provides 24/7 access to the online Other Services site, security, immediate updates and changes, and checks and balances validation so errors are caught and corrected immediately.
 
To respond a Notice of Maximum potential Chargeback electronically:
 
  • Log on to Employer Benefit Services
  • Select the Other Services tab 
  • Select Maximum Potential Chargeback Notice from the Quick Links menu
  • Enter the Social Security number (SSN) from the Chargeback Response: Getting Started page
  • Select Next

For more information, see:

You can also respond to a chargeback notice by completing the back of the form and faxing or mailing it to TWC. The back of the notice allows you to provide the reason the claimant is no longer working for you.
 
Fax: 512-305-9687
 
Mail:
Texas Workforce Commission
Chargeback Determination Unit
P.O. Box 149137
Austin, TX  78714-9137
 
Option 2

Send an email to Chargeback Report protesting the claim.   The email MUST include:  The account number, claimant’s name, claimant’s SSN, claim date, reason for job separation as of the claim date, and proof of timely response.  Missing information will delay UI response.

Option 3

If you have received an appeal or chargeback decision in your favor regarding a claim and the charge is still on your account, please allow 120 days from the decision for the Tax Department to update the account and issue a new 2021 tax rate for your organization.

View Rate Notices Online

 

Copies of your rate notices can be viewed through UTS eCorres after July 2, 2021.  Until then, the document may not be viewable.  Log on to your account, go to eCorres tab at the top, and then select the rate notice for viewing. 

Voluntary Contributions

 

Voluntary contributions are not in effect for 2021.  Click here to see Governor Abbott’s message regarding the suspension declaration.

Tax reports for 2021 must be filed by following due dates:
 
The 1st quarter 2021 tax report must be filed by 05-07-2021.
The 2nd quarter 2021 tax report must be filed by 08-02-2021. 
The 3rd quarter 2021 tax report must be filed by 11-01-2021. 
The 4th quarter 2021 tax report must be filed by 01-31-2022

 

Tax Payments for the 1st and 2nd quarters are extended as follows:

The 1st quarter 2021 tax payment is due by 08-02-2021. 
The 2nd quarter 2021 tax payment is due by 09-30-2021.  
The 3rd quarter 2021 tax payment is due by 11-01-2021. 

The 4th quarter 2021 tax payment is due by 01-31-2022. 

 

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June 2021

Workers Refuse to Return to Work

If you attempted to rehire a former employee and they refused to return to work, you need to report the incident to the Texas Workforce Commission (TWC).  We need to know the following information:

  • Job offered
  • Date when job was offered
  • Number of hours they would be working
  • Pay (was it the same as before COVID-19), and
  • If the worker refused due to safety concerns, the steps the employer has taken to ensure the safety of the workers and customers.

You may send the information to TWC.Fraud@twc.texas.gov or call 1-800-252-3642.  TWC will investigate and determine if the claimant has refused suitable work.

 

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May 2021

Administrator Self Removal

Unemployment Tax Service Account Administrators can remove themselves from association with an account using the following process:

  • At the My Home tab, select My Employers in the Quick Links box
  • From the list of employers, find the account number that needs to be removed
  • Under Action, the choices are Select or Remove
  • Click Remove and follow instructions on the pop-up window

For assistance with other Unemployment Tax Services issues, please contact your nearest Texas Workforce Commission Tax office: http://www.texasworkforce.org/taxcontacts

 

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April 2021

Office of the Commissioner Representing Employers

The employer commissioner's office represents the Texas business community, furnishing a wide variety of services to employers including informational materials, employment law seminars, an 800 number, and a quarterly newsletter.

The Office of the Commissioner Representing Employers offers online resources, including the book Especially for Texas Employers  with detailed articles on state and federal employment laws and the quarterly newsletter Texas Business Today which contains employment updates for employers.

Some of the resources and publications available include the following:

  • Texas Business Today - the employer commissioner's informational quarterly magazine.
  • Especially for Texas Employers - an online book of comprehensive information on workplace issues including unemployment taxes, labor law, hiring and firing.
  • Solutions - Texas Workforce Commission magazine for employers, business associations, and economic development associations.

 

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March 2021

2021 Tax Rates Update 

The Texas Workforce Commission (TWC) continues to explore options to keep the 2021 tax as low as possible for Texas employers.

2021 tax rates will be issued late in June 2021:

This will allow Texas time to consider legislation assisting Texas employers and for the Governor to sign that legislation.

Voluntary contributions are not in effect for 2021:

In order to assist Texas employers, Governor Abbott has suspended Section 204.048 of the Texas Labor Code, which set deadlines for a small subset of employers who make voluntary contributions into the UI tax system. The Commissioners in turn aligned TWC Policy with that decision.

Governor Abbott’s Suspension Declaration

Tax reports for 2021 must be filed by their original due date:

  • The 1st quarter 2021 tax report must be filed by 04-30-2021.
  • The 2nd quarter 2021 tax report must be filed by 08-02-2021.
  • The 3rd quarter 2021 tax report must be filed by 11-01-2021.
  • The 4th quarter 2021 tax report must be filed by 01-31-2022

Tax Payments for the 1st and 2nd quarters are extended as follows:

  • The 1st quarter 2021 tax payment is due by August 2, 2021.
  • The 2nd quarter 2021 tax payment is due by September 30, 2021. 
  • The 3rd quarter 2021 tax payment is due by November 01, 2021.
  • The 4th quarter 2021 tax payment is due January 31, 2022.

If your payroll system requires a tax rate, please see options below:

  • New employers (operating less than 18 months) may use 2.7% as their tax rate.
  • Experience rated employers (operating more than 18 months) may consider using their 2020 actual tax rate as an option or one of the following published 2020 rates:
    • 2020 minimum tax rate = 0.31%
    • 2020 average tax rate = 1.14%
    • 2020 maximum tax rate = 6.31%

IMPORTANT: If you use an optional tax rate for your payroll system, please adjust once the actual 2021 rates are published.

Employers can review the tax rate online using the Unemployment Tax Services (UTS) as rates become available. Once you have logged in to your account on the UTS system, please click on the “Account Info” tab at the top of the page, and then select the “Tax Rate Summary” link in the Quick Links box on the left to view your tax rate information for the last several years.  

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February 2021

Why am I being Audited?

The Texas Workforce Commission is responsible for the effective administration of the Texas Unemployment Compensation Act (TUCA). The Tax Department does conduct routine audits of businesses to ensure compliance with unemployment laws. This helps provide for a level playing field among businesses by enforcing tax compliance equitably. Since part of the tax rate calculation is used to replenish the unemployment trust fund, it is important that all liable employers pay the correct amount of taxes due for their employees.

Employer Audits may be based on random selection, referrals from other departments, other state and federal agencies, and the public.

The primary objectives of an 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.

Note: Information obtained by TWC in an audit is not published and is not open to public inspection.  

Learn more about the Unemployment Insurance Employer Tax Audits

 

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January 2021

2021 Tax Rates

The Texas Workforce Commission (TWC) continues to explore options to keep the 2021 tax rates as low as possible for Texas employers as Texas and the entire nation continue to deal with the economic disruptions of the COVID-19 pandemic. TWC expects the 2021 tax rate notices will be mailed to Texas employers in February 2021. TWC is closely monitoring discussions by Congress regarding potential relief legislation to help limit the impact of the COVID-19 pandemic on 2021 tax rates.

In previous years, employer tax rates were released in December before the next calendar year. Over the next month, TWC will pursue all possible avenues to keep tax rates as low as possible and announce the year’s tax rate in February 2021. At that time, employers will also be able to view their 2021 tax rate using the TWC Unemployment Tax Services system. A February 2021 notification will give employers sufficient time to update their programs, notify their service agents and submit their first 2021 tax report in April 2021.

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. TWC calculates experience-rated employers’ tax rates as of October 1 to be effective for the following calendar year, and mails notices of the rates to employers.

In addition to exploring options to keep the 2021 tax rates as low as possible for Texas employers, TWC is taking an aggressive approach to eliminate fraud, waste, and abuse of all kinds in the programs the agency administers. By responding promptly to notices when a former employee applies for unemployment benefits and responding to earnings information requests on claimants, you can help the public avoid overpayments and fraud which costs all employers. 

 

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December 2020

2021 Tax Rates

The Texas Workforce Commission (TWC) continues to explore options to keep the 2021 tax rates as low as possible for Texas employers as Texas and the entire nation continue to deal with the economic disruptions of the COVID-19 pandemic. TWC expects the 2021 tax rate notices will be mailed to Texas employers in February 2021. TWC is closely monitoring discussions by Congress regarding potential relief legislation to help limit the impact of the COVID-19 pandemic on 2021 tax rates.

In previous years, employer tax rates were released in December before the next calendar year. Over the next two months, TWC will pursue all possible avenues to keep tax rates as low as possible and announce the year’s tax rate in February 2021. At that time, employers will also be able to view their 2021 tax rate using the TWC Unemployment Tax Services system. A February 2021 notification will give employers sufficient time to update their programs, notify their service agents and submit their first 2021 tax report in April 2021.

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. TWC calculates experience-rated employers’ tax rates as of October 1 to be effective for the following calendar year, and mails notices of the rates to employers.

In addition to exploring options to keep the 2021 tax rates as low as possible for Texas employers, TWC is taking an aggressive approach to eliminate fraud, waste, and abuse of all kinds in the programs the agency administers. By responding promptly to notices when a former employee applies for unemployment benefits and responding to earnings information requests on claimants, you can help the public avoid overpayments and fraud which costs all employers. 

 

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November 2020

TWC Reimbursing Tax Accounts Billing

The Texas Workforce Commission has been working hard to implement the fifty (50) percent chargeback credit from the Coronavirus Aid, Relief, and Economic Security Act (CARES Act) for Texas Reimbursing Employers.

On October 29, 2020, the third quarter of 2020 reimbursement statement for your organization will be mailed out. The relief information will be reflected on the reimbursing accounts quarterly statements, which will show all charges applied to the reimbursing account, the fifty (50) percent credit payment associated with the accounts for eligible charges, and the final balance due for the quarter.

On approximately November 15, 2020, updated reimbursing statements for the first and second quarters of 2020 will be mailed out to reimbursing employers that will reflect the fifty (50) percent payment credit. Employers who have not made any payments on their previous statements will have until December 31, 2020, to make their payment without interest charges.

Please ignore any October 2020 default notice that you may have received. They were sent in error. We apologize for any inconvenience. 

For those employers who previously paid all charges, we encourage them to leave the credit on their account and use it against future charges, but a refund can be requested in the form of a paper check.

For employers who want to request a refund, please have an officer send an email with the account number, the company name, the officer’s name and business title, and refund request of all available credit to: Tax.caresrefund@twc.texas.gov.

Please use the following links if you have questions:

COVID-19 Resources for Employers
Unemployment Claim Management & Appeals

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October 2020

Professional Employer Organizations (PEO) - Employee Leasing

If you lease your employees from a Professional Employer Organization (PEO), Texas state law requires the PEO to have an active and approved license with the Texas Department of Licensing and Regulation (TDLR).

To verify that the PEO you are using has a current license, contact TDLR at 800-803-9202 or visit the TDLR PEO webpage.

If the PEO you are using doesn't have a current license, it is your responsibility to report your employees under your own TWC account number. You may also be held responsible for filing prior quarterly wage reports and paying related taxes.

If you have any questions regarding the reporting of leased employees, please contact the nearest Unemployment Tax Office.

 

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September 2020

Where Should I Report My Employee's Wages 

Employers with locations and employees in multiple states often encounter the issue as to which state to report the wages of their employees for unemployment tax purposes.

For assistance in making this determination, please see the location of services checklist available at Texas Workforce Commission website.

If you have questions, contact your nearest Unemployment Tax Office

 

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August 2020

Posters for the Workplace

Texas employers must display one or more required posters.  Workplace compliance posters requirements vary from one employer to another depending upon the type of business and number of employees.

To view a comprehensive listing and to find links to workplace posters, visit our web page Posters for the Workplace.

Employers do not need to purchase required posters from private vendors. Government-issued compliance posters do not have to be laminated to satisfy an employer's regulatory obligation. Posters can be printed free of charge by going to the TWC web site. 

 

 

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