A liable employer is an employer required by law to participate in the Texas unemployment tax program. The Texas Unemployment Tax Act (TUCA) is the basis for the Texas unemployment tax program. As a liable employer, you have certain responsibilities under TUCA.
You must register with the Texas Workforce Commission (TWC) within ten days of paying an employee wage and becoming liable for unemployment tax.
Register online for a new unemployment tax account using Unemployment Tax Registration. When you register online, you will receive a TWC tax account number and confirmation of your registration.
Federal and state laws require you to report all new or rehired workers. Report new hires at the Employer New Hire Reporting Operations Center (ENHR) within 20 days of the effective hire date. ENHR is administered by the Texas Office of the Attorney General.
Every time you provide information about your newly hired or rehired workers, you help state agencies detect and prevent fraud.
For more information on the benefits of reporting and how to report new hires, see New Hire Reporting.
You are required to:
- File wage reports and pay unemployment taxes electronically
- File the required quarterly or annual tax forms on time with complete information.
- Pay taxes or reimbursements when due.
Find report and tax due dates at Tax Report & Payment Due Dates.
Penalties and interest are assessed on late reports and tax payments. To calculate penalties and interest, visit Texas Workforce Commission's Unemployment Tax Services - Computation Worksheet for Unemployment Tax, Interest and Penalty Due.
Reminder: Only employers with an approved electronic hardship waiver can submit reports and payments by mail.
You are required to keep certain records about your business under TWC Rule 815.106. The records must be kept for four years. The required records include:
- Name and correct address of the employing unit
- Name and address of each branch or division or establishment operated, owned, or maintained by the employing unit
You are also required to keep the following information for each of your workers:
- Names, addresses and Social Security numbers
- Dates they worked
- State or states in which they worked
- The amount of wages you paid to each worker each separate payroll period, including:
- Date you paid them
- Amounts paid
- Remuneration other than wages paid
- Whether during any payroll period the individual worked less than full time, and if so, the hours and dates worked
You are required to inform the TWC Tax Department if there are any of the following changes in the status of your business:
- Employment has been discontinued.
- Ownership, name or tax mailing address has changed.
- Account number, Federal ID number or telephone number has been omitted or is incorrect on preprinted tax forms.
See Changes to the Status of Your Business to report a business status change to TWC.
You may authorize someone to represent your business in all matters with TWC. This may include an individual or a service company. To do so, submit a Written Authorization to Represent Employing Unit (Form C-42).
Your authorized representative will have access to all information in TWC’s records about your account. You may also direct TWC to mail all correspondence to your representative's address rather than your address.
Your representative may submit all required reports and contributions under their own signature. They also may participate in any benefit hearings or tax hearings conducted by TWC regarding your account.
You may revoke an authorization at any time. To revoke the authorization, submit a Revocation of Written Authorization to Represent Employing Unit (Form C-43).