Employers have the option of voluntarily paying all or part of their share of chargebacks or UI benefits paid to their former employees. These changes can lower their state unemployment tax rate. If you elect to pay all or part of your chargebacks, your effective tax rate will be updated. You will also receive a revised tax rate notice.
Each December, TWC notifies employers of their tax rate for the coming year. Included is a Voluntary Contribution Election (Form C-24) with the annual Tax Rate Notice (Form C-22). This information accounts for UI benefits charged within the three-year computation period. Employers should review the information to see if a voluntary contribution (VC) election is cost effective. Contribution amounts 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 VC may be equal to all or part of the chargebacks used in the rate computation. Partial contributions apply first to your most recent chargebacks. Once TWC has recomputed the tax rate, you cannot withdraw the election. If an adjustment to taxable wages or benefit charges for the three-year computation period occurs after the VC has been made, the resulting tax rate may be affected.
Because every employer account contains unique taxable wage and chargeback information. employers should consider the information before participating in the VC option.
The TWC VCA tool is available beginning in mid-December. Use it to determine if making a VC is helpful for your business.
Employers registered with Unemployment Tax Services may access the VCA page. Select the My Home tab then select the Voluntary Contribution Analysis link located under Quick Links. Registered employers will have rate data pre-filled and will be able to make a VC payment online. The VCA tool is available from mid-December to early February in Unemployment Tax Services.
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.
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.