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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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April 2022

Update User Profile

Registered users of Unemployment Tax Services, the free Texas Workforce Commission (TWC) online system, should update their profile any time they change their email address. Maintaining an updated email address and phone number allows you to reset your password by email instead of having to call for assistance. TWC also uses the email address and telephone number as a means of communicating with employers.

Updating a profile is quick and easy. After logging in to Unemployment Tax Services, select the “My Profile” link from the upper right-hand corner of any page. Next, enter the new email address and/or phone number and then submit.

To ensure that emails are received and not filtered, users should add the TWC email addresses taxserv@twc.texas.gov and tax@twc.texas.gov to their address book.

 

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February 2022

2022 Tax Rate Notices Contained the Wrong Insert Information  

Important! The 2022 Tax Rate Notices are Correct. Only the wrong insert was included.

The Texas Workforce Commission’s (TWC) contractor inadvertently sent out the incorrect insert with the 2022 Tax Rate notices.

Employers can confirm their 2022 Tax Rate notice information, view Chargeback information and view Voluntary Contribution information online via the Unemployment Tax Services (UTS) System by going to: https://apps.twc.state.tx.us/UITAXSERV/security/logon.do

  1. Log in to your account in the UTS system
  2. Select the Account Info tab at the top of the page
  3. Select the Tax Rate Summary link in the Quick Links box on the left
    Note: 2022 minimum tax rate = 0.31%; 2022 maximum tax rate = 6.31%

Tax Rate Notice Insert Information:  Below is the information that should have gone out with the 2022 Tax Rate Notices:

On November 23, 2021, TWC set unemployment insurance (UI) tax rates for 2022 at a stable level to avoid burdening Texas businesses with a significant increase of taxes resulting from pandemic-related closures outside of their control. This action is a result of the statutory authority of the Commission and was supported by funding from Senate Bill 8 (SB 8), passed during the 3rd Special Session of the 87th Texas Legislature and signed into law by Governor Abbott.

Employer-paid UI taxes replenish the Texas Unemployment Compensation Trust Fund, which provides temporary income for workers who lose their jobs through no fault of their own. Each employer’s UI tax rate is unique, tied to unemployment benefits paid to former employees. Absent SB 8 and the Commission’s action, most Texas employers would have seen significant increases in their tax obligation for 2022.

The Commission set the state’s UI replenishment tax rate to 0.20 percent, and the deficit tax rate to 0.0 percent. The Obligation Assessment was set to 0.01 percent to ensure that any federal interest due on Title XII loans were covered.

The components of your 2022 tax rate are:

  • The general tax – based on claims against your account.  If TWC has paid benefits to former employees who were laid off or separated through no fault of their own in the past three years, you will pay the general tax.
  • The replenishment tax – charged to all experience rated employers to cover unemployment claims not charged to a specific employer.  This tax tends to rise following economic downturns when claims increase and businesses close. This tax is set to 0.20%.
  • The obligation assessment – to collect the amount needed to repay interest due from Title XII loans. This tax is set to 0.01 percent.
  • The employment and training investment assessment – a flat tax of 0.1 percent, paid by all employers. By law, the Replenishment Tax Rate is reduced by the same amount so there is no increase in your tax rate due to this assessment.

At TWC, we work hard to minimize your unemployment insurance costs. In addition to lowering the tax burden, TWC is taking an aggressive approach to eliminate fraud, waste, and abuse of all kinds in the programs the agency administers. By reporting new hires immediately to the state Attorney General’s office, responding promptly to notices when a former employee applies for unemployment benefits and responding to earnings information requests on claimants, you can help us avoid overpayments and fraud which costs all employers.

TWC works closely with local workforce development boards across Texas to fill job openings with qualified unemployed workers, and we fund training to upgrade the skills of workers to better match area employers’ needs. TWC also works closely with economic development organizations to support existing Texas companies and to bring new business to the state. We pledge our continued efforts in helping to keep taxes as low as possible in order to promote a thriving Texas economy.

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October 2021

Protect Your User ID

User IDs and passwords function as security for your online tax account(s).   Your User ID and password combination is required to open your access to UTS each time you log on.

Your User ID belongs to you.  It does not belong to any tax accounts that you may have associated it with.  The User ID serves as your electronic signature for any actions taken with your User ID.  A single tax account can have multiple User IDs associated with it, but each person who needs to access the tax account must have his/her own individual User ID to be in full compliance with the law.

Do not share your password with anyone.  We may request your User ID and tax account number to be able to assist you, but we will never request your password.  

Never attempt to log on to a tax account with someone else’s User ID, even if they gave you permission to do so.  A User ID should never be “passed on” to a new person if the person who set it up is no longer handling the tax account.  Registering for your own User ID takes only a few minutes and is the best way to distinguish your online activity from anyone else’s.

If you forget your User ID or password, having current profile information will be crucial.  Keep your User ID profile current by logging in to UTS and selecting “My Profile” in the top right-hand corner.  Click on Personal Information in the Quick Links box to update your email address or User ID.    Click on Security Information to update your security questions and answers.

You are the key to safeguarding your account information.  

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September 2021

2021 Tax Payment Due Dates

The Texas Workforce Commission delayed issuing 2021 tax rates in order to avoid tax increases resulting from pandemic related charges.  Our Commissioners took action earlier this year to adjust the due date for tax payments.  Tax payments for 2021 are due 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 by January 31, 2022

As a reminder, employers can review the 2021 tax rate online using Unemployment Tax Services (UTS) application https://apps.twc.state.tx.us/UITAXSERV/security/logon.do.  Once you have logged into 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. 
 

 

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August 2021

Unemployment Benefits Identity Theft

Help TWC fight unemployment benefits identity (ID) theft.

Employers may receive a “Notice of Application for Unemployment Benefits”, a “Request for Work Separation Information”, or other form from TWC requesting information on a claim.  If you receive a notice for an employee who is still working, or for a person who never worked for you, please respond to the notice immediately.

If your employee receives material from TWC for an unemployment claim they did not file, you should advise your employee to report the ID theft claim using TWC’s online portal.  While either you or your employee may report the suspected ID theft using the portal, we prefer that the information comes directly from the person whose identity was stolen.

UI Fraud Submission

The online portal provides a secure method for reporting fraud, including ID theft.  Under the “Type of submission” drop-down menu, select “Report Suspected Fraud,” “Did not file the UI Claim,” or “Did not file the UI claim but now need to,” as appropriate for your situation.  Provide your name, Social Security number, and contact information.  You should also upload your statement regarding the fraudulent claim, copies of any claim documents you may have received from TWC, along with a copy of your driver license, which TWC will use to verify your identity.  The portal accepts PDF, BMP, GIF, JPG, JPEG, PNG or TIFF files.  Submit the documents only once.

Individuals who report suspected ID theft to TWC do not always receive a call, email, or letter in response to the information provided.  TWC will only contact you if we need clarification.  

We recommend using the secure online portal to report any suspected ID theft claim. However, if you cannot use the UI Fraud Submission portal, send an email to TWC.Fraud@twc.texas.gov or leave a message on the TWC Fraud Hotline at 800-252-3642. Include your full name, Social Security number, address, phone number, and a description of the information you have regarding the ID theft claim.

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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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