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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September 2019

Chargeback Information

Your tax rate is directly affected by the chargebacks to your account. Chargebacks are the sum of benefits paid to a claimant and charged to the tax account of the base period employer. These chargebacks will affect your rate for at least three years.

You can protect your tax rate by protesting your chargebacks on the former employees that were terminated for a good cause. You will  receive a "Notice of Maximum Potential Chargebacks" with protest instructions if your tax rate can be affected. Be sure and file your protest before the deadline on the notice.

The on-line Unemployment Tax Services (UTS) system gives you the option to view the chargebacks that affect each quarter.

Log on to your account; Click on the Report Filing Tab at the top; Select the Chargeback History link from the Quick Links box on the left. For each quarter in question, you can click on the View link in the Action column to view any chargebacks affecting that quarter.

If you have any questions regarding chargebacks please contact our Chargeback Unit at 512-340-4336 or visit our Benefit Chargebacks webpage for more infomation. 

 

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August 2019

Close UTS Account

If an employer files “no wage” reports every quarter for two consecutive years, we automatically close the account.  There is an expense to the taxpayers of Texas to maintain an active tax account, and if a company has not paid any wages in that period of time, we assume that the employer no longer has employment. Closing the account when you don’t have wages to report will relieve the employer of the obligation to continue to provide quarterly filings. Employers should close the account via Unemployment Tax Service (UTS) or by submitting a form C-13.

To close your account via UTS:

  • Log on to UTS
  • Click on 'Account Info' tab
  • Click on 'Update/Close Tax Account' in the Quick Links Box
  • Enter the requested information, and save.

If you do start having Texas employment again in the future, you can reopen a closed account for a period of three years from the last quarter you reported wages.

 

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July 2019

Taxable Wage Calculation

The Texas Workforce Commission taxes the first $9,000 paid to an employee in a calendar year for each full-time and part-time worker. A new calculation for all workers starts at the beginning of each year. 

Unemployment Tax Services (UTS) is designed to calculate the taxable wages for each employee for the quarter being reported, based on their Social Security number. Employers are encouraged to file their report using UTS to ensure proper taxable wage calculation. 

Please vist our Reporting & Determining Taxable Wages webpage for additional information on taxable wages calculation.

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June 2019

Electronic Payment Options

Texas employers are required to make their tax payments electronically.

Electronic payments benefit both the employer and state government by saving time, paper and resources.

Please visit our Payment Options webpage to explore different electronic payment methods available to employers.

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May 2019

Electronic Correspondence (eCorres)

Electronic Correspondence (eCorres) is a relatively new feature of the Unemployment Tax Services (UTS) System where employers and their agents can view tax documents electronically.

Tax eCorres system has the following features:

  • Required subscription by the account manager – otherwise documents will continue to be sent through the United States Postal Service.
  • Employers will receive an email when a new document is available through eCorres.
  • Documents will be available through eCorres for 3 years.
  • Documents will be printable and accessible.
  • Documents available through eCorres will include annual tax rate notices, quarterly tax statements, and credit statements.

The Tax eCorres system will NOT include Legal Collection documents that by law must still be sent through the United States Postal Service.

To register for eCorres, log on to your TWC tax account, find the eCorres tab at the top of the Home page and follow the instructions.

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April 2019

How to Correct a Tax Report

Periodically, employers or their agents need to correct previously submitted tax reports.

A tax report becomes the report of record when submitted.  There is no way to delete or cancel the report; it must be adjusted.

The Unemployment Tax Services (UTS) system provides employers the ability to adjust tax reports or to correct the Social Security Number (SSN) for an employer. 

Please use the following steps in adjusting your wage report.

  1. Logon to Unemployment Tax Services (UTS)
  2. Enter your User Id and password
  3. Enter TWC Tax Account Number
  4. Select the tab for Report Filing from the My Home page
  5. Select the Adjust Wage Report link on the left
  6. Select the wage period you want to adjust
  7. Correct Social Security number errors, if applicable
  8. Search for the employee whose information you wish to change
  9. Change the information, as appropriate
  10. Enter the reason for the changes
  11. Review and revise the information, if needed, before submitting the adjusted wage report
  12. Before finalizing, all adjustments must be done for the period
  13. Submit the adjusted wage report
  14. View and print the confirmation information

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March 2019

IRS 940 Proof of Credit

The Texas Workforce Commission (TWC) receives periodic requests from employers, employers' designated representatives and the IRS for re-certification of TWC tax accounts.

  • Please be aware that TWC can only send a verification of the information we have received via quarterly reports or payments
  • If any changes need to be made to the account, it is the responsibility of the employer
  • Verification of account information can be found by logging onto Unemployment Tax Services
  • Request a 940 Certification via the Unemployment Tax Services system or by emailing the Tax Department

If you have additional questions, please contact your nearest local tax office.

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February 2019

Keep Your Records Current

The Texas Workforce Commission (TWC) mails important documents to employers on a regular basis. These documents contain information about your company tax rate and other factors that may affect the amount of money you pay to the Commission.

To ensure that your company receives this information in a timely manner, use the Unemployment Tax Services (UTS) system to notify TWC when basic company information changes. If you have a name change, move, or even change phone numbers, TWC needs updated information.

Updating your TWC tax account information insures you will not miss important filing deadlines, under pay or over pay your taxes.

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January 2019

Annual Domestic Reporting

January 31, 2019 is the due date for annual filers to submit their 2018 tax reports.

The Texas Workforce Commission (TWC) encourages Annual Domestic Filers to file their annual report and pay the tax due online through the free online service Unemployment Tax Services (UTS) System.

If you have questions or need additional information about annual domestic reporting, please e-mail the TWC Tax Department.

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December 2018

Texas Workforce Commission
Unemployment Insurance Tax Rates for 2019

Dear Employer:

Texas continues to see business growth and a strong economic environment, as well as, a continued decline in unemployment claim activity. As a result, the unemployment trust fund balance will be above the statutory floor and Tax rates in 2019 will not include a deficit tax.

The components of your 2019 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.
  • 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.

You may be able to reduce your taxes for 2019. If TWC paid benefits to your employees who were laid off or separated through no fault of their own, you may find it beneficial to “buy down” the tax rate. Please visit the TWC web site and click on the Businesses and Employers menu link for more information or access the voluntary contribution analysis through Unemployment Tax Services.

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.

Texas Workforce Commission
Austin, Texas 78778

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November 2018

Earned Income Tax Credit

In accordance with Texas Labor Code 104.004 (a) and HB 2360 passed during the 81st Texas Legislative Regular Session, employers (a person who employs 1 or more employees) must notify all of their employees (an individual who is employed by an employer for compensation) of the federal earned income tax credit (EITC) general eligibility requirements, no later than March 1 of each year.  The EITC is a refundable federal income tax credit for low-to-moderate income working individuals and families.

How may an Employer provide notice to its employees?

  1. In person;
  2. Electronically at the employee’s last known e-mail address;
  3. Through a flyer included, in writing or electronically as a payroll stuffer; or
  4. By mailing the information to the employee at the employee’s last known address by United States first class mail.

Employers may use IRS Notice 797 or a written statement with the same wording as IRS Notice 797 when notifying employees.  IRS – Notice 797 provides employees with the basic information for EITC. For more information and guidelines visit the Earned Income Tax Credit  website.

There are several websites created to assist employees with additional information, eligibility requirements, general overview and income guidelines for EITC. For more information, visit the IRS website or the TWC website.

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October 2018

How do I close my account?

It is fast and easy to enter your closing information through our on-line Unemployment Tax Services (UTS) system.

Log in to your account then:

  1. Select the Account Info tab at the top of the page,
  2. Select the Update/Close Tax Account option in the Quick Links box on the left,
  3. Enter the appropriate information.

If you do start having Texas employment again in the future, you can reopen a closed account for a period of three years from the last quarter you reported wages.

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