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.

Return to Top

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

Return to Top

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.

Return to Top

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.

Return to Top

September 2018

Forgotten UTS Password

If you have forgotten your UTS password or you are not receiving the system reset email, follow these steps to reset your password.

1.    Go to the Unemployment Tax Services (UTS) logon screen.

2.    Select the “Forgot Password?” link found in the Quick Links box which is located on the left side of the page.

3.    You will be prompted for your User ID, first name, and last name.  After providing this information, select the Next button.

4.    Answer your pre-selected security question(s) that was provided during your User ID registration (something like “what is my dog’s name” or “where was I born”). 

5.    Once the security question is answered correctly, you will be prompted to reset your password and login.

If you cannot successfully reset the password for your User ID, send an email including the TWC employer tax account number, User ID, and a brief description of the issue you are encountering to tax@twc.state.tx.us, and assistance will be provided.

Return to Top

August 2018

Suspicious Email

TWC Tax Department staff avoid email cybercrime and will NOT open email from customers or unknown persons that seem in any way suspicious. If we receive email correspondence that includes third party redirects, links, portals, or storage drives, etc., we immediately delete it.  These types of email messages usually contain phishing scams, viruses, or malicious intent.

If you need to communicate with TWC about submitting valid information securely instead of the methods mentioned above, please contact us first.  See Unemployment Tax Contact Information.

 

Return to Top

July 2018

“No Wages” Report - Filing Requirements

As long as you have an active tax account, you must file an Employer’s Quarterly Report each quarter even if you have not paid wages in a specific quarter.

Reports, including those with “No Wages”, are subject to late fees, see Computation Worksheet for Unemployment Tax, Interest and Penalty Due.

Learn more about Employer’s Quarterly Reports and Payment Due Dates.

The easiest way to file a “No Wages” report is on TWC’s Unemployment Tax Services (UTS).

Find more detailed information about the Steps for Filing a Wage Report Using UTS.

Return to Top

June 2018

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:

  1. Required subscription by the account manager – otherwise documents will continue to be sent through the United States Postal Service.
  2. Employers will receive an email when a new document is available through eCorres.
  3. Documents will be available through eCorres for 3 years.
  4. Documents will be printable and accessible.
  5. 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.

Return to Top

May 2018

TWC Confidentiality and Third-Party Preparers

Employer security protocol and State confidentiality laws will not allow Tax personnel to release confidential information about an account to a third-party who does not have Written Authorization on file with this Commission to represent that account.

Any business or employer that wants to grant an individual or service company the authority to represent them in matters before TWC should submit the Written Authorization to Represent Employing Unit which can be found at Written Authorization to Represent Employing Unit (Form C-42).

The written authorization form must be signed by the:

  • Individual, if the grantor is a sole proprietor
  • Owner or an officer of an organization or a partner of a partnership
  • Fiduciary or trustee for a trust or estate

 

Return to Top

April 2018

Why is the system not available?

The on-line Unemployment Tax Service (UTS) system must be taken off-line for a short period each evening to upload the data collected that day to our mainframe tax system.  We are required by law to process the data collected each day in that night’s computer tax run, so we have no choice but to do this daily.

We normally attempt to do this late in the evening (usually sometime between 6:00 PM to midnight), when user demand is substantially lighter, but before the start of the mandatory nightly computer processing of all data transactions from the previous day.  It is usually only down for a few minutes, though it can be longer on the last couple of days of the report due month due to the much higher number of reports that must be transmitted on those days.  

If you encounter this, please simply try again in a few minutes and you shouldn’t encounter any additional problems. 

Return to Top

March 2018

Don’t Share Your User ID

The user-ID you set up in the Unemployment Tax Services (UTS) System will be set up in your name and will be your user-ID.  You can associate your user-ID with one or more tax accounts.  However, the user-ID will belong to you, not to any of the tax accounts that you may associate it with.  Any time that user-ID is used to file a report in any tax account that it is associated with, it is the legal equivalent to your electronic signature on that electronic document. 

You should never allow anyone else to log in to the UTS system using your user-ID.  You are the only person who should ever use it.  If anyone else needs to access this tax account and file reports or take other actions, they should set up their own user-ID and associate it with this tax account.  A tax account can have any number of user-ID’s associated with it, but each person who needs to access the tax account should have their own user-ID set up in their own name.

Return to Top

February 2018

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

Return to Top

January 2018

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.state.tx.us and tax@twc.state.tx.us to their address book.

Return to Top