Texas State Payroll Tax Information
PayWow equips your business with the latest resources on state withholding and filings.
State Unemployment Insurance
All employers of Texas are required to contribute to the state unemployment insurance. As an employer of Texas, you can register through the Texas Workforce Commission’s online registration site to pay your unemployment taxes. Upon successful completion, you can even file the Employer’s Quarterly Report (Form C-3) electronically.
You will receive a 9-digit unemployment ID and tax rate from the state, which you are required to provide in PayWow, to remit and file taxes on your behalf.
The Texas Workforce Commission is responsible for unemployment wages for the state of Texas.
Texas Taxable Wage Base:
Texas SUTA wage base limit for 2020 is $9000.
Texas Employer Contribution Rate:
Generally, the Texas SUI tax rates for 2020 is between .31 and 6.31%.
If you are a new employer then the Texas SUI tax for 2020 is 2.7%. Please note that unemployment taxes must be paid only by the employers and shall not be deducted from the employees’ wages.
The employer tax rate usually consists of General Tax Rate (GTR) + Replenishment Tax Rate (RTR) + Obligation Assessment Rate (OA) + Employment Training Investment Assessment (ETA).
PayWow automatically deposits your unemployment taxes to the State on a quarterly basis based on the information recorded in the application.
State Disability Insurance (SDI)
Texas does not have any state disability insurance.
State Labor Laws
Texas Minimum Wage Rate:
Texas does not have a separate state minimum wage for non tipped and tipped employees. The state imposes the federal minimum wage rate of $7.25/hr.
However, there are some exemptions from the Texas minimum wage laws and is applicable to the following individuals:
- Professionals, salespersons or public officials
- Certain youths and students
- Family members
- Amusement and recreational establishments
- Non-agricultural employers not liable for state unemployment contributions
- Dairying and production of livestock
- Sheltered workshops
In PayWow, once you add employees and their compensation types, their paychecks will be automatically calculated.
The state says that if an employee is fired on any grounds, they must be paid their regular and severance pay within 6 days. In case, an employee quits, then they must be paid on the next regular payday.
New Hire Reporting
As an employer of the state of Texas, you must report all your new hires and rehired employees to the state agency within 20 calendar days they start earning wages.
Details Required to Complete New Hire Report:
Following are the details required to complete the new hire report:
Employer Name, Address, State Employer Identification Number(Unemployment Insurance Number), Federal Employer Identification Number (FEIN).
Employee Name, Address, Social Security Number, Date of Hire, Date of Birth (Optional).
Uses of New Hire Report:
If you have the new hire reports, those will be used for:
- Establishing and enforcing child support orders
- Detecting Unemployment Benefits overpayments and fraud
- Detect Workers' Compensation overpayments and fraud
The new hire reports can be mailed online, and if you report electronically, you must report 12 to 16 days apart. Or, employers can fax those copies to the Child Support Services Division.
Here’s the address:ENHR Operations Center,
P.O. Box 149224,
Austin, TX 78714-9224,
You would face penalties for failing to file New Hire Reports:
$25 for failure to file for one new hired employee; and $500 if a conspiracy is discovered between you and an employee for not supplying the required information or supplying false or incomplete information. You can choose PayWow to report a new hired employee to North Carolina and receive both your copy and the employee's copy.
PayWow will automatically report the new hired employees to the state, and also send the required copies to both the employer and employees.Get Started Now
Remit Withholding for Child Support
As an employer, you will be required to remit child support payments from your employees’ wages if any of your employees are liable to pay for child support. You will receive a withholding notice from the state agency asking you to remit payments to the below address:Child Support Enforcement Division,
Office of the Attorney General TXCSDU,
PO Box 659791,
San Antonio, TX 78265-9791,
The amount remitted will in turn be sent over to the custodial parent. PayWow lets you record any type of garnishments and during payroll processing, such deductions will be debited from the employee's paycheck.
For more information on this, please visit Texas Child Support Payment Information.
There are no local taxes in the state of Texas.
Reciprocal agreements between states are agreements that allow employees living in one state and working in another state to pay taxes only to their state of residence.
However, Texas does not have any reciprocal agreements with any other states.
Texas State Tax Forms
Employers are required to file Form C-3 by the end of the month following the close of the calendar quarter.
This report can be filed electronically through the Texas Online Commission Portal.
|Quarter||Reporting Period||The Due Date will be on|
|1||January - March||April 30th|
|2||April - June||July 31st|
|3||July - September||October 31st|
|4||October - December||January 31st|