Employers are required to register with the Texas Workforce Commission (TWC) and pay state unemployment taxes on wages paid to workers in Texas. This applies to out-of-state employers as well.
An out-of-state employer who is already liable for the Federal Unemployment Tax Act (FUTA) will automatically be liable to pay the unemployment taxes in Texas once they have employment and pay wages in Texas. Once you have paid wages in Texas, you must set up a tax account with TWC to file and pay unemployment taxes in Texas.
The quickest way to set up a tax account is by using TWC’s Unemployment Tax Registration (UTR) system.
- Do not use any future dates when registering.
- First Employment Date is for employment in Texas.
- First Wage Date is for the date in which wages were first paid through the business for services performed in Texas. When you are asked the FUTA question – use the year that you first paid wages in Texas.
Instructions on how to register for employer-paid state unemployment tax with TWC:
- Use an existing user ID or create a new user ID for the person registering the business.
- Register the business.
- Submit any reports that are due.
If you have reports that are due, please have that report data ready when you start the registration process. At the end of the process, the system will allow you to enter any report data that you need to submit.
If you do not enter any reports that are due, you will have to wait until you receive your Employer Liability Notice letter before you will be able to log on to TWC’s Unemployment Tax Service (UTS) system and file any reports. It could take a few weeks before you receive this letter, so it is important that you submit reports during the registration process.
- For help with reporting wages, please use this checklist.
- If you are a new Texas Employer, please visit New Texas Employer Information.
Once registration is complete, please consider the following resources for more help with doing business in Texas.
- The Texas Secretary of State’s office administers the state’s laws regarding business formations and organizations.
- The Texas Governor’s office - Small Business Liaison Department.