As an employer in Texas, it is important to understand the process of payroll tax registration. Registering for payroll taxes ensures that you are compliant with state regulations and able to properly withhold and remit taxes on behalf of your employees.
How Texas Payroll Registration Works
There is one payroll tax setup task you may need to complete in Texas to get your new hire on payroll for the first time. You can follow the guide below to help you get registered directly with the Texas agencies or use Mosey to do it.
Use Mosey to register for payroll tax in Texas.
Avoid the manual work and headache of registering with state agencies yourself. Automate it with Mosey and stay compliant.
Texas Unemployment Insurance Setup for LLC, LLP, Corporation
If you have employees in Texas, you must register with the Texas Workforce Commission within 10 days of your first hire's start date. After registering, you will receive your Texas Workforce Commission Tax Account Number and Unemployment Insurance tax rate. Note: 501(c)(3) nonprofit organizations have the choice to either pay unemployment contributions on taxable wages each quarter or elect to reimburse the Texas Workforce Commission unemployment fund for benefits paid to terminated employees.
Register Online for an Employer Tax Account with the Texas Workforce Commission
Create a Texas Workforce Commission User ID and complete the online Unemployment Tax Registration to setup a new TWC Tax Account. You can also register by mail.
Make Payment Method Election (Nonprofits Only)
Nonprofit organizations may opt to elect the reimbursable payment method for unemployment by filing a Election to Pay Reimbursements (Form C-6A) with the Texas Workforce Commission within 45 days of receiving a liability notice letter.
Configure Payroll
Provide the account number and unemployment insurance tax rate (or reimbursable status) to your payroll provider so that they can manage your payments and filings.