Texas Payroll Tax and Registration Guide

To ensure compliance with Texas payroll tax regulations, employers must provide key information before Beyond can begin processing payroll:

  • Texas Unemployment Account Number and state tax IDs
  • Unemployment Insurance (SUI) Tax Rate, issued by the Texas Workforce Commission (TWC)
  • TPA access and power of attorney, as required to allow Beyond to file quarterly reports and make tax payments on your behalf

 

Accurate and up-to-date information allows Beyond to file and remit payroll taxes on time. If this information is incomplete or incorrect, your business may incur penalties or interest charges. Beyond is not responsible for compliance issues resulting from inaccurate or missing tax data.

Simplify State Tax Registrations with Middesk

Need help getting set up with state agencies? Beyond partners with Middesk to make it easier to manage your business's state registrations and stay compliant, no matter where your employees are located.

With Middesk, you can:
• Register for required tax IDs and agency accounts quickly and securely
• Manage all your state accounts through a single, user-friendly platform
• Track compliance and government correspondence directly from your dashboard
• Complete “foreign qualification” steps with the Secretary of State for multi-state compliance

Understand what you need to provide and what tax-related tasks Beyond takes care of for Texas employers

What Beyond Needs from You

All Texas Employers

Task

Purpose

Register with the Texas Workforce Commission (TWC)

Required for paying state unemployment insurance

Provide Beyond with your Texas Unemployment Account Number

9-digit number assigned by TWC

Provide Beyond with your Texas Unemployment (SUI) Tax Rate

Annual rate assigned by the TWC used to calculate UI tax liability

What Beyond handles for Texas employers

Withholding Tax

  • Texas has no state or local income tax withholding.

Unemployment Insurance Tax

  • Form C-3

    Employer’s Quarterly Report
    • Filed quarterly

Additional Reports

  • New Hire Report

    Texas Report of New Hires
    • Submitted as required

Where to Find Your Tax Information

Existing Employers in Texas:

If you’ve previously run payroll in Texas, you likely already have the required information:

  • Your Texas Unemployment Account Number (format: 12-345678-9) appears on the Tax Rate Notice from the Texas Workforce Commission or on your Quarterly Contribution and Wage Report
  • Your SUI Tax Rate is listed in Box 2 of the Tax Rate Notice
  • Texas UI tax rates range from 0.25% to 6.25% and apply to the first $9,000 of wages per employee per year
  • If you cannot locate this information, contact the TWC for assistance

 

New Employers in Texas:

If you’re new to employing in Texas, you must register with the Texas Workforce Commission (TWC):

  • Visit the TWC website to complete your business registration online
  • The registration process typically takes about 20 minutes
  • Once complete, you’ll receive your Unemployment Account Number and UI tax rate instantly
  • New employers generally use the greater of:
    • The average rate for all employers in your NAICS code, or
    • 2.7%, applied to the first $9,000 of wages per employee annually

Have employees working in other states?

If your business operates across state lines or has remote team members based in different states, it’s essential to make sure the proper state paperwork is completed for each location. Beyond takes care of filing the necessary forms in every state where your employees are on payroll, helping you stay compliant no matter where your team works.