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Texas Registration and Tax Information

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  • Updated

Texas Workforce Commission (TWC) – unemployment tax

    • Texas does not have a state income tax.

Most companies in Texas must start paying unemployment insurance tax once they have:

  • Paid $1500 in wages during a calendar quarter or;
  • Had at least one Texas-employee working for any part of the week, for 20 or more different weeks during a calendar year.

Your business type (general, non-profit, etc) can impact when the company is responsible for paying this tax. The recommendation is to contact the agency to confirm when the company will be liable.

Register for unemployment tax with the Texas Workforce Commission (TWC)

Before registering, ensure you have:

  • Federal Employer Identification Number (FEIN)
  • ID from the Secretary of State
  • Business contact’s email
  • Mailing address for the business (in the US)
  • Trade name and addresses for all Texas business locations
  • Owners', partners', or officers’ social security numbers and addresses
    • If the business was bought from another owner, you'll need their name and address.
  • Payroll info, including when employees were first hired and how much was paid quarterly (for all locations)
  • Description of the business’s activities or products

When ready to register with the above, register online through the TWC website. You’ll get a TWC tax account number instantly if you need to pay taxes, and a letter called "Employer Liability Notice" within two weeks. If you need help registering, call the agency at (800) 628-5115.

Once registered, reports and taxes can be filed and paid right away. Lattice will handle quarterly reports if wages are paid in Lattice.

Note: If you owe taxes from before using Lattice, file and pay those taxes during registration.

Account number issues and next steps

  • If you were given an “errored” or duplicate UI Tax Account Number, the TWC will send a letter with the correct account number. Use this to update your Lattice account.

  • If you set up an account before meeting the initial tax requirements (found at the top of this section), the TWC may give you a "non-liable UI Tax Account Number". Do not enter this in Lattice. The TWC will send a notification telling you to register when you've paid enough wages.

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