Texas employer tax information
About Texas employer tax information
With Square, you can run payroll, pay your taxes and stay ahead of the compliance to focus on running your business. This guide is intended for your state taxes only. It’s important to note that laws vary by jurisdiction, and this guide does not attempt to address all jurisdictions or federal taxes — for example, counties or cities often have requirements that differ from federal and state law.
Before you begin
To sign up with Square Payroll in Texas, you must provide your Texas Workplace Commission Tax Account Number (TWC Tax Account Number) and State Unemployment Insurance Rate (SUI Rate).
The Texas Workforce Commission typically requires employers to file and pay unemployment taxes starting in the quarter that wages are first paid. If you become liable for unemployment taxes and register an account in a later quarter, it may be necessary to file these taxes retroactively. Visit the Texas website or contact the TX Workforce Commission directly to determine your requirements and ensure any outstanding tax filings are completed promptly to avoid penalties.
Texas payroll tax details
Square Payroll processes the following per the frequency for the listed state agencies.
Texas Workforce Commission (TWC)
Employer’s Quarterly Report (C-3): processes quarterly
Unemployment Insurance Tax Payment: processes quarterly
New Hire Report: processes per new employee
Make Texas payroll tax payments
To make Texas Unemployment tax payments, you must be registered with the Texas Workforce Commission (TWC) and have a TWC Tax Account Number. If you do not have an account number, you can register for one on the TWC website.
To pay unemployment tax online, sign in to your TWC online account and submit a payment using the Automated Clearing House (ACH) debit method or using your credit card (additional fees apply). ACH debit payments can be scheduled in advance of the actual payment date. Credit card payments can be made using American Express, Discover, Mastercard or Visa. There is no charge for ACH debit payments.
Visit the TWC website for more information or call the TWC at 800-832-9394.
Make unemployment insurance tax filings in Texas
The Texas Workforce Commission typically requires employers to file and pay unemployment taxes starting in the quarter that wages are first paid. If you become liable for unemployment taxes and register an account in a later quarter, it may be necessary to file these taxes retroactively. Visit the Texas website or contact the TX Workforce Commission directly to determine your requirements and ensure any outstanding tax filings are completed promptly to avoid penalties.
Unemployment tax reports are due by the last day of the month following the end of the calendar quarter (for example, on April 30 for the first quarter).
To file online you must be registered with the Texas Workforce Commission (TWC) and have a TWC Tax Account Number. If you do not have an account number, you can register for one on the TWC Website. Then, sign in to your account and choose the correct quarter and year.
For more information, call the TWC at 800-832-9394.
Find your TWC tax account number
The best way to get a TWC Tax Account Number is to create an online account with the Texas Workplace Commission (TWC). Once you successfully enroll, you’ll receive your nine-digit TWC Tax Account Number.
Alternatively, or if you wish to speak with someone while signing up, you can contact the TWC at 512-463-2731 or tax.statussection@twc.state.tx.us.
If you are transitioning to Square Payroll from a different payroll provider (or have filed state payroll tax returns in the past), you can find your TWC Tax Account Number on any previously submitted quarterly tax filing (Form C-3). The TWC Tax Account Number is a nine-digit number, and the leading two digits start with either 00-21 or 99.
Contact the TWC either via phone at 800-832-9394 or 512-463-2699, or via email at tax.statussection@twc.state.tx.us or tax@twc.state.tx.us.
If you need to update the TWC Tax Account Number we have on file for you, you can do so from your Tax info in your Square Dashboard.
Find your Texas SUI rate
You must provide your SUI Rate to Square Payroll so we can accurately calculate this tax. To locate your SUI Rate, locate the yearly notice sent to you from the TWC that lists your SUI Rate for the upcoming year.
For assistance, contact the TWC either via phone at 512-305-8708 or via email at taxexperience.rating@twc.state.tx.us.
If your SUI Rate needs to be updated, contact Square Support.
For more information, visit the TWC’s website.