Overview: When hiring employees in Texas, you must register for State Unemployment Insurance (UI) Tax through the Texas Workforce Commission (TWC). Texas does not impose a state income tax, so UI registration is the only state-level payroll tax obligation for employers.
Important! This guide does not constitute legal or tax advice. You can consult a CPA or attorney for official guidance.
Taxes You Must Register For:
Texas State Unemployment Tax (UI)
The Texas Workforce Commission (TWC) administers the state’s unemployment insurance tax. Employers must register with the TWC within 10 days of becoming liable for unemployment tax (i.e., after paying wages for employment in Texas).
Registration Steps
1. Register for a TWC Account Number
Go to the TWC Unemployment Tax Registration webpage
Click "Logon to register for a new unemployment tax account"
Sign in using your existing TWC User ID, or create a new User ID
Under Quick Links, select "Sign Up for User ID"
Answer a series of questions related to business ownership and locations
Upon completing registration, liable employers will receive a TWC Tax Account Number instantly
Next Steps
Update your Buddy Punch account with your Texas Workforce Commission Account Number
Third-Party Administrator (TPA) Access
TPA access is not necessary to complete original filings in Texas. However, if a tax return amendment becomes necessary, TPA access will be required at that point. The employer will be contacted when needed.
To grant TPA access:
Sign in to your TWC Account
Click the Account Info tab
Under Quick Links, select Third Party Authorization
Need Help?
Call the Texas Workforce Commission at (512) 463-2699
Email: [email protected]