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)
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]