Texas registration and tax info

Most companies in Texas must start paying unemployment insurance tax once they meet one of the following:

• Paid $1,500 in wages during a calendar quarter

• Had at least one Texas employee working for any part of the week, for 20 or more different weeks during a calendar year

You're required to register with the Texas Workforce Commission (TWC) within 10 days of becoming liable. Before registering, review the agency resource on who can or cannot register online for detailed guidance.

Your business type (general, nonprofit, and others) can impact when your company is responsible for paying this tax. We recommend contacting the agency to confirm when your company will be liable.

Run payroll in Gusto before you're required to pay unemployment tax

If you need to run payroll but do not yet meet the requirements, Gusto lets you enter the new employer rate for Texas temporarily. Update the rate once you get it.

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

Before you start, have these ready:

• 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

Register online through the TWC website. Registration takes about 20 minutes. 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 TWC at (800) 628-5115.

Once you register, you can file reports and pay taxes right away. We'll handle quarterly reports if wages are paid in Gusto.

Once you complete registration, take these steps:

• Give Gusto third-party access (TPA) so we can help manage your taxes with the agency.

• Enter your tax account information in Gusto once you add a valid Texas work address for one or more employees.

Next to TWC Tax Account Number, click Edit to enter your unemployment account number. The format is ##-######-#.

• The first two numbers are usually between 0 and 21. Nonprofits start with 99.

Where to find your TWC account number:

• Letters or notices from the TWC, including your Employer Liability Notice

• Your Unemployment Tax Services (UTS) account

• If you cannot find your account number, contact the TWC at (800) 628-5115 or [email protected].

Do not enter the following numbers as your TWC account number:

• Federal Employer Identification Number from the IRS

• Other states' unemployment tax numbers

• Texas Secretary of State ID or other state charter or filing numbers

• Comptroller of Public Account tax ID, like franchise tax or sales and use tax

• Your prior Professional Employer Organization's (PEO's) TWC account number

If you've used a PEO, you may need to reopen your TWC account or register for a new one depending on how long you were with the PEO:

• Less than three years with the PEO: Reopen the closed TWC account to get the account number.

• More than three years with the PEO, or never registered: Register for a new TWC UI tax account number.

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 Gusto account.

If you set up an account before meeting the initial tax requirements (found in the "State unemployment insurance tax (SUI) registration" section earlier in this article), the TWC may give you a "non-liable UI Tax Account Number." Do not enter this in Gusto. The TWC will send a notification telling you to register when you've paid enough wages. Enter the new account number you get when you register in Gusto.

Next to Unemployment Insurance Tax Rate, click Edit to enter your unemployment rate. Include all five component rates:

• General Tax Rate (GTR)

• Replenishment Tax Rate (RTR)

• Obligation Assessment Rate (OA)

• Deficit Tax Rate (DTR)

• Employment and Training Investment Assessment (ETIA)

Where to find your unemployment rate:

• Your Unemployment Tax Services (UTS) account: To view your tax rate, select the Account Info tab, then select Tax Rate Summary in the "Quick Links" menu. To get a copy of your tax rate notice, select the eCorres tab, then select View PDF in the "Action" column for the rate notice you want to view.

• Letters or notices from the TWC

• If you cannot find your rate, contact the TWC at (800) 628-5115 or [email protected].

If you do not have your rate yet, enter the new employer rate for Texas in Gusto temporarily. Update the rate once you get it.

To give Gusto access to your TWC account:

1. Sign in as the account administrator to your TWC Unemployment Tax Services account.

   • Only the primary account administrator on file with the TWC can complete these steps.

2. Go to the User Admin tab. You must be the account administrator to access this.

3. In the Quick Links menu, choose Applicant List.

4. In the Action column, click Review.

5. On the Review Applicant page, you'll see Gusto's info. Select Approve.

   • User ID: Gusto Inc.

   • Email: [email protected]

6. In the Tax Services Permissions section, check these boxes:

   • Manage Wage Reports

   • Make Payment

   • View Payment

7. Click Submit.

8. Sign in to Gusto and complete the to-do on your Home page to let us know you've done this.

Authorizing Gusto as your payroll representative allows us to handle your taxes directly with the TWC.

To authorize Gusto:

1. Sign in to your TWC Unemployment Tax Services account.

2. Go to the Account Info tab.

3. In the Quick Links menu, choose Third Party Authorization.

4. Review your account details and make changes if needed.

5. Read the Electronic Record and Signature Disclosure Agreement, then click Continue.

6. Use DocuSign to sign Form C-42. Fill out the Grantee section with:

   • Grantee TWC Account Number: Leave this blank.

   • Grantee Name: Gusto, Inc.

   • Street: 1201 16th St, Suite 350

   • City: Denver

   • State: Colorado

   • Zip: 80202

7. Click Grant Written Authorization, then click Finish. 

When we register your company for Texas payroll, we submit a Third-Party Administrator (TPA) authorization to the TWC electronically through the TWC's employer systems. This authorizes us to file and pay your Texas unemployment insurance (SUI) taxes on your behalf.

Processing typically takes 2–4 weeks after we submit your registration. Until TPA is active, the TWC may not show us as your authorized filer.

If the TWC does not show your TPA request

1. Sign in to the TWC Unemployment Tax Services portal and check your Power of Attorney / TPA status.

2. Allow 4 weeks from your Gusto registration date before escalating.

If it is still not reflected after 4 weeks, contact Gusto support from the ( ? ) in your account. We can resubmit or escalate it directly to the TWC. You can also call the TWC Employer Services line at (800) 628-5115 to confirm your TPA status.