New company registration in Texas

Texas tax agency

• Texas Workforce Commission - unemployment tax

Unemployment tax

New employers in Texas may not be eligible to receive an unemployment account number until they have paid $1500 in wages in a quarter. If you have not yet paid this amount, enter the new employer rate of 2.7% in your Gusto account and register as soon as you have met this threshold. You can still pay your employees in Gusto without entering your account number.

• Keep in mind: Gusto will not file or pay your Texas unemployment taxes until we have your account number.

Once you receive your account number, update your Gusto account.

1. Register online by visiting the TWC website.
2. You'll be asked a few simple questions about your company details. That includes company location, Federal EIN, Secretary of State ID, and important dates regarding your company's operations.
3. You should receive your TWC Tax Account Number instantly after registering online.
4. You will also receive your Effective UI Tax Rate. When entering this in your Gusto account, be sure to 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)

Click here to view state-by-state new employer rates and wage bases.

If you have questions please contact the agency directly at (512) 463-2222.

Texas Third Party Written Authorization Process

Assign Gusto access to validate your unemployment insurance rates and other information.

1. Sign in to the Unemployment Tax Services website.
2. Click the Account Info tab.
3. Select Third Party Authorization from the Quick Links menu.
4. Review all account and user information and update as needed using the relevant Quick Links on the Account Info tab:
   • Employer Name
   • FEIN
   • Business type
   • Mailing address
   • Phone number
5. Proceed to complete Form C-42 once all information is reviewed and up to date.
6. Review the Electronic Record and Signature Disclosure agreement.
7. Click Continue.
8. Use the DocuSign feature to sign the form. The Written Authorization must be signed by the:
   • Individual, if the employer is a sole proprietor
   • Owner or an officer of an organization or a partner of a partnership
   • Fiduciary or trustee for a trust or estate
9. Under the Grantee Section, please use the following information for Gusto:
   • Grantee’s TWC Account Number is: 140202401
   • Grantee’s Name is: ZenPayroll Inc dba Gusto
     • Do not use any special characters like commas or periods or you may receive an error.
   • Grantee’s address is: 1201 16th St, Suite 350, Denver, CO 80202
10. Click Grant Written Authorization.
    • Optional: You can print the completed form for your records, if desired.
11. Click Finish once complete.
    • A copy of the completed form will be sent to the email associated with your employer account.
    • A copy of the completed form will also be available for reference in the eCorrespondence tab in the agency’s website.
12. Once complete, please sign in to Gusto, click the Company Details tab, and under Texas Tax Setup, click Manage Taxes.
13. Update UI Registration section to indicate "Yes, I have authorized Gusto."