Please note: this article is about the Justworks Payroll product. Not sure which product you're using? Check out: How Do I Know Which Justworks Product I Have?
Paying employees in Texas
When hiring employees in new states, you need to register for relevant state tax accounts to facilitate their payment. In Texas, you must be registered with the Texas Workplace Commission (TWC) and you must provide your Texas Workplace Commission Tax Account Number (TWC Tax Account Number) and State Unemployment Insurance Rate (SUI Rate).
Justworks Payroll can also handle the registration process for you. We offer state tax registration services to assist with registering your business in new states. To request registration, please contact us at support@payroll.justworks.com.
Your Texas Accounts and Rate Info
Texas requires you to register online with the Texas Workplace Commission. You’ll want to enter your TWC Tax Account Number and SUI Rate into your Justworks Payroll account.
Find This Information
Locate your TWC Tax Account Number and SUI Rate:
- 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 in the following format: XX-XXXXXX-X, 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.
Entering State Tax Info in Justworks Payroll
Once you registered with the State and have a valid TX address added to your company’s offices, you can add your account info in Justworks Payroll by navigating to:
- Company > Settings in the left navigation bar
- Under ‘Company tax info’ click into “Texas” to edit the state tax information
Third-party admin access
As your payroll provider, Justworks Payroll will utilize the provided account information to manage and report your TX tax liabilities. Occasionally, the state may issue notices related to payroll taxes.
Justworks Payroll can examine these notices if granted Third-party admin access to your TX state tax account. During onboarding, we will request that you sign Form C-42, which authorizes us to handle and report your taxes to TX state. Additionally, you will be receiving an email to approve a TPA access request for your TX state tax account. Once you receive this email, log into your TX account and follow these steps:
- Select your employer account.
- Switch to the ‘User Admin’ tab.
- Click the ‘Applicant List’ quick link.
- Approve the TPA access request and assign the specific permissions.
- Be sure to assign the ‘Manage Wage Reports’ permission so that Justworks Payroll is able to file on your company’s behalf.
- You will also need to assign the ‘Make Payment’ permission so that Justworks Payroll can remit payments on your company’s behalf.
- The state will then process these updates and grant Justworks Payroll TPA access for the account.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.