Your State’s Unemployment Tax Laws: Texas

We at Unemployment Solutions for You proudly offer our unemployment claims management services across the United States. We are a leader in our industry not only because we offer an outstanding product, but also because we have a deep knowledge-base in the many differing unemployment laws across the 50 states. Part of our mission is to also educate you about how these laws may differ from state to state because those differences can affect you directly. So, join us on our continuing series, in which we explore the differences in unemployment eligibility, tax rate ranges, base periods, and much more in each state. This month, in Your State’s Unemployment Tax Laws, we’ll be looking at Texas, the Lone Star State. In Texas, unemployment claimants can be eligible for unemployment benefits if they are either unemployed or working reduced hours through no fault of their own. Examples of this include layoff, reduction of hours or wages, being fired (unrelated to misconduct), or quitting with good cause. In the event that one of your employees has been awarded unemployment benefits, they are calculated based on the taxable wages reported during the first four of the last five completed calendar quarters before the effective date of the claim. The effective date is considered the Sunday of the week in which the person applied for unemployment. Of course, the question becomes: how does this affect you and your business? As we know, the UI tax is the only tax that you have active control over. Your actions and decisions with regard to your employees’ employment status can affect the severity of your tax...