Updated June 1, 2022
This article will cover:
- What information OnPay needs from you
- What state and local taxes and filings OnPay handles for Texas employers
- Where you can find the tax account numbers needed
- How to authorize OnPay as a Third Party Administrator in Texas
- Paying employees in other states?
Why is this important?
For employers who pay employees in Texas, use this guide to learn what’s required to start running payroll while keeping compliant with state payroll tax regulations. Without this information, OnPay will be unable to file or deposit any Texas tax payments for your company. Any penalties and interest that accrue from missed tax payments will be your company’s responsibility.
What information OnPay needs from you
Use this checklist to make sure you’ve covered everything required to set up your account as a Texas employer so OnPay can accurately file and pay taxes on your behalf:
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✔ |
To do: |
What is this? |
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Make sure your business is registered with the Texas Workforce Commission |
Registers your business to pay required unemployment insurance in Texas |
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Provide OnPay with your Texas Unemployment ID |
A 9-digit number unique to your account with the Texas Workforce Commission |
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Provide OnPay with your Texas Unemployment (SUI) Rate |
A tax rate you receive annually from the Texas Workforce Commission |
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Authorize OnPay as a Third Party Administrator |
For OnPay to be able to file and pay taxes on behalf of your business, you will need to submit a Power of Attorney form. |
What state and local taxes and filings OnPay handles for Texas employers
OnPay handles the filing of all state and local taxes for businesses in Texas, including:
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Type of Tax |
Form ID |
Form Name |
Frequency |
|
Unemployment |
Form C-3 (Filing) |
Employer’s Quarterly Report |
Quarterly |
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Other |
New Hire Report (Filing) |
Texas Report of New Hires |
As required |
Where you can find the tax account numbers needed
If you are an existing employer who has previously run payroll in Texas, you likely already have the IDs and online accounts needed for OnPay to process your tax filings.
If you are a new employer in Texas, you will need to register your business with the Texas Comptroller and Texas Department of Employment Services. This must be completed for OnPay to be able to file and pay your Texas taxes.
Unemployment Account Number and Tax Rate
Existing Texas Employer:
- You can find your 9-digit Unemployment Account Number (Ex:12-345678-9) on the annual Tax Rate Notice received from the Texas Workforce Commission. It can also be found on your Quarterly Contribution and Wage Report.
- Your Unemployment Tax Rate can also be found on the annual Tax Rate Notice in box 2. For 2022, Texas unemployment insurance rates range from 0.31% to 6.31% with a taxable wage base of up to $9,000 per employee per year.
New Texas Employer: Register with the Texas Workforce Commission
- Go to the TWC website to register your business.
- You'll receive your account number and tax rate instantly once you have completed the online registration. The process takes about 20 minutes.
- New employers should use the greater of the average rate for all employers in the NAICS code or use 2.7% with a taxable wage base of up to $9,000 per employee per year.
How to authorize OnPay as a Third Party Administrator in Texas
OnPay works with government entities on your behalf, reporting new hires to state labor departments, calculating tax rates, and filing financial reports. To do this effectively, you will need to:
- Approve OnPay’s third-party access on the TWC QuickFile website.
- Email us at hello@onpay.com stating that you're ready for us to initiate the TPA access request with the Texas Workforce Commission
- We'll submit the TPA request to the state of Texas
- Log into your TWC QuickFile account and approve our request for TPA access
- Grant OnPay Power of Attorney by following these steps.
Paying employees in other states?
If you operate in multiple states or just have employees working from home across a state line, it's important to file the correct state forms for those workers. See what forms we file in the states where you pay employees.
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