Why is this important?
The following information requests and registration instructions must be completed before you can use OnPay to run payroll. To maintain compliance with state payroll tax regulations, you will need to provide:
- Your state Employer Identification Number and state tax IDs - You must be registered with all state and local agencies listed in this article
- Tax rates - State and local tax offices determine these rates based on the type, age, and size of your business
- TPA and power of attorney - Most tax offices require this before we can submit quarterly wage reports and deposits on your behalf
This information must be provided and maintained by you in order for OnPay to accurately file and deposit tax payments for your company. OnPay is not responsible for any penalties or interest that incur due to missing or incorrect company tax information.
Note: Each state has its own requirements, so if you pay employees in more than one state, you’ll find separate tax guides for each state.
Let Middesk handle your state tax registrations (and more)
If you'd like help registering your business with state agencies, our partner Middesk makes it simple and easy to hire employees and stay compliant in every state.
- Register with every state agency to get the tax IDs you need within minutes
- Stay compliant as you grow by managing agency mail and notices in your dashboard
- Manage all your government accounts in one place using Middesk's intuitive platform
- Foreign Qualify with the Secretary of State to create payroll tax accounts
Learn more about Middesk→
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 |
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
Updated January 1, 2025
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 2023, Texas unemployment insurance rates range from 0.25% to 6.25% 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.
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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