TWC Postpones Setting 2021 Employer Tax Rates

March 2, 2021 - The Texas Workforce Commission (TWC) delayed the setting of the employer’s unemployment insurance tax rates to allow for more time for ongoing legislative efforts and the continuing economic recovery to play out. This is part of our continuing efforts to pursue all options to keep the 2021 tax rates as low as possible for Texas employers. Last week, Governor Greg Abbott suspended a section of the Texas Labor Code which paved the way for the TWC decision. Governor Abbott’s suspension allows for postponement of the setting of tax rates until July 2021.

Governor Abbott suspended Section 204.048 of the Texas Labor Code, which set deadlines for a small subset of employers who make voluntary contributions into the UI tax system. The Commissioners in turn aligned TWC Policy with that decision.

Employer-paid UI taxes replenish the Texas Unemployment Compensation Trust Fund, which provides temporary income for Texas workers who lose their jobs through no fault of their own. In normal years, TWC calculates experience-rated employers’ tax rates as of October 1 to be effective for the following calendar year, and mails notices of the rates to employers.

It is vital that we take the proper time to get this right for our Texas employers. Thank you all for your patience and remember my office is here for you if you have any questions. 

For the full press release, go to: https://twc.texas.gov/news/twc-postpones-setting-2021-employer-tax-rates