Texas Workforce Commission – 2021 Unemployment Tax Rates

Dec 8, 2020

The Texas Workforce Commission announced this week that 2021 unemployment tax rates will not be released until some time in February.  Here is a copy of their press release:

The Texas Workforce Commission (TWC) is working diligently to keep the 2021 tax rates as low as possible for Texas employers. TWC is closely monitoring discussions by Congress regarding potential relief legislation to help reduce the impact of the COVID-19 pandemic on 2021 tax rates. TWC is exploring all avenues of tax rate reduction for the 2021 tax rates and will mail out the 2021 tax rate notices in February 2021.

In previous years, employer tax rates were released in December before the next calendar year. Over the next two months, TWC will pursue all possible avenues to keep tax rates as low as possible and announce the year’s tax rate in February 2021. At that time, employers will also be able to view their  2021  tax rate using the TWC Unemployment Tax Services system. A February 2021 notification will give employers sufficient time to update their programs, notify their service agents and submit their first 2021 tax report in April 2021.

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. 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.

In addition to exploring options to keep the 2021 tax rates as low as possible for Texas employers, TWC is taking an aggressive approach to eliminate fraud, waste, and abuse of all kinds in the programs the agency administers. By responding promptly to notices when a former employee applies for unemployment benefits and responding to earnings information requests on claimants, you can help us avoid overpayments and fraud which costs all employers.

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