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[US] Texas state tax registration guide

United States: Taxes

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This guide is an overview of registering your business for Texas state payroll taxes. For more support, contact the state agency directly.

This guide includes key payroll tax requirements, links to state agency portals, and instructions for granting third-party access to Wave's partner. These steps are required to complete your tax profile in Wave so we can manage your payroll tax payments and filings on your behalf.

Tax requirements

Texas does not impose a state income tax, so you don't need to register for state withholding tax. 

Texas State Unemployment Tax (UI)

The Texas Workforce Commission administers the state’s unemployment insurance tax. Employers must register with TWC within 10 days of becoming liable for unemployment tax (i.e., after paying wages for employment in Texas).

Third-Party Administrator (TPA) access

In Texas, you do not need TPA access for original filings. However, if a tax return amendment becomes necessary, TPA access will be required at that point. If needed, Wave will contact you to grant access.

To grant TPA access:

  1. Log in to your TWC online services account.
  1. Click User Admin to the right of the My Home tab.
  1. Select Applicant List under the Quick Links table. You should see Kohl, James; Check Technologies.
  1. Under the Action header, click Review. If you don’t see Kohl, James, it is because Check Technologies hasn’t requested access due to online account limitations. Please verify that you have set up an administrator for your TWC account.
  1. On the Review Applicant page, click Approve.
  1. On the User Permissions page, click the checkbox for the following permissions:
    • Manage Wage Reports
    • Make Payment
    • View Payment
  1. Click Submit.

Employers who want to authorize a third party to represent them must grant written authorization to that third party electronically through the TWC Unemployment Tax Services (UTS) portal. 

To submit the C-42 (Written Authorization):

  1. Log on with your User ID at the TWC UI tax employer portal.
  2. Select Account Info.
  3. Select Third Party Authorizations.
  4. Select Complete C-42 Authorization.
  5. Complete the DocuSign process.

TWC does not accept Written Authorization to Represent Employing Unit (Form C-42) in paper form unless the only corporate officer is not located in the United States, or a hardship waiver is on file. If needed, go to the Employer Contact Request page to request a paper document.

Complete your payroll  tax profile

After completing the registration steps, complete your payroll tax profile. Add your Texas Workforce Commission Account Number to your account to ensure accurate and timely filing.

Additional Support 

For help with your tax account, registration, or technical errors, contact the state agency directly:

  • Call the Texas Workforce Commission at (512) 463-2699
  • Email: tax@twc.texas.gov