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Texas Delays 2021 Unemployment Tax Rate Calculations

By March 1, 2021January 17th, 2022COVID-19, Tax Implications

As the Texas Workforce Commission, Texas Legislature, and Governor of Texas explore opportunities to keep 2021 unemployment tax rates as low as possible for Texas employers, the issuance of the 2021 unemployment tax rate notices has been delayed to July.

Tax obligations are not to be suspended and employers will be notified of unemployment tax payment options in effect until rates for 2021 are finalized in the next few weeks. Below is the reporting and payment schedule set for 2021:




One other important change for 2021 is that voluntary contributions will not be in effect for 2021. Governor Abbott has 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.

Texas generally calculates an employer’s unemployment tax rate in effect for a calendar year based on benefit claims and payroll data as of September 30th of the preceding year.

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Josh Kendall

Author Josh Kendall

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