Skip to main content

Texas Finalizes 2021 Unemployment Tax Rates

By June 29, 2021January 17th, 2022COVID-19, Tax Implications

The Texas Workforce Commission has finally set employer’s tax rates for 2021 and the range of rates remains the same as 2020, 0.31% to 6.31%.

Despite having the same range of rates, 2021 tax rates are slightly less favorable due to an increase in several of the components used to calculate the final rate:

  • The Replenishment Ratio has increased from 1.32 to 1.36
  • The Interest Tax Rate has increased from 0.00% to 0.03%
  • The Unemployment Obligation Assessment Rate has increased from 0.00% to 0.03%
  • The Replenishment Tax Rate has increased from 0.18% to 0.21%

The taxable wage base remains at $9,000 for 2021 as originally reported.

The TWC has stated that all notices of 2021 rates will be mailed no later than July 2, 2021.  We will verify these tax rate calculations upon receipt and forward them to you as quickly as possible so that you can make any rate adjustments for your second quarter 2021 payment.

As always, we will continue to monitor this situation and provide updates as they become available.  If there are any questions please do not hesitate to contact us or visit our website for the latest news and updates.

Josh Kendall

Author Josh Kendall

More posts by Josh Kendall

Leave a Reply