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“The Texas Workforce Commission (TWC) today 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.”

An announcement was received from TWC regarding Employers’ 2021 Unemployment Tax Rates. In efforts to regulate employers’ tax rates, TWC has suspended legislation so that it can assess new tax rates in response to the COVID-19 Pandemic. Governor Abbott suspended Section 204.048 of the Texas Labor Code, titled “Voluntary Contributions.”

CCC’s Vice President of Tax explains the announcement further,

 We were recently advised that the Texas Workforce Commission (TWC) made changes to its 2021 Unemployment Tax Rate Notice mailing. The changes made by TWC are due to the impact which the Covid-19 pandemic had on employers and the unemployment trust fund balance. Governor of Texas, Greg Abbott and the TWC decided to delay the mailing of Tax Rate Notices until late June 2021.  The reason for this is to allow Texas to consider legislation which would assist Texas employers related to this issue and give the Governor time to sign the legislation.  Furthermore, voluntary contributions will not be allowed this year.

As a result of these changes, the deadline for tax payment has been postponed for first and second quarters, 2021.  The filing deadline remains the same, but the payment of the tax deadline is delayed. (See Chart Below)

Please keep in mind, the reporting deadline has not changed but rather merely, the deadline for the tax payment has for the first and second quarters of 2021.

TX TWC Press Release: https://www.twc.texas.gov/news/twc-postpones-setting-2021-employer-tax-rates

Texas Labor Code Section 204.048: https://texas.public.law/statutes/tex._labor_code_section_204.048

We will continue to monitor this situation closely and advise you of any updates.  If you have questions regarding this, please reach out to your CCC Tax Analyst.


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