| There is no personal state income tax in Texas. | | | | Escheat laws in Texas require that unclaimed |
| Which means no withholding of State Income | | | | wages be paid over to the state after one year |
| Taxes. | | | | and 180 days if less than $100.00. The employer |
| Not all states allow salary reductions made under | | | | is further required in Texas to keep a record of |
| Section 125 cafeteria plans or 401(k) to be | | | | the wages abandoned and turned over to the |
| treated in the same manner as the IRS code | | | | state for a period of 10 years. |
| allows. In Texas cafeteria plans are taxable for | | | | Wages due a deceased employee are not |
| unemployment insurance purposes. 401(k) plan | | | | covered by any provision in Texas. |
| deferrals are taxable unemployment purposes. | | | | Texas State new hire reporting requirements are |
| The Texas State Agency charged with enforcing | | | | that every employer must report every new hire |
| the state wage and hour laws is: | | | | and rehire. The employer must report the |
| The Texas Workforce Commission | | | | federally required elements of: |
| 101 East 15th St. | | | | Employee's name |
| Austin, Texas 78778-0001 | | | | Employee's address |
| 512-837-9559 | | | | Employee's social security number |
| You must file your Texas state W-2s by | | | | Employer's name |
| magnetic media if you are have at least 250 | | | | Employers address |
| employees and are required to file your federal | | | | Employer's Federal Employer Identification Number |
| W-2s by magnetic media. | | | | (EIN) |
| Except for taxes and student loans there are no | | | | Plus they can optionally report |
| garnishments in Texas. No creditor other than the | | | | Date of Birth |
| IRS or one of the student loan collection agencies | | | | Date of Hire |
| can take money out of your paycheck without | | | | Payroll address for Child Support Notice |
| your permission. | | | | This information must be reported within 20 days |
| The agency that collects and pays unemployment | | | | of the hiring or rehiring. |
| benefits is the Texas Workforce Commission. | | | | The information can be sent as a W4 or |
| Its main office is in Austin, Texas. Their address | | | | equivalent by mail, fax or electronically. |
| is: | | | | There is a $25.00 penalty for a late report and |
| Texas Workforce Commission | | | | $500 for conspiracy in Texas. |
| 101 East 15th Street | | | | The Texas new hire-reporting agency can be |
| Austin, Texas 78778-0001 | | | | reached at 888-839-4473 or on the web at |
| 512-837-9559 | | | | There is no provision in the Texas State Payroll |
| The unemployment rate varies based on your | | | | laws covering mandatory rest or meal breaks. |
| company's experience but the initial rate starts at | | | | Cafeteria Plan and 401(k) deferrals that are |
| 2.7% on the first 9000.00 of wages paid to an | | | | exempt from federal income tax are counted as |
| employee in the state. | | | | taxable income for unemployment insurance |
| There is no requirement in Texas for a company | | | | calculation in Texas. |
| to carry Workers Compensation Insurance. Texas | | | | Texas requires magnetic media reporting of |
| is the only state where it is not required. | | | | earnings and contributions for unemployment |
| Texas now allows mandatory imposition of Direct | | | | insurance purposes if the employer has at least |
| Deposit. The employer just cannot choose the | | | | 250 employees to report. |
| financial institution the employee has the right to | | | | Texas has no State Income tax so no State |
| pick any financial institution that accepts direct | | | | W2's have to be prepared, distributed or |
| deposits. There must be no additional fees to the | | | | transmitted to the state |
| employee for direct deposit. | | | | Texas has the following provisions for child |
| Another unique aspect of Payroll in Texas is there | | | | support deductions: |
| is no provision in the State law for overtime. All | | | | When to start Withholding? Immediately after |
| overtime is governed only by FLSA if appropriate. | | | | receipt of order. |
| So a purely intrastate employer in Texas does | | | | When to send Payment? Payday. |
| not have to legally pay overtime premium. | | | | When to send Termination Notice? Within 7 days |
| The state minimum wage in Texas is $5.15 per | | | | of termination. |
| hour. It used to be well under federal rates. | | | | Maximum Administrative Fee? $10 per month. |
| In Texas you must pay at least semi-monthly | | | | Withholding Limits? 50% of disposable earnings. |
| except that FLSA-exempt employee can be paid | | | | The Texas agency charged with enforcing Child |
| on a monthly basis. | | | | Support Orders and laws is: |
| Payment on termination in Texas is six days for | | | | Child Support Division |
| an involuntary termination and the next regular | | | | Office of the Attorney General |
| payday for a voluntary resignation | | | | 300 W. 15th Street |
| Texas requires the following information on an | | | | Austin, TX 78701 |
| employee's paystub: | | | | 512-460-6000 |
| Employee's Name | | | | States have different requirements for |
| Pay rate | | | | maintaining wage and hour records that vary |
| Gross and net earnings | | | | from the two or three years FLSA requires |
| Amount and purpose of deductions | | | | depending on the type of record. |
| Hours worked or work done if piece work | | | | |