There is no state personal income tax in Texas. Which means that there is no State Income Tax withholding.
The Texas State Agency charged with enforcing state wage and hour laws is:
The Texas Workforce Commission
101 east 15th street
Austin, Texas 78778-0001
512-837-9559
http://www.twc.state.tx.us/
Except for taxes and student loans, there are no liens in Texas. No creditor other than the IRS or one of the student loan collection agencies can take money out of your paycheck without your permission.
The agency that collects and pays unemployment benefits is the Texas Workforce Commission.
Its main office is in Austin, Texas. His direction is:
Texas Workforce Commission
101 East 15th Street
Austin, Texas 78778-0001
512-837-9559
http://www.twc.state.tx.us/
The unemployment rate varies based on your company’s experience, but the starting rate starts at 2.7% on the first $9,000.00 of wages paid to an employee in the state.
There is no requirement in Texas for a business to carry workers’ compensation insurance. Texas is the only state where it is not required.
Texas now allows mandatory Direct Deposit taxes. The employer simply cannot choose the financial institution to which the employee is entitled to choose any financial institution that accepts direct deposit. There should be no additional charges to the employee for direct deposit.
Another unique aspect of payroll in Texas is that there is no provision in state law for overtime. All overtime is governed solely by the FLSA, if applicable. Therefore, a purely intrastate employer in Texas does not legally have to pay the overtime premium.
The state minimum wage in Texas is $5.15 per hour. It used to be well below federal rates.
In Texas, you must pay at least twice a month, except FLSA-exempt employees can receive monthly payments.
Termination pay in Texas is six days for an involuntary termination and the next regular payday for a voluntary resignation.
Texas requires the following information on an employee’s pay stub:
- Name of the employee
- Pay rate
- Gross and net earnings
- Amount and purpose of deductions
- Hours worked or work done if piecework
Reversal laws in Texas require unclaimed wages to be paid to the state after one year and 180 days if they are less than $100.00. In addition, in Texas the employer is required to keep a record of wages abandoned and turned over to the state for a period of 10 years.
Wages owed to a deceased employee are not covered by any provision in Texas.
The state of Texas new hire reporting requirements are that every employer must report every new hire and rehire. The employer must report the elements required by the federal government of:
- Name of the employee
- employee address
- Employee Social Security Number
- Name of the employee
- Employee Address
- Employer Federal Employer Identification Number (EIN)
In addition, they can optionally inform
- Date of Birth
- Hiring date
- Payroll Address for Child Support Notice
This information must be reported within 20 days of hire or rehire.
Information can be submitted as W4 or equivalent by mail, fax or electronically.
There is currently no penalty for a late report.
You can contact the Texas New Hire Reporting Agency at 888-839-4473 or on the web at [http://www.newhire.org/tx] .
There is no provision in the payroll laws of the state of Texas that covers mandatory breaks or meal breaks.
Cafeteria Plan and 401(k) deferrals that are exempt from federal income tax are counted as taxable income in calculating unemployment insurance in Texas.
Texas requires magnetic media reporting of earnings and contributions for unemployment insurance purposes if the employer has at least 250 employees to report.
Texas has no state income taxes, so there is no need to prepare, distribute, or transmit state W2 forms.
Texas has the following provisions for child support deductions:
- When to start withholding? Immediately after receiving the order.
- When to send the payment? Within 7 days of payment day.
- When to send a termination notice? Within 7 days of termination.
- Maximum administrative fee? $2 per month.
- Retention limits? Federal Rules under CCPA.
The Texas agency charged with enforcing child support laws and orders is:
Child Support Division
Office of the Attorney General
300 West 15th Street
Austin, Texas 78701
512-460-6000
http://www.oag.state.tx.us/child/#services
States have different requirements for maintaining wage and hour records that vary from the two or three years required by the FLSA depending on the type of record. Texas does not have any provision in law regarding withholding