Texas Compliance and Regulatory Resources

Over 50% of business owners find regulatory compliance extremely challenging.¹ Paychex helps Texas businesses with resources like our enhanced HR library and automated compliance notifications. Learn more about requirements like minimum wage, workers’ compensation, and more.

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State Tax Rates and Limits

State Unemployment Taxable Wage Base Limit
$9,000

State Unemployment Rate Range for Employers
0.32% to 6.32%

State Unemployment New Employer Rate
2.7% (Rates include surcharges)

State Hourly Minimum Wage
$7.25

State Minimum Wage for Tipped Employees
$2.13
TX wage and hour information

Paid Family Leave

Employers can purchase private insurance plans to offer employees a paid family leave benefit.

Coverage can be a separate PFL policy, included in a group disability policy, or added as a PFL rider to a disability insurance policy.
Texas Workforce Commission

PFL benefits might differ dependent on each carrier’s plan offerings. Benefits are generally variable based on the qualifying event.

State Tax ID Registration

State Unemployment Insurance (SUI) Registration

Employers are required to have an active Texas state unemployment insurance (SUI) account number to file electronically with the Texas Department of Workforce Commission (TWC).

Paychex must be authorized as the Third-Party Administrator (TPA) on the account for any adjustments needed to your Wage Detail reporting, filing quarterly, and payments for an active account.

Register a new business

Go to the TWC Online Unemployment Tax Registration.
Follow the screens to compete the registration process.
Once registration is complete, you will receive your Confirmation page containing your SUI account number and Tax rate. Print and save this page.
- Tax ID Number Format: XX-XXXXXX-X (9-digit number)
Enter your new account number in your Paychex Flex^® account to ensure that your Paychex account is updated and email your registration confirmation document to your Paychex Service Professional.
- Refer to the Updating Tax Agency IDs in Paychex Flex instructions to enter the information in the application.
Approve Paychex Third-Party Administrator request.
- See Designating Paychex as Your Third-Party Administrator (TPA)

Designating Paychex as your Third-Party Administrator (TPA)

Important: This section only needs to be completed if Paychex needs to
file amended returns or contact the agency on your behalf for TX SUI.

Follow the instructions below for approving the TPA request:

Go to the Texas Unemployment Tax Services for and log in.
Select the User Admin tab.
Select the Applicant List under the Quick Links on the left side.
You will then see the Paychex User ID: paychex07.
Click Review under Action and Approve the request.
Check the permission boxes for the following options.
- Manage Wage Reports
- Make Payments
- View Payments
Click Submit

Additional resources

TWC contact information

Workplace Safety

OSHA
Texas is under federal OSHA jurisdiction that covers most private-sector workers within the state. State and local government workers are not covered by federal OSHA.

Workers' Compensation

Coverage is optional for all employers
Exception: Private employers who contract with government entities. Also, some contractors may require their subcontractors and independent contractors to obtain a policy