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Texas Payroll Guide

State tax information for employers running payroll in Texas, including agency contact details, supported unemployment insurance filings, and account setup requirements. Texas has no state income tax withholding.

Written by Kate Biel

πŸ“ Overview

This guide covers state tax information for employers running payroll in Texas. Texas has no state income tax, so only Unemployment Insurance applies at the state level. Use the section below to find agency contact information, supported tax filings, and the account details required for tax setup.


βš™οΈ Texas Tax Information

Click the arrow to view Unemployment Insurance information

Agency Information

Website: Texas Workforce Commission
Phone: (800) 628-5115

New employers: Register here
Registered employers: Access account here

Supported Tax Filings

  • Employer's Quarterly Report (Form C-3)

Required for Tax Setup

  1. Unemployment Account Number (9 digits, e.g., 12-345678-9)

  2. Effective Tax Rate (X.XX%)

Third Party Administrator (TPA) Access

⚠️ Only the primary account administrator on file with the TWC can complete these steps. If access is denied or the steps below are unavailable, confirm the correct administrator is logged in before trying again.

DaySmart Payroll needs granted TPA access to pay and file this tax. Follow the instructions below to ensure there are no delays in processing:

  1. Select the User Admin tab

  2. In the Quick Links menu, select Applicant List

  3. In the Action column, select Review

  4. On the Review Applicant page, confirm the following information is listed, then select Approve:

    1. User ID: SalsaSoftware

    2. Email: taxops@salsa.dev

  5. In the Tax Services Permissions section, select the following boxes:

    1. Manage Wage Reports

    2. Make Payment

    3. View Payment

  6. Select Submit


❓ Frequently Asked Questions (FAQs)

Find answers to common questions or additional details that may not be covered in the main instructions.

Click the arrow to view frequently asked questions

Does Texas have a state income tax withholding requirement?

Click the arrow to see the answer

No. Texas does not have a state income tax, so there is no withholding requirement for employers. Only Unemployment Insurance applies at the state level.

Where do I find my Texas UI account number and effective tax rate?

Click the arrow to see the answer

Your Texas UI account number and effective tax rate are assigned by the Texas Workforce Commission when you register. Your rate is included in an annual rate notice. If you need to look these up, log into TWC Unemployment Tax Services or contact the agency at (800) 628-5115.

Who can complete the Texas TPA setup?

Click the arrow to see the answer

Only the primary account administrator on file with the Texas Workforce Commission can approve TPA access. If you are unsure who the primary administrator is, or if access is denied when following the steps, contact DaySmart Support for assistance.

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