TWC pursuing strategies to limit COVID's impact on 2021 taxes, keep rates as low as possible
AUSTIN – The Texas Workforce Commission continues to explore options to keep the 2021 tax rates as low as possible for Texas employers as Texas and the entire nation continue to deal with the economic disruptions of the COVID-19 pandemic. TWC expects the 2021 tax rate notices will be mailed to Texas employers in February 2021. TWC is closely monitoring discussions by Congress regarding potential relief legislation to help limit the impact of the COVID-19 pandemic on 2021 tax rates.
In previous years, employer tax rates were released in December before the next calendar year. Over the next two months, TWC will pursue all possible avenues to keep tax rates as low as possible and announce the year’s tax rate in February 2021. At that time, employers will also be able to view their 2021 tax rate using the TWC Unemployment Tax Services system. A February 2021 notification will give employers sufficient time to update their programs, notify their service agents and submit their first 2021 tax report in April 2021.
Employer-paid UI taxes replenish the Texas Unemployment Compensation Trust Fund, which provides temporary income for Texas workers who lose their jobs through no fault of their own. TWC calculates experience-rated employers’ tax rates as of Oct. 1 to be effective for the following calendar year, and mails notices of the rates to employers. Read more about unemployment tax rates on the TWC website.
Fraud, Waste and Abuse
In addition to exploring options to keep the 2021 tax rates as low as possible for Texas employers, TWC is taking an aggressive approach to eliminate fraud, waste, and abuse of all kinds in the programs the agency administers. By responding promptly to notices when a former employee applies for unemployment benefits and responding to earnings information requests on claimants, you can help the public avoid overpayments and fraud which costs all employers.
Read more: https://www.corsicanadailysun.com/covid-19/twc-pursuing-strategies-to-limit-covid-s-impact-on-2021-taxes-keep-rates-as-low/article_f37edca0-34e9-11eb-a9d4-ffb999f0a6b5.html
