No increase in employer tax rates in 2022 – Muleshoe Journal
TWC: No increase in employer tax rates in 2022
Nathan Giese, Journal of the Muleshoe December 10, 2021
The Texas Workforce Commission (TWC) has set Unemployment Insurance (UI) tax rates for 2022 to reflect the current rate.
The lack of an increase in the tax rate is a result of the passage of Senate Bill 8, which was passed during the 3e Extraordinary session of 87e Texas Legislature and enacted by Governor Greg Abbott. The TWC said in a press release that without SB8, most Texas employers would have seen their tax obligations increase significantly for 2022.
“Setting the 2022 Unemployment Insurance tax rate without an increase from last year helps Texas employers better focus their resources on innovations that create more jobs,” the president said. TWC, Bryan Daniel, in release. “Job growth is a key element of our economic success.
The state unemployment insurance replenishment tax rate is set at 20% and the deficit tax rate is 0%. The bond valuation was set at 0.01% to ensure that any federal interest owed on Title XII loans was covered.
Unemployment insurance taxes paid by employers replenish the Texas Unemployment Compensation Trust Fund, which provides income to workers who have lost their jobs through no fault of their own.
TWC’s goal is to support the ability of employers to continue growing the state’s businesses and economy while ensuring the functioning of trust funds.