Texas Workforce Commission Adopts No New Employer Tax Rate Hikes for 2022 | texasinsider
Sustained rates will continue to protect the solvency of trust funds without increasing the tax burden on Texas employers
Texas Insider Report: AUSTIN, Texas – On November 23, 2021, the Texas Workforce Commission (TWC) set Unemployment Insurance (UI) tax rates for 2022 at a stable level to avoid overburdening Texas businesses with a significant tax increase. resulting from pandemic-related closures beyond their control. This action is the result of the Statutory Authority of the Commission and was supported by funding from Senate Bill 8 (SB 8), passed in the 3rd Special Session of the 87th Texas Legislature and enacted by the Governor Abbott.
Employer-paid unemployment insurance taxes go to the Texas Unemployment Compensation Trust Fund, which provides temporary income to workers who lose their jobs through no fault of their own. Each employer’s unemployment insurance tax rate is unique, linked to unemployment benefits paid to former employees. In the absence of SB 8 and the Commission’s action, most Texas employers would have seen their tax liability increase significantly for 2022.
âSetting 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,â the president said. TWC, Bryan Daniel. âJob growth is a key element of our economic success.
The Commission set the state unemployment insurance replenishment tax rate at 0.20% and the deficit tax rate at 0.0%. The bond valuation was set at 0.01% to ensure that any federal interest owed on Title XII loans was covered.
“This decision to keep taxes low is great news for our Texas workforce,” said TWC commissioner representing labor Julian Alvarez. “Lowering unemployment insurance tax rates encourage hiring and help continue to expand career opportunities for Texans, while providing unemployment compensation to those who qualify.”
By setting this tax rate, TWC aims to support the ability of employers to continue to grow their businesses and the Texas economy, while ensuring the functioning of trust funds.
“This decision gives stability to our unemployment insurance tax structure and will ultimately benefit all employers in Texas,” TWC Employer Commissioner Aaron Demerson said. “In addition, the set tax rates give Texas employers the capacity they need to continue to hire, grow and grow our Texas economy.”
The Texas Workforce Commission is a state agency dedicated to helping Texas employers, workers, and communities prosper economically. For more details on TWC and the services it offers in coordination with its network of local workforce development councils, call 512-463-8942 or visit www.texasworkforce.org. To receive notifications about TWC programs and services, subscribe to our email updates.