How to Get a TWC Tax Account Number
Learn how Texas employers can efficiently obtain their TWC Tax Account Number for crucial state unemployment insurance compliance.
A Texas Workforce Commission (TWC) Tax Account Number is a unique identifier assigned to employers in Texas. This number is used specifically for reporting and paying state unemployment insurance (UI) taxes. The TWC oversees the collection of these taxes, which fund unemployment benefits for eligible workers.
Who Needs a TWC Tax Account Number
Generally, any business or organization that pays wages to employees in Texas must obtain a TWC Tax Account Number. Employers become liable for unemployment tax if they pay $1,500 or more in total gross wages during any calendar quarter. Another criterion for liability is employing at least one individual for some part of a day in 20 different weeks within a calendar year, regardless of the wages paid.
This requirement applies to most employers once they meet these taxability criteria, including sole proprietorships, partnerships, LLCs, and corporations. Even non-profit organizations designated under IRS Section 501(c)(3) become liable if they have four or more employees for 20 different weeks in a calendar year. Employers are required to register with the TWC within 10 days of becoming liable for unemployment tax.
Information Required for Application
Gather specific business and payroll information before applying for a TWC Tax Account Number. You will need your business’s full legal name and any “doing business as” (DBA) names it uses. Your Federal Employer Identification Number (FEIN/EIN) is required.
Details about your business structure, such as whether it operates as a sole proprietorship, partnership, limited liability company (LLC), or corporation, are required. You must provide the date when wages were first paid or are expected to be paid in Texas. Information about your business activity will also be requested.
Contact details for the business are essential, including its physical address, mailing address, phone number, and email. For sole proprietors or partners, the Social Security Numbers (SSNs) of owners or officers, along with their names and titles, will be needed. If your business acquired an existing one, successorship information may also be required. Finally, be prepared to provide details about your payroll, such as estimated total wages for the first year.
Applying for the TWC Tax Account Number
The primary and most efficient method for applying for a TWC Tax Account Number is online through the TWC’s Unemployment Tax Registration (UTR) system. This online service allows most employers to register quickly and receive their tax account number immediately upon confirmation of liability. To begin, you will typically navigate to the TWC website, select the option to register for a new unemployment tax account, and either log in with an existing TWC User ID or create a new one. The online application process usually takes about 20 minutes if all necessary information has been prepared in advance.
For situations where online registration is not feasible, employers can apply by mail or fax using Form C-1, the Status Report. This form is available on the TWC website and gathers the same comprehensive business and payroll details required for online submission. Paper submissions are an alternative. A limited number of new accounts may also be set up over the phone for straightforward cases.
Receiving and Using Your Number
After successfully submitting your online application, you will typically receive your nine-digit TWC Tax Account Number instantly if your business is determined to be liable for unemployment taxes. For applications submitted via mail, the processing time will be longer, and the account number will be sent through postal mail once approved. Within approximately two weeks of registering, the TWC will also mail an Employer Liability Notice, which confirms your registration status and outlines further responsibilities.
Once you have received your TWC Tax Account Number, you can use it to set up online access for quarterly wage reporting and tax payments. The TWC requires all employers to file reports electronically. You will use the Unemployment Tax Services (UTS) portal to submit quarterly wage reports, such as Form C-3, and make unemployment tax payments. This number is also used for ongoing communication with the TWC, including responding to notices or managing account information.