Payroll
How to Register with Texas TWC as a New Employer
Register at twc.texas.gov within 10 days of first paying wages. Get your employer account number and start filing.
No state income tax doesn't mean simple payroll. TWC registration, SUI rates, FUTA, federal withholding, and wage law compliance still apply. Get practical guides written for Texas small business owners — not accountants.
| Tax / Obligation | Rate / Threshold | Who Pays |
|---|---|---|
| Federal Income Tax Withholding | Bracket-based (W-4) | Employer withholds |
| Texas State Income Tax | None | N/A |
| TX SUI (new employer) | 2.7% on first $9,000 | Employer pays |
| FICA (Social Security) | 6.2% each on first $176,100 | Employer + Employee |
| FICA (Medicare) | 1.45% each (no cap) | Employer + Employee |
| Texas Minimum Wage (2026) | $7.25/hr (federal minimum) | All employers |
Source: twc.texas.gov • Updated January 2026
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Register at twc.texas.gov within 10 days of first paying wages. Get your employer account number and start filing.
New employer rate 2.7%, experienced employers 0.23%—6.23%, wage base $9,000. Experience rating explained.
Texas minimum wage is $7.25/hr — the federal floor. Tipped minimum $2.13/hr. State preempts local ordinances.
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This article is for general informational purposes only and does not constitute legal, tax, or professional advice. Employment laws, tax regulations, and compliance requirements change frequently. The information on this page reflects our understanding as of the date noted above and may not reflect recent changes in federal or Texas state law. Do not act or refrain from acting based solely on the information in this article. Always consult a qualified attorney, CPA, or HR professional familiar with Texas law before making payroll or compliance decisions for your business.