Doing Payroll in Texas
How to run payroll in Texas: getting an EIN, TWC registration, SUI reporting, Texas Payday Law, deposits, and year-end W-2 filing for employers.
Federal payroll rules, state-specific taxes, wage and hour law, and filing deadlines, explained in plain English for Texas small business owners, not accountants.
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Every employer owes federal payroll taxes, FICA and FUTA, on top of whatever Texas requires, whether that's state income tax withholding, unemployment insurance, or another state-specific program.
Minimum wage, overtime, final paycheck timing, and pay stub requirements can all differ from the federal baseline. Getting the Texas-specific rule wrong is one of the most common (and costly) payroll mistakes.
Late deposits, missed filings, and new-hire reporting misses each carry their own penalties. Knowing the Texas filing calendar in advance is the easiest way to avoid them.
How to run payroll in Texas: getting an EIN, TWC registration, SUI reporting, Texas Payday Law, deposits, and year-end W-2 filing for employers.
Complete guide to Texas minimum wage for 2026. Texas follows the federal $7.25/hr rate with no state increase since 2009. Tipped minimum wage, tip credit rules, local preemption, overtime, and salary exemption thresholds explained.
How to register as a new employer in Texas: federal EIN, TWC unemployment tax account, new hire reporting, and workers' comp options.
Complete guide to the Texas Payday Law for 2026. Pay frequency requirements, timing rules, final paycheck deadlines for termination and resignation, TWC wage claims, pay stub practices, direct deposit rules, and penalties.
Complete Texas payroll compliance guide for 2026 — SUI rates, payday laws, final paycheck rules, workers' comp, TWC registration, and compliance calendar. Written for TX employers.
Complete guide to Texas payroll taxes for employers in 2026 — no state income tax, FICA rates, FUTA, Texas SUI via TWC, wage bases, filing schedules, and compliance tips.
Texas SUI rates for 2026 explained — new employer rate of 2.7%, experienced employer range of 0.23%-6.23%, $9,000 wage base, experience rating, replenishment tax, and how to lower your rate.
Step-by-step guide to registering with the Texas Workforce Commission (TWC) as a new employer — when to register, how to do it online, quarterly C-3 wage reports, deadlines, and penalties.
Complete guide to Texas workers' compensation for 2026. Texas is the only state where workers' comp is optional. Subscriber vs. non-subscriber status, legal consequences, notice requirements, premium calculation, payroll reporting, and general contractor requirements.
Official Texas payroll agency directory for employers: tax registration, unemployment insurance, new-hire reporting, and wage-and-hour contacts in one place.
Trustpilot ratings are public and updated continuously. ADP: 1.2/5 from 12,000+ reviews. Paychex: 1.3/5 from 4,000+ reviews.
“Called four times about a billing error. Each rep told me to call back. Still unresolved after six weeks.”
“They misfiled our 941 and then charged us a correction fee. Support transferred me three times. Nobody owned the problem.”
| Minimum wage | $7.25 (federal) |
|---|---|
| State income tax withholding | None (no state income tax) |
| SUI new-employer rate | 2.7% |
| SUI taxable wage base | $9,000 |
| Payday frequency rule | Non-exempt employees must be paid at least twice a month; exempt employees may be paid monthly (Texas Payday Law). |
| New-hire reporting deadline | 20 days |
Verified 2026-07 against official Texas sources.
Every Texas employer owes federal payroll taxes: Social Security and Medicare withholding under FICA, and federal unemployment tax (FUTA), regardless of what Texas itself requires. On top of that federal baseline, most states layer on their own obligations: income tax withholding, state unemployment insurance (SUI), and in some cases disability or paid-leave programs. Whether each of these applies, and at what rate, depends on Texas law. The first step for any new employer is registering with the right state agencies before running the first payroll. Our new employer payroll setup checklist walks through that process.
Minimum wage and overtime rules start with the federal Fair Labor Standards Act (FLSA), but Texas may set a higher minimum wage, stricter overtime triggers, or additional rules around tipped employees and meal or rest breaks. Overtime is generally 1.5 times the regular rate after 40 hours in a workweek under federal law, though some states calculate it differently. The FLSA employer guide covers the federal floor that every employer must meet before layering on Texas-specific requirements.
Final paycheck timing, new hire reporting deadlines, and pay stub requirements also vary by state. Missing a new hire report or paying a final check late can trigger penalties even when the payroll math itself was correct. New hires must be reported to the state's new hire registry, typically within a short window of the hire date, and every employer needs a state UI account number before the first unemployment filing is due.
For ongoing compliance, most employers file federal Form 941 quarterly, deposit federal withholding on a schedule based on prior-year liability, and file state withholding and unemployment returns on whatever schedule Texas assigns. Our federal payroll compliance checklist lays out the recurring tasks by frequency: new hire, every payroll, monthly, quarterly, and annual.
Rates, wage bases, and deadlines change from year to year and are specific to Texas. See the guides below for current Texas figures, or check directly with your state's revenue and labor agencies before filing.
Employers in Texas pay federal payroll taxes: Social Security and Medicare (FICA) and federal unemployment tax (FUTA), plus any state-level payroll taxes that apply, such as state income tax withholding and state unemployment insurance (SUI). Rates and wage bases vary and change annually, so always confirm current figures with your state's labor and revenue agencies.
Minimum wage in Texas is set by a combination of federal and state law, and the higher of the two rates always applies. Rates are reviewed regularly and can change from year to year, so check your state labor department's website for the current figure before running payroll.
New employers generally need a federal Employer Identification Number (EIN) from the IRS, plus registration with Texas's revenue department for state income tax withholding (where applicable) and its labor or workforce agency for state unemployment insurance. See our Texas guides for step-by-step registration instructions.
This site is for general informational purposes only and does not constitute legal, tax, or professional advice. Employment laws, tax regulations, and compliance requirements change frequently and may not be reflected here. Always consult a qualified attorney, CPA, or HR professional familiar with Texas law before making payroll or compliance decisions for your business.