By utilizing a public bond sale strategy and suspending the deficit tax component of the tax rate, TWC stabilized the CY 2011 employer tax rate increase, which was necessary to offset two years of higher UI benefit payments. Taxes would have been significantly higher without the actions taken by the Commission. Employer groups across the state supported this strategy.
The minimum tax rates are paid by 213,000 or 63 percent of all experience-rated employers. An employer paying the standard minimum tax will pay $70.20 in tax per employee in CY 2011 compared with $64.80 in tax per employee in CY 2010.
In setting tax rates for CY 2011, TWC sought to minimize the effects of any increases and exercise all the authority given to it by state law to hold the tax rates to the lowest and most predictable rates possible. Texas employer UI taxes at the minimum rate remain lower than many other states. Alaska employers at its minimum tax rate pay $201 per employee; Arkansas employers at its minimum tax rate pay $100 per employee; and Illinois employers at its minimum tax rate pay $89 per employee.
The maximum UI tax rate, paid by 2.2 percent of Texas experience-rated employers, is 8.25 percent, down from a maximum rate of 8.60 percent in CY 2010. The average tax rate of 2.03 percent for CY 2011 is up from 1.83 percent in CY 2010, while the average experience tax rate of 1.96 percent for CY 2011 is up from 1.74 percent in CY 2010.
The components of the CY 2011 tax rate are:
* The general tax rate – based on claims against an employer’s account. If TWC has paid benefits to former employees who were laid off or separated through no fault of their own in the past three years, then those employers will pay a general tax.
* The replenishment tax rate – charged to all employers to cover unemployment claims not charged to a specific employer. This tax tends to rise following economic slowdowns when claims increase and businesses close.
* The employment training assessment – charged to all employers who are eligible for a computed tax rate to finance the Skills Development Fund and the Texas Enterprise Fund. The employment training assessment calculation is a separate line item on the Employer’s Quarterly Tax Report.
* The obligation assessment rate – collected to repay bond obligations. It is experienced rated, based on an employer’s 2010 tax rate.
| Year | Taxable Wage Base | Minimum Tax Rate | Maximum Tax Rate | Average Tax Rate | Average Experience Tax Rate |
| 2011 | $9,000 | 0.78% | 8.25% | 2.03% | 1.96% |
| 2010 | $9,000 | 0.72% | 8.60% | 1.83% | 1.74% |
| 2009 | $9,000 | 0.26% | 6.26% | 0.99% | 0.78% |
| 2008 | $9,000 | 0.10% | 6.10% | 0.92% | 0.65% |
| 2007 | $9,000 | 0.29% | 7.70% | 1.30% | 1.13% |
| 2006 | $9,000 | 0.40% | 7.64% | 1.51% | 1.37% |
| 2005 | $9,000 | 0.58% | 8.02% | 1.74% | 1.63% |
| 2004 | $9,000 | 0.67% | 8.26% | 1.74% | 1.64% |
| 2003 | $9,000 | 0.67% | 8.47% | 1.68% | 1.56% |
| 2002 | $9,000 | 0.30% | 6.54% | 1.03% | 0.85% |
| 2001 | $9,000 | 0.24% | 6.24% | 0.94% | 0.75% |
TWC is dedicated to finding ways to lower the financial impact of unemployment on Texas employers. TWC and its 28 local workforce boards are committed to assisting UI claimants return to work as soon as possible.
To increase UI fraud detection and prevention, TWC has increased work-search verifications, and improved automated processes and database cross matches with other agencies. TWC pledges its continued efforts in helping to keep taxes as low as possible and minimizing the effects on Texas employers. For the latest updates PRESS CTR + D or visit Stock Market news Today
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