1. What is the TWC Contribution Calculator?

The Texas Workforce Commission (TWC) Contribution Calculator helps employers estimate their unemployment tax contributions based on taxable wages and their assigned TWC rate.

2. How Does the Calculator Work?

The calculator uses the TWC contribution formula:

Where:

• Taxable Wages — The total wages subject to unemployment tax (USD)
• TWC Rate — The employer's assigned unemployment tax rate (%)

Explanation: The calculation determines the employer's quarterly unemployment tax obligation to the Texas Workforce Commission.

3. Importance of TWC Contributions

Details: Accurate calculation of unemployment tax contributions ensures compliance with Texas employment laws and helps employers budget for this business expense.

4. Using the Calculator

Tips: Enter total taxable wages in USD and your assigned TWC rate as a percentage. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How is the TWC rate determined?
A: Rates vary by employer based on experience rating (0.31% to 6.31% in 2023 for new employers).

Q2: What wages are taxable for TWC purposes?
A: The first $9,000 paid to each employee annually is taxable (as of 2023).

Q3: When are TWC contributions due?
A: Quarterly, by the last day of the month following the end of each quarter.

Q4: Can I pay my TWC contributions online?
A: Yes, through the TWC's Unemployment Tax Services online system.

Q5: What happens if I don't pay on time?
A: Late payments may result in penalties and interest charges.