Texas Payroll Licensing

A Guide for Employers

Planning to hire employees in Texas? Before you start processing payroll, it’s essential to meet the state's licensing requirements. At US TAX BAY, we simplify payroll tax registration for businesses in all 50 states — helping you stay compliant and efficient as you expand your workforce.

Here’s what employers need to know about Texas payroll licensing.

Payroll Tax Requirements for Texas Employers

In most states, businesses must register for both withholding tax and unemployment insurance tax. However, Texas has a unique setup:

• No state personal income tax, so no withholding registration is needed.

• Unemployment insurance tax registration is required for all employers.

If your company is based outside of Texas, you may first need foreign qualification and a registered agent before registering for taxes and hiring employees here.

Texas Employer Withholding Tax Registration

Great news for employers: Texas does not require employer withholding tax registration because it does not have a personal income tax.

This means fewer steps to set up your payroll system!

Texas Unemployment Tax Registration

However, if you’re hiring employees in Texas, you must register for unemployment insurance through the Texas Workforce Commission.

• Agency: Texas Workforce Commission

• Filing Method: Online via the TWC Employer Registration Portal

Once registered, employers are required to submit quarterly wage reports and pay unemployment insurance taxes based on assigned tax rates.

Why Choose US TAX BAY for Payroll Setup?

Handling payroll licensing the right way from the start saves time, money, and headaches. US TAX BAY offers:

• Quick Texas unemployment tax registration

• Help with foreign qualification and registered agent needs

• Full support for multi-state payroll compliance

We ensure you stay ahead of filing deadlines and meet all payroll tax obligations — so you can focus on growing your team and your business.

Ready to register your Texas unemployment account?

Visit US TAX BAY and let our experts take care of your payroll tax setup!

🔗 Useful Links

• Texas Workforce Commission: www.twc.texas.gov

• Texas Unemployment Tax Employer Registration: www.twc.texas.gov/businesses/unemployment-tax-registration

• US TAX BAY Services: www.ustaxbay.com

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