Start with responsibilities, then software.
Federal accounts
Confirm your EIN, federal employment-tax reporting requirements and deposit schedule.
Texas registration
Determine whether you are liable for Texas unemployment tax and register with TWC when required.
Employee records
Keep onboarding, pay, hours and withholding records organised and access-controlled.
A payroll provider can handle submissions, but you should still know which accounts exist, what is due and how to verify payment.
Official source: IRS Publication 15, employer tax guide ↗
Check unemployment-tax liability.
Liability depends on the applicable employment rules. Household, agricultural and other employment categories may have different tests. Record the date liability begins and keep the registration confirmation.
Use the rate assigned to your business and the current taxable-wage rules when calculating Texas unemployment tax. Do not copy another employer’s rate.
Official source: TWC unemployment tax registration ↗
Official source: TWC tax rates ↗
Make onboarding a repeatable routine.
- Confirm worker classification before setting up payment.
- Collect the applicable withholding and employment-eligibility forms.
- Record the start date, pay rate, pay schedule and work location.
- Set up timekeeping and a process for approving payroll.
- Report the new hire or rehire to the appropriate state program.
- Keep personal and payroll information secure.
Texas generally requires new hires and rehires to be reported within 20 calendar days of the date they start earning wages. This is separate from registering for unemployment tax.
Official source: Texas new-hire reporting ↗
Official source: Federal employee setup and payroll guidance ↗
Quarterly returns are only part of the calendar.
| TWC wage-report quarter | Usual report and payment deadline |
|---|---|
| January–March | April 30 |
| April–June | July 31 |
| July–September | October 31 |
| October–December | January 31 of the next year |
Check TWC’s calendar for weekend and holiday adjustments, and follow the reporting instructions for your account.
Official source: TWC quarterly due dates ↗
A return deadline is not a deposit schedule.
Many employers file federal Form 941 quarterly, but federal tax deposits may be due more frequently. Determine the deposit schedule that applies to your business separately. Only eligible employers authorised by the IRS use annual Form 944 instead.
Official source: Federal payroll deposits and returns ↗
Reconcile before you close the period.
Compare approved hours, gross wages, deductions, employer taxes and net payments. Check the payroll bank withdrawal against the payroll register, then retain the payment and filing confirmations.
At quarter-end, reconcile payroll totals to state wage reports and federal returns. At year-end, check employee details and reconcile annual wage statements to the year’s payroll records.
If employees work outside Texas, check the other state’s requirements too. A Texas business address does not settle every remote worker’s payroll obligations.
Official source: Federal employment-tax calendar ↗