AUSTIN – The Texas Workforce Commission (TWC) used legislative authority to set unemployment insurance (UI) tax rates for 2021 at a level consistent with 2020 rates.
Before the move, most Texas employers would have seen significant increases in their tax obligation for 2021.
The combination of the replenishment tax (0.18 percent) and obligation assessment (0.03 percent) equals the 2020 replenishment tax rate of 0.21 percent. The deficit tax rate is 0.0 percent.
Employer-paid UI taxes replenish the Texas Unemployment Compensation Trust Fund, which provides temporary income for workers who lose their jobs through no fault of their own. Each employer’s UI tax rate is unique, tied to unemployment benefits paid to former employees.
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