May 03
Texas Workforce Commission audits are standard routine payroll audits that should be relatively straightforward. If we process your payroll we handle these audit for you in our office. We have the paperwork, registers and ledgers on hand to make the process quite smooth going. If we do not handle your payroll and you would like us to have your TWC audit at our office please contact your bookkeeper and we can work out the details.
If you have the audit at your office and the TWC auditor determines that you owe additional money from what we have calculated on your quarterly reports be sure to question their calculations. Each quarter we reconcile what is being filed with what is in the system and at the end of the year we have a full reconciliation of all your quarterly reports to your W2’s. Any TWC audit should not find additional monies owed.
I had an audit in our office last month that lasted much longer than normal as the TWC auditor determined additional monies were owed due to a miscalculation. Through persistence it was determined that the TWC calculation software had a “glitch” in it and we were correct that their determination was correct.
Mainly this blog post is a cautionary tale. Don’t assume that the TWC calcuations are correct, ask questions, call our office, use us as a resource to ensure that you are not charged extra for unemployment tax expense you do not owe. If you have questions when you receive a notice about a TWC audit always feel free to contact our office.
May 03
The Texas Workforce Commission is offering Federal Tax Savings through the Work Opportunity Tax Credit (WOTC) program. If you hire from any of these groups of job seekers you may be eligible for direct Federal Tax Savings ranging from $ 1,200 to $ 9,000 per qualifying employee:
*Veterans who are unemployed, disabled or receiving food stamps
*Temporary Assistance for Needy Family (TANF) recipients
*Ex-felons
*Residents of empowerment zones/renewal communities or rural renewal communities
*Food stamp recipients
*Supplemental Security Income recipients (SSI)
*Disconnected Youth
*Vocational rehabilitation referrals
*Summer youth residing in empowerment zones or renewal communities
Employers do not need to know whether a new hire falls into one of these groups. The Texas Workforce Commission certified eligibility for the tax credit.
If you have questions on this program please feel free to contact our office for more information or visit the TWC web site at:
www.twc.state.tx.us/svcs/wotc/wotc.html
Feb 01
Rising unemployment and layoffs placed an increased demand on the Unemployment Compensation Trust Fund in 2009. As a result of this greater demand 2010 employer tax rates will rise in order to replenish the fund.
Your rate is comprised of 4 items:
-The GENERAL TAX RATE is based on claims against your account. If the TWC has paid benefits to your employees who were laid off or separated through no fault of their own in the past three years, you will be assessed a general tax.
-The REPLENISHMENT TAX RATE is charged to all employers to cover unemployment claims no charged to a specific employer. This tax varies from year to year but tends to increase following economic downturns when claims increase and businesses close.
-The DEFECIT TAX RATE is charge to all employers when the Trust Fund balance falls below a certain statutory level.
-The EMPLOYEMENT AND TRAINING ASSESSEMENT is a flat tax of .10 percent, paid by all employers, and is used to fund the skills training program.
If you have questions about your tax rate please contact your bookkeeper for additional information. Also a general reminder – all the Texas clients will be receiving TWC rate updates in the mail. Please forward to our office so we can update your rate in our system and we are able to notify you if there are unexplained adjustments to your rate.
Tagged with: Bookkeeping • Employment Issues • TWC
