Regarding the various laws relating to employment of personnel, there are federal and state requirements you’ll need to determine.

Employment Tax Responsibilities

The Internal Revenue Service provides specific information regarding your federal employment tax responsibilities.

The Texas Workforce Commission provides specific information regarding your state and local employment tax responsibilities.

Unemployment Taxes

The Texas unemployment tax program is designed to collect unemployment taxes from employers who are subject to the Texas Unemployment Compensation Act. These taxes support a reserve fund from which unemployment benefits are paid to eligible workers who are unemployed through no fault of their own. Unemployment taxes are not deducted from an employee’s wages.

Most employers are required to pay Unemployment Insurance (UI) tax under certain circumstances. The Texas Workforce Commission uses three employment categories: regular, domestic and agricultural. Employer tax liability differs for each type of employment. Liable employers must register with TWC to create a tax account and in each calendar quarter, report wages paid to employees and pay taxes due.

Workers’ Compensation

Private employers in Texas do not need to carry workers’ compensation insurance coverage. You are required to report your non-coverage status and work-related injuries and occupational diseases to the Division of Workers’ Compensation, though.

Business Insurance

Business insurance is coverage that protects your small business from financial damages that can result from accidents, property damage, professional errors, workers compensation claims and other unforeseen events. To be assured that your business won’t close and leave your employees without pay, it’s important to decide what types of business insurance you’re likely to need. A qualified insurance broker can help you find the policy that is right for you, whether it be basic coverage or more specialized protections such as cyber attacks.