Texas Employers Receive $320 Million in Tax Refunds

AUSTIN – The Texas Workforce Commission (TWC) has begun mailing $320 million in refunds to nearly 360000 Texas employers who pay taxes into the Unemployment Compensation Trust Fund.

“Strong job growth has reduced demands on the Unemployment Insurance system in recent years” said TWC Chair Diane Rath. “Texas employers can benefit from refunds when the Trust Fund is robust.”

TWC collects Unemployment Insurance (UI) taxes from Texas employers for the Unemployment Compensation Trust Fund which funds UI benefits to workers who become unemployed through no fault of their own and who are actively seeking work.

Currently the Unemployment Compensation Trust Fund has risen above levels mandated by the state law. This enables TWC to send Texas employers Surplus Tax Credits with an average refund amount of $800. Following the refunds the Unemployment Compensation Trust Fund stands at $1.66 billion.

“Texas employers have generated tremendous economic and workforce expansion” said TWC Commissioner Representing Employers Ron Lehman. “In turn the Unemployment Compensation Trust Fund has reached a high level resulting in these refunds.”

To receive the refunds employers must meet certain requirements including having payroll during 2007 and paying all due taxes. They also must be experience-rated which means they have been in business with payroll for at least 18 months prior to January 1 2007. Employers subject to UI taxes include those paying $1500 in wages in a calendar quarter or having at least one employee during 20 different weeks in a calendar year.

“When employers succeed workers also succeed in Texas” said TWC Commissioner Representing Labor Ronny Congleton. “By creating jobs for Texas workers our employers helped make this surplus refund possible.”