Texas Unemployment Tax
Liable Texas employers generally report employee wages and pay unemployment tax to the Texas Workforce Commission. Employer tax rates can vary based on the employer's account and unemployment experience.
Texas Payroll Software
Payroll Software for Texas Businesses
Simplify payroll for your Texas employees with PayDay. Manage employee wages, payroll deductions, pay information, and recurring payroll tasks from one organized platform.
Whether you're growing a small business in Austin, managing employees in Dallas-Fort Worth, or operating teams across multiple Texas locations, PayDay helps make payroll easier to manage as your workforce grows.
Payroll in Texas
Texas Payroll Has Its Own Employer Requirements
Texas does not impose an individual state income tax, which removes one layer of state payroll withholding that employers deal with in many other states.
But Texas employers still have important payroll responsibilities. Depending on the business and workforce, these can include unemployment tax, federal payroll taxes, wage and overtime requirements, payday rules, payroll deductions, employee reporting, and payroll recordkeeping.
PayDay helps businesses keep employee payroll information organized so recurring payroll work is easier to manage.
What Makes Texas Payroll Different?
- No Texas individual state income tax
- Texas unemployment tax requirements
- Texas Payday Law requirements
- State-specific pay frequency rules
- New-hire and rehire reporting
- Federal minimum wage and overtime rules
- Multi-state payroll considerations
Texas Payroll Taxes
Payroll Taxes Texas Employers Should Know
Texas payroll is different from states that impose individual state income tax. Texas employees generally do not have state individual income tax withheld from their wages.
Employers may still be responsible for Texas unemployment tax along with applicable federal payroll taxes.
Texas State Income Tax
Texas does not levy individual state or local income taxes, so employers generally do not withhold Texas individual income tax from employee wages.
Federal Payroll Taxes
Texas employers can still have federal payroll obligations, including federal income tax withholding, Social Security, Medicare, and applicable federal unemployment tax.
Need Detailed Texas Payroll Tax Information?
Visit our Texas Payroll Taxes guide for more information about unemployment tax, taxable wages, federal payroll taxes, employer responsibilities, and payroll tax requirements for Texas businesses.
Texas Payroll Requirements
Important Payroll Rules for Texas Employers
Texas employers should consider more than payroll tax calculations when building their payroll process. Pay frequency, minimum wage, unemployment tax, and new-hire reporting can also affect payroll administration.
Texas Minimum Wage
The Texas minimum wage is $7.25 per hour, the same as the federal minimum wage.
Covered non-exempt employees may also be entitled to overtime pay under federal wage and hour requirements.
Texas New-Hire Reporting
Texas employers generally must report newly hired and rehired employees within 20 calendar days from the date the employee starts earning wages.
Keeping employee information organized can make this recurring employer requirement easier to manage.
Texas Unemployment Taxable Wages
For Texas unemployment tax purposes, private taxed employers generally apply their unemployment tax rate to the first $9,000 of each employee's earnings during the calendar year.
Employer unemployment tax rates can differ, so businesses should use their current Texas Workforce Commission tax rate information.
Texas Payday Law
Texas generally requires non-exempt employees to be paid at least twice per month on regularly scheduled paydays.
Employees who qualify as exempt from federal overtime requirements generally must be paid at least once per month.
PayDay Payroll Software
Make Texas Payroll Easier to Manage
Growing teams can quickly make payroll more complicated. PayDay helps businesses bring employee payroll information together so recurring payroll work is easier to organize and review.
Employee Payroll Management
Keep employee compensation and payroll information organized for each payroll period.
Payroll Calculations
Simplify the recurring work involved in calculating employee earnings from your payroll information.
Different Pay Rates
Keep payroll organized when employees have different roles, compensation arrangements, or pay rates.
Payroll Deductions
Manage applicable employee deductions as part of your regular payroll workflow.
Payroll Records
Keep payroll history organized so previous payroll information is easier to review when needed.
Growing Teams
Maintain a more organized payroll process as your company adds employees, departments, and locations.
Payroll Across Texas
Manage Employees Across Multiple Texas Locations
Texas businesses range from small local companies to employers operating across several cities and regions. As a workforce expands, keeping payroll information organized can become more difficult.
PayDay helps businesses maintain a centralized payroll workflow whether employees work from one location or across multiple Texas offices, stores, facilities, or teams.
A centralized payroll process can also help growing businesses prepare for expansion into additional states.
Houston
Dallas
Austin
San Antonio
Fort Worth
El Paso
Arlington
Plano
Texas Business Payroll
Keep Payroll Organized As You:
- Add new Texas employees
- Manage hourly and salaried workers
- Handle different pay rates
- Track payroll deductions
- Add departments and teams
- Open additional Texas locations
- Hire employees in other states
- Review previous payroll information
Simple Payroll Process
Run Texas Payroll in Three Simple Steps
Create a repeatable payroll workflow that helps your team spend less time managing payroll manually.
Add Your Employees
Enter employee information, compensation details, applicable deductions, and other information required for your payroll process.
Prepare and Review Payroll
Enter payroll-period information and review employee earnings and deductions before completing payroll.
Complete Payroll
Finish your payroll process and maintain organized payroll information for future reference.
Texas Payday Requirements
Keep Your Texas Pay Schedule Organized
Pay frequency is an important part of Texas payroll administration.
Under the Texas Payday Law, employees who are not exempt from federal overtime requirements generally must be paid at least twice each month.
Employees who qualify as exempt from federal overtime requirements generally must be paid at least once per month.
Maintaining an organized and repeatable payroll schedule can help businesses avoid unnecessary payroll administration problems.
Texas Payroll Scheduling May Include:
- Regularly scheduled paydays
- Weekly payroll
- Biweekly payroll
- Semimonthly payroll
- Monthly payroll for eligible exempt employees
- Overtime calculations for non-exempt employees
Multi-State Payroll
What If Your Texas Business Hires Employees in Other States?
A Texas-based business may have a relatively simple state income-tax situation for employees working in Texas, but things can change when employees work in other states.
Other states may impose individual income tax withholding, different unemployment tax rules, disability programs, paid-leave requirements, higher minimum wages, and other payroll obligations.
Keeping payroll information organized by employee and location becomes increasingly important as your workforce expands beyond Texas.
Explore PayDay Payroll SoftwareMulti-State Payroll Can Involve:
- State income tax withholding
- Different unemployment tax programs
- Different taxable wage bases
- State-specific employee reporting
- Different minimum wage requirements
- State and local payroll rules
Why PayDay
Spend Less Time Managing Payroll Manually
Payroll software should make recurring payroll work easier, not create another complicated administrative process.
PayDay helps businesses maintain a more organized payroll workflow as their workforce grows.
Simple Payroll Workflow
Keep recurring payroll tasks clear and organized for your payroll team.
Built for Growing Businesses
Maintain an organized payroll process as you add employees, teams, and locations.
Centralized Payroll Management
Reduce reliance on disconnected spreadsheets by keeping important payroll information together.
Texas Payroll Resources
Learn More About Payroll in Texas
Explore PayDay resources for additional information about Texas payroll taxes and payroll software.
Texas Payroll Taxes
Learn more about Texas unemployment tax, taxable wages, federal payroll taxes, employer responsibilities, and payroll tax requirements.
Read the Texas Payroll Tax Guide →PayDay Payroll Software
Explore PayDay payroll software and learn how a centralized payroll platform can simplify recurring payroll management.
Explore Payroll Software →
Texas Payroll FAQs
Frequently Asked Questions About Texas Payroll Software
What is Texas payroll software?
Texas payroll software helps employers organize the recurring process of paying employees who work in Texas. Depending on the software selected, it can help businesses manage employee earnings, payroll deductions, payroll records, tax information, and other payroll tasks.
Does Texas have state income tax withholding?
Texas does not levy an individual state income tax. Therefore, employers generally do not withhold Texas individual income tax from wages paid to employees working in Texas.
What payroll tax do Texas employers pay to the state?
Liable employers may be required to pay Texas unemployment tax to the Texas Workforce Commission. The employer's applicable unemployment tax rate can vary.
What is the Texas unemployment taxable wage base?
Texas unemployment tax generally applies to the first $9,000 of each employee's earnings during the calendar year for private taxed employers.
What is the minimum wage in Texas?
The Texas minimum wage is $7.25 per hour, which is the same as the federal minimum wage. Federal overtime rules can also apply to covered non-exempt employees.
How often do Texas employees need to be paid?
Under the Texas Payday Law, non-exempt employees generally must be paid at least twice per month. Employees who are exempt from federal overtime requirements generally must be paid at least once per month.
Does Texas require employers to report new hires?
Yes. Texas employers generally must report newly hired and rehired employees within 20 calendar days from the date the employee starts earning wages.
Can a Texas business use payroll software for employees in other states?
Yes. Multi-state employers can use payroll software to keep payroll information organized, but businesses must consider the tax and employment requirements of every state where their employees work.
Is PayDay suitable for Texas businesses?
PayDay is designed to help businesses simplify recurring payroll management and keep employee payroll information organized as their workforce grows.
PayDay Payroll Software
Make Payroll Day Easier for Your Texas Business
Keep employee payroll information organized, reduce manual payroll work, and build a simpler payroll process with PayDay.
Get Started With PayDayDisclaimer: The information on this page is provided for general informational purposes only and should not be considered legal, payroll, or tax advice. Payroll tax rates, wage requirements, reporting rules, and federal, Texas state, or local requirements can change. Employers should verify current requirements with the Texas Workforce Commission, Texas Office of the Attorney General, Internal Revenue Service, U.S. Department of Labor, and other applicable government agencies.
Last reviewed: August 2026.