Form C-1: Employer's Registration Status Report - Texas Workforce - twc state tx 2025

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You must register with the Texas Workforce Commission (TWC) within ten days of paying an employee wage and becoming liable for unemployment tax.
An overpayment is caused when Texas Workforce Commission (TWC) pays unemployment benefits that you were not eligible to receive. State law requires TWC to recover all unemployment benefits overpayments. There is no statute of limitations on debts owed to the state.
The most likely reason your business was selected for audit is simply due to bad luck. In other words, your tax identification number was selected at random. It is also possible that your business is in an industry the Comptroller is targeting due to poor compliance.
A payroll audit can occur for many reasons: someone from the government comes calling because you may have done something wrong; an employee makes a claim of unfair pay practices, or; you simply decide to review your own procedures, either internally or by using and independent third party such as an accountant.
Common EDD Triggers If the EDD suspects youre misclassifying employees to avoid paying payroll taxes, they will audit your business. However, filing late taxes, document errors, and payroll delays can trigger audits.

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The TWC Annual Reports summarize TWCs and Texas Workforce Solutions achievements and financial statuses in the previous year. Annual Report 2023. Annual Report 2022. Annual Report 2021.
The Texas Workforce Commission is charged with auditing businesses to ensure that employee wages are properly reported and appropriate taxes paid on such wages. If TWC rules that an employer has failed to properly report all wages and pay taxes, it will assess back taxes and interest.
When someone applies for unemployment benefits, TWC mails a Notice of Application for Unemployment Benefits for a new claim or a Request for Work Separation Information for an existing claim to the employer the claimant last worked for.

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