Upon request, the Texas Workforce Commission (TWC) will extend the third quarter 2017 state unemployment insurance (SUI) contribution and wage report filing deadline from October 31, 2017, to December 31, 2017, for employers affected by Hurricane Harvey. Interest and penalties for late filing and payment will be waived. (Email response to inquiry, status and central operations manager, October 5, 2017.)

Failure to file by the October 31 deadline may negatively impact the 2018 SUI tax rate

Before taking advantage of the extended filing due date, businesses should consider that failing to file the third quarter return by October 31, 2017, could have an adverse impact on their 2018 SUI tax rate. The cut-off date for use of taxable wages in the computation of the tax rate each year is October 31. The state will use the taxable wages reported from the fourth quarter 2014 through the third quarter 2017 as compared to the benefits charged against the employer's account for the same time period to compute the 2018 tax rate.

Employers that do not file all contribution returns and pay all associated taxes by the cut-off date of October 31, 2017, may see an increased SUI tax rate.

To avoid an unnecessary increase in the 2018 tax rate, employers that are able to file by the October 31, 2017 deadline should do so. An employer that is unable to pull together the information needed to submit the third quarter tax return may instead submit an estimated return, approximating the taxable wages and paying an estimated amount of SUI taxes. Employers that file an estimated return should request the filing extension in order to avoid any interest charges that be assessed should the estimated taxes paid be less than those actually owed.

Extension details

In order to receive the extension, the employer must be located, or operated, within one of the following 39 counties declared federal major disaster areas eligible for individual or individual and public assistance:

Aransas, Austin, Bastrop, Bee, Brazoria, Calhoun, Chambers, Colorado, DeWitt, Fayette, Fort Bend, Galveston, Goliad, Gonzales, Hardin, Harris, Jackson, Jasper, Jefferson, Karnes, Kleberg, Lavaca, Lee, Liberty, Matagorda, Montgomery, Newton, Nueces, Orange, Polk, Refugio, Sabine, San Jacinto, San Patricio, Tyler, Victoria, Walker, Waller, and Wharton.

The employer must request abatement of interest and penalties in writing by October 31, 2017, through one of the following methods:

Email: tax.abatements@twc.state.tx.us
Fax: 512-475-1221
Mail: Texas Workforce Commission, Abatements Unit, 101 E 15th Street, Austin TX 78778-0001

Be sure to show the business name and TWC account number on the letter.

For more information, contact the TWC tax abatement section at the email shown above.

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