TWC Lowers Taxes for Texas Employers in 2023

Texas Workforce Commission • January 11, 2023

The Texas Workforce Commission (TWC) announced the average unemployment insurance (UI) tax rate for all employers will be 1.16% for calendar year (CY) 2023. Last year, the average tax rate was 1.35%.

The minimum tax rate is paid by more than 370,000 employers, which represents 61.5% of experience-rated employers. The minimum UI tax rate paid by Texas employers in CY 2023 will be 0.23%, which is 0.08 percentage points lower than 0.31% in CY 2022. These employer-paid UI taxes replenish the Texas Unemployment Compensation Trust Fund, which provides temporary income for Texas workers who lose their jobs through no fault of their own.

An experience rating is determined by the amount of an employer’s 
taxable wages and the amount of UI benefits that have been paid to former employees and charged to the employer’s account for the last three years. An employer paying the standard minimum tax will pay $20.70 per employee in CY 2023 on the first $9,000 in wages per employee compared with $27.90 per employee in CY 2022. The average tax rate for experience-rated employers is 0.89%. The maximum UI tax rate, paid by 4.2% of Texas employers, will be 6.23%, down 0.08 percentage points from CY 2022 at 6.31%.

TWC is dedicated to finding ways to lower the financial impact of UI taxes on Texas employers. TWC and the state’s 
28 local workforce boards are also committed to helping UI claimants return to work as soon as possible. Because the Texas Unemployment Compensation Trust Fund has risen above its statutory minimum required balance, TWC will not charge employers any deficit tax in 2023. More information about the components of the tax rate are on TWC’s website.


Wages often can be the largest portion of expenses for a business. As Texas business owners begin staffing plans for the next year, TWC invites businesses to access data from its annual Occupational Wage Survey, which can provide valuable insights on competitive wages for all types of positions for any area in Texas. Information gathered in the survey is confidential and is reported from Texas employers who participate in the survey. For more information or to participate and assist in making Texas more competitive in the labor marketplace, please contact us by emailing oesinfo@twc.texas.gov or by calling (800) 252-3616.

May 26, 2026
The Texas Workforce Commission (TWC) today announced the launch of a new online resource for Texas employers. The Child Care Resources for Employers webpage is designed to help employers better support their employees’ child care needs. “We are empowering Texas employers with the tools they need to support working families, which is a critical component of our state’s economy,” said TWC Chairman Joe Esparza. “This resource is a strategic investment in our workforce that helps businesses retain talent and ensures Texas remains the best state to live, work, and raise a family.” The new webpage was created in response to Senate Bill 1265, passed by the 89th Texas Legislature. It offers clear information on several topics including child care assistance programs, available state and federal tax credits, and dependent care savings accounts. The webpage also shares best practices and policies that businesses can adopt to help their employees access reliable child care. Studies show that supporting child care needs can improve employee morale, reduce absences, and increase productivity. The Texas Restaurant Association (TRA) was a key partner in passing the legislation and developing the webpage. Their advocacy highlighted the need for these resources across all industries. “We hear consistently from local business operators that they want to help their employees access child care, but they don’t know where to start,” said TRA Chief Public Affairs Officer and Co-Founder of Employers for Childcare (E4C) Kelsey Erickson Streufert. “We are grateful for the TWC’s partnership creating the new Child Care Resources for Employers webpage, and we look forward to building on this momentum to expand working families’ access to affordable, quality childcare.” This new resource makes it easier for Texas employers to offer benefits that help attract and retain their workforce. The webpage provides guidance on how employers can survey their staff to understand their specific child care challenges. This helps businesses offer the most effective and impactful support. The Child Care Resources for Employers page can be found within the Texas Work & Family Policies section of the TWC website. Employers are encouraged to visit the webpage to learn more.
May 22, 2026
When Tahyua Crowder arrived in Tyler, she was searching for more than a job. She was searching for stability, hope, and a fresh start. After leaving a domestic violence situation, she found herself rebuilding her life in a new city, uncertain of what the future would hold. But one thing she did know was where to turn for support. Having worked with Workforce Solutions programs from across the state of Texas since the age of 15, Tahyua understood the value of having a team that believed in her potential. “Every time I was in a bind, I knew I needed to go back to Workforce Solutions to tighten up,” she shared. “I was always able to go to Workforce.” Although Tahyua was in a new place with new people, she knew there was a Workforce Solutions office somewhere close. Eventually, she arrived at a Workforce Solutions East Texas office for assistance where she was able to access services through the CHOICES program for TANF recipients. From the beginning, Tahyua stood out. She approached every step of the program with determination and professionalism, completing her job search logs correctly from day one. Her secret was simple but powerful: organization and discipline. “Take notes. Write everything down. Don’t rely on memory,” she advised. “Set personal deadlines before the actual due date.” As she participated in the Keys to Success class, a webinar series designed to support and develop job readiness skills, Tahyua found encouragement not only from staff, but also from her peers. Listening to others share their experiences helped her reflect on her own growth and motivated her to keep moving forward. She described the Workforce Solutions team as “very loving, very caring, and warm,” adding that throughout her journey, staff ensured she had access to every available resource, from transportation assistance and gas cards to guidance in making career choices. What impacted Tahyua the most was the unwavering support and dignity she received during one of the hardest seasons of her life. “I was so lost when I moved here,” she said. “Everyone was very encouraging. They were adamant that I get up and understood that I had the power to change my life.” That encouragement and support eventually paid off. After completing program services and participating in mock interviews through WIOA, Tahyua impressed staff with her confidence and professionalism. Her success during those interviews opened new opportunities and strengthened her confidence in what she was capable of achieving. Tahyua was eventually offered a job on the CHOICES team. Her CHOICES Career Navigator, Jessica Vinson, remembers the moment well, stating that she just knew that Tahyua “would be a great addition to our already great CHOICES team!” Tahyua proudly served as a coworker alongside the very team that once supported her through crisis and transition. “Mount Everest had nothing on me,” she said when describing the transition from participant to employee. Unfortunately, restructuring happened in the program which caused Tahyua to begin job searching again. Although sad to leave her new team, she refused to let this event bring her down. So, Tahyua came through the doors of Workforce Solutions East Texas as a client once more. Not long after beginning job search, Tahyua found an exciting new career opportunity that was the perfect fit for her. Tahyua began working at LHH as an Insurance Agency Specialty. Tahyua shared that her recruiter at the company said that the interviewing team had “nothing but to say but amazing things” about her interview and they were thoroughly impressed. Tahyua is now confident and thriving in her new role with a great salary. “I felt accomplished,” she said. “This has been such an uphill battle. I was nervous and afraid I was going to lose everything. When I got that offer, I said I knew I could do this.” Today, Tahyua continues building a future she once feared was out of reach. She says her experience taught her that perseverance truly pays off, and that success comes from learning to bloom where you are planted. Now, Tahyua has even higher ambitions. “I want to go higher. Make management. Be over my own team and be in a position where I can treat others with the dignity and respect that I was given from my team at Workforce.” Throughout her journey, Tahyua remained grateful to her Career Navigator and dedicated team at Workforce Solutions East Texas that supported her through her journey. To others beginning their own journey, Tahyua offers this advice: “Blow your ceiling. Don’t have limits. Erase everything you’ve been through and what you’re coming from.”  Her hope is that others facing difficult circumstances will see her story and realize that success is possible no matter where they begin. “I hope someone will see my story and understand that the distance from the bottom to the top is not as far as it seems.” Her journey, from participant to staff member to her new role as an Insurance Agency Specialty worker, represents perseverance, resilience, the power of a dedicated support network, and the importance of believing in yourself even during life’s hardest moments.
May 22, 2026
CCS Business Industry Support staff Tonia and Aerial recently facilitated a successful Directors Connect session in Athens, titled “Let’s Get Motivated.” This professional development training focused on empowering early childhood leaders with effective strategies to build motivated, engaged, and committed teams. Throughout the session, participants explored practical approaches to boosting staff morale, strengthening workplace relationships, and reducing employee turnover. The training highlighted how motivation, recognition, communication, and strong leadership practices directly influence staff performance and long-term retention. Directors also examined both intrinsic and extrinsic motivators, gained insight into effective feedback practices, and engaged in reflective activities designed to support professional growth within their programs. Feedback from participants was overwhelmingly positive. Directors particularly appreciated learning new and creative ways to celebrate and recognize their staff. Many also valued the training’s encouragement-focused approach, noting that it provided them with practical, actionable strategies to uplift and support their teams. This session reinforced the important role early childhood leaders play in fostering positive workplace cultures where staff feel valued, supported, and empowered—an essential foundation for strong, thriving programs.
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