TWC Sets Stable Employer Tax Rate to Promote Continued Business Recovery

Texas Workforce Commission • June 15, 2021

Unemployment Insurance Tax rate for 2021 set at pre-pandemic level,
protecting Trust Fund solvency while reducing tax burden on Texas businesses

The Texas Workforce Commission (TWC) used legislative authority to set unemployment insurance (UI) tax rates for 2021 at a stable level, consistent with 2020 rates, to avoid burdening Texas businesses with a significant increase of taxes resulting from pandemic-related closures outside of their control. 


“Texas employers continue to overcome the challenges of the past year and contribute to a strengthening economy,” said TWC Chairman Bryan Daniel. “Today’s action on UI taxes enables businesses to better focus resources on innovating and expanding jobs available to Texas workers.”


Employer-paid UI taxes replenish the Texas Unemployment Compensation Trust Fund, which provides temporary income for workers who lose their jobs through no fault of their own. Each employer’s UI tax rate is unique, tied to unemployment benefits paid to former employees. Absent today’s Commission action, most Texas employers would have seen significant increases in their tax obligation for 2021. 


“Texas workers are eager to get back to work and help move our economy forward,” said TWC Commissioner Representing Labor Julian Alvarez. “This decision to keep taxes low will encourage hiring, and expand opportunities for working Texans.”


The Commission set the state’s UI replenishment tax rate to 0.18 percent, and the deficit tax rate to 0.0 percent. The Obligation Assessment was set to 0.03 percent to cover any federal interest due on Title XII loans due on September 30, 2021. The combination of the replenishment tax and obligation assessment equals the 2020 replenishment tax rate of 0.21 percent.


“This decision gives stability and predictability to our UI tax structure,” said TWC Commissioner Representing Employers Aaron Demerson. “Texas employers and Business leaders look forward to that stability especially after a year of rampant uncertainty. This gives them the capacity they need to hire, expand and get Texas’ economy back on track.”


October 27, 2025
Wednesday, November 5 | 10 AM - 1 PM | Maude Cobb Convention Center
By Texas Health & Human Services October 24, 2025
SNAP Benefits are not handled by Workforce Solutions East Texas offices. Our staff members cannot assist with your inquiries regarding the Federal Government Shutdown's effect on your benefits. To aid in these concerns, we are sharing information below from Texas Health and Human Services .  2025 Federal Government Shutdown With the federal government shut down, the Texas Health and Human Services Commission is monitoring how it may impact your benefits. Check this page for updates . SNAP SNAP benefits for November won’t be issued if the federal government shutdown continues past Oct. 27. WIC WIC benefits are not affected currently. TANF TANF benefits are not affected currently. Medicaid Medicaid is not affected currently. CHIP CHIP is not affected currently. Find answers about SNAP and other benefits in the Federal Government Shutdown FAQ (PDF) .
Welcome slide: Workforce Solutions Management. Board officers: Gene Rayburn, Priya Rayburn.
By Workforce Solutions East Texas October 24, 2025
We are pleased to introduce the newest officers of our Board of Directors: Chair Gene Keenon, Municipal Services Manager at Republic Services, and Vice Chair Pam Pearson, Administrator of the Wills Point Economic Development Corporation. Keenon represents the Private Business sector and was appointed to the board on December 23, 2014. Pearson represents Economic Development and was appointed on March 17, 2015. Both have dedicated many years to the board and served as chairs of subcommittees, bringing valuable experience and insights to guide the board in supporting our community. "It is a great honor to accept the appointment as Chairman of the Board for the East Texas Workforce Solutions and to serve as a representative of the private business community. I am deeply committed to advancing the mission and values of this exceptional organization," said Keenon. "Having the privilege of doing business throughout all 14 counties in our region, I understand both the challenges and opportunities that exist within our workforce. I pledge to represent our entire area with integrity, dedication, and a steadfast focus on the prosperity and well-being of our citizens. "The Board’s team of dedicated and diverse volunteers plays a vital role in overseeing millions of dollars in training and financial aid programs that empower individuals through childcare support, education, and job-readiness. I have witnessed firsthand the importance of these services—growing up watching my own mother work tirelessly to support her family as a single mom without a high school education —and I know how transformative such resources can be. "Our collective mission is to improve the quality of life for all East Texans. That mission is also my personal goal, and I am eager to work alongside these board members and dedicated staff to strengthen our communities and expand opportunities for all." The Workforce Solutions East Texas Board works with the region’s chief elected officials and sets local workforce policy. The volunteer board is made up mostly of private sector members, along with representatives from labor, education, and community organizations. We proudly serve Anderson, Camp, Cherokee, Gregg, Harrison, Henderson, Marion, Panola, Rains, Rusk, Smith, Upshur, Van Zandt, and Wood counties. “I am truly honored by the opportunity to serve as Vice Chair of the Workforce Solutions East Texas Board," said Pearson. It is a privilege to work alongside such a dedicated group of leaders who share a strong commitment to strengthening our workforce and supporting the employers, families, and communities across our region. I have great confidence in the talent, experience, and collaboration of this board as we continue advancing opportunities for East Texans.” We look forward to Keenon and Pearson’s leadership as we plan initiatives that support local businesses and economic growth. Join us in congratulating them at our next Workforce Solutions East Texas Board Meeting on November 12 at our Tyler center located at 4100 Troup Hwy, Tyler, TX 75703.
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