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.”

Request for Applications: High Demand Job Training Grant FY26

By ETCOG & Workforce Solutions East Texas • September 4, 2025
Deadline for applications - September 26, 2025
Two women: one laughing, the other with a raised hand, in a well-lit room, possibly a home or office.

You’re Invited: Let’s Celebrate National Disability Employment Awareness Month (NDEAM)

By Workforce Solutions East Texas • September 3, 2025
Workforce Solutions East Texas (WSET) and Texas Workforce Solutions -Vocational Rehabilitation Services (TWS-VRS) invite you to a celebration event on Tuesday, October 7, 2025, from 9:30 am to noon at the Longview Workforce Solutions Center located at 1905 W. Loop 281, Longview, TX 75604. At WSET, we are deeply committed to fostering an environment that welcomes all abilities in the workforce. National Disability Employment Awareness Month (NDEAM) is a powerful reminder of the immense talent and untapped potential that individuals with disabilities bring to our workplaces. Whether you are an employer seeking to hire individuals with disabilities, an organization championing disability rights, or someone seeking to learn more TWS-VRS we invite you to attend our upcoming event. Our event promises insightful discussions, valuable networking opportunities, stories from participants who are successfully navigating their journey after receiving services through TWS-VRS along with those business partners who have hired them. There will also be resources aimed at helping businesses take significant steps toward creating a workplace that includes all abilities on their team. Let's come together to celebrate our 80th anniversary of National Disability Employment Awareness Month (NDEAM). We celebrate the value and talent that all Americans - including people with disabilities – bring to our businesses, organizations, and communities. Join us in the momentous occasion as we celebrate this milestone in our nation’s history.
A man in a white shirt stands in front of a bookshelf. The words

From Summer Job to Career Path: Malachi Whedbee’s SEAL Success

By Workforce Solutions East Texas • August 26, 2025
When Malachi Whedbee joined the Summer Earn and Learn (SEAL) program, he saw it as an opportunity to gain experience, learn new skills, and contribute to his community. What he didn’t expect was how much of an impact his dedication would make—both on his future and on the people around him. Through SEAL, Malachi began working full-time at the Upshur Rural Library, clocking in at 8:00 a.m. every morning and working until 5:00 p.m. His days were filled with tasks like completing computer library entries, assisting with various projects, and lending a hand wherever needed. But for Malachi, these duties weren’t just boxes to check—they were chances to prove himself. And prove himself he did. Malachi’s exceptional work ethic showed in everything he did. He was always on time, completed assignments with precision, and eagerly stepped up for additional responsibilities. His positive attitude was contagious, creating a welcoming environment for both staff and patrons. Mrs. King, the library’s supervisor, quickly recognized that Malachi was more than just a temporary hire—he was an asset. Describing him as “outgoing, dependable, and hardworking,” she praised his professionalism and the joy he brought to the workplace. By the end of the program, Malachi’s efforts had done more than meet expectations—they had opened a door. Mrs. King was so impressed that she offered him an interview for a permanent position at the library. With the same enthusiasm and determination he brought to every day on the job, Malachi accepted the opportunity. Malachi’s journey through SEAL is more than a personal achievement—it’s a shining example of how young adults with disabilities can break barriers and build meaningful careers when given the chance. His story is a reminder that talent, dedication, and opportunity are the real building blocks of success.
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