CDS - Training Seminar October 2005 Unemployment Taxes

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CDS - Training SeminarOctober 2005Unemployment
Taxes

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What is Unemployment Tax?

• Tax Paid by Employers
• Used to Pay Benefits to Eligible Individuals Who
  are Out of Work Through No Fault of Their Own

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Overview of the Tax Department

• Conduct Wage Investigations
• Collect Reports and Taxes
• Audit Businesses

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Overview - Reports and Taxes

• Reports are due the month after the quarter ends
  (January, April, July, October).
• Taxes are accessed on the first 9000 in wages
  per employee per year.

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Overview - Reports and Taxes

• New employers - 2.7
• 243.00 (2.7 X 9000) per employee
• Minimum for 2005 is 0.58
• 52.20 (.58 X 9000) per employee
• Maximum for 2005 is 8.02
• 721.80 (8.02 X 9000) per employee

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Overview - Managing Tax Rates

• Chargebacks impact your tax rate for at least 3
  years.
• Respond to all communications from the Agency by
  the deadline.
• Consider Voluntary Contributions.

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Overview - Managing Tax Rates

• Voluntary Contributions Voluntary payments
  submitted to reduce the amount of chargebacks.
• Due Date 60 days after receipt of the Tax Rate
  Notice.

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Overview -The Audit Program

• Reconcile Payroll
• Determine Ownership
• Verify Classification of Workers

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Overview - Classification of Workers

• Employees -Workers under your direction or
  control
• Independent Contractors - Workers over whom you
  have NO direction or control
• Exemptions for specific family members.

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On Line Tools
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www.texasworkforce.org
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Tax Information and Transactions
http//www.twc.state.tx.us/customers/bemp/bempsub3
.html
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Tax Information and Transactions
For New Employers Required Data Ownership
Information Business addresses Employment
dates Wages paid dates Amount of wages paid
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Internet Registration
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Type of Business
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Important Registration Information

• Scroll down on the Summary page once you have
  received your account number.
• Select Finalize Registration. If you miss this
  step, your account number will not be registered!
• When you see Congratulations, you have
  completed the registration process.

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Tax Information and Transactions
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Employer Tax Information Online (ETIO)

• A system that allows an administrator to grant
  special permissions to different people to do
  different tasks within the business.

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ETIO Logon
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Select Employer
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Main Menu C-3 filing
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Menu Selections
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Selecting Reports
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Wage Summary
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Pay Online

• You must have permission to make payments through
  the security system.
• You must register a bank.
• You have to schedule a payment.
• You may cancel or change the payment date or
  payment amount up until the day before the pay
  date.

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• Enables Users to file more than one report at a
  time.
• No limit on the number of employees.
• Compatible with ICESA, MMREF, Comma Delimited or
  Fixed Length formats.
• Information is available on our Website.
• CD ROM version available.

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Important Dates

• September 1, 2005 - Total and partial
  acquisitions result in automatic employer
  liability for UI Tax.
• October 31, 2005 - Pay Unemployment Taxes.
• December 31, 2005 - Annual Election Forms for
  Domestic Employers are due.
• Mid February - Voluntary Contributions are due
  60 days after the Tax Rate Notices are mailed.

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Written Authorization

• Must be notarized
• Required to discuss case with agent
• Not required for internet access if employer
  authorizes the access

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Questions Thank you