Sources checked:
Quick answer. Texas: $9,000 SUTA wage base (2026); 2.7% new employer rate; new hires reported in 20 days; $7.25 minimum wage; no statewide paid sick leave law; no adult meal break rule; final pay within 6 days if fired. 16 of 19 checklist items are confirmed on official pages; 3 are marked not confirmed, with the page to check.
Texas 2027 employer checklist
1. Register for unemployment tax and withholdingBefore the first payroll.
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ConfirmedOpen a state unemployment tax account
TWC's Unemployment Tax Registration (UTR).
Source: Texas Workforce Commission (TWC), checked November 2026 · More: Unemployment tax wage bases by state
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Not confirmedTaxable wage base for 2027
Not confirmed — check TWC: Tax Rates.
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ConfirmedTaxable wage base for 2026 (the latest published)
$9,000 per employee in 2026.
TWC: $9,000 per employee per calendar year, set by statute.
Source: TWC: Tax Rates, checked November 2026 · More: Unemployment tax wage bases by state
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ConfirmedNew employer tax rate
2.7% for a new employer.
TWC: "For 2026, the entry-level rate is 2.70% for all groups with no exceptions."
Source: TWC: Tax Rates, checked November 2026 · More: Unemployment tax wage bases by state
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ConfirmedQuarterly wage reports and payments
TWC: quarterly wage reports and tax payments are due by the last day of the month after the quarter; a weekend or state holiday moves it to the next business day.
Source: TWC: Tax Rates, checked November 2026 · More: Unemployment tax wage bases by state
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ConfirmedState income tax withholding
No state income tax to withhold.
Texans pay federal income taxes but not state or local income taxes (Texas Comptroller, A Field Guide to the Taxes of Texas).
Source: Texas Comptroller: A Field Guide to the Taxes of Texas, Publication 96-1774 (December 2025), checked November 2026
2. Report new hires and check work eligibilityFor every hire, rehire and, where the state says so, contractor.
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ConfirmedReport each new hire to the state
Within 20 calendar days of the hire date. Electronic reports go out every 12 to 16 days.
- Who: All newly hired or rehired employees who live or work in any state; if the employee must fill out a W-4, report the hire.
- Independent contractors: yes, report them too. The Office of the Attorney General's employer quick reference says the definition of employee was revised effective September 1, 2015 to include independent contractors.
- How: online, electronic file, fax, mail, phone. Fax (800) 732-5015; mail ENHR Operations Center, P.O. Box 149224, Austin, TX 78714-9224.
Source: Official page, checked November 2026 · More: First hire checklist for Texas
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ConfirmedWorkplace posters
Texas Workforce Commission lists the required posters.
Source: Texas Workforce Commission: Posters for the Workplace, checked November 2026 · More: First hire checklist for Texas
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Not confirmedE-Verify for private employers
Not confirmed — check Bill Analysis, S.B. 324 (89R), Senate Research Center.
3. Set pay at the minimum wage: January 1 and mid-yearCheck every hourly and tipped rate against the floor.
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ConfirmedMinimum wage now (2026)
$7.25 an hour.
$7.25; Texas adopts the federal rate by reference (US DOL).
Source: U.S. Department of Labor: State Minimum Wage Laws (updated November 5, 2026), checked November 2026 · More: Minimum wage by state 2027
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ConfirmedMinimum wage change in 2027
$7.25 an hour; no scheduled change in our data.
US DOL's state table (updated November 5, 2026) shows no scheduled change.
Source: U.S. Department of Labor: State Minimum Wage Laws (updated November 5, 2026), checked November 2026 · More: Minimum wage by state 2027
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ConfirmedTipped employees
Cash wage of at least $2.13 an hour in 2027, with tips making up the rest.
Federal rule: a cash wage of at least $2.13 with tips making up the rest of $7.25 (US DOL tipped table).
Source: U.S. Department of Labor: Minimum Wages for Tipped Employees (revised July 1, 2026), checked November 2026 · More: Minimum wage by state 2027
4. Paid sick leaveAccrual, limits and notice.
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ConfirmedPaid sick leave
No statewide paid sick leave law for private employers.
TWC: no current Texas or federal law requires private-sector employers to provide paid or unpaid leave of any kind; most employers set their own policy.
Source: Vacation and Sick Leave (Texas Workforce Commission), checked November 2026 · More: Paid sick leave laws by state
5. Meal and rest breaksAdults and workers under 18.
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ConfirmedMeal breaks for adults
No state requirement, per the state's own page. Neither federal law nor Texas law requires meal breaks. A bona fide meal period of 30 minutes or more can be unpaid if the employee is completely relieved of duty.
neither the FLSA nor Texas law requires employers to give breaks during the workday
Source: Texas Guidebook for Employers (TWC): Breaks, checked November 2026 · More: Meal and rest break laws by state
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ConfirmedRest breaks for adults
No state requirement, per the state's own page. Neither federal law nor Texas law requires rest breaks; breaks of 20 minutes or less that an employer gives are paid hours worked.
neither the FLSA nor Texas law requires employers to give breaks during the workday
Source: Texas Guidebook for Employers (TWC): Breaks, checked November 2026 · More: Meal and rest break laws by state
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Not confirmedBreaks for workers under 18
Not confirmed — check Texas Guidebook for Employers (TWC): Breaks.
6. Workers' compensationCoverage, posters and proof.
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ConfirmedWorkers' compensation insurance
Private employers choose whether to carry it. Employers without it are non-subscribers and must file notices and post a notice of no coverage.
In Texas, private employers can choose whether to provide workers' compensation insurance coverage.
- Owners and officers: If the business has coverage, a sole proprietor, partner or corporate executive officer is covered as an employee unless specifically excluded by a policy endorsement (Labor Code 406.097, as quoted by TDI).
- Poster: Covered employers post Notice 6 (commercial insurance), Notice 7 (certified self-insurer) or Notice 10 (self-insurance group). Non-subscribers post Notice 5, in English and Spanish, and tell new hires in writing.
- Check a policy: Use the division's Verify employer coverage page.
- Non-subscribers file a notice of no coverage each year between February 1 and April 30; those with five or more employees also report lost-time injuries.
Source: Employer FAQ (Texas Department of Insurance, DWC), checked November 2026 · More: Texas workers' comp
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ConfirmedIf there's no coverage
Going without coverage isn't itself penalized on the pages we read, but a non-subscriber that doesn't file the notice of no coverage (DWC Form-005) or doesn't tell new employees in writing may face administrative penalties (Labor Code 406.004 and 406.005).
Source: Employer FAQ (Texas Department of Insurance, DWC), checked November 2026 · More: Texas workers' comp
7. Final payWhen someone leaves.
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ConfirmedFinal pay when you let someone go
Within 6 calendar days of discharge.
due within six (6) calendar days of discharge
Source: TWC: Final Pay (Texas Guidebook for Employers), checked November 2026 · More: Texas final paycheck law
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ConfirmedFinal pay when an employee quits
On the next regularly scheduled payday after the effective date of resignation.
due on the next regularly-scheduled payday following the effective date of resignation
- Unused vacation: Only if the employer promised it in a written policy or agreement; the policy's wording controls what's owed.
Source: TWC: Final Pay (Texas Guidebook for Employers), checked November 2026 · More: Texas final paycheck law
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ConfirmedFor a laid-off employee: the state's work search rule
Your local Workforce Development Board sets the minimum, from 1 to 5 a week depending on your county (5 in Harris, Dallas, Travis and Bexar counties in November 2026). TWC sends you a letter with your number; rely on the letter over the county list.
Source: TWC: Work search requirements, checked November 2026 · More: Texas work search rules
8. Year-end W-2 and 1099 filingState copies, due in early 2027 for 2026 pay.
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ConfirmedState copies of W-2s and 1099s
No state income tax, so there is no state 1099 or W-2 filing to make on the pages we opened. Federal filing still applies.
Source: Texas Comptroller: A Field Guide to the Taxes of Texas, Publication 96-1774 (December 2025), checked November 2026 · More: 1099 and W-2 deadline finder
Key dates for 2027
Only the dates our files state. A date on a weekend or holiday is flagged, not moved, unless the agency's page says it moves.
| Date | What | Source |
|---|---|---|
| Sunday, January 31, 2027 | Unemployment tax report and payment for the fourth quarter of 2026 Falls on a Sunday. This is the date as the agency states it; check its rule for weekend due dates (see step 1). | |
| Monday, February 1, 2027 | Form W-2 Copy A (with W-3) to SSA, and employee copies (federal) | |
| Monday, February 1, 2027 | Form 1099-MISC copies to payees (federal) | |
| Monday, February 1, 2027 | Form 1099-NEC to the IRS and to each payee (federal) | |
| Monday, March 1, 2027 | Form 1099-MISC to the IRS on paper (federal) | |
| Wednesday, March 31, 2027 | Form 1099-MISC to the IRS electronically (federal) | |
| Friday, April 30, 2027 | Unemployment tax report and payment for the first quarter of 2027 | |
| Saturday, July 31, 2027 | Unemployment tax report and payment for the second quarter of 2027 Falls on a Saturday. This is the date as the agency states it; check its rule for weekend due dates (see step 1). | |
| Sunday, October 31, 2027 | Unemployment tax report and payment for the third quarter of 2027 Falls on a Sunday. This is the date as the agency states it; check its rule for weekend due dates (see step 1). |
Still to confirm
- Taxable wage base for 2027: check TWC: Tax Rates
- E-Verify for private employers: check Bill Analysis, S.B. 324 (89R), Senate Research Center
- Breaks for workers under 18: check Texas Guidebook for Employers (TWC): Breaks
Texas kit
Texas Employer Compliance Kit 2027
This checklist as a printable document with every source link and check date, a 2027 deadline calendar, a start-here guide, and an Excel workbook with a deadline tracker and new-hire and pay-change checklists, all built from the same data as this page.
Get the kit, $19 Or the 2027 Employer Compliance Bundle (7 Kits), $59
General information, not legal, tax or payroll advice. We are not lawyers, and MCC Solutions is not a law firm or a payroll service. Nothing here guarantees compliance. Rules change, cities and counties can add their own, and the agency's own page has the final word.
Common questions
What is the Texas unemployment tax wage base for 2027?
Not confirmed in our data files. Check TWC: Tax Rates (https://www.twc.texas.gov/programs/unemployment-tax/tax-rates). The latest published base is $9,000 per employee in 2026.
How soon must a Texas employer report a new hire?
Within 20 calendar days of the hire date. Electronic reports go out every 12 to 16 days.
What is the Texas minimum wage in 2027?
$7.25 an hour; no scheduled change in our data. US DOL's state table (updated November 5, 2026) shows no scheduled change.
Does Texas require paid sick leave?
No statewide paid sick leave law for private employers.
When is a final paycheck due in Texas?
If the employer ends the job: Within 6 calendar days of discharge. If the employee quits: On the next regularly scheduled payday after the effective date of resignation.
Does Texas require state W-2 or 1099 filing?
No state income tax, so there is no state 1099 or W-2 filing to make on the pages we opened. Federal filing still applies.
Do Texas employers need workers' comp?
Private employers choose whether to carry it. Employers without it are non-subscribers and must file notices and post a notice of no coverage.
Related: Employer compliance by state · 2027 changes for employers