The Texas Workforce Commission announced that it is lowering the unemployment tax rates for all employers in calendar year 2019. The average unemployment insurance (UI) tax rate for all employers will be 1.25% for 2019, dropping from 1.37% in 2018 to its lowest point since 2009. The average tax rate for experience-rated employers is 1.06% for 2019, and is down from 1.20% in 2018.
The minimum tax rate is paid by 340,158 employers, which represents 65.6% of experience-rated employers. The standard minimum UI tax rate paid by Texas employers in 2019 will be 0.36%, which is down from 0.46% in 2018.
Nonprofits Have Other Options
The above applies to most Texas employers except 501(c)(3) organizations. 501(c)(3)s do not have to pay state unemployment insurance taxes – high or low. Even with decreases in unemployment insurance taxes, many organizations are overpaying their unemployment liability. Recent analysis of 501(c)(3) employers reveals that 86% are overpaying into their state unemployment insurance program.
You can calculate your organization’s unemployment insurance overpayment at http://www.501c.com/overpayments/.
Contact us today for more information concerning your nonprofit unemployment insurance tax advantages.