Texas Unemployment Insurance for Employers Made Easy with AMS

As in all states, Texas business owners need to pay an unemployment tax, a sum filed and paid by employers to fund unemployment programs across the state. In this state, the Texas unemployment insurance for employers tax rate is the sum of a few components. Generally, your effective tax rate is multiplied by your taxable wages to determine the amount of tax you need to pay. To understand your effective tax rate, you’ll need to figure out a few other rates. We’ll walk you through it.


Understanding Texas Unemployment Insurance for Employers

Below, you’ll find the tax rates necessary to determine your business’s unemployment insurance tax rate.


  • General Tax Rate – This rate reflects your company’s responsibility for repaying benefits to former workers. To get your GTR, multiply your benefit ration by 1.35% (the 2019 replenishment ration). Take note that your General Tax Rate can be negatively impacted if UI taxes are not reported and paid on time.
  • Replenishment Tax Rate – This is a flat tax paid by all employers. The RTR for 2019 is 0.26%.
  • Unemployment Obligation Assessment Rate – The OA is the sum of your Bond Obligation Assessment Rate and the Interest Tax Rate. The 2019 Obligation Assessment Ratio is 0.00%, and the Interest Tax Rate is 0.00%. Put simply, don’t worry about this one for now.
  • Deficit Tax Rate – The 2019 Deficit Tax Rate is 0.00% for 2019.
  • Employment and Training Investment Assessment – This rate is 0.10% of wages paid by an employer.


To determine your Effective Tax Rate, add up the above rates. The minimum tax rate for 2019 is 0.36% and the maximum is 6.36%, but these are subject to change annually.

It may seem complicated, but once you have your Texas unemployment insurance for employers, it’ll be smooth sailing. Plus, there is a range of Quarterly Wage Report filing options to make your process easier. Whether you want to go online using QuickFile or mail your wage report through Magnetic Media, there’s an option for every business.

How Payroll Software Can Help

If the section above looks intimidating, you might want to consider investing in accounting software. AMS Payroll , one of our most popular products, updates tax tables as needed, meaning you won’t have to go searching for updated tax rates. This information is then used to automatically calculate local, state, and federal taxes. This semi-automated solution is an excellent way to save both time and money.

More than calculations, AMS Payroll helps employers establish a database of important information. You’ll need to calculate Texas unemployment insurance for employers using payroll and gross wages paid to employees. If you calculate these numbers through a software, they’re sure to be accurate and easily accessible. If you save the process for the last minute, you can also speed through your Quarterly Wage Report on the software, too.



If this sounds like a product you want to try, we encourage you to do so. AMS products are available as downloadable demos on our website. If you have any questions, call our Sales and Information team at 800-536-1099. With us, Texas unemployment insurance for employers is simpler.

Software Solutions from AMS

Our W-2 and 1099 Forms Filer is our only required platform. From there, users pick the services they need. Choose from the tools below to build out your customized accounting software.