RE: They pick it all up for the 941's and W-2's  but leave all his payroll off the State UI return  (Texas). Why?

This is unrelated to having two employee records for the same employee or making an employee inactive.

When an employee is not included on a SUI form, it means they don't have any transactions that include the SUI tax for the reporting period. In turn, that commonly happens when the tax was de-selected on the employee record, or the state wasn't set up at all - so no state taxes were added to the record record or to the paychecks. Both cases would have resulted in a warning message as the employee was set up.

You can check the paychecks for the quarter to see if the SUI items is included in the company box, and then the employee record to see if the SUI tax is checked for TX.

If not, then that's the cause. To fix it, enter an employee liability adjustment for the SUI tax for the quarter, including the correct tax amount and SUI wages.