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Texas payroll services and resources

Here’s what we’ll cover

Compensation

Withholding

Benefits

Payroll services

Resources

Payroll for Texas employees

Texas employers have a lot to consider when complying with payroll laws. From minimum wage requirements to unemployment taxes, there are a few highlights every Texas employer should keep in mind.

Understanding Texas’s minimum wage

The Texas Workforce Commission oversees unemployment benefits and other services related to employment and Texas’s minimum wage.
  • Texas sets its minimum wage to the federal minimum wage rate. In 2020, the federal minimum wage was $7.25 per hour.
  • Employers are allowed to count tips and the cost of work-related meals and lodging towards an employee’s minimum wage.
  • Agricultural workers may earn the minimum wage. But those who harvest crops can also earn more, or a “piece rate,” for producing or picking higher quantities.
  • Employees who are patients of the Texas Department of Mental Health and Mental Retardation, or whose age or disability affects their productivity, may earn less than the minimum wage. Other exceptions to the standard minimum wage requirement include prison inmates, apprentices, and students.

Texas income tax withholding

Texas employers must withhold Medicare and Social Security taxes as part of an employee’s federal payroll taxes. But the state of Texas does not have its own state or local income tax. So Texas employers do not have to withhold state or local income taxes from their employees’ paychecks.

Texas employee benefits

Texas law doesn’t require employee benefits such as paid time off, health insurance, retirement plans, and paid breaks. Most Texas employers can choose whether or not to offer these benefits to their employees. If an employer offers benefits, they should create their own benefits policies that comply with the Texas Payday Law.
Sick time: Texas labor laws don’t require employers to pay for time not worked, including sick time.
Vacation time: Texas employers are not required to pay for time off for vacations or holidays. If an employer offers paid vacation time, they can create policies and rules for how employees earn, accrue, and use the time off. Employers can also decide if they’ll pay earned and unused vacation time when an employee leaves the company.
Health insurance benefits: Health insurance benefits are not required for most Texas businesses. If an employer decides to offer health insurance, all employees who work 30 hours or more must be eligible for coverage.
Retirement benefits: Retirement benefits are not required for Texas businesses. Employers may decide to offer retirement benefits. Any employee who works 1,000 hours or more in a 12-month period must be allowed to participate.
Workers’ compensation: Workers’ comp insurance is not required for private employers in Texas, except when they are contracting with the government. Employers who choose not to offer workers’ comp still need to follow certain requirements, however. Employers have to tell new employees in writing that they’re not covered by workers’ comp. Employers must also post a written notice of this in the workplace and report worker injuries and deaths to the Texas Division of Workers’ Compensation.
Family and medical leave: In Texas, most public and private employers with 50 or more employees must provide family and medical leave under the Family and Medical Leave Act (FMLA). The same goes for all public agencies and elementary and secondary schools, regardless of their number of employees. To be eligible for leave, employees must have worked for their employer at least a year and worked 1,250 hours or more. The FMLA provides job-protected time off to:
  • Bond with a newly born, adopted, or fostered child.
  • Care for a family member with a serious health condition.
  • Assist loved ones when a spouse, domestic partner, child, or parent is deployed abroad on active military service.

Full-service payroll for Texas state businesses

If you’re a Texas state business, you’ll need online payroll services that help you stay tax compliant and save time.
Payroll Core helps you manage payroll, calculate taxes, and access expert product support.**
Payroll Premium adds powerful tools, including same-day direct deposit, mobile time tracking, and help with HR compliance.*
Payroll Elite offers customized setup, a personal HR advisor, tax penalty protection, and 24/7 support.**.
All plans come with full-service payroll and include automated taxes and forms.**

State resources

Texas employers can find more information on labor laws, taxes, and business development through state government resources.
Federal resources
The U.S. Department of Labor provides information for employers looking for federal payroll-related information and assistance. These resources are a good place to start:
The Small Business Administration (SBA) also has information relevant to employers and those considering starting their own business. Business owners can visit multiple Small Business Development Centers across Texas. In 2020, the SBA also launched coronavirus relief programs for struggling businesses.
QuickBooks Payroll resources
The QuickBooks Resource Center offers tips and resources for small businesses, including processing and calculating payroll. As a small business owner, it’s smart to become familiar with these best practices.
Frequently asked questions
Disclaimer
This content is for information purposes only and should not be considered legal, accounting or tax advice, or a substitute for obtaining such advice specific to your business. Additional information and exceptions may apply. Applicable laws may vary by state or locality. No assurance is given that the information is comprehensive in its coverage or that it is suitable in dealing with a customer’s particular situation. Intuit Inc. does not have any responsibility for updating or revising any information presented herein. Accordingly, the information provided should not be relied upon as a substitute for independent research. Intuit Inc. does not warrant that the material contained herein will continue to be accurate nor that it is completely free of errors when published. Readers should verify statements before relying on them.
We provide third-party links as a convenience and for informational purposes only. Intuit does not endorse or approve these products and services, or the opinions of these corporations or organizations or individuals. Intuit accepts no responsibility for the accuracy, legality, or content on these sites.
Guarantee
QuickBooks Online Payroll – Tax penalty protection: Only QuickBooks Online Payroll Elite users are eligible to receive the tax penalty protection. If you receive a tax notice and send it to us within 15 days of the tax notice, we will cover the payroll tax penalty up to $25,000. Intuit cannot help resolve notices for customers in Collections with the IRS because IRS Collections will only work with businesses directly. Additional conditions and restrictions apply. Learn more about tax penalty protection.
*Offer terms
QuickBooks Online Payroll Discount Offer Terms: Discount applied to the monthly price for QuickBooks Online Payroll Core, Premium, or Elite (“Payroll”) (collectively, “QuickBooks”) is for the first 3 months of service, starting from the date of enrollment, followed by the then-current monthly list price. Your account will automatically be charged on a monthly basis until you cancel. Each employee is an additional $4/month for Core, $8/month for Premium, and $10/month for Elite. Contractor payments via direct deposit are $4/month for Core, $8/month for Premium, and $10/month for Elite. Payroll service optimized for up to 50 employees or contractors and capped at 150. The Payroll service includes 1 state filing. If you file taxes in more than one state, each additional state is $12/month for only Core and Premium. There is no additional charge for additional state tax filings in Elite. The discounts do not apply to additional employees and state tax filing fees. If you add or remove services, your service fees will be adjusted accordingly. Sales tax may be applied where applicable. To be eligible for this offer you must be a new QuickBooks customer and sign up for the monthly plan using the “Buy Now” option. This offer can’t be combined with any other QuickBooks offers. Offer available for a limited time only. To cancel your subscription at any time go to Account & Settings in QuickBooks and select “Cancel.” Your QuickBooks cancellation will become effective at the end of the monthly billing period. You will not receive a pro-rated refund; your access and subscription benefits will continue for the remainder of the billing period. Terms, conditions, pricing, special features, and service and support options subject to change without notice.
**Features
Auto Payroll: Available if the setup for employees and the company is complete, all employees are salaried employees, all employees are set up on direct deposit, bank verification and e-services are enabled, the account has not been on hold in the last 6 months, and the first payroll has been run successfully.
Automated tax payments and filings: Automated tax payments and filing are available only for state and federal taxes. Enrollment in e-services is required. Local taxes require the user to print the forms and upload them to the necessary local sites. QuickBooks Online Payroll Core does not offer local tax payments and filings. Automatic filings for state new hire paperwork are available in QuickBooks Online Payroll Premium and Elite only.
TSheets time tracking: Additional fees may apply. Time tracking included in the QuickBooks Online Payroll Premium and Elite subscription services. Features vary. The TSheets mobile app works with iPhones, iPads, and Android phones and tablets. Devices sold separately; data plan required. Not all features are available on the mobile app and mobile browser. TSheets mobile access is included with your QuickBooks Online Payroll Premium and Elite subscription at no additional cost. Data access is subject to cellular/internet provider network availability and occasional downtime due to system and server maintenance and events beyond your control. Product registration is required.
HR services: HR support is provided by experts at Mammoth, Inc. See Mammoth’s privacy policy and Terms of Use. The HR Support Center is available only to QuickBooks Online Premium and Elite subscriptions. HR Advisor support only available in QuickBooks Online Payroll Elite. HR support is not available to accountants who are calling on behalf of their clients.
Expert review: Available upon request for QuickBooks Online Payroll Premium and Elite.
Expert product support: Included with your paid subscription to QuickBooks Online Payroll. Chat support available 24/7. U.S.-based phone support is available Monday through Friday, 6 AM to 6 PM PT, and Saturday from 6 AM to 3 PM PT. Your subscription must be current. Intuit reserves the right to limit the length of the call. Terms, conditions, features, pricing, service, and support are subject to change without notice. Contact support.
Same-day direct deposit: Available to QuickBooks Online Payroll Premium and Elite users. Payroll processed before 7 AM PT shall arrive the same business day (excluding weekends and holidays). Requires setup of direct deposit and bank verification. Same-day direct deposit may be subject to eligibility criteria. Deposit delays may vary because of third-party delays, risk reviews, or issues beyond Intuit’s control. Same-day direct deposit is available only for employees.
Next-day direct deposit: Available to only QuickBooks Online Payroll Core users. Payroll processed before 7 PM PST the day before shall arrive the next business day (excluding weekends and holidays). Requires setup of direct deposit and bank verification. Next-day direct deposit may be subject to eligibility criteria. Deposit delays may vary because of third-party delays, risk reviews, or issues beyond Intuit’s control. Next-day direct deposit is available for contractors and employees. Direct deposit for contractors is $[4/8/10] per month, per contractor payment. Each employee is $[4/8/10] per month with no additional fees for direct deposit.
** Product information
QuickBooks Online system requirements: QuickBooks Online requires a persistent internet connection (a high-speed connection is recommended) and a computer with a supported internet browser or a mobile phone with a supported operating system (see System Requirements) and an internet connection (a high-speed connection is recommended). Network fees may apply.
QuickBooks Online Payroll mobile app: The QuickBooks Online Payroll mobile app works with iPhones, iPads, and Android phones and tablets. Devices sold separately; data plan required. Not all features are available on the mobile app and mobile browser. QuickBooks Online Payroll mobile access is included with your QuickBooks Online Payroll subscription at no additional cost. Data access is subject to cellular/internet provider network availability and occasional downtime due to system and server maintenance and events beyond your control. Product registration required.
Cancellation policy: You’re free to switch plans or cancel anytime.
#Claims
1. More than 40,000 Texas small businesses: Based on the overall number of Texas small business customers for QuickBooks Online Payroll products as of June 2020.
Terms, conditions, pricing, special features, and service and support options are subject to change without notice.