Overview
Texas does not impose a state income tax on wages, so employers are not required to withhold state income tax from employee wages. Employers subject to Texas unemployment insurance must file quarterly wage and tax reports with the Texas Workforce Commission (TWC). The TaxBandits Public API supports the automation of Form C-3 for Texas UI reporting.
Forms supported
| Form | Type | Filing Frequency | Due Date |
|---|---|---|---|
| C-3 | UI | Quarterly | Last day of the month following the quarter |
Form Details
Form C-3 – Employer's Quarterly Report
Form C-3 is used to report quarterly employee wages, taxable wages, excess wages, and unemployment insurance contributions to the Texas Workforce Commission. Employee wage details must also be reported as part of the quarterly filing.
Key compliance notes
- Texas does not have a state individual income tax on wages; therefore, there is no state withholding return for employee wages.
- Employers subject to Texas UI must file a quarterly Form C-3.
- Zero filing is required. Form C-3 must be filed even when no wages were paid during the quarter.
- The 2026 taxable wage base is $9,000 per employee.
- Form C-3 reports both the employer's UI tax information and individual employee wage details.
Filing Due Dates
| Quarter | Reporting Period | Due Date |
|---|---|---|
| Q1 | January – March | April 30 |
| Q2 | April – June | July 31 |
| Q3 | July – September | October 31 |
| Q4 | October – December | January 31 |
The Form C-3 quarterly report is due on the last day of the month following the end of each quarter.
API endpoints
The TaxBandits Public API provides state-specific endpoints for creating, updating, and retrieving Texas UI filings.
Form C-3 (Texas UI)
- Create – Creates a Texas quarterly Form C-3 UI filing. The endpoint supports tax years 2025 and 2026 and quarters Q1 through Q4.
- Update – Updates an existing Form C-3 before it is transmitted. A return cannot be updated after transmission.
- Get – Retrieves the details of a previously created Texas Form C-3 filing.
New Hire Reporting
Texas employers must report newly hired and rehired employees to the Texas Employer New Hire Reporting Operations Center within 20 days of the first day on the job. Employers that report electronically may instead report at least twice each month, with reports submitted 12 to 16 days apart.
Authentication
The Texas UI endpoints require an OAuth 2.0 access token obtained through the TaxBandits Auth method. The access token must be passed as a Bearer token in the request header.
Sandbox & Webhooks
The TaxBandits Sandbox can be used to simulate the Texas UI filing and verification flow without submitting actual data to the state agency.
Webhooks can be configured to receive automated status updates for payroll filings instead of repeatedly calling the Status endpoint.