We are notifying our employers of an issue with the filing deadline in Texas for the third quarter this week.  While this notice is going out to all our clients, I also thought it important enough to post on our blog in case anyone is out there searching on these rules for Texas. 

Situation

The third quarter, 2009 unemployment insurance contribution report filing deadline of October 31st falls on Saturday this year.

What Employers Need to Know

According to Texas law, if the quarterly filing deadline falls on a Saturday, Sunday or a legal holiday, it is extended to the following business day. No penalty will be assessed as long as the report and payment are postmarked or filed electronically before midnight CST the next business day. That date is Monday, November 2nd for this quarter.

Since the computation date for employer’s 2010 rate calculations is September 30, 2009, another section of the law applies. Only taxable payroll from reports filed and paid by October 31, 2009 is included in the 2010 unemployment insurance rate calculation. That date is NOT extended; therefore, employers should plan on filing and making payment by October 31, 2009 to ensure proper credit in their rate calculation. Not getting credit for the third quarter taxable payroll could have a detrimental effect on the 2010 rate assignment.

Bottom Line

Even though you have til the 2nd to file your report, doing so will likely have a negative impact on your 2010 state unemployment insurance rate calculations in Texas.  You want to plan to file on the 30th to avoid problems. 

Tammy Mullin