Texas Payroll Instructions

Payroll Links

Goldenseal Payroll Software Info

US Federal Withholding Tables

Free 2021 Payroll Tax Table Updates

Other Links

Texas has no state income tax, and no payroll tax withholding. However, employers still need to withhold federal tax, Medicare and social security, and pay several employer taxes (including Medicare, social security, SUTA and FUTA).

HINT-- Turtle Creek Software provides free annual updates for US federal and Texas tax withholding rates.

Texas State Withholding Instructions

To enter withholding information for an employee in your Goldenseal company file, follow these steps:

  1. Choose Employees from the Accounts menu.
  2. Locate the employee record.
  3. Click the Payroll Setup button.
  4. Enter the employee's marital status into the Marital Status field.
  5. Enter the number of federal dependents into the Federal Exemptions field.
  6. Enter the Texas Tax Package into the Tax Package field. HINT-- If you don't see it in the list, you'll need to import the tax info first.
  7. Click OK.

Texas State Unemployment Tax Instructions

In 2021 the Texas SUTA tax for unemployment insurance applies to the first $9,000 in wages for each employee (unchanged since 2006). The starting rate for a new company is 2.7% (except for some industries that have a higher rate). Rates for experienced companies range from .29% to 7.7% depending on their ratio of contributions to claims.

To enter your Texas state SUTA tax rate into the Goldenseal payroll software, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
  2. You'll see a list of Tax Items. Locate the Texas SUTA tax in the list, and double-click on it. HINT: If you don't see Texas SUTA in the list, you'll first need to import your state's payroll tax tables.
  3. Enter the percentage rate for your business into the percent field to the right of Calculation method.
  4. If the cutoff has changed, enter it into the dollar field next to First Adjustment.

Texas Marital Status

Use the following to determine the value for the Marital Status popup menu in each Employee account:

  • Single- single employee
  • Married- married employee
  • Dual Income- not used
  • Head of House- employee claims Head of Family status
  • Other- not used

An additional deduction of Annual Federal tax withheld is already factored into the Alabama state withholding calculation.

LIttle Known Texas Tax Fact

There is a Texas Tack Tax of two tenths of a cent per tack. This tax was enacted so Texas legislators could polish their elocution, while debating its renewal each year.

Texas Tax Contacts

Taxation website

SUTA-- 512 463-2222

Official State Lawn Ornament