Help - Employer Voluntary Contribution Analysis

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Overview

Assists employers in determining if a Voluntary Contribution payment will achieve a desired tax rate.

Tips

  • The amount of Voluntary Contribution may be equal to all or part of the employer's Chargebacks.
  • A Voluntary Contribution less than the full Chargebacks amount will be applied starting with the most recent Chargebacks on file.
  • A mailed Voluntary Contribution must be postmarked no later than 60 days from the date on the annual tax rate notice to take advantage of this program.
  • You may not revoke the Voluntary Contribution after it has been used to establish the New Effective Tax Rate.
  • Employers who are required to pay unemployment insurance tax by Electronic Funds Transfer (EFT) may not use Unemployment Tax Services online payment service to make Voluntary Contribution payments.

User Information

Name
The name of the logged on user.
User ID
The User ID of the logged on user.
Email Address
  • The email address at which you can receive password reset instructions or email messages regarding this tax account.
  • Update E-mail Address - This will only display when user is an employer. Allows update to the employer's e-mail address.
  • Employer
    The employer's TWC tax account number and name of business. This will only display when an employer is in focus.
    TWC Tax Payment Amount
    The amount owed to TWC. There may be pending transactions that could affect the amount displayed. This will only display when an employer is in focus.
    Report(s) Due
    Indicates the number of reports that are Due or Late. This will only display when an employer is in focus.

    Tax Rate Notice Amounts

    Chargebacks
    Benefits charged to this employer's tax account along with any related predecessor account(s) within the effective rate period.
    Taxed Wages
    Taxable Wages upon which tax has been timely paid within the effective rate period.
    Obligation Assessment Rate
    Assessment consisting of two components: (1) to pay interest on funds borrowed from the Federal government and (2) to pay debt service on bonds issued to supplement the Unemployment Insurance Trust Fund. The Obligation Assessment Rate applies only to those employers who were experience-rated in the previous year.
    General Tax Rate
    Benefit Ratio multiplied by Replenishment Ratio. The product is rounded up to the next tenth and may not exceed 6.00%.
    Effective Tax Rate
    Sum of the General Rate + Replenishment Tax Rate + Obligation Assessment Rate + Employment and Training Investment Assessment for the rating period. Prior years could also include the Deficit Tax Rate and Obligation Assessment Rate.

    Calculate the Effective Tax Rate based on a specific Voluntary Contribution Amount

    Voluntary Contribution Amount
    The amount of contribution to be submitted to offset charges and reduce the General Tax Rate.
    New Effective Tax Rate
    The sum of the recomputed General Tax Rate + Replenishment Tax Rate + Obligation Assessment Rate + Employment and Training Investment Assessment for the rating period. Prior years could also include the Deficit Tax Rate and Obligation Assessment Rate.

    Calculate the Voluntary Contribution Amount required for a Desired General Tax Rate

    Desired General Tax Rate
    The General Tax Rate that you wish to attain expressed in increments of one-tenth of one percent.
    Voluntary Contribution Amount
    The amount of contribution to be submitted to offset charges and reduce the General Tax Rate.
    New Effective Tax Rate
    The sum of the recomputed General Tax Rate + Replenishment Tax Rate + Obligation Assessment Rate + Employment and Training Investment Assessment for the rating period. Prior years could also include the Deficit Tax Rate and Obligation Assessment Rate.

    Buttons

    Submit
    Performs the calculation using the entered values.
    Reset
    Returns all fields in the section to their original values.
    Make Voluntary Contribution Payment
    Takes you to the Make Voluntary Contribution Payment page to make a voluntary contribution payment. This will only display when the logged on user has authority to make payments for this employer and the employer is not required to pay unemployment insurance tax by EFT.

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