Employer Voluntary Contribution Analysis

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Texas employers may choose to voluntarily pay all or part of their share of unemployment insurance benefits paid to their former employees in order to lower their tax rate. If an employer voluntarily contributes, their Effective Tax Rate is recalculated and a revised Tax Rate Notice (Form C-22) is issued.
You have two options to analyze the potential effect of a Voluntary Contribution:
  • Calculate the Effective Tax Rate based on a specific Voluntary Contribution Amount.
  • Calculate the Voluntary Contribution Amount required for a desired General Tax Rate.

Tax Rate Notice Amounts

If the employer's Tax Rate Notice shows Chargebacks but no Taxable Wages, the lowest General Tax Rate available is 2.70%. This rate can only be attained by paying the total Chargebacks amount as a Voluntary Contribution.
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$
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$
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  %
Deficit Tax Rate:This information is required.
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  %
General Tax Rate:
  - - -
Effective Tax Rate:
  - - -

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

$
New Effective Tax Rate:
  - - -

   

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

The Desired General Tax Rate is expressed in increments of one-tenth of 1% with maximum of 5.9%.
  %
Voluntary Contribution Amount:
  - - -
New Effective Tax Rate:
  - - -

   

 

These calculations are provided for analysis purposes only and may not reflect actual tax rate changes based on future voluntary contributions. Contact a local tax office for more information.
  • Keep a copy of these calculation results.
  • Include a copy of these calculation results, if paying a Voluntary Contribution by check.
  • A new Tax Rate Notice will be issued 3-5 business days after your Voluntary Contribution is received.