Texas Payroll‑Tax Deadlines 2025: Never Miss a TWC or IRS Date

If you're running payroll in Texas, you've got good news and bad news. The good news? No state income tax to withhold from your employees' paychecks. The bad news? You still have plenty of deadlines to track, and missing even one can cost you dearly in penalties and interest.

Let's walk through everything you need to know about Texas payroll tax deadlines for 2025, from your quarterly TWC filings to those monthly federal deposits that keep the IRS happy.

Understanding Your Texas Payroll Tax Obligations

Texas keeps things relatively simple on the state level. You're only dealing with one state payroll tax: unemployment insurance (UI) through the Texas Workforce Commission. That's it. No state income tax withholding, no state disability insurance, just unemployment tax that you pay as an employer.

The federal side is where things get more complex. You're responsible for withholding federal income tax from employee paychecks, plus collecting and matching Social Security and Medicare taxes. Add in federal unemployment tax (FUTA) and the occasional Additional Medicare Tax for high earners, and you've got a full plate of tax responsibilities.

For 2025, your Texas unemployment tax rate falls somewhere between 0.25% and 6.25%, plus a 0.15% replenishment tax that everyone pays. New employers typically start at their industry average or 2.7%, whichever is higher. The good news is that you only pay this on the first $9,000 each employee earns annually.

Your TWC Quarterly Deadlines

The Texas Workforce Commission operates on a quarterly schedule, and these deadlines are non-negotiable. Every quarter, you need to file a wage report and pay your unemployment taxes by the last day of the month following the quarter's end.

For 2025, mark these dates on your calendar:

• First Quarter (January-March): Due April 30, 2025
• Second Quarter (April-June): Due July 31, 2025
• Third Quarter (July-September): Due October 31, 2025
• Fourth Quarter (October-December): Due January 31, 2026

When a deadline falls on a weekend or federal holiday, you get a reprieve until the next business day. But don't count on these grace periods. The TWC expects electronic filing through their Unemployment Tax Services system, and they're quick to assess penalties and interest on late submissions.

New employers face an even tighter timeline. You have just 10 days from when you first become liable for unemployment taxes to register with the TWC. This typically happens when you pay wages totaling $1,500 or more in a calendar quarter, or when you have at least one employee for 20 different days in a calendar year.

Federal Payroll Tax Deadlines

The IRS divides employers into two categories: monthly depositors and semi-weekly depositors. Most small to medium businesses fall into the monthly category, which means your federal payroll taxes are due by the 15th of the following month.

Here's what that looks like in practice. Your January payroll taxes are due February 15 (or February 18 in 2025 due to President's Day). February's taxes are due March 15, and so on throughout the year. When the 15th falls on a weekend or holiday, the deadline shifts to the next business day.

Semi-weekly depositors face a tighter schedule. If you run payroll on Wednesday, Thursday, or Friday, your federal tax deposit is due the following Wednesday. For payrolls processed Saturday through Tuesday, the deposit is due by Friday.

Beyond these regular deposits, you also have quarterly Form 941 filings. These comprehensive returns summarize all your federal tax withholdings and deposits for the quarter. They're due on the same schedule as your TWC reports: April 30, July 31, October 31, and January 31. If you've made all your deposits on time, the IRS grants an automatic 10-day extension.

The January 31 Gauntlet

If there's one date that keeps payroll managers up at night, it's January 31. This is when numerous annual forms converge into what many call "the payroll professional's Super Bowl."

On this single day, you need to deliver W-2s to all your employees, submit Form W-3 to the Social Security Administration, and file Form 940 for your annual federal unemployment taxes. If you have agricultural workers, Form 943 is also due. Small employers eligible for Form 944 face the same deadline, as do those filing Form 945 for non-payroll withholdings.

The key to surviving January 31 is preparation. Start gathering employee information in early December. Verify addresses, confirm Social Security numbers, and reconcile your quarterly filings with year-to-date totals. The more you do in advance, the less frantic those final January days become.

Building a Compliance System That Works

Success with payroll tax deadlines isn't about heroic last-minute efforts. It's about building systems that make compliance automatic. Start by embracing electronic filing for everything. Both the TWC and IRS prefer electronic submissions, and for good reason. You get instant confirmation, eliminate mailing delays, and create an automatic audit trail.

The TWC's Unemployment Tax Services portal handles all your state requirements, while the IRS Electronic Federal Tax Payment System (EFTPS) manages federal deposits. These systems might seem cumbersome at first, but once you're set up, they save tremendous time and reduce errors.

Consider this three-layer approach to deadline management. First, use payroll software that automatically calculates taxes and reminds you of upcoming deadlines. Second, maintain a physical or digital calendar with all deadlines marked, including five-day warning reminders. Third, assign a specific person on your team to own tax compliance, with a backup person who knows the processes.

Common Pitfalls and How to Avoid Them

Late payments hurt more than you might expect. The TWC charges interest from day one on late payments, and penalties compound quickly. Federal penalties start at 2% for deposits that are one to five days late, jumping to 5% for six to fifteen days, and reaching 10% or even 15% for chronic lateness.

Employee classification errors create another expensive trap. Misclassifying employees as independent contractors can trigger back taxes, penalties, and interest at both state and federal levels. When in doubt, err on the side of classification as an employee. The tests for independent contractor status are strict, and the consequences of getting it wrong far outweigh any short-term savings.

Calculation mistakes, while less dramatic, still cause problems. Common errors include:

• Forgetting to stop UI tax collection after an employee reaches the $9,000 wage base
• Missing the $200,000 threshold for Additional Medicare Tax
• Using outdated tax rates
• Calculating deposits on net pay instead of gross wages

Technology as Your Compliance Partner

Modern payroll systems have transformed tax compliance from a monthly scramble into a largely automated process. Good payroll software calculates withholdings automatically, alerts you to upcoming deadlines, and can even file returns directly with tax agencies.

Popular options like ADP, Paychex, Gusto, and QuickBooks Payroll offer different features and price points, but all provide the basic automation you need. The investment in proper payroll software pays for itself quickly through reduced penalties and saved administrative time.

Special Considerations for 2025

This year brings some notable updates. The TWC continues modernizing through its Texas Unemployment System (TxUS) project, which may bring interface changes but shouldn't affect your deadlines. Texas employers can celebrate the absence of a deficit tax for 2025, keeping rates lower than they might otherwise be.

On the federal side, the Social Security wage base increased to $176,100 for 2025, affecting higher-paid employees. Texas remains in good standing with FUTA credit, meaning you continue to receive the maximum credit reduction. New employers should note they automatically start as monthly depositors for federal taxes.

When Deadlines Slip

Despite best efforts, sometimes deadlines get missed. When this happens, your response matters almost as much as the original deadline. File immediately, even if you can't pay in full. The failure-to-file penalty is typically worse than the failure-to-pay penalty.

Pay what you can to minimize interest charges, and contact the appropriate agency if you need a payment plan. Both the TWC and IRS offer installment agreements for employers facing temporary cash flow issues. Document everything, including your efforts to comply and any communication with tax agencies.

Natural disasters provide one legitimate exception to rigid deadlines. Both state and federal agencies offer automatic extensions for businesses in federally declared disaster areas. If your area faces hurricanes, floods, or other emergencies, check agency websites for updated filing deadlines.

The Path Forward

Managing Texas payroll taxes doesn't require an accounting degree, but it does demand organization and consistency. The deadlines never change, which is both a blessing and a curse. You can plan years in advance, but there's no excuse for being caught off guard.

Set up your systems now, before the quarterly rush begins. Embrace electronic filing, invest in decent payroll software, and treat tax deadlines as sacred. Your business will run smoother, your stress levels will drop, and you'll avoid those painful penalty notices that nobody wants to explain to ownership.

Remember that tax laws evolve, rates change annually, and new requirements emerge. Stay connected with TWC and IRS communications, and don't hesitate to seek professional help when situations get complex. The cost of good advice is always less than the cost of non-compliance.

With proper planning and the right tools, you can transform payroll tax compliance from a source of anxiety into just another routine business process. That's the goal for 2025: making the extraordinary become ordinary, one deadline at a time.