Texas Comptroller Manual of Accounts - Fiscal 2024
Revenue Object 3732 – Unemployment Compensation Penalties

Penalties for violations of Unemployment Compensation Act:

Employers with past due contributions, are liable for of 1.5% interest per month on the owed contribution up to 37.5% of the contribution (213.021).

Employers must pay a penalty for failing to keep proper records, make proper reports, make correct and complete reports or abide by the provisions of the law. Penalty is determined when the report is filed (213.022):

• If the report is filed within the first 15 days, $15.
• Between day 15 and the end of the month, $30 plus 1/20 of 1% of wages paid which employer failed to report.
• For second month, an additional $30 plus 1/10 of 1% of wages paid.
• For third month, additional $30 plus 1/5 of 1% of wages paid.

It is a Class A misdemeanor for fraudulently attempting to obtain or increase benefits (214.001) or to prevent or reduce benefits (301.081).

For requiring or accepting a waiver or deduction in wages to finance a contribution or reimbursement required to be paid by an employer, a fine between $100 and $1,000.

For other violations -- $30 for each day plus $30 for a continuing violation (213.024).

If a person has received a benefit by misrepresentation, the benefit is forfeited and a penalty equal to 15% of the forfeited amount is assessed (214.003).

Failure of a person contracting with an governmental entity to properly classify an individual as an employee or independent contactor is a $200 per person penalty (214.008(c)).

When above violations have been proved.

Amended by H.B. 752, 73rd Leg., R.S.

Previously administered by the Texas Employment Commission (322) abolished by H.B. 1863, 74th Leg., R.S. and moved to Agency 320.

Amended by H.B. 2120, 80th Leg., R.S.

S.B. 658, 83rd Leg., R.S. added 15% penalty on forfeited benefits.

H.B. 2015, 83rd Leg., R.S. added $200 classification penalty. Was not exempted in funds consolidation bill (H.B. 6), therefore deposited to GR.