Quarterly Contribution and Wage Report in Houston, Texas (2026)
Miss this mandatory payroll report, and the Texas Workforce Commission will assess penalties and interest, potentially jeopardizing your business’s good standing. For Houston restaurant owners, the Quarterly Contribution and Wage Report (also called the Texas unemployment tax report) is filed electronically with the Texas Workforce Commission (TWC). Key facts:
- 0 required fields – ApronPrep auto-fills 0 of these.
- $0–$0 in government filing fees (no fee for filing, but employer UI tax contributions are due).
- Varies processing time based on payment method and submission.
Analyzed from Quarterly Contribution and Wage Report
0% from one compliance interview
Manual entry or document upload required
Why You Need a Quarterly Contribution and Wage Report
The Quarterly Contribution and Wage Report is mandated by the Texas Unemployment Compensation Act (Texas Labor Code, Title 4, Subtitle A, Chapter 201 et seq.). It serves as the primary mechanism for the Texas Workforce Commission (TWC) to calculate your unemployment insurance tax liability and ensure your employees' wage credits are accurately recorded for future benefit claims. All employers subject to the Act—which includes nearly all restaurant businesses in Houston—must file this report for each calendar quarter, regardless of whether wages were paid. The TWC uses this data to determine your business's experience rating, which directly impacts your future tax rate.
Failing to file or pay on time triggers a cascade of penalties that can significantly disrupt your finances. Common consequences include:
- Penalty Assessments: The TWC imposes a penalty of 5% to 15% of the unpaid contributions for each month the report or payment is late, with a minimum penalty of $25. These penalties are non-waivable in most cases.
- Interest Charges: Unpaid contributions accrue interest at the rate set by the Texas Comptroller, compounding daily from the original due date.
- Administrative Holds & Liens: Persistent non-compliance can lead to the TWC placing a lien on your business assets, which can affect your ability to obtain loans, renew leases, or sell the business. It may also block your ability to secure or renew other local business licenses.
- Fraud Penalties: Knowingly providing false information can result in a penalty of 50% of the contributions due, plus potential criminal charges.
Legal code: State unemployment insurance act, employer registration requirements
Recent update: As of 2026, the Texas Workforce Commission (TWC) requires all employers to file the Quarterly Contribution and Wage Report electronically via their TWC online services portal; paper filings are no longer accepted for standard submissions, accelerating the verification and processing timeline.
Who Needs a Quarterly Contribution and Wage Report?
| Type | Required | Notes |
|---|---|---|
| Restaurant (Full-Service) | Required | Required. Any business with employees and subject to the Texas Unemployment Compensation Act must file quarterly wage reports with the Texas Workforce Commission (TWC). |
| Bar / Nightclub | Required | Required. Employers in this industry with one or more covered employees must report wages quarterly to the Texas Workforce Commission (TWC). |
| Food Truck | Required | Required. Businesses with employees operating mobile food units are considered employers under TWC rules and must file quarterly. |
| Coffee Shop / Café | Required | Required. Any café with paid employees must submit quarterly wage reports, regardless of business size or revenue. |
See which restaurant types need this requirement — and which don't.
See Full Requirements →Top 5 Quarterly Contribution and Wage Report Mistakes
1. Incorrectly Reporting Total Wages
Submitting a total wage figure that doesn't match the sum of individual employee wages on the report is a top cause of audit flags. This discrepancy triggers a manual review by the Texas Workforce Commission (TWC), which can add 2-4 weeks to your processing timeline and result in penalty assessments. Always cross-check your total reported wages against your payroll summaries before submission.
2. Using an Outdated Employer Account Number
Filing with an old or incorrect TWC Employer Account Number leads to immediate rejection. This often happens after a business restructuring or address change that wasn't updated with TWC. The consequence is a full rejection of the quarterly report, requiring a correction and re-filing that delays your compliance by at least one payroll cycle. Verify your current 8-digit account number in your TWC online portal before every filing.
3. Omitting New Hires from the Wage Detail
Forgetting to add employees hired mid-quarter to the wage listing is a common oversight. For example, listing only 8 employees when you paid 9 creates a mismatch with your unemployment insurance (UI) tax calculation. The TWC will issue a notice of underpayment, requiring an amended report and potentially incurring interest on the late-paid contributions. Maintain a running list of all employees paid each quarter, regardless of hire date.
Skip the Paperwork on Your Quarterly Contribution and Wage Report
ApronPrep auto-fills 0 of 0 fields from one compliance interview.
No credit card required
Quarterly Contribution and Wage Report by City in Texas
| City | Fee Range | Timeline |
|---|---|---|
| Dallas | ||
| Houston | ||
| San Antonio | No separate fee for filing; based on employer's UI tax rate contribution | Quarterly deadline typically 30 days after end of quarter; reports due last day of month following quarter end |
Timeline: 4-8 Weeks for a Complete Quarter Submission Cycle
Gather Required Payroll Data and Employer Account Details
Compile gross wages paid, employee names, SSNs, and tips for the quarter. You'll also need your Texas Workforce Commission (TWC) Tax Account Number and your state unemployment tax rate. Having your payroll software summary reports ready saves hours; manual entry from handwritten ledgers is the top cause of calculation errors leading to notices.
Log In and File Report via TWC's Unemployment Tax Services Portal
Access the TWC Unemployment Tax Services website using your TWC User ID. You must file the Quarterly Wage Report (Form C-3) and Contribution Report (Form C-4) together, even if you paid no wages. Set up Electronic Funds Transfer (EFT) through the portal for the contribution payment to avoid penalties. Missing the filing deadline, even with a zero-wage report, triggers a non-filer penalty.
Review, Submit, and Pay Any Contributions Due
After entering wage details, the portal calculates your unemployment tax contributions. Review all entries for accuracy before final submission, as corrections after filing require contacting TWC directly. Pay any balance due immediately via EFT to stop interest accrual. A common mistake is paying contributions but forgetting to submit the actual wage report, which results in a non-filing penalty.
Where to Apply
Applications go to the Texas department of unemployment assistance. Local procedures and fees may vary — select your city below.
Other Requirements You'll Need
This is one of 13 requirements for opening a restaurant in Texas.
ADA Compliance Self-Certification
federal
Alarm System Permit/Registration
local
Application for Employer Identification Number
federal
Articles of Organization (LLC) or Articles of Incorporation (Corporation)
state
See all co-required forms and how they connect to your compliance dossier.
See All RequirementsProcessing timelines vary widely based on submission volume and data complexity at the Texas Workforce Commission (TWC). While the report itself is filed electronically, any discrepancies or follow-up questions from the TWC can extend the review period. For consistent, on-time filing to avoid penalties, you must pair this report with accurate state-level registrations like the Articles of Organization (LLC) or Articles of Incorporation (Corporation).
The Texas Workforce Commission (TWC) does not charge a government filing fee for submitting the quarterly contribution and wage report. However, the contributions you are reporting and remitting (unemployment insurance taxes) are separate financial obligations based on your payroll. You must verify your specific tax rate and contribution amounts with the TWC, as they are determined by your business classification and claims history.
No, the report itself is not transferable. Each filing is specific to a reporting quarter and your assigned TWC account number. If you move your business to a new location within Texas, you must update your physical address with the TWC and continue filing reports under the same account. A change in your business location may also require you to update local permits, such as a City Business License/Registration with the City of Houston.
You do not renew the report; you file it four times per year, by the last day of the month following the end of each calendar quarter (April 30, July 31, October 31, and January 31). This is a continuous, ongoing requirement for any employer subject to the Texas Unemployment Compensation Act. Failure to file by these statutory deadlines results in penalties, regardless of whether you owe contributions for the quarter.
There is no physical inspection for this report. The TWC conducts audits of your wage and contribution records to verify the accuracy of your filings. This desk audit involves comparing your reported wages against payroll records, employee names, and Social Security numbers. Maintaining organized records, including those related to federal requirements like Application for Employer Identification Number data, is critical to passing an audit efficiently.
About This Data
This guide is generated from ApronPrep's compliance dossier system, which uses 53 parallel AI authority experts to discover requirements, then downloads actual forms and generates field-level intelligence for each one.
For Texas specifically, we have analyzed compliance dossiers for 3 cities (Dallas, Houston, San Antonio), generating Rich FILs (Form Intelligence Layers) with 0 form fields analyzed for this requirement. Fee data is sourced from actual county department fee schedules, not estimates.
Our data is verified against official government sources and updated when regulatory changes are detected. If you find an error, please report it — accuracy is our core commitment.
Sources
- State unemployment insurance act, employer registration requirements
- San Antonio — Department of Unemployment Assistance / Employment Security
This Form Is One of 60+ Requirements.
ApronPrep discovers every permit your city requires — including the ones generic checklists miss. Pick your city for the complete package.