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R - Reimbursable

A reimbursable employer:

• pays into the state unemployment fund, in lieu of taxes, an amount equal to the amount of benefits paid to former employees for service while employed by the employer.
• reports wages for employees and is billed quarterly for the amount of regular benefits and 50% of the extended benefits paid to former employees during the prior quarter.
• makes no tax payments but is subject to the same penalties for failure to file reports and/or make payments on time.

T - Taxable

A taxable employer:

• pays a tax assessed by the TWC based on taxable wages paid during a quarter, multiplied by the effective tax rate of the employer.
• reports total amount of gross wages and total amount of taxable wages paid, and provides employee wage list with all employee names/social security numbers/total gross wage paid quarterly.
• pays tax quarterly.