Unemployment Insurance Law Summaries
Texas, Unemployment Insurance Law Summaries
The Texas unemployment insurance law is located Vernon's Texas Statutes, Labor Code, Secs. 201.001 to 217.006, as amended; and in the Texas Administrative Code, Rules 301.1 to 301.31. The full text of the law is available beginning at Unemployment Insurance UI-TX ¶4201 .
DEFINITIONS
“Employer:” One who pays wages of $1,500 or more during any calendar quarter in the current or preceding calendar year, or employs at least one individual on each of 20 days during the current or preceding calendar year, each day being in a different calendar week. Generally, an employer who is subject to the FUTA is automatically an employer under the Texas law.
“Employment:” Service, including service in interstate commerce, performed for wages or under any contract of hire, written or oral, express or implied, with exceptions listed below.
Services performed for wages constitute “employment ” unless and until it is shown that the individual is free from control or direction over the performance of the services both under his contract and in fact.
Services by certain agent-drivers or commission-drivers and traveling or city salesmen are covered, service on or in connection with an American vessel or aircraft is covered also if management and control of that vessel or aircraft is within Texas.
“Employment” can include services performed by U.S. citizens outside the U.S., even if the employer has no place of business in the U.S., if the employer is a resident of Texas, is a corporation organized under the laws of Texas, or is a partnership or trust mainly based in Texas, or, under some circumstances, simply if the benefit claim is filed in Texas.
“Wages:” Remuneration for personal services, including the cash value of all remuneration in any medium other than cash and gratuities received by an employee to the extent that they are considered wages under the FUTA.Term “wages” does not include the following:
Remuneration over $9,000 paid to an individual with respect to employment in a calendar year, counting remuneration paid by employer's predecessor (if joint application for transfer of experience has been approved) and for service in another state. (“Wages” for benefit purposes is a different amount.)
Other exclusions from wages are listed at below.
COVERAGE
Generally, an employer who is subject to the FUTA is automatically an employer under the Texas law. Coverage includes service, including service in interstate commerce, performed for wages or under any contract of hire, written or oral, express or implied, with exceptions listed below.
Services performed for wages constitute “employment ” unless and until it is shown that the individual is free from control or direction over the performance of the services both under his contract and in fact.
Services by certain agent-drivers or commission-drivers and traveling or city salesmen are covered, service on or in connection with an American vessel or aircraft is covered also if management and control of that vessel or aircraft is within Texas.
“Employment” can include services performed by U.S. citizens outside the U.S., even if the employer has no place of business in the U.S., if the employer is a resident of Texas, is a corporation organized under the laws of Texas, or is a partnership or trust mainly based in Texas, or, under some circumstances, simply if the benefit claim is filed in Texas.
Agricultural and domestic employers.- Farm and ranch labor is covered if performed by a seasonal worker employed on a truck farm, orchard, or vineyard, or if performed by any other farm and ranch laborer employed by an employing unit that paid cash wages of $6,250 in any quarter of the current or preceding calendar year or employed three or more individuals in such employment for some portion of a day on some 20 days during the current or preceding calendar year.
Farm and ranch labor performed by migrant workers is covered. Farm and ranch labor, if performed by a seasonal worker, is covered employment under the same conditions as if the seasonal worker were a migrant worker, provided that the seasonal worker is working for a farmer, ranch operator, or labor agent who employs migrant workers and is doing the same work at the same time at the same place as migrant workers. If a labor agent furnishes farm and ranch laborers, the labor agent is liable for the payment of taxes as if the labor agent were the employer of the workers, without regard to the right of control or other factors used to determine an employer-employee relationship; however, if the labor agent does not pay taxes, the person with whom the labor agent contracts for the services of the farm and ranch laborers is jointly and severally liable with the labor agent for the payment of taxes.
Domestic service.- Domestic service in a private home, local college club or local chapter of a college fraternity or sorority is covered if performed for an employing unit that paid wages of $1,000 or more for such services in any quarter of the current or preceding calendar year.
Government and nonprofit employers.- Coverage is mandatory for the following services: nonprofit organizations exempt from federal income tax which employ four or more individuals on each of 20 days during the current or preceding calendar year, each day being in a different week; and for the state, any branch or department thereof, or any instrumentality of the state. Political subdivisions of the state are also mandatorily covered. Other government services are not covered.
Nonprofit organizations may finance the payment of benefits by the regular contributions method or the reimbursement method. The state and political subdivisions may elect to pay contributions or use the reimbursement method. Under reimbursement financing, payments must equal the full amount of regular benefits and 50% (100% for governmental employers) of extended benefits paid to claimants. An employer that elects the reimbursement method may be required to execute and file a surety bond.
EXCEPTIONS
Wages.- Term “wages” does not include the following:
Remuneration over $9,000 paid to an individual with respect to employment in a calendar year, counting remuneration paid by employer's predecessor (if joint application for transfer of experience has been approved) and for service in another state. (“Wages” for benefit purposes is a different amount.)
Payments to an individual or his dependents under a plan or system established by the employer on account of retirement, sickness, accident, disability, etc. Also other retirement payments, including amounts paid by the employer for insurance or annuities or into a fund.
Payment of employees' FICA tax without deduction from wages.
Payments from, to, or under trust, annuity, or bond-purchase plan exempt from federal income tax.
Noncash remuneration to an employee for service not in the course of the employer's trade or business.
Payments for sickness or accident disability or medical or hospitalization expenses made over six months after separation.
Stand-by pay (other than vacation or sick pay) made to an employee 65 years of age or older if no work was performed in the period for which the payment was made.
Employment.- The term “employment” does not include the following:
Insurance agents wholly on commission basis.
Interns in employ of hospital who have completed four-year course in state-chartered or approved medical school.
Newspaper and shopping news carriers under 18.
Relatives, i.e., services performed by individual in employ of son, daughter, or spouse, or by child under 21 in employ of parent.
Service covered by federal unemployment compensation system.
Service for a school, college, or university by a student in regular attendance.
Service by a student enrolled at a nonprofit or public educational institution in a full-time work-study program. Not applicable to a program established for an employer or group of employers.
Service for a hospital by a patient of the hospital.
Student nurses in employ of hospital or training school who are attending state-chartered or approved training school.
Service on a fishing vessel with a crew of fewer than ten if each crew member's reimbursement is a share of the catch and such services are excluded under FUTA.
Service performed as a direct seller if the individual is engaged in the business of in-person sales of consumer products to a buyer on a buy-sell, deposit-commission, or similar basis for resale in the home or other than in a permanent retail establishment; substantially all the remuneration is directly related to sales or other output rather than to number of hours worked; and there is a written contract providing that the individual is not treated as an employee for federal tax purposes.
Service performed by a full-time student in the employ of an organized camp is excluded if the camp did not operate for more than seven months in either the current or preceding calendar years or had average gross receipts in any six months in the preceding calendar year that were not more than 33
% of its receipts for the other six months and the student performed services for the camp for fewer than 13 weeks in the calendar year.
Real estate broker or salesperson if the individual is engaged in performing acts or transactions comprehended in the definition of “real estate broker,” the individual is licensed as a real estate broker or salesperson, substantially all the remuneration is directly related to sales or other output and not to number of hours worked, and the services are performed under a written contract that provides that the individual is not treated as an employee for federal tax purposes.
Instructors of persons licensed or seeking licensure as real estate brokers or salespersons if the individual is instructing an educational program or course approved by the Texas Real Estate Commission and his services are performed under a written contract providing that he is not treated as an employee for federal tax purposes.
Traveling or city salesperson (other than as provided above), or independent contractor for wholesaler or sales representative of consumer goods, performing services in connection with trade market facility, or agent-driver or commission driver engaged on a full-time basis in the solicitation on behalf of and the transmission to a principal or orders from wholesaler, retailer, etc.
Product demonstrators, if certain conditions are met.
Services performed at a trade market for a wholesaler or sales representative of a wholesaler or manufacturer of consumer goods under a written contract, or as a salesman for a wholesaler of consumer goods if the wholesaler maintains a regular or seasonal place of business at a trade market facility in a city with a population of more than 750,000.
Private for-profit delivery or courier services, if certain conditions are met.
Service performed for a private for-profit person or entity by a landman if the individual is engaged primarily in negotiating for the acquisition or divestiture of mineral rights or business agreements that provide for the exploration or development of minerals, substantially all remuneration is directly related to the completion of the specific tasks contracted for rather than to the number of hours worked, and the services are performed under a written contract that provides that the landman is to be treated as an independent contractor.
Government and nonprofit employers.- Coverage is mandatory for the following services: nonprofit organizations exempt from federal income tax which employ four or more individuals on each of 20 days during the current or preceding calendar year, each day being in a different week; and for the state, any branch or department thereof, or any instrumentality of the state. Political subdivisions of the state are also mandatorily covered. Other government services are not covered.
Service for a nonprofit organization, the state, or a political subdivision do not include the following:
Church or organization operated primarily for religious purposes and which is controlled by a church.
Religious duties of minister or member of a religious order.
Patients and certain blind individuals performing services in a rehabilitation facility or sheltered workshop.
Individual receiving unemployment work-relief or work-training under a program financed by a federal agency or an agency of a state or political subdivision.
Inmate of a custodial or penal institution owned or operated by the State or a political subdivision.
Elected officials.
Members of a legislative body or the judiciary.
Temporary employees serving in case of fire, storm, snow, earthquake, flood or similar emergency.
Individuals serving in certain major nontenured policymaking or advisory positions.
PROCEDURES
Base period.- First four of the last five calendar quarters preceding first day of benefit year; first four of the last five calendar quarters preceding the quarter in which a medically verifiable illness began or injury occurred that precluded an individual from working during the major part of any base period quarter, if the individual files an initial claim for benefits not later than 24 months after the date on which the illness or injury began or occurred.
Benefit year.- 52-consecutive-week period beginning with the effective date of first valid initial claim and thereafter, the period of 52 consecutive weeks beginning with the effective date of the next valid initial claim after the termination of the last preceding benefit year.
Weekly benefit amount.-
of highest quarterly base-period wages, less wages in excess of $5 or 25% of benefit amount (whichever amount is higher), computed to next higher multiple of $1. The maximum weekly benefit amount is determined annually as 47.6% of the statewide average weekly wage and the minimum weekly benefit amount is determined annually as 7.6% of the statewide average weekly wage.
The maximum for the year beginning 10/5/2008 increases to $392 and the minimum increases to $58
An employer may participate in a shared work program designed to reduce unemployment by allowing certain employees to collect benefits if they share the work remaining after a reduction in the total number of hours of work and a corresponding reduction in wages.
Maximum total benefits.- Lesser of 26 times weekly benefit amount or 27% of base-period wages. For claims effective on and after October 1, 2008, the maximum total benefit amount is $10,192. In addition, during periods of high unemployment, payment of extended benefits at claimant's regular weekly benefit rate.
Benefit eligibility; Requirements.-
Registered for work and filed claim for benefits;
base-period benefit wage credits of at least 37 times individual's weekly benefit amount and wage credits in at least two calendar quarters, and if he or she has had a prior benefit year, individual must have earned wages equal to six times his or her weekly benefit amount subsequent to the beginning of the prior benefit year;
be able and available for work;
serve waiting period of one week after filing initial claim (waiting week is compensable if paid benefits of at least three times weekly benefit amount); and
participate in reemployment services if required.
No benefits may be paid to instructors, researchers or principal administrators of an educational institution during school vacation periods or during paid sabbatical leaves based on service with such institutions.
Benefits are not payable to an individual performing services in a nonprofessional capacity for an educational institution during periods between academic years or terms if there is reasonable assurance that he or she will perform services in the second year or term. Retroactive payments of benefits may be claimed if no work is offered in the second year or term.
A disqualification similar to those in the foregoing two paragraphs applies to individuals performing services in an educational institution while in the employ of an educational service agency.
Benefits are not payable to a professional athlete for periods between sport seasons if there is a reasonable assurance that he or she will perform services in both seasons.
Benefits are not payable to an alien unless he or she has been lawfully admitted for permanent residence or is otherwise permanently residing in the United States under color of law.
Benefits may not be denied to an individual in approved training because of the availability for work requirement or the disqualification for refusal of suitable work without good cause.
Benefits may not be denied solely on the basis of pregnancy or termination of pregnancy.
Disqualifications Period.- Discharge for misconduct connected with last work, voluntary leaving without good cause or refusal of suitable work without good cause -until the individual has returned to work and has either worked for six weeks or earned wages equal to six times his or her weekly benefit amount. An individual who leaves work to move with a spouse from the area in which he or she worked is disqualified for not less than six nor more than 25 benefit periods. No disqualification if leaving is due to medically verified illness of individual or individual's minor child (but only if there is no reasonable alternative care available for the child and the employer refused to allow the individual a reasonable amount of time off during the illness), injury, disability or pregnancy, where individual is still available for work. No disqualification for an individual who is partially unemployed and who resigns to accept other employment that the individual reasonably believes will increase his or her weekly wage. Military personnel who do not reenlist may not be considered to have left work voluntarily without good cause. No disqualification for claimant whose work-related reason for separation is urgent, compelling and of a necessitous nature, so as to make separation involuntary.
A temporary employee of a temporary help firm is deemed to have left the last work voluntarily without good cause connected with the work if the employee does not contact the firm for reassignment on completion of an assignment; the employee is not deemed to have left work voluntarily without good cause unless the employee has been advised of the obligation to contact the firm on completion of assignments and that benefits may be denied for failure to do so.
Labor dispute-duration.
Securing benefits through nondisclosure or misrepresentation -forfeiture of benefit rights for remainder of year.
Receipt of wages in lieu of notice, workers' compensation benefits, or old-age social security benefits-unemployment benefits reduced by the amount of such other payments.
Receipt of governmental or other pension or retirement pay from base period employer unless the amount is less than the amount of unemployment benefits to which claimant is entitled-unemployment benefits reduced by amount of pension or retirement pay. Automatic conformity with the FUTA is provided.
Corporate officer who is a majority or controlling shareholder and who is involved in the sale of the corporation, is a limited or general partner who is involved in the sale or is the selling proprietor-benefit period occurring from the date of the sale until the date that the officer is employed and eligible for benefits based on wage credits from the new employment.
Discharge from last work on basis of refusal to provide services included within the course and scope of the employment to an individual infected with a communicable disease-until the claimant has returned to work and either worked for six weeks or earned wages equal to six times his or her weekly benefit amount. No disqualification unless the employer made available to the claimant the facilities, equipment, training and supplies necessary to preclude the infection of the claimant with the communicable disease.
WHAT THE EMPLOYER MUST DO
Pay the standard rate.- 2.7%. Maximum possible rate is 6.26% for 2009. No employee tax.
Experience rates.- Employer's contribution rate for any calendar year will be determined under experience-rating provisions if its account has been chargeable with benefits during each month of the preceding four calendar quarters. A new employer pays the greater of the rate established for that year for its industry group or 2.7%; however, note that new employers pay 2.6% for the period in which the employing training investment tax is in effect.
Employer contribution rates are determined through the Experience Tax Rate formula: The sum of General Tax Rate + Replenishment Tax Rate + Employment and Training Investment Assessment. Some years may also include a Deficit Tax Rate. The process and terms involved are as follows:
The General Tax Rate is based on unemployment insurance claims charged to an employer's account. It is the product of each employer's Benefit Ratio and the Replenishment Ratio (a Statewide multiplier), multiplied by 100% and rounded up to the next tenth.
To determine an employer's benefit ratio for a year, its total chargebacks for the 36-consecutive-month period ending on the current October 1 (the computation date) are computed and then divided by the total amount of its taxable wages for the same period. The quotient is the employer's benefit ratio for the next year. If employer has less than 3 years but at least 4 calendar quarters of compensation experience throughout which his account has been chargeable with benefits, his benefit ratio is percentage equal to total of chargebacks divided by total taxable wages for all completed calendar months immediately preceding date on which his tax rate is determined. "Benefit wages"do not include wages paid to worker whose separation was required by federal or Texas law or by Texas ordinance or to worker whose separation was due to disqualifying circumstances, provided employer fulfills separation reporting requirements.
Since the benefit ratio is determined from the amount of an employer's chargebacks and taxable wages for the past three years, chargebacks must be defined before going on to the actual tax rate formula. When benefit payments are made to claimants the benefits which they receive are charged to the account of their base period employer (or employers). Benefits so charged are designated as "chargebacks," and total chargebacks to an employer's account are therefore the total amount of benefits charged to its account. If claimants do not collect all the benefits to which they are entitled, the employers' chargebacks will be a lower amount, since only benefits actually paid may be charged to their accounts.
After the benefit ratio is determined, another formula is used to determine the replenishment ratio. This ratio is the quotient of the total amount of benefits that are effectively charged to employers' accounts and paid from the Fund during the 12 months ending September 30 of the preceding year, plus one-half of the amount of benefits paid during that period that are not charged to an employer's account, that are charged to employers' accounts after they have reached maximum liability because of the maximum tax rate or that are charged but considered not collectible, divided by the total amount of benefits paid during the 12 months ending September 30 of the preceding year that are effectively charged to employers' accounts. The numerator of the replenishment ratio is reduced by (1) benefit warrants cancelled, (2) repayment of benefits that have been overpaid, and (3) benefits paid that are repayable from reimbursing employers, the federal government or any other governmental entity.
There is a table in the law that gives the rates automatically once both the benefit ratio and the replenishment ratio have been determined. The table of rates has been extended by the Commission to include rates as high as 6.0%.
The final elements of the formula include the Replenishment Tax Rate and the Employment and Training Investment Assessment. The former is based on statewide benefits and taxed wages and is applicable to all employers to cover unemployment claims not charged to a specific employer. This tax varies inversely from year to year, to statewide economic conditions.
Finally, the Employment and Training Investment Assessment is a rate of 0.10% and is set according to State Law. It is the same for each employer entitled to an experience rate.
A Deficit Assessment may be imposed in some years. This tax is calculated by multiplying the statewide Deficit Ratio by the sum of an employer's prior year's General, Deficit, and Replenishment Tax Rates. The Deficit Tax may not exceed 2.0%.
For 2009, the Replenishment Ratio is 1.28, the Replenishment Tax Rate is 0.16% and the Employment Training Assessment Rate is 0.10%.
An employer classified in the North American Industrial Classification System Manual as a crop preparation services or cotton ginning employer may elect to pay contributions at a total fixed rate of 5.4%, the general tax rate applicable to the employer plus the deficit assessment and replenishment tax rate, or any other tax rate applicable to the employer.
Voluntary payments.- An employer for whom the Commission has computed an experience rate as of October 1 of a calendar year that is effective for the succeeding calendar year may elect to make a voluntary payment of contributions to the Commission. The amount of the voluntary contribution may be equal to all or part of the employer's chargebacks during the period ending September 30 that are used in computing the employer's experience rate for the succeeding calendar year. Upon receiving a voluntary contribution, the Commission must reduce the employer's chargebacks by an amount equal to the contribution and must then recompute the experience rate applicable to that employer for the succeeding calendar year (Sec. 204.048).
An employer who elects to make a voluntary contribution for the recomputation of its experience rate must make the contribution not later than the 30th day after the date on which the Commission mails to the employer the annual notice of the employer's experience rate. The employer may not revoke the contribution after the date on which the Commission uses the contribution to recompute its experience rate. Note that the Commission may not compute a new experience rate for an employer or reduce an employer's experience rate based on a voluntary contribution made by the employer after the expiration of the 120th day of the calendar year for which the rate is effective (Sec. 204.048, as added by Ch. 383, L. 1997, effective September 1, 1997).
DEADLINES
Tax and reimbursement payments.- Form C-3, Employer's Quarterly Report, is due quarterly on or before last day of following month. Employers must include the taxable wages paid during the quarter, the contributions owed, and any change in ownership or type of organization. Form C-4, continuation sheet, must be used if the employer must report information on more than the 10 employees that can be listed on Form C-3.
Failure to file reports of wages paid or contributions due incurs (1) $15 for the first 15 days or less after due date; (2) $30 plus 1/20 of one percent of wages that the employer failed to report if the report is filed after the 15th day but during the first month after the due date; (3) the sum of the amount calculated under (2) above and $30 plus 1/10 of one percent of wages not reported, for completed reports filed during the 2nd month after the due date; and (4) the sum calculated under (3) above and $30 plus 1/5 of one percent of wages not reported, for completed reports filed during the 3rd month after the due date. If an employer fails to file a timely quarterly report, and it is necessary for the Commission to search its records and notify the employer of its delinquency, the employer may be assessed a service charge of $10.
Wage.- Detailed quarterly wage report is also required on Form C-3, Employer's Quarterly Report. Note that total wages paid to an individual for a year are reportable, but the tax is paid only up to the taxable limit.
ENFORCEMENT
The Texas Unemployment Compensation Act is administered by the Texas Workforce Commission.
The Commission may, through the Attorney General, bring suit to enjoin the threatened violation of any of the terms of the Act or any rule, regulation, or order promulgated thereunder.
If, after due notice, an employer defaults in a payment of contributions, penalties, or interest, the amount due may be collected by civil action in the name of the state and the Attorney General, or by a notice of assessment.
Records.- The Commission may require from any employing unit any sworn or unsworn reports with respect to persons employed by it which the Commission deems necessary for the effective administration of the Act.
WHO TO CONTACT
The Texas Unemployment Compensation Act is administered by the Texas Workforce Commission, 101 E. 15th St., Austin, Texas 78778. Telephone (512) 463-2222.
RECORDKEEPING
Every employing unit is required to keep for four years true and accurate employment records containing such information as the Commission may prescribe. These records must be kept open to the inspection of the Commission or its authorized representative. Information thus obtained or otherwise secured is confidential, except as the Commission may deem necessary for the proper administration of the Act.
PENALTIES
Interest.- Delinquent contributions are subject to interest at the rate of 1
%. After the expiration of one month, a delinquent employer will be subject to an additional 1
% of such contributions for each month, or fraction thereof, that contributions or reimbursement payments remain delinquent until paid in full. However, the penalties prescribed under these provisions may not exceed 37.5% of the amount of the payments due on the due date. Whenever this maximum 37.5% accrues or has accrued in cases in which the liability of the employer is reduced to judgment, thereafter, in addition to the penalties provided above, the judgment will bear interest at the rate of 1% per month or part of a month.
The penalty discussed above will not apply to any employer who failed to pay contributions or reimbursement payments due under the Texas Act because of the bona fide belief that all or some of his employees were covered under the unemployment insurance law of another state.
An employer who does not file a report of wages paid or contributions due as required by this subtitle or commission rule shall pay to the commission a penalty in the amount equal to:
$15, if the completed report is filed not later than the 15th day after the report's due date;
$30 plus 1/20 of 1% of wages that the employer failed to report, if the completed report is filed after the 15th day after the report's due date but during the first month after the report's due date;
the sum of the amount computed under (2) and the amount equal to $30 plus one-tenth of one percent of wages that the employer failed to report, if the completed report is filed during the second month after the report's due date; or
the sum of the amount computed under (3) and the amount equal to $30 plus one-fifth of one percent of wages that the employer failed to report, if the completed report is filed during the third month after the report's due date.
If an employer acquires the organization, trade or business, or substantially all the assets of another, it is liable for any taxes, penalties or interest owed by its predecessor, just as if it had incurred them itself.
Should an employer fail to remit proper contributions or reimbursements when due, or should an employer fail to make the required reports, the Commission may employ auditors or other persons to ascertain the amount of contributions or reimbursements due and to prepare the correct reports. The cost of this investigation may be assessed and collected as an additional penalty.
An employer liable for contributions, reimbursements, penalties, or interest who fails to pay these sums when due will, after judgment has been entered therefor and execution returned unsatisfied, forfeit its right to employ individuals in Texas until it enters into a bond with sureties to be approved by the Commission in an amount not to exceed double the sum then due, plus contributions or reimbursements, estimated by the Commission to become due during the next calendar year. If the employer fails either to furnish the bond or pay the sums it owes, the Commission may proceed to enjoin it from employing persons in Texas until it finally meets the requirements of the law.
The Commission is also allowed to make administrative assessments to collect unpaid taxes, penalties, and interest. An administrative assessment is served on the employer and becomes final unless it is appealed to a district court in Travis County, Texas, within 30 days from the date it is served. An assessment that becomes final has the same effect as a district court judgment.
Should a court action be brought, a certified copy of an employer's report filed with the Commission, as well as the report itself, will be prima facie evidence of the contents thereof, as will a signed and sworn audit of the employer's books made by the Commission or its representative. A sworn written answer, denying with the support of particulars the fact that contributions, reimbursements, interest, or penalties are due, must be filed by the employer to meet this evidence.
Whenever it appears that an employing unit is violating or threatening to violate any provision of the Act, or of any rule, regulation, or order of the Commission relative to the collection of contributions, reimbursements, penalties or interest, suit may be brought by the Commission in any court of competent jurisdiction in Travis County to restrain the employing unit from committing such violation. In such suit the Commission may obtain such injunctions as the facts may warrant.
Liens.- All sums due by any employing unit under the Act will become a lien upon all the property, both real and personal, belonging to the employing unit or any individual so indebted. The lien attaches at the time any contributions, reimbursements, penalties, interest, or other charges become delinquent and may be recorded in the “State Tax Liens” book kept by County Clerks. The Commissioner will pay the fee for filing and recording the lien, such fee then being added to the amount due from the employer. When the liability secured by the lien is fully paid, the Commission will mail a release to the employer who will then have the responsibility of filing the release with the appropriate County Clerk and paying the fee for recording the release.
Bankruptcy.- In the event of a distribution of an employer's assets pursuant to a court order under the laws of Texas, including a receivership, assignment for benefit of creditors, adjudicated insolvency, composition, or similar proceedings, contributions then or thereafter due will be entitled to the same priority as is accorded other tax claims by Texas law.
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