As we reach the midpoint of 2025, this is a great moment for Texas employers to ensure payroll systems are current and compliant. Here’s what needs your attention:
Minimum Wage Still $7.25/hour
Texas continues to follow the federal minimum wage of $7.25/hr, unchanged since 2009. The $2.13 tipped wage rule applies, and employers must ensure total wages plus tips meet the minimum. Local minimums in cities like Austin or Houston only apply to city employees, not private-sector workers.
- Unemployment Insurance (UI) Reporting
While Texas doesn’t impose state income tax, employers must register for and pay state unemployment insurance (SUTA/UI) through the Texas Workforce Commission (TWC). Reports and payments are due quarterly by the last day of the following month typically April 30, July 31, October 31, and January 31.
- Key Compliance Essentials to Monitor
- Wage Audits: Confirm all employees including tipped, youth, or exempt categories are paid appropriately.
- UI Tax Rates & Wage Base: Employers should confirm their 2025 tax rate and taxable wage base (typically $9,000) and update systems accordingly.
- New-Hire Reporting: File new hire data with TWC within 20 days of hire.
- Posters & Recordkeeping: Maintain visible compliance posters and retain payroll records for the required period.
Why a Mid-Year Audit Pays Off
Payroll laws and withholding rules aren’t “set and forget.” A mid-year review helps catch misclassifications, ensures accurate UI contributions, and reinforces trust with your team.
Need support navigating the rest of 2025? Journey Payroll & HR ensures your payroll stays accurate, compliant, and stress-free.