Yes, you need to register your business with the Texas Workforce Commission (TWC) for payroll tax purposes. This registration is essential for reporting and paying state unemployment taxes.
In addition to registering with the TWC, you must also register with the Internal Revenue Service (IRS) for federal tax purposes. The IRS is responsible for overseeing federal income tax withholding, Social Security, and Medicare taxes. Registering with the IRS involves obtaining an Employer Identification Number (EIN), also known as a Federal Employer Identification Number (FEIN). This unique identifier is used to track your business’s federal tax obligations and filings.