Texas keeps payroll leaner than most states, but there are still rules you need to know. Keka handles all of these automatically, so you don’t have to track them manually.
Texas is one of nine states with no personal income tax. Federal taxes still apply, but there’s no state-level withholding on employee wages. That’s one less form, one less calculation every cycle.
Keka stays updated with every federal, state, and local payroll rule – so you never worry about tax changes or compliance gaps.
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FULL COMPLIANCE COVERAGE
| Texas requirement | What Keka does | How it helps |
|---|---|---|
| Texas minimum wage$7.25/hr federal floor · Texas has no higher state rate | Validates pay rate against the federal floor before saving | Real-time alert |
| Tipped cash wage$2.13/hr cash wage + $5.12 tip credit (federal) | Tracks cash wage plus reported tips against $7.25 each cycle | Auto-validated |
| Texas Unemployment Tax (TUCA)2026: 0.32% to 6.32% on first $9,000 · New employer rate 2.70% | Applies assigned TWC rate and stops at the $9,000 wage-base ceiling per employee | Auto-calculated |
| C-3 / C-4 quarterly filingDue Apr 30, Jul 31, Oct 31, Jan 31 via TWC Unemployment Tax Services | Generates quarterly Texas unemployment wage report ready for filing | Filing-ready |
| New hire reportingRequired within 20 calendar days to the Office of the Attorney General | Captures required new hire data at onboarding so the report can be submitted within Texas’s 20-day window | Onboarding-captured |
| Texas Payday LawSemi-monthly minimum for nonexempt · Final pay in 6 days (involuntary) or next payday (voluntary) | Tracks pay frequency and final paycheck deadline per separation type | Deadline-tracked |
| Texas Leave LawsFederal and Texas-specific leave requirements, including FMLA | Centralizes employee leave balances, FMLA eligibility tracking, and leave history alongside payroll records | Leave-tracked |
| Texas Lunch Break LawsWhat Texas law does and doesn’t require for meal and rest breaks | Break time configured per shift and role. Timesheet data reflects scheduled and actual breaks for compliance records | Shift-configured |
| FLSA overtime1.5x after 40 hrs/week · Texas has no state overtime statute | Synced from approved timesheets; no manual calculation | Timesheet-synced |
INTEGRATIONS
Sync payroll journal entries to your QuickBooks chart of accounts each cycle.
Auto-map deductions, taxes, and benefits to your Xero accounts.
Push payroll runs, headcount, and accruals into your NetSuite general ledger.
Send each pay cycle's data into Sage Intacct without manual exports.
401(k) contributions deducted and remitted to Guideline every pay run.
Payroll approvals, alerts, and error flags delivered to your Slack channels.
Single sign-on and SCIM user provisioning across the Keka platform.
50+ more apps across HR, finance, and operations.
Compliance Library
Stay current on Texas employment law.
Look for a provider that handles Texas-specific rules, not just federal ones. That means Texas unemployment tax on the first $9,000 per employee, Texas Payday Law pay-frequency and final-paycheck deadlines, new hire reporting within 20 days, and withholding for remote employees in other states. Keka applies these automatically and prompts you at setup to decide whether to subscribe to Texas workers’ comp.
Yes. Keka supports multiple Austin work locations and pay groups in a single account, so a tech operator with teams at The Domain, on Parmer Lane, in downtown, or near Gigafactory Texas can run them in the same payroll cycle. Federal payroll taxes and Texas Unemployment Tax are applied per employee, per work location.
Texas is the only state where private employers can opt out of workers’ comp. Keka surfaces this as a configuration question during setup so your team knows whether you’ve elected subscriber or non-subscriber status. DWC Form-005 filing and the employee no-coverage notice are handled outside Keka.
Austin tech teams often span Texas, California, Colorado, Washington, and beyond. Keka maps each employee to their state of work and applies the correct state and local withholding for each. For state programs like SDI in California or PFL in New York, deductions are configured per state rule.
Texas requires final pay within 6 calendar days for involuntary termination and by the next regular payday for voluntary resignation. Keka’s offboarding flow lets HR initiate the final paycheck inside the standard payroll cycle so the deadline is part of the same workflow you already run.
TWC requires employers to retain wage and unemployment tax records for four years. Keka centralizes payroll and employee records with secure, searchable access, so you can quickly pull C-3 wage reports, employee histories, and tax documentation when needed.
Federal, state, and local payroll requirements, handled automatically from start to finish.