Texas Payroll Tax & Labor Law Quick Reference (2026)
Texas payroll taxes at a glance
Running payroll in Texas means handling federal withholding, state requirements, Social Security, Medicare, and state unemployment insurance. Rates and wage bases update yearly, so build from current figures each January.
Minimum wage and overtime
Apply the correct Texas minimum wage and overtime rules, remembering that state rules can be stricter than the federal FLSA. When federal and state rules differ, follow the one that benefits the employee.
Withholding and filings
Register with the appropriate Texas agencies, withhold correctly, and file on the required schedule. Late or incorrect filings trigger penalties that dwarf the cost of getting it right.
Final paychecks and recordkeeping
Texas sets rules for when final pay is due and how long you must keep payroll records. Missing a final-paycheck deadline is an easy, avoidable violation.
Make it automatic
MyCo applies Texas and federal rules to every pay run and produces payroll-ready data; US payroll tax filing is configured during onboarding through your payroll provider. For a quick estimate, try the Texas paycheck calculator or read the Texas labor-law reference.
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What payroll taxes apply in Texas?
Federal income tax, Social Security, Medicare, applicable Texas state taxes, and state unemployment insurance.
Does Texas have stricter overtime than federal law?
It can. Always apply whichever overtime rule is more generous to the employee.
Can MyCo file my state payroll taxes?
Yes. MyCo calculates withholding and produces payroll-ready data automatically; US payroll tax filing is configured during onboarding through your payroll provider.