TWC sets 2025 replenishment tax at 0.15%; trustees cite close projected trust‑fund floor

The Texas Workforce Commission voted to set the 2025 unemployment trust‑fund replenishment tax (RTR) at 0.15 percent and the Employment and Training Investment Assessment (ETI) at 0.10 percent — the same rates used in 2024.

Chris Nelson, TWC chief financial officer, presented the trust‑fund status and projections. He said the fund ended fiscal 2024 (Sept. 30) with an ending balance “just over $1,500,000,000.” Using statutory computations, staff calculated a replenishment ratio and projected that, holding benefits at 2024 levels, revenue and benefit assumptions could leave the trust fund slightly below the projected statutory floor next year. Nelson explained the replenishment tax at 0.19 percent would recapture roughly half of prior‑year non‑benefit charges, but commissioners had discretion to set the rate. The commission chose to hold the rate at 0.15 percent to reduce employer tax pressure.

Commissioners discussed the tradeoffs between protecting the trust fund and reducing employer tax costs. One commissioner moved and the commission voted on setting RTR at 0.15 and ETI at 0.10. The recorded vote was two ayes and one no; the motion carried.

Why it matters: The replenishment tax affects employer payroll taxes and the speed at which the trust fund recovers after non‑benefit charges. Staff projections showing the fund near the statutory floor mean future economic or benefits changes could trigger deficit taxes if assumptions change.

Details: TWC reported the trust fund ending balance at roughly $1.5 billion; staff projected new revenue and benefits paid that could result in an ending balance slightly under the projected floor depending on benefits and taxable wages over the next 12 months. Commissioners asked staff to monitor the balance and return with updates.