Texas Labor Code §203.105, V.T.C.A. provides that the Commission shall impose an additional tax on each employer eligible for an experience tax rate if, after January 1 of a year, an interest payment on an advance obtained by the state from the Federal Unemployment Trust Fund will be due and the estimated amount necessary to make the interest payment is not otherwise available. The Commission has determined that when interest payments are due after January 1, the additional tax rate will be calculated by the Agency based on a formula. The Commission has also determined that the amount of tax revenue generated by this formula will be sufficient to ensure that the accrued interest on the advance the state obtained from the Federal Unemployment Trust Fund will be paid in a timely manner.

1. (1) When the Commission determines that an interest payment as referred to in the paragraph above will be due after January 1 of a year, the Commission shall compute the tax rate using the formula in paragraph (2) of this section, before November 20th of the year prior to the year in which the interest is due. This rate shall be published in the Texas Register.
2. (2) The additional tax rate, not to exceed two tenths of one percent, is calculated by dividing two hundred percent (200%) of the estimated interest due, as determined by the Agency, less the balance in the advance interest trust fund, by the estimated total taxable wages for the 1st and 2nd quarters of the year in which the interest is due, and rounded up to the next hundredth.
3. (3) Employers eligible for an experience tax rate shall pay the additional tax which will be due and payable quarterly in the same manner as provided in §815.109 of this chapter (relating to Payment of Contributions and Reimbursements).

Source Note:The provisions of this §815.132 adopted to be effective October 7, 2002, 27 TexReg 9396.