This page presents basic information about Texas unemployment taxes including which employers must pay. Form C-42 is used to authorize an individual or service company to represent you in all matters before Texas Workforce Commission (TWC).Many states normally don't provide UI benefits to corporate officers unless the Corp is out of business. Understanding these rules is crucial for corporate officers and business owners who may need to navigate the complexities of filing a UI claim. There is a section of the Texas Unemployment Act that prohibits UI benefits for officers of corporations that are sold. In this longish blog post, I summarize how you can elect to opt out of paying state payroll taxes for unemployment insurance and workers compensation insurance. As a Texas employer subject to UI tax, your small business must register with the Texas Workforce Commission (TWC) so you can obtain a TWC tax account number.