Payroll Across Projects and Ports
Brownsville employers include contractors with hundreds of travelling workers, shipyards, retailers, restaurants and small family firms. All withhold federal income tax and pay Social Security, Medicare and unemployment taxes, with no state income tax. BOMCAS runs payroll for Brownsville employers remotely.
TWC and federal payroll basics are explained on the Texas payroll page. This page covers crews, shrimpers and cross-border staff in Brownsville.
Travelling Crews and Per Diem
Contractors often pay per diem to workers who travel to Brownsville. Per diem paid under an accountable plan at or below federal rates is not wages when the assignment is temporary and the worker has a tax home elsewhere. When the assignment is expected to last more than a year, or the worker has no tax home elsewhere, per diem becomes taxable wages. Payroll systems should track each worker's expected assignment length.
Overtime on Big Projects
Construction and shipyard workers often work 50 or 60 hours a week. Overtime is due after 40 hours, and the regular rate includes shift differentials and certain bonuses. Per diem that varies with hours worked may need to be included in the regular rate. Qualified overtime is reported separately so workers can claim the new deduction.
Shrimp Boat Crews
On boats with fewer than 10 crew members, crew paid only a share of the catch are treated as self-employed for federal tax and are not on payroll. The boat owner reports their shares on Form 1099-MISC as fishing boat proceeds. Crew paid a fixed wage, or on larger boats, are employees.
Employees Who Live in Matamoros
Some U.S. citizens and permanent residents live in Matamoros and work in Brownsville. Their wages are U.S. wages, subject to normal withholding, Social Security and Medicare. They may also have Mexican filing obligations as Mexican residents. Mexican nationals with border crossing cards cannot work in the United States, so employers must verify work authorization for every hire.
Work Done in Mexico for a U.S. Employer
When an American employer sends a U.S. citizen or resident employee to work in Matamoros, Social Security and Medicare still apply, and the wages are foreign-source for the employee's U.S. return. Mexico may also tax the wages, so employers should agree with employees how withholding and credits will work.
Retail and Restaurants
Retail staff are paid hourly, and restaurants may pay tipped staff a cash wage of $2.13 an hour if tips bring them to at least $7.25. Tips are reported on payroll, and employers may claim the FICA tip credit.
Ending a Project
When a project phase ends and crews are released, final pay is due within six days for workers who are discharged. Per diem and travel pay owed to them should be settled on the same final cheque.
TWC
Employers register with TWC and pay unemployment tax. Contractors whose projects end and lay off workers should expect their rate to reflect the claims. Quarterly reports are due at the end of the month after each quarter.
Year-End
W-2s, W-3s and 1099-NECs are due January 31, and fishing boat proceeds are reported on 1099-MISC.
What We Handle
- Payroll runs and deposits.
- Per diem policies and tracking.
- Overtime and regular rate calculations.
- Crew share reporting.
- Work authorization records.
- TWC and year-end filings.
Brownsville Payroll Questions
When is per diem taxable?
When the assignment is expected to last more than a year or the worker has no tax home elsewhere.
Are shrimp boat crew employees?
Not on small boats when paid only a share of the catch; they are self-employed.
Can I hire someone with a border crossing card?
No. A border crossing card does not authorise work.
Does Texas require state withholding?
No.
Talk to BOMCAS About Payroll in Brownsville
Payroll posts to the books and the business return, and owner pay is a planning choice. Per diem or classification problems are fixed through back taxes, workers may want personal returns, restaurants file sales tax and cross-border staff raise cross-border questions. Statewide guidance on business returns, personal returns, sales and use tax, bookkeeping, tax planning, late filing and cross-border tax is on our Texas pages, which all branch from the Texas overview.
Bidding on work at the port, running a store on Elizabeth Street or sorting out income from both sides of the river? Let BOMCAS know what you need and we will explain what we would check first and what a quote involves. Reach us through the contact page or the form below, at 780-667-5250 or at info@bomcas.ca. The Brownsville overview lists every Brownsville service. This page is general information only and is not tailored advice.