Payroll for Dallas Employers
Dallas employers do not withhold state or city income tax for work done in Texas, but many have employees who are not in Texas at all. A company that relocated its headquarters often keeps staff working remotely in the state it left, and a growing firm hires wherever talent is. BOMCAS runs payroll for Dallas employers remotely, including the out-of-state registrations that come with a distributed team.
The Texas payroll page explains TWC and federal filings. Here we deal with distributed teams, executive pay and tips in Dallas.
Employees in Other States
An employee who works from home in California, New York or Colorado is generally subject to that state's income tax withholding, unemployment insurance and, in some states, paid leave or disability programmes. A few states also tax nonresidents who work remotely for an employer based there, but that applies to their own employers, not to Texas ones. We register the company in each state where employees work and keep their wages reported to the right state.
Executive and Equity Pay
Restricted stock vesting, option exercises, bonuses and deferred compensation payments are wages for payroll tax. Supplemental wages are usually withheld at 22 percent federally, or 37 percent for amounts over $1 million in a year. Shares withheld to cover tax must be reported correctly, and executives moving to Dallas with equity granted elsewhere may still owe the other state on part of the income, which payroll has to report. We coordinate with the stock plan administrator each vesting date.
Partners and Owners
Partners in a partnership or LLC taxed as a partnership are not employees and do not receive W-2s; they receive guaranteed payments and K-1s and pay self-employment tax. S corporation shareholder-employees must receive reasonable wages through payroll. We set up owner pay correctly for each entity type.
Restaurants and Hospitality
Dallas restaurants pay tipped workers at least $2.13 an hour in cash wages if tips bring total pay to $7.25 or more, track credit card tips each shift and treat automatic service charges as wages. Federal law now allows employees to deduct qualified tips and overtime for 2025 through 2028, and employers must report the amounts separately. We reconcile the point-of-sale tip reports with each payroll.
Texas Workforce Commission
Dallas employers register with TWC when they pay $1,500 in wages in a quarter or employ someone in 20 weeks of a year. The tax applies to the first $9,000 of each employee's wages, with new employers usually starting at 2.7 percent. Companies arriving from another state start a new Texas account, and may be able to transfer experience from a predecessor business they acquire. Quarterly reports are due at the end of the month after each quarter.
Benefits and Fringe Items
Parking, commuter passes on DART, cell phones, gym memberships and relocation payments each have different payroll tax treatment. Qualified moving expense reimbursements are taxable for most employees under current law, and relocation packages for staff moving to Dallas are often grossed up. We set up the earnings codes so each benefit is taxed correctly.
Each Payroll
- Pay, bonuses, equity and tips calculated.
- Federal and other state withholding.
- Forms 941 and 940 and state reports.
- TWC quarterly reports.
- W-2s, 1099s and new hire reports.
Dallas Payroll Questions
Do we withhold state tax for remote employees in other states?
Generally yes. The employee's work state usually requires withholding and unemployment registration.
How is a large RSU vesting withheld?
As supplemental wages, usually at 22 percent federally, or 37 percent above $1 million in a year.
Do partners receive W-2s?
No. Partners receive guaranteed payments and K-1s and pay self-employment tax.
Are relocation payments taxable?
For most employees, yes. Moving expense reimbursements are taxable wages under current law.
Talk to BOMCAS About Payroll in Dallas
Payroll posts to the ledger, wages appear on business returns, executive pay is part of planning, missed deposits go through late filing, employees can have their own returns prepared, restaurants keep mixed beverage tax current, and Canadian transfers raise cross-border issues. Elsewhere in Texas, our statewide pages explain business returns, individual returns, sales and use tax, bookkeeping, tax planning, catching up on back taxes and Canada–U.S. tax, and the Texas page ties them together.
Write to BOMCAS about your Dallas company or household and we will answer with next steps and what we need to prepare a quote. Use the contact page or the form below, call 780-667-5250 or email info@bomcas.ca. You can find every Dallas service on the Dallas overview. This is general information, not advice for your own situation.