Payroll Without a State Income Tax
Frisco employers withhold federal income tax, Social Security and Medicare, and pay federal and Texas unemployment tax. There is no Texas income tax withholding, but many Frisco companies have remote staff in states that do require it. BOMCAS runs payroll for Frisco employers remotely.
TWC and federal payroll basics are on the Texas payroll page, while this page covers coaches, remote staff and nannies in Frisco.
Coaches and Club Staff
Sports clubs and academies often pay coaches as independent contractors. A coach who works set practice times, follows the club's curriculum and coaches the club's teams is often an employee. A coach who runs private lessons on their own schedule and sets their own price may be independent. Getting this right avoids back taxes and TWC claims. Volunteer coaches who receive only small reimbursements are usually not employees.
Remote Employees
Frisco startups and corporate offices hire staff who live in other states. The employer must register and withhold in each state where employees work, and pay that state's unemployment tax. Employees who move must update their state on payroll. Some states also tax employees who travel there for work.
Practice and Restaurant Staff
Medical and dental practices pay hourly staff overtime after 40 hours in a week, and the regular rate includes production bonuses. Restaurants may pay tipped staff a cash wage of $2.13 an hour if tips bring them to at least $7.25, report tips on payroll and claim the FICA tip credit. From 2025, employers report qualified tips and overtime separately so workers can claim the new deductions.
Nannies and Household Staff
Many Frisco families employ nannies. Families who pay more than the annual federal threshold to a household employee withhold Social Security and Medicare, file Schedule H and issue a W-2. Texas unemployment tax applies once wages reach $1,000 in a calendar quarter.
Game-Day and Seasonal Staff
Venues, hotels and attractions hire many people for event days, holidays and summer. Short-term workers are still employees, with Form I-9, W-4, withholding and TWC wage reporting from the first shift. Hiring them through a staffing agency moves the payroll obligations to the agency.
Referees and Officials
Tournament organisers and clubs pay referees for each game. Officials who are assigned through an association and work independently are often treated as contractors, and payments to each one of $2,000 or more in a year, the threshold for payments made from 2026, are reported on Form 1099-NEC. Collecting W-9s before the season makes this simple.
Equity Withholding
When employees' RSUs vest, the value is wages. Employers usually withhold federal tax at the 22 percent supplemental rate, or 37 percent on supplemental wages above $1 million in the year, which can leave higher earners underwithheld. Employees should be told so they can make estimated payments.
Benefits
Startups offer health plans, 401(k) plans and equity. Small employers may use a qualified small employer health reimbursement arrangement in place of a group plan. Stock options and RSUs for employees create payroll withholding when exercised or vested.
TWC and Federal Filings
Employers register with TWC, file quarterly wage reports and pay unemployment tax. Federal deposits are made monthly or semiweekly depending on the size of payroll, and Form 941 is filed each quarter. W-2s and 1099-NECs are due January 31.
What We Handle
- Payroll processing.
- Worker status reviews.
- Multistate registrations.
- Tip and overtime reporting.
- Household payroll.
- Quarterly and year-end filings.
Frisco Payroll Questions
Are club coaches employees?
Often yes, when the club controls their schedules and methods.
Do I withhold for an employee in another state?
Yes, if they work in a state with income tax.
Do nannies need a W-2?
Yes, when their pay is above the federal household threshold.
Does Texas have state withholding?
No.
Talk to BOMCAS About Payroll in Frisco
Payroll feeds the ledger and the business return, and owner and founder pay are planning choices. Misclassified coaches or missed states are resolved under back taxes, staff may need personal returns, venues also file sales tax and visa employees raise cross-border questions. Texas-wide guidance is on our state pages for business returns, personal returns, sales tax, bookkeeping, tax planning, late filing and cross-border tax, which start from the Texas overview.
Just moved to Frisco, opening a practice or running a club? Write to BOMCAS with a short description and we will reply with the first things to review and the records needed for a quote. Use the contact page or the form below, call 780-667-5250 or send an email to info@bomcas.ca. Every Frisco service is reachable from the Frisco overview. Nothing on this page is personal advice; it is general information only.