Payroll for San Antonio Employers
San Antonio employers withhold federal income tax, Social Security and Medicare, pay federal unemployment tax and report to the Texas Workforce Commission. There is no state or city income tax to withhold. What sets payroll here apart is who the employees are and who pays for them: contractors paid under federal wage rules, veterans and military spouses who move often, tipped hospitality staff and home health aides paid by the visit. BOMCAS runs payroll for San Antonio businesses remotely.
Registration with TWC and federal deposits are set out on our Texas payroll page. Below are the San Antonio issues: contract wages, veterans, tips and field staff.
Federal Contract Wage Rules
Service contracts at the bases are often covered by the Service Contract Act, which sets minimum wages and fringe benefits by job classification and location. Construction work on federal projects may fall under Davis-Bacon prevailing wages, with weekly certified payroll reports. Fringe benefits can be paid as cash or through qualifying plans, and the choice affects payroll tax. We build the wage determinations into the payroll system and prepare the certified reports.
Veterans and Military Spouses
Many San Antonio employers hire veterans and military spouses, and many hired veterans before 2026 under the federal Work Opportunity Tax Credit. That credit does not apply to anyone who began work after December 31, 2025, and the IRS has retired Form 8850, so it should not be counted on for new hires unless Congress renews it; credits already earned on earlier hires can still be claimed. Military spouses who move away with a new posting may keep working remotely, which can create withholding obligations in their new state. We track work locations for every remote employee.
Hospitality and Tipped Workers
Restaurant and hotel staff on the River Walk earn a mix of hourly pay, tips and service charges. A tipped employee's cash wage can be as low as $2.13 an hour if tips bring them to at least $7.25, but the employer must make up any shortfall. Tips are reported to the employer, service charges are paid as wages, and federal law now allows workers to deduct qualified tips for 2025 through 2028. The employer's tip credit against FICA can be significant.
Home Health and Field Staff
Aides and nurses who are paid per visit must still receive at least the minimum wage for all hours worked, including travel between patients, and overtime after 40 hours. Mileage reimbursements under an accountable plan are not wages. We calculate effective hourly rates each pay period so problems are caught early.
Texas Workforce Commission
Employers register with TWC once they pay $1,500 in wages in a quarter or have an employee in 20 weeks of a year. New employers usually pay 2.7 percent on the first $9,000 of each employee's wages until their own claims history sets the rate. Reports are due April 30, July 31, October 31 and January 31. We respond to benefit claims, which can be frequent in seasonal hospitality work.
Household Employees
Families who employ caregivers for an ageing parent or a nanny while both spouses serve owe TWC tax once they pay $1,000 in a quarter. We register the household and prepare Schedule H and W-2s.
Each Pay Cycle
- Pay, overtime, tips and fringe benefits calculated.
- Federal deposits made and Forms 941 and 940 filed.
- Certified payroll prepared for federal projects.
- TWC quarterly reports and claim responses.
- New hires reported within 20 days.
San Antonio Payroll Questions
Do base contractors pay special wages?
Many service contracts set wages and fringe benefits under the Service Contract Act, and construction may require prevailing wages.
Is there still a tax credit for hiring veterans?
The Work Opportunity Tax Credit does not apply to employees who began work after December 31, 2025, unless Congress extends it.
Are home health aides paid for travel time?
Travel between patients during the workday is generally hours worked and counts toward minimum wage and overtime.
Is there a San Antonio city payroll tax?
No. There is no city or state income tax withholding in San Antonio.
Talk to BOMCAS About Payroll in San Antonio
Payroll posts to the ledger, wages flow to the business return, owner salary is part of planning, missed deposits go through late filing, staff can get help with their own returns, restaurants keep mixed beverage tax current, and Canadian hires raise cross-border issues. The same subjects across the state are covered on our Texas pages for business taxes, personal returns, sales tax, bookkeeping, planning, late filing and cross-border work, with a summary in the statewide overview.
Send BOMCAS a short note about your San Antonio business or household and we will come back with next steps and the documents we need for a quote. Reach us through the contact page or the form below, by phone at 780-667-5250 or at info@bomcas.ca. All San Antonio services are on the San Antonio overview. Nothing here is advice for your particular circumstances.