Texas Form C-43, the Adjustment Report, is the document Texas employers use to correct wages, taxes, or worker information they already reported to the Texas Workforce Commission (TWC) on a prior Form C-3 or C-4 quarterly filing. Any employer who finds an error in a previously filed quarterly wage report — whether the mistake involves overreported wages, underreported wages, a wrong Social Security Number, or a misclassified worker — files Form C-43 to fix the record under Texas Labor Code § 213.032.
Filing C-43 correctly matters because TWC charges 1.5% interest per month on additional tax owed, and a botched adjustment can trigger a tax audit under Chapter 213 of the Texas Labor Code. According to TWC’s annual employer-tax data, more than 600,000 Texas employers file quarterly wage reports each year, and roughly 4–6% of those filings later require an adjustment, which is why the C-43 process exists as a formal correction channel.
Here is what this guide covers:
- 📝 Every line, box, and column on the current Form C-43 (Rev. 09-23) explained in plain English
- 💻 How to file C-43 by mail, by fax, or online through the Unemployment Tax Services (UTS) portal
- 📊 Three full filled-out scenario tables (overreported wages, underreported wages, and a misclassified SSN)
- ⏰ Exact deadlines, the four-year statute of limitations, and how to calculate the 1.5% monthly interest
- ⚠️ The ten most common C-43 mistakes — and the dollar-cost consequence of each one
What Form C-43 Is and Who Must File It
Form C-43, titled the Adjustment Report, is the official TWC document used to amend a previously filed Employer’s Quarterly Report (Form C-3) or its Continuation Sheet (Form C-4). Employers file it to correct gross wages, taxable wages, employee names, Social Security Numbers, or worker counts for any quarter still open under the four-year statute of limitations in Texas Labor Code § 213.033.
You must file Form C-43 if you are a liable Texas employer under the Texas Unemployment Compensation Act and you discovered an error after your original C-3 was already accepted by TWC. The most common filers are small-business owners, in-house payroll administrators, CPAs handling employer payroll tax compliance, and third-party payroll services such as ADP, Paychex, or Gusto acting as a reporting agent on the employer’s behalf.
Successor employers — companies that bought another business and inherited its TWC tax account — also file C-43 when they need to fix the predecessor’s earlier reports. Household employers, agricultural employers, and 501(c)(3) reimbursing employers all use the same C-43 because TWC does not publish a separate adjustment form for those categories. The form is not used to request a refund of overpaid tax; for that, you also file Form C-7, Refund Request, alongside the C-43.
Form C-43 is a state form with federal tax implications. Texas does not have a state income tax, but Texas unemployment tax (SUTA) interacts with the federal FUTA credit on IRS Form 940, so a SUTA wage correction in Texas may force you to amend Form 940 with the IRS as well. Always check the current revision date — the version this article describes is Rev. 09-23 — printed in the bottom-left corner of the PDF.
Before You Start: Documents and Information You Need
Filing C-43 without your records in front of you is the fastest way to create a second error on top of the first. TWC matches every adjusted figure against your original C-3 line items, so you need both the as-filed numbers and the corrected numbers ready before you open the form. A pre-filing checklist below covers the eight items most filers forget.
- The original Form C-3 for the quarter you are correcting — without it, you cannot fill the Original Amount column, and the form will be rejected as incomplete.
- Your nine-digit TWC Account Number (sometimes called the SUTA account number) — a wrong account number routes the adjustment to another employer’s file.
- Your Federal Employer Identification Number (FEIN) — TWC cross-checks the FEIN against IRS records, and a mismatch triggers a 60-day processing hold.
- Corrected payroll registers for every affected employee — the registers are your evidence if TWC opens a Chapter 213 audit.
- Employee Social Security Numbers verified through the SSA’s free Business Services Online — an unverified SSN is the single most common reason TWC kicks back a C-43.
- The exact quarter and year of the original filing in YYYYQQ format (for example, 2024Q3) — entering the wrong quarter creates a duplicate liability for a quarter you already paid.
- Your current SUTA tax rate for the quarter being corrected — your rate may have changed, and using the wrong year’s rate miscalculates the additional tax owed.
- Amended W-2c forms if the wage change also affects employee year-end statements — the IRS expects W-2c filing within 30 days of the SUTA correction.
- A calculator or spreadsheet for the 1.5% per-month interest computation under Texas Labor Code § 213.021 — interest is not optional and is not waived for “honest mistakes.”
Gather every item before you begin. Missing even one forces you to abandon a partially completed form, which the UTS portal only saves for 30 days before deletion.
Where to Get the Form and How to Access It
The official PDF lives on the TWC Forms page under the Unemployment Tax section. Always download a fresh copy each time you file, because TWC silently revises the form when statutes or rates change, and an outdated version will be rejected at intake. The current edition is stamped C-43 (Rev. 09-23) in the lower-left footer.
You can also request a paper C-43 by calling TWC’s Tax Department at 512-463-2731, or by visiting any TWC Tax Field Office in person. Field offices in Austin, Dallas, Houston, San Antonio, El Paso, and Lubbock keep stocked counters of blank C-43s, and a tax examiner can hand you the form along with a worksheet for the interest calculation.
The fastest path is the Unemployment Tax Services (UTS) portal, where the C-43 is built into the Adjust Wage Report function. Once you log in with your User ID and password, choose Report Filing → Adjust Wage Report, pick the quarter, and the system pre-loads your original C-3 figures into the left-hand column so you only enter the corrected values. UTS auto-calculates taxable wages, additional tax, and interest, which eliminates roughly 70% of the math errors seen on paper filings.
If you use a third-party administrator, your CPA or payroll provider can file on your behalf through the TWC Tax File and Pay Services bulk-filing channel, but they must first be linked to your account as an authorized reporting agent under TWC Rule § 815.107. Do not email a completed C-43 — TWC does not accept email filings, and any C-43 sent by email is destroyed under the agency’s data-security policy.
Step-by-Step: How to Fill Out Form C-43 Line by Line
Form C-43 is a single page divided into a header block, an employer-information block, a wage-adjustment grid, an additional-tax computation, and a signature block. Each box has its own purpose, and TWC processes the boxes in order, so a missed entry at the top creates cascading rejections below.
Box 1: TWC Account Number
Box 1 asks for the nine-digit Texas Workforce Commission tax account number assigned to your business when you first registered as a liable employer. Enter the digits exactly as they appear on the original C-3, with no dashes and no spaces — for example, 123456789 — even though the printed form shows a hyphen for visual spacing. Marcus Reyes, owner of Reyes Roofing LLC, writes 019283746 in Box 1 because that is the number on his most recent TWC tax-rate notice.
If you have lost your account number, look it up in your UTS portal profile before guessing, because a wrong account number sends your adjustment to another employer’s ledger and creates a duplicate liability you will spend months unwinding. The most common mistake here is using the FEIN in place of the TWC account number; the consequence is automatic rejection at intake and a 4–6 week delay before TWC notifies you. A misconception filers carry is that the account number changes when ownership changes — it does not, unless TWC has formally issued a new number after a successor-employer registration.
Box 2: Federal Employer Identification Number (FEIN)
Box 2 asks for the nine-digit FEIN assigned by the IRS, the same number printed on your IRS Form 941 and Form 940. Enter it as nine straight digits with no dash, even though the IRS displays it as XX-XXXXXXX. Aisha Bennett, the bookkeeper at Bennett Bakery Inc., writes 742918365 in Box 2 because that is what appears on her IRS Form 941.
If your business operates under multiple FEINs (for example, after a corporate restructuring), use only the FEIN tied to the original C-3 you are correcting. The common mistake here is entering an outdated FEIN from a predecessor entity, which causes TWC to flag the adjustment for a successor-employer review and freezes processing. A frequent misconception is that the FEIN and TWC account number must match in length or pattern — they are issued by separate agencies and have no relationship beyond cross-checking.
Box 3: Employer Legal Name
Box 3 asks for the full legal name of the business, exactly as registered with the Texas Secretary of State. Use all capital letters and include corporate suffixes such as LLC, INC., or LP — for example, REYES ROOFING LLC. Do not use a doing-business-as (DBA) name here unless your DBA is the only registered name on file with TWC.
If your legal name has changed since you filed the original C-3, write the current legal name in Box 3 and attach a copy of the Texas SOS name-change filing. The common mistake is dropping the corporate suffix, which forces a manual review because TWC’s database is suffix-sensitive. A misconception is that the name on the C-43 must match the name on the original C-3 — it must match your current legal name, not the historical one.
Box 4: Mailing Address
Box 4 asks for the address where TWC should send correspondence about this adjustment, including any audit notices or refund checks. Write the street number, street name, suite or unit, city, two-letter state code, and ZIP+4 code — for example, 1450 LAVACA ST STE 200, AUSTIN, TX 78701-1234. A P.O. Box is acceptable for mailing, but if TWC needs to perform a field audit, they will use your physical address from the original employer registration.
If your mailing address has changed, file Form C-1AM, Address Change at the same time as the C-43 — otherwise the assessment notice goes to the old address and you lose the 14-day protest window. The common mistake is using a P.O. Box that is not registered with TWC, which causes the adjustment notice to be returned undeliverable. A misconception is that updating your address on the C-43 automatically updates it across TWC systems — it does not, and only Form C-1AM does.
Box 5: Quarter and Year Being Adjusted
Box 5 asks which quarter and which year of the original report you are correcting. Enter it in YYYYQQ format — for example, 2024Q3 for the third quarter of 2024 (covering July, August, and September). One C-43 covers exactly one quarter; if you need to correct three quarters, you file three separate C-43 forms.
If the error spans multiple quarters because you applied the wrong wage base across an entire year, you must file a separate C-43 for each affected quarter. The common mistake is filing one C-43 with cumulative annual figures, which TWC rejects in full. A misconception is that you can adjust quarters older than four years; under Texas Labor Code § 213.033, TWC cannot accept adjustments outside the four-year statute of limitations except in cases of fraud.
Box 6: County Code
Box 6 asks for the three-digit Texas county code where most of your employees physically work, taken from the TWC County Code list. For example, Travis County is 227, Harris County is 101, and Dallas County is 057. Enter the same county code that appeared on the original C-3 unless the error you are correcting is the county code itself.
If your workers are split across multiple counties, use the county where the largest payroll dollar amount was earned during the quarter being adjusted. The common mistake is entering the FIPS county code instead of the TWC county code; TWC uses its own numbering system, and a FIPS substitution causes silent miscoding of your local labor-market data. A misconception is that the county code is just for statistics — TWC uses it to allocate your unemployment claims to the right local workforce-development board, which can affect future tax-rate calculations.
Box 7: Reason for Adjustment
Box 7 is a free-text field where you explain why you are filing the adjustment. Be specific and use plain language — for example, “Overstated gross wages for employee John Doe by $2,400 due to duplicate payroll entry on 08/15/2024.” TWC tax examiners read this field to decide whether the adjustment needs further review.
If the reason involves an employee misclassification (independent contractor reclassified as a W-2 employee), state that clearly so the file is routed to the correct examiner. The common mistake is writing vague reasons like “correction” or “error”, which guarantees an examiner will request more information and delay processing by 30–60 days. A misconception is that the reason field is just a formality — examiners use it to decide if your adjustment qualifies as a good-faith correction (no penalty) or warrants a fraud review.
Wage Adjustment Grid: Columns A–E
The grid is the heart of the form. Each row represents one employee, and the five columns capture (A) Employee SSN, (B) Employee Name, (C) Original Total Wages, (D) Corrected Total Wages, and (E) Difference. Carlos Mendez, who corrects an overstatement for his employee Lucia Garza, writes 489-22-7104, GARZA, LUCIA, $14,200.00, $11,800.00, -$2,400.00 across columns A through E.
Enter SSNs with dashes in the XXX-XX-XXXX format that matches the SSA’s verification output. Always show the Difference in column E as a signed number — negative for overreporting, positive for underreporting — because TWC’s system reads the sign to decide whether to issue a credit or a bill. The common mistake is leaving the Original column blank and only filling Corrected; the consequence is rejection because TWC has no way to compute the difference. A misconception is that you only list the affected employees — you list only the affected employees, and any employee whose wages are unchanged is omitted from the grid.
Taxable Wages Recalculation
Below the grid, the form asks you to recompute taxable wages, which under Texas law are the first $9,000 of each employee’s wages per calendar year (the 2024 and 2025 SUTA wage base). Subtract any wages already taxed in earlier quarters of the same calendar year before applying the change. Janet Whitfield, who corrects a $2,400 overstatement for an employee whose year-to-date wages were already past $9,000, writes $0.00 in the corrected taxable-wage line because the overstatement was on excess wages that were never taxable.
If the adjustment crosses the $9,000 threshold (for example, the correction pulls an employee from $10,000 down to $8,500 for the year), the difference between the new and old taxable wages is what drives the tax recalculation. The common mistake is treating all gross-wage changes as taxable changes, which overstates additional tax owed. A misconception is that the wage base is the same as the federal FUTA $7,000 base — Texas uses $9,000, and confusing the two is one of the top three errors TWC sees.
Additional Tax or Credit Computation
This section multiplies the change in taxable wages by your SUTA tax rate for the quarter being adjusted. Use the rate printed on your original tax-rate notice for that year, not your current rate, because TWC assesses the liability based on the rate in effect when the wages were paid. If your 2024 rate was 2.7% and your taxable-wage difference is +$5,000, the additional tax is $135.00.
The common mistake is using the new-employer rate (currently 2.7%) when your actual experience-rated rate was different — using the wrong rate either underpays (creating interest) or overpays (creating a refund delay). A misconception is that the assessment of additional tax can be deferred to your next quarterly C-3 — TWC requires payment with the C-43 itself, separate from the next quarterly liability.
Interest Computation
Texas charges 1.5% interest per month on additional tax owed under Texas Labor Code § 213.021, starting the first day after the original quarterly due date and running through the date of payment. Partial months count as full months. Marcus Reyes owes $135 in additional tax for 2024Q3 (originally due 10/31/2024) and pays on 03/15/2026 — that is 17 months of interest at 1.5% per month, or $34.43.
The common mistake is forgetting interest entirely, which causes TWC to assess it later with a separate notice and a 14-day demand letter. A misconception is that voluntary disclosure waives interest — voluntary disclosure waives penalties in many cases, but not statutory interest, which runs automatically.
Signature Block
The final block requires the signature of an authorized officer, owner, partner, or duly appointed agent, plus printed name, title, phone number, and date in MM/DD/YYYY format. An unsigned C-43 has no legal effect and is treated as never filed under TWC Rule § 815.109.
If a CPA or payroll service signs, they must already be on file as a reporting agent with a signed Form C-42 power of attorney. The common mistake is having a bookkeeper sign without agent authority, which voids the filing. A misconception is that an electronic signature in the UTS portal is somehow weaker than a wet-ink signature — under Texas’s adoption of the Uniform Electronic Transactions Act, the e-signature is fully equivalent.
Three Filled-Out Examples Using Real Scenarios
The three scenarios below walk three different employers through the entire C-43, showing exactly what each filer enters in the most important fields. Each table is a real-world reconstruction of the most common adjustment patterns TWC sees.
Scenario 1: Marcus Reyes Overreported Wages by $2,400
Marcus owns Reyes Roofing LLC, ran a duplicate payroll batch for one employee in Q3 2024, and wants the $2,400 overstatement reversed.
| Form Section | What Marcus Enters |
|---|---|
| Box 1 — TWC Account Number | 019283746 |
| Box 2 — FEIN | 742918365 |
| Box 3 — Legal Name | REYES ROOFING LLC |
| Box 5 — Quarter/Year | 2024Q3 |
| Box 6 — County Code | 227 (Travis County) |
| Box 7 — Reason | “Duplicate payroll batch posted 08/15/2024 for employee Lucia Garza; reversing $2,400.” |
| Grid Row 1 (Cols A–E) | 489-22-7104, GARZA LUCIA, $14,200.00, $11,800.00, -$2,400.00 |
| Taxable Wage Change | $0.00 (Garza already past $9,000 base) |
| Additional Tax / Credit | $0.00 — no taxable wage change |
| Signature / Date | Marcus Reyes, Owner, 03/15/2026 |
Scenario 2: Aisha Bennett Underreported Wages by $5,000
Aisha is the bookkeeper at Bennett Bakery Inc., discovered an entire pay period was missed for a new hire in Q1 2025, and now owes additional SUTA at the company’s 2.7% rate.
| Form Section | What Aisha Enters |
|---|---|
| Box 1 — TWC Account Number | 305927184 |
| Box 2 — FEIN | 830714529 |
| Box 3 — Legal Name | BENNETT BAKERY INC |
| Box 5 — Quarter/Year | 2025Q1 |
| Box 6 — County Code | 101 (Harris County) |
| Box 7 — Reason | “Pay period 02/10/2025–02/23/2025 omitted for new hire Daniel Ortiz; adding $5,000 in gross wages.” |
| Grid Row 1 (Cols A–E) | 612-44-9018, ORTIZ DANIEL, $0.00, $5,000.00, +$5,000.00 |
| Taxable Wage Change | +$5,000.00 (Ortiz first quarter, under $9,000 base) |
| Additional Tax | $135.00 (5,000 × 2.7%) |
| Interest (12 months @ 1.5%) | $24.30 |
| Signature / Date | Aisha Bennett, Controller, 05/20/2026 |
Scenario 3: Janet Whitfield Corrects a Misclassified SSN
Janet is the HR director at Whitfield Logistics LP, discovered that a long-tenured employee was reported under a transposed SSN for Q4 2025, and is fixing the SSN without changing wages.
| Form Section | What Janet Enters |
|---|---|
| Box 1 — TWC Account Number | 847102395 |
| Box 2 — FEIN | 912038475 |
| Box 3 — Legal Name | WHITFIELD LOGISTICS LP |
| Box 5 — Quarter/Year | 2025Q4 |
| Box 6 — County Code | 057 (Dallas County) |
| Box 7 — Reason | “SSN transposition for employee Theresa Park; correcting from 412-39-8765 to 421-39-8765, no wage change.” |
| Grid Row 1 — Original | 412-39-8765, PARK THERESA, $9,000.00, $0.00, -$9,000.00 |
| Grid Row 2 — Corrected | 421-39-8765, PARK THERESA, $0.00, $9,000.00, +$9,000.00 |
| Taxable Wage Change | $0.00 net |
| Additional Tax / Interest | $0.00 / $0.00 |
| Signature / Date | Janet Whitfield, HR Director, 04/02/2026 |
How to File the Completed Form
TWC accepts Form C-43 through three channels: the Unemployment Tax Services online portal, U.S. mail, and fax. There is no filing fee for the C-43 itself, but any additional tax owed must be paid at the time of filing or interest continues to accrue at 1.5% per month under Texas Labor Code § 213.021.
Online via UTS Portal. Log in at the UTS portal, select Adjust Wage Report, and follow the on-screen prompts. The portal accepts ACH debit (no fee), credit card (2.25% convenience fee through Texas.gov payment services), and electronic check. Processing time is 7–10 business days, and your proof-of-filing is the Confirmation Number the system displays — print or screenshot it immediately, because UTS does not email confirmations.
By mail. Send the signed paper C-43 along with a check or money order made payable to Texas Workforce Commission to: TWC Tax Department, P.O. Box 149037, Austin, TX 78714-9037. Use USPS Certified Mail with Return Receipt — the green card is your proof-of-filing. Processing time runs 4–6 weeks, longer during the January peak.
By fax. Send the signed C-43 to 512-463-8185. TWC accepts fax filings only when no payment is owed; fax-with-payment is not permitted, since checks cannot be transmitted by fax. Keep the fax confirmation page as proof-of-filing, and follow up by phone at 512-463-2731 if you do not receive an acknowledgment within three weeks.
In person. You may walk a C-43 into any TWC Tax Field Office and request a date-stamped copy as your proof-of-filing. Field offices accept checks and money orders but not cash.
What Happens After You File
Once TWC receives your C-43, the form is logged into the agency’s tax system and assigned to a tax examiner if the adjustment exceeds $1,000 in wages or involves an SSN change. The examiner verifies the adjustment against your original C-3, your payroll registers (if requested), and SSA records before posting the correction to your account.
If the adjustment results in additional tax owed, TWC issues a Notice of Assessment within 30–45 days showing the tax, interest, and any applicable penalty. You have 14 days to pay or to file a written protest under TWC Rule § 815.119. Failure to pay within 14 days triggers collection action and a possible tax lien.
If the adjustment results in a credit, TWC applies the credit to your next quarterly C-3 automatically. If you want a cash refund instead, file Form C-7, Refund Request at the same time as the C-43, and TWC will issue a paper check within 60–90 days. Credits older than four years are extinguished under the same statute of limitations that limits adjustments.
If your adjustment touches a quarter that overlaps with an active unemployment-claim charge against your account, TWC may also recompute the chargeback to your reserve account, which can move your future SUTA rate up or down. That recomputation is automatic and shows up on your next annual tax-rate notice issued each December.
Mistakes to Avoid When Filling Out the Form
The errors below are the ones TWC tax examiners flag most often. Each one carries a real cost in delay, interest, or audit exposure.
- Using the FEIN in Box 1 instead of the TWC Account Number — the form is rejected at intake and you lose 4–6 weeks of processing time.
- Filing one C-43 for multiple quarters — TWC rejects the entire filing and forces you to refile separate C-43s for each quarter.
- Leaving the Original Amount column blank — TWC cannot compute the difference, and the adjustment is returned without action.
- Forgetting interest at 1.5% per month — TWC issues a separate interest assessment, and you may miss the 14-day protest window.
- Using the wrong SUTA tax rate — using the current rate instead of the historical rate for the quarter being adjusted miscomputes the liability.
- Confusing the $9,000 Texas wage base with the $7,000 federal FUTA base — overstates or understates taxable wages and the additional tax.
- Vague Reason for Adjustment text — examiners send the form back for clarification, adding 30–60 days.
- Unverified Social Security Numbers — TWC kicks back the adjustment until the SSN is verified through SSA Business Services Online.
- Bookkeeper signature without C-42 power of attorney — the filing is void and treated as never received.
- Mailing without certified mail — if TWC says it never arrived, you have no proof, and interest continues to accrue.
- Adjusting quarters older than four years — barred by the statute of limitations, the adjustment is rejected outright.
- Failing to update the IRS Form 940 — Texas SUTA changes affect federal FUTA credit, and the IRS may issue a CP2100 notice.
Do’s and Don’ts
A short list of do’s and don’ts keeps your C-43 clean and processable.
Do’s
- Do download a fresh C-43 PDF from the TWC Forms page every time, because revisions happen quietly.
- Do verify every SSN through SSA Business Services Online before entering it on the grid.
- Do keep a complete copy of the signed C-43, the cover letter, and your certified-mail receipt for at least four years.
- Do compute interest yourself before filing, so you can pay everything in one transaction and stop the clock.
- Do file an amended IRS Form 940 if your Texas SUTA wages change, because federal FUTA depends on Texas SUTA.
- Do use the UTS portal when possible, because its built-in math eliminates 70% of paper-filing errors.
Don’ts
- Don’t email the C-43 to TWC, because TWC does not accept email and your filing will be deleted.
- Don’t combine multiple quarters on one C-43, because the entire filing will be rejected.
- Don’t sign as a bookkeeper or assistant unless you are a registered reporting agent on file.
- Don’t skip Box 7 (Reason for Adjustment), because vague or empty reasons trigger an examiner review.
- Don’t assume TWC will auto-refund a credit, because cash refunds require a separate Form C-7.
- Don’t try to adjust quarters older than four years, because the statute of limitations bars TWC from accepting them.
Pros and Cons of Filing on Your Own vs. With Help
Whether to file C-43 yourself or hire a CPA or payroll service depends on the complexity of the error and your comfort with TWC procedure.
Pros of filing on your own
- No professional fees, which on a simple one-employee correction can save $150–$400.
- Full control over the Reason for Adjustment narrative, which can prevent a vague third-party explanation from triggering an audit.
- Faster turnaround through the UTS portal, because you do not wait for a third party’s queue.
- Direct knowledge of the underlying payroll error, which usually beats a CPA’s reconstruction.
- Stronger audit defense because the person who knows the facts also signs the form.
Cons of filing on your own
- Higher math-error risk, especially on the $9,000 wage-base recomputation and the 1.5%-per-month interest math.
- No buffer between you and TWC if the examiner escalates to an audit under Texas Labor Code Chapter 213.
- Time cost — a well-prepared C-43 takes 1–3 hours of work, not counting the SSN verifications.
- Missed federal coordination — most pro-se filers forget the corresponding IRS Form 940 amendment.
- No malpractice coverage if you make a mistake and TWC assesses penalties for fraud or gross negligence.
Form C-43 vs. Related TWC Forms
Filers often confuse C-43 with the other forms in TWC’s tax series. The table below clarifies which form fits which situation.
| Form | When To Use It |
|---|---|
| C-3 | Original quarterly wage and tax report due each quarter |
| C-4 | Continuation sheet for C-3 when you have more than ten employees |
| C-5 | Older adjustment form replaced by C-43; do not use for current corrections |
| C-7 | Refund request to receive a cash refund of credits created by C-43 |
| C-43 | Adjustment Report — corrects errors on a previously filed C-3 or C-4 |
FAQs
Do I file Form C-43 to fix a wage error from five years ago?
No. Texas Labor Code § 213.033 bars adjustments outside the four-year statute of limitations, except in cases of fraud, where TWC may reach back further on its own audit.
Do I need to amend IRS Form 940 if I file a Texas C-43?
Yes. Federal FUTA credit is tied to Texas SUTA wages, so a Texas wage change usually requires an amended IRS Form 940 within the three-year federal statute window.
Do I write my FEIN or my TWC account number in Box 1?
No. Box 1 takes only the nine-digit TWC Account Number; the FEIN goes in Box 2, and switching them causes immediate rejection at intake.
Do I list every employee in the wage adjustment grid?
No. You list only the employees whose wages, names, or SSNs are changing; unaffected employees stay off the grid entirely.
Do I have to pay interest if my error was honest?
Yes. Interest at 1.5% per month under Texas Labor Code § 213.021 is statutory and is not waived for good-faith errors, although penalties sometimes are.
Do I file one C-43 for two different quarters?
No. Each C-43 covers exactly one quarter, so two erroneous quarters require two separate C-43 forms filed at the same time.
Do I write the difference as a positive or negative number in column E?
Yes, signed numbers matter. Use a negative sign for overreporting and a positive sign for underreporting; TWC’s system reads the sign to issue a credit or a bill.
Do I need to attach payroll registers when filing?
No, payroll registers are not required at filing, but TWC may request them within 60 days, so keep them ready and organized.
Do I use my current SUTA rate or the historical rate for the quarter being adjusted?
Yes, use the historical rate. The rate in effect during the quarter being corrected is what applies, not your current-year rate.
Do I have to use the UTS portal for filing?
No, but it is faster. Paper filing by certified mail is still accepted, though it takes 4–6 weeks instead of 7–10 days online.
Do I need a power of attorney for my CPA to sign the C-43?
Yes. Your CPA must be on file with TWC as a reporting agent under a signed Form C-42 before their signature is valid on a C-43.
Do I file Form C-7 separately to get a cash refund?
Yes. A C-43 credit applies to your next C-3 automatically; you must file Form C-7 at the same time if you want a paper refund check instead.
Do I send payment with a faxed C-43?
No. Fax filings are accepted only when no payment is owed; if additional tax is due, file by mail or through the UTS portal so payment can travel with the form.
Do I update my address by writing it on the C-43?
No. The address on the C-43 does not propagate through TWC systems; you must file Form C-1AM to formally update your address.
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