This 2026 Texas reference is for people assembling an accurate earnings statement or reviewing a pay record. Begin with the jurisdiction-specific rules and the source-backed subjects below; the presence of a downloadable paystub template does not itself determine an employer’s legal duties. The reviewed Texas material addresses earnings statement rule, state income tax, unemployment insurance.
Overview
Texas Labor Code section 62.003 says that, at the end of every pay cycle, an employer covered by that chapter must give each affected worker a written earnings statement showing the employee’s name, rate of pay, total pay, deductions and their purpose, take-home pay, and hours or piece-rate units when applicable.
The critical Texas distinction is section 62.151: Chapter 62 does not govern a person covered by the federal Fair Labor Standards Act. That means the Texas earnings-statement rule should not be described as a universal state pay-record mandate for every private employee. Coverage must be considered before relying on section 62.003.
Texas also does not impose an individual state-level income tax. Payroll preparation therefore focuses on federal withholding, Texas unemployment tax, the employer’s workers’ compensation status, and any other state or federal obligations that govern the employer and employee.
Texas Labor Code section 62.003 requires a written earnings statement at the end of every pay cycle when Chapter 62 applies. Section 62.151, however, provides that the chapter does not govern a person covered by the federal Fair Labor Standards Act.
Texas does not impose a personal state-level income tax, so there is no Texas individual income-tax withholding from employee wages.
New Texas employers generally use a 2.70% unemployment tax rate for approximately their first six calendar quarters. Texas unemployment tax covers the first $9,000 of each affected worker’s annual wages.
Most Texas private employers may choose whether to carry workers’ compensation insurance. Employers that do not provide coverage become non-subscribers and have notice and reporting obligations.
Trusted sources
Consult these agency and research references when checking the rules for Texas. The publication date and availability of each link should be rechecked before relying on its contents.
Document checklist
Use the Texas requirements as a document-review list. Identify the governing employer or worker category, and distinguish mandatory fields from good recordkeeping practices.
Before treating section 62.003 as the governing earnings-statement rule, determine whether the employee is covered by the Fair Labor Standards Act. Section 62.151 exempts FLSA-covered persons from Chapter 62.
The statement must show the employee’s name, rate of pay, total pay earned, each deduction and its purpose, take-home pay, and either total recorded work hours for hourly employees or units produced for piece-rate employees.
Texas does not impose an individual state-level income tax, so there is no Texas personal income-tax withholding calculation to govern wages.
Consult Texas unemployment-tax liability, workers’ compensation coverage or non-subscriber duties, federal withholding, and applicable federal wage-and-hour recordkeeping requirements.
After payday
When section 62.003 applies, the earnings statement may be in any form determined by the employer, and the required information may appear on a check voucher or bank draft given to the employee.
Section 62.003 establishes the statement contents but does not itself create a special pay-record retention period. Employers should preserve the wage, hour, tax, and unemployment records required by the federal and Texas rules that govern their business.
Tax withholding
Texas does not impose a personal state-level income tax. Employers therefore do not calculate a Texas individual income-tax withholding amount from employee wages, but federal withholding and Texas unemployment-tax obligations can still apply.
New employers generally use a 2.70% unemployment tax rate for approximately their first six calendar quarters. The taxable wage base is the first $9,000 of each affected worker’s annual earnings.
Refer to the current federal withholding rules and the employee’s Form W-4 for federal income-tax withholding. Texas does not replace the federal calculation with a state income-tax calculation.
Document-generation boundary: Where a source discusses remitting taxes or employer contributions, PayStubCheck presents that information as context only. Preparing a document does not complete a remittance, file a return, or establish that a calculated figure is correct for a particular worker.
State vs. local rules
Texas Labor Code section 62.151 states that Chapter 62 and municipal ordinances or charter provisions governing wages in private employment—other than wages under a public contract—do not govern a person covered by the FLSA. Local business requirements may still matter, but private payroll should not assume that Austin, Dallas, Houston, or San Antonio each has a separate general pay-record regime.
Step-by-step process
Determine whether the employee is covered by the FLSA and whether Texas Labor Code Chapter 62 covers the earnings-statement question.
Add the employer, pay period, employee information, pay rate, hours or units when relevant, federal withholding setup, deductions, and work location.
Consult gross earnings, federal withholding, deductions, take-home pay, and Texas unemployment-tax treatment before completing the run.
Create the earnings document and generate the employee and bookkeeping records needed for the pay period.
Retain the wage, hour, tax, unemployment, and other supporting wage records required by the rules that govern the employer and employee.
A simpler way
Use the Texas references above to check the kind of earnings document you are preparing, verify the dates and figures, and decide whether the document must contain specific information. PayStubCheck offers standalone document preparation; it does not run payroll, retain authoritative employer payroll ledgers, give individualized legal advice, or file tax returns on the user’s behalf.
United States document note: Where state-specific withholding or local requirements matter, compare your entries with the appropriate official source before relying on a generated statement.
Review every figure on a watermarked preview before any download.
Each jurisdiction page lists the agency references it draws on.
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References
Questions
Texas Labor Code section 62.003 requires a written earnings statement at the end of every pay cycle when Chapter 62 applies. However, section 62.151 states that Chapter 62 does not govern a person covered by the federal Fair Labor Standards Act. The rule should therefore be evaluated with the coverage exemption rather than described as universal.
It must show the employee’s name, rate of pay, total pay earned, each deduction and its purpose, take-home pay, and total recorded work hours for hourly employees or units produced for piece-rate employees.
No. Texas does not impose a personal state-level income tax, so employers do not calculate a Texas individual income-tax withholding amount from wages.
Texas unemployment tax generally covers the first $9,000 of each affected worker’s annual wages. New employers generally use a 2.70% rate for approximately their first six calendar quarters before becoming eligible for an experience-based rate.
Not in most cases. Most Texas private employers may choose whether to provide workers’ compensation coverage. Employers that operate without coverage have non-subscriber notice and reporting obligations.
Texas Labor Code section 62.151 limits the application of municipal wage provisions to FLSA-covered persons in private employment, while expressly distinguishing wages under public contracts. Employers should consult the specific state, federal, and contract rules that govern the work rather than assuming a separate city pay-record mandate.
Keep your records in check
Enter verified details, review the watermarked preview, and keep your supporting records with the finished document.