PEO services in Texas
A PEO helps Texas employers manage multi-state payroll, and benefits while staying compliant with Texas's rules. As of 2026, Texas's minimum wage is $7.25/hr and the state unemployment (SUTA) taxable wage base is $9,000. ONYX benchmarks the top PEOs against your current setup so Texas companies stop overpaying by 15–40%.
Texas employer snapshot (2026)
The structural facts that shape payroll and benefits cost in Texas. Verify current figures with the state agency before relying on any single number.
Follows federal minimum ($7.25).
Standard employer base; some states assign a higher base to max-rated employers.
No state income tax on wages.
Coverage available through private carriers and PEO programs.
The short answer
No state income tax; strongly at-will and employer-friendly. Workers' comp is optional for private employers (non-subscriber model), which is unusual nationally.
Major metros we serve in Texas: Houston, San Antonio, Dallas, Austin.
Common Texas PEO questions
Can a PEO operate in Texas?
Yes. PEOs operate in Texas and handle Texas payroll tax, the $9,000 SUTA wage base, benefits, and workers' comp through competitive carriers. ONYX benchmarks the PEOs that operate in Texas against your current setup.
What is the 2026 minimum wage in Texas?
Texas's minimum wage is $7.25/hr as of 2026. Follows federal minimum ($7.25).
How much can a Texas company save with a PEO?
Most companies ONYX works with save 15–40% of total people cost by moving to a better-fit PEO. We model the exact savings for your Texas census for free in 3–5 business days.
PEO services in other states
Compare PEOs for your Texas team.
Get a free, no-pressure PEO audit. We'll compare your current setup against the top PEOs and show you the savings in 3–5 business days.