Tennessee State Payroll Tax Information
PayWow equips your business with the latest resources on state withholding and filings.
Tennessee Withholding Requirements
The state of Tennessee has no Withholding requirements, so there are no state taxes or local taxes. Texas also does not impose any reciprocal agreements with any other states.
Tennessee withholding requirements and calculations is automatically done by PayWow and deposits are done on-time.Get Started Now
State Unemployment Insurance
The State Unemployment Insurance (SUI) is a program that offers compensation to eligible workers who lost their job. The Tennessee Department of Labor and Workforce Development is responsible for unemployment wages for the state of Tennessee.
For contributing to unemployment taxes, you must check your liability for unemployment insurance premiums. To do so, you have to fill out Form LB-0441, Report to Determine Status, Application for Employer Number. By submitting this form, the state will determine your status of liability.
You will receive an 8-digit employer account number and tax rate from the state, which you are required to provide in PayWow, to remit and file taxes on your behalf.
Tennessee Taxable Wage Base:
Tennessee SUTA wage base limit for 2020 is $7000.
Tennessee Employer Contribution Rate:
Generally, the Tennessee SUI tax rates for 2020 is between .01 to 10%.
If you are a new employer then the Tennessee SUI tax for 2020 is 2.7%. Please note that unemployment taxes must be paid only by the employers and shall not be deducted from the employees’ wages.
Further, below are some other employer contribution rates:
- Tennessee new construction employer rate: 7.0% for 2020
- Tennessee new manufacturing employer rate: 2.7% or 5.50%
- Tennessee new mining employer rate: 5.0% for 2020
PayWow automatically deposits your unemployment taxes to the State on a quarterly basis based on the information recorded in the application.
State Disability Insurance (SDI)
Tennessee does not have any state disability insurance.
State Labor Laws
Tennessee Minimum Wage Rate:
The state minimum wage rate for Tennessee is $7.25/hr, which is the same as the current federal minimum wage rate. Though the rate applies to almost all employees, there are some exceptions.
- Tipped employees- They can be paid a lower minimum wage rate as they usually receive some tips every month. But, make sure that the total comes around $7.25 per hour.
- Student minimum wage- Full-time students who work part-time in small businesses can be paid 85 percent of the state minimum wage rate.
- Under 20 minimum wage- The state imposes a minimum wage rate of $4.25 per hour for employees under 20 years of age. This applies for the first 90 days of employment.
In PayWow, once you add employees and their compensation types, their paychecks will be automatically calculated.
The state of Tennessee imposes termination pay on employers. If employees are fired on any grounds or resign on their own, employers must pay their settlements by no later than 21 days or next regular payday.
New Hire Reporting
As an employer of the state of Tennessee, you must report all your new hires and rehired employees to the state agency within 20 days from their employment. No one is exempt from this law.
Employers who submit reports electronically are to submit the new hire reports in two monthly transmissions not more than 16 days apart.
Details Required to Complete New Hire Report:
Following are the details required to complete the new hire report:
Employer Name, Address, State Employer Identification Number(Unemployment Insurance Number), Federal Employer Identification Number (FEIN).
Employee Name, Address, Social Security Number, Date of Hire, Date of Birth (Optional).
Uses of New Hire Report:
If you have the new hire reports, those will be used for:
- Establishing and enforcing child support orders
- Detecting Unemployment Benefits overpayments and fraud
- Detect Workers' Compensation overpayments and fraud
These reports can be filed electronically or through paper. If you choose to mail the new hire reports, fax it to the following address.
Below is the address:Tennessee New Hire Operations Center,
P.O. Box 17637,
Nashville, TN 37217,
Failure to comply with the law, the state provides a penalty of $20 for each occurrence, an employer fails to report a new hire. Also, an employer will be liable for a penalty of $400 for conspiring with an employee to produce false information.
Remit Withholding for Child Support
As an employer, you will be required to remit child support payments from your employees’ wages if any of your employees are liable to pay for child support. You will receive a withholding notice from the state agency asking you to remit payments to the below address:Child Support Services,
Department of Human Services,
Citizens Plaza Building, 12th Floor,
400 Deadrick Street,
Nashville, TN 37248-7400,
The amount remitted will in turn be sent over to the custodial parent. PayWow lets you record any type of garnishments and during payroll processing, such deductions will be debited from the employee's paycheck.
For more information on this, please visit Texas Child Support Payment Information.
There are no local taxes in the state of Tennessee.
Reciprocal agreements between states are agreements that allow employees living in one state and working in another state to pay taxes only to their state of residence.
However, Texas does not have any reciprocal agreements with any other states.
Tennessee State Tax Forms
Employer's Premium Report- Form LB-0456:
Employers are required to file Form LB-0456 by the end of the month following the end of the calendar month.
This report can be filed electronically through the Tennessee Department of Workforce.
|Quarter||Reporting Period||The Due Date will be on|
|1||January - March||April 30th|
|2||April - June||July 31st|
|3||July - September||October 31st|
|4||October - December||January 31st|