Tennessee New Employer Information
Congratulations on your decision to become a Tennessee new employer! You will need a few things in place before you run your first payroll.
For help registering your business in Tennessee, check out our partner, CorpNet.
Federal and State Tax Accounts
Federal Tax Accounts:
- Although it is not required, we recommend you enroll in the Electronic Federal Tax Payment System (EFTPS). You can register online for the EFTPS.
- You will be able to pay taxes and view payments made on your behalf with the Electronic Filing Tax Payment System (EFTPS).
- To find out more about the EFTPS, please read our article, “What is EFTPS?”
State of Tennessee Tax Accounts:
- New employers in Tennessee can register their business for a state unemployment insurance account (SUI) by submitting the completed application. Choose the form that corresponds with your type of business:
- The completed application can be emailed to EmployerStatus.Rates@tn.gov. You can also mail or fax the form to the Employer Services Unit.
- Have questions? Call the TN Dept. of Labor and Workforce toll-free at 844-224-5818.
- You will be assigned an 8-digit employer account number (i.e., 0000-000 0). For more information please visit the DLWD.
- The Tennessee new employer SUTA rate for 2024 is 2.7%. For more information, please visit the DLWD.
- Employers in Tennessee will receive a new State Unemployment Tax Assessment (SUTA) rate after establishing 36 months of premiums.
- To learn more about SUTA, please read our article, “What is SUTA Tax?”
State-mandated Insurance:
- You must have workers’ comp insurance if you have at least 5 employees in Tennessee. You can sign up for workers’ comp insurance through a private provider or state-operated fund. Learn more about workers’ comp requirements in Tennessee here.
- Patriot’s online payroll offers free pay as you go (PAYG) workers’ comp integration with our partner, NEXT Insurance. You can get a free quote with NEXT here.
Setting Up Your New Employee:
- Have your employees fill out the required Form I-9 for work verification in the USA.
- This is a two-part form. The first section is to be completed by the employee and the second half is to be completed by the employer. For more information, please read, “Form I-9 In a Nutshell”
- You must retain each employee’s completed Form I-9 as long as the individual works for you. For more information, please read “What Should Be in an Employee File?”
- Tennessee follows the Federal minimum wage of $7.25 an hour.
- You need to post the minimum wage poster for your employees, as required by law.
Once you have all the necessary information, you will be able to set up your payroll for your business.
You will want to keep all payroll records for at least three years. For more information please read our help article, “What Employers Should Know About Employee Payroll Records.”
Let us know if you have any questions. We are here to help!
This is not an all-inclusive list for new employers. Please check with your state and federal government for full compliance.
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