Tennessee New Employer Information
Federal and State Tax Accounts
Federal Tax Accounts:
- Apply for an EIN (Employer Identification Number) with the IRS online.
- The IRS will assign you a unique nine-digit number to identify your business.
- To read more about applying for an EIN, read our help article, “Your Step-by-step Guide on How to Apply for EIN”
- 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 mailed or faxed to the Employer Services Unit. Allow 10 business days for processing. The Employer Account number will be mailed to the address provided on the form.
- 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 2023 is 2.7%. The rate for new construction employers is 5.0%. 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?”
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?”
- Employees need to fill out the Federal Form W-4 Withholding Certificate for Federal income taxes (FIT).
- For more information, read our help article, “Updates to the Income Tax Withholding Tables and What You Need to Know.”
- Employers in Tennesse need to report new hires online within 20 days of hire or rehire with the Tennessee New Hire Reporting Program.
- For more information please read our article, “What is New Hire Reporting?”
- 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!
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