Updated February 11, 2021
This article will cover:
- What information OnPay needs from you
- What state and local taxes and filings OnPay handles for Tennessee employers
- Where you can find the tax account numbers needed
- How to authorize OnPay as a Third Party Administrator in Tennessee
- Paying employees in other states?
Why is this important?
For employers who pay employees in Tennessee, use this guide to learn what’s required to start running payroll while keeping compliant with state payroll tax regulations. Without this information, OnPay will be unable to file or deposit any Tennessee tax payments for your company. Any penalties and interest that accrue from missed tax payments will be your company’s responsibility.
What information OnPay needs from you
Use this checklist to make sure you’ve covered everything required to set up your account as a Tennessee employer so OnPay can accurately file and pay taxes on your behalf:
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✔ |
To do: |
What is this? |
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Make sure your business is registered with the Tennessee Department of Labor |
Allows your business to pay required unemployment insurance in Tennessee |
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Provide OnPay with your Tennessee Employer Account Number |
An 8-digit number unique to your account with the Tennessee Department of Labor |
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Provide OnPay with your Tennessee Unemployment (SUI) Rate |
A tax rate you receive annually from the Tennessee Department of Labor |
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Provide OnPay with your Tennessee Access Code for the current year |
A unique code mailed to employers annually |
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Authorize OnPay as a Third Party Administrator |
For OnPay to be able to file and pay taxes on behalf of your business, you will need to submit a Power of Attorney form. |
What state and local taxes and filings OnPay handles for Tennessee employers
OnPay handles the filing of all state and local taxes for businesses in Tennessee, including:
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Type of Tax |
Form ID |
Form Name |
Frequency |
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Unemployment |
LB-0456 |
Premium Report |
Quarterly |
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LB-0851 |
Wage Report |
Quarterly |
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|
Other |
New Hire Report |
New Hire Report |
As required |
Where you can find the tax account numbers needed
If you are an existing employer who has previously run payroll in Tennessee, you likely already have the IDs and online accounts needed for OnPay to process your tax filings.
If you are a new employer in Tennessee, you will need to register your business with the Tennessee Department of Labor. This must be completed for OnPay to be able to file and pay your Tennessee taxes.
Employer Account Number and Tax Rate
Existing Tennessee Employer:
- You can find your Employer Account Number on the annual Tax Rate Notice received from the Tennessee Department of Labor and Workforce Development. It can also be found on any previously submitted quarterly wage report.
- Your Unemployment Tax Rate can be found in Box H of the Notice of Premium Rate you receive annually.
- The UI tax rate for most Tennessee employers is between 0.01% and 10.0%, with a $7,000 wage base
- If you cannot find these numbers, please contact the Tennessee Department of Labor & Workforce Development at 615-741-2486.
New Tennessee Employer: Register with the Tennessee Department of Labor
- Visit the Tennessee Department of Labor and Workforce Development website for information on how to register by submitting a Report to Determine Status, Application for Employer Number (LB-0441).
- Within 2-3 weeks, the Department of Labor & Workforce Development will send you a form containing your eight-digit Employer Account Number and UI tax rate.
- The UI tax rate for most new Tennessee employers is 2.7%, with a $7,000 wage base.
- You'll receive your account number and tax rate instantly once you have completed the online registration.
All Tennessee Employers: Provide your current Tennessee Access Code
- You can find this access code on the Premium and Wage Report, printed to the right of line 1 (Total Wages).
- This access code is assigned to you on a yearly basis, and will change each year, beginning in the first quarter.
Tennessee Power of Attorney
OnPay works with government entities on your behalf, reporting new hires to state labor departments, calculating tax rates, and filing financial reports. To do this effectively, you will need to add OnPay as your authorized representative by following the instructions in this article.
Paying employees in other states?
If you operate in multiple states or just have employees working from home across a state line, it's important to file the correct state forms for those workers. See what forms we file in the states where you pay employees.
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