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Tennessee payroll tax and registration guide

  • Updated

Why is this important?

To maintain compliance with state payroll tax regulations, you must provide the following information before you can use OnPay to run payroll:

  • State Employer Identification Number and state/local tax IDs
  • Tax rates - State tax offices set these rates based on the type, age, and size of your business
  • TPA and power of attorney - Most tax offices require this before we can submit quarterly wage reports and deposits on your behalf

This information must be provided and maintained by you in order for OnPay to accurately file and deposit tax payments for your company. OnPay is not responsible for any penalties or interest that incur due to missing or incorrect company tax information.

Each state has its own requirements, so if you pay employees in more than one state, you’ll find separate tax guides for each state.

Let Middesk handle your state tax registrations

Want help registering your business with state agencies? We've partnered with Middesk to make it simple for you to stay compliant in your state — and every state — when hiring employees.

  • Register with state agencies and get the tax IDs you need within minutes
  • Manage all your government accounts in one place using Middesk's intuitive platform
  • Stay compliant by managing agency mail and notices from your Middesk dashboard
  • Foreign Qualify with the Secretary of State to create payroll tax accounts 

Learn more about Middesk

 

See what information you need to provide OnPay, and what taxes and filings OnPay handles for Tennessee Employers.

  • 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:

    All Tennessee employers What is this?
    Make sure your business is registered with the Tennessee Department of Labor

    Allows your business to pay required unemployment insurance in Tennessee
    More info >
    Provide OnPay with your Tennessee Employer Account Number

    An 8-digit number unique to your account with the Tennessee Department of Labor
    More info >
    Provide OnPay with your Tennessee Unemployment (SUI) Rate

    A tax rate you receive annually from the Tennessee Department of Labor
    More info >
    Provide OnPay with your Tennessee Access Code for the current year

    A unique code mailed to employers annually
    More info >

  • Taxes and filings OnPay handles for Tennessee Employers

    Withholding Tax

    There is no individual state income tax in Tennessee.

    Unemployment Insurance Tax

    LB-0456

    Premium Report

    - Quarterly
    LB-0851

    Wage Report

    		 - Quarterly

    Other

    New Hire Report

    Tennessee Report of New Hires

    - As required

Where you can find the tax account numbers you need

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

Updated January 1, 2025

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 (Show me→)
  • 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, 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 submit a Report to Determine Status, and apply for an Employer Number
  • 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

 

Tennessee Access Code

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

 

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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