Doing Payroll in Tennessee
How to run payroll in Tennessee: getting an EIN, state business registrations, SUI reporting, pay frequency rules, deposits, and year-end W-2 filing.
Federal payroll rules, state-specific taxes, wage and hour law, and filing deadlines, explained in plain English for Tennessee small business owners, not accountants.
Featured Guide
Gusto, QuickBooks Payroll, Paychex, and ADP, compared honestly. Who each product is right for, where each falls short, and what to ask before you sign anything.
Every employer owes federal payroll taxes, FICA and FUTA, on top of whatever Tennessee requires, whether that's state income tax withholding, unemployment insurance, or another state-specific program.
Minimum wage, overtime, final paycheck timing, and pay stub requirements can all differ from the federal baseline. Getting the Tennessee-specific rule wrong is one of the most common (and costly) payroll mistakes.
Late deposits, missed filings, and new-hire reporting misses each carry their own penalties. Knowing the Tennessee filing calendar in advance is the easiest way to avoid them.
How to run payroll in Tennessee: getting an EIN, state business registrations, SUI reporting, pay frequency rules, deposits, and year-end W-2 filing.
Tennessee minimum wage 2026: $7.25/hr. Tipped minimum $2.13/hr. Tennessee has no state minimum wage law; the federal minimum of $7.25/hr applies statewide. What employers need to know.
How to register as a new employer in Tennessee: federal EIN, SUI account with the Department of Labor and Workforce Development, and workers' comp.
Tennessee payday laws: semi-monthly pay required, final pay rules, pay stub requirements, and direct deposit rules for employers.
Complete Tennessee payroll compliance guide for employers in 2026 — SUI rates (new employer 2.7%), no state income tax on wages, $7,000 wage base, right-to-work rules, and workers compensation.
Complete guide to Tennessee payroll taxes for employers in 2026. No state income tax. SUI on $7,000, federal obligations, and filing deadlines.
Tennessee SUI rates for 2026: new employer rate 2.7%, experienced range 0.01%–10.00%, wage base $7,000. How to register, file, and reduce your rate.
Official Tennessee payroll agency directory for employers: tax registration, unemployment insurance, new-hire reporting, and wage-and-hour contacts in one place.
Trustpilot ratings are public and updated continuously. ADP: 1.2/5 from 12,000+ reviews. Paychex: 1.3/5 from 4,000+ reviews.
“Called four times about a billing error. Each rep told me to call back. Still unresolved after six weeks.”
“They misfiled our 941 and then charged us a correction fee. Support transferred me three times. Nobody owned the problem.”
| Minimum wage | $7.25 (federal) |
|---|---|
| State income tax withholding | None (no state income tax) |
| SUI new-employer rate | 2.7% |
| SUI taxable wage base | $7,000 |
| Payday frequency rule | Wages due at least monthly; monthly payers must pay by the 5th of the following month, semimonthly payers by the 20th and the 5th of the next month. |
| New-hire reporting deadline | 20 days |
Verified 2026-07 against official Tennessee sources.
Every Tennessee employer owes federal payroll taxes: Social Security and Medicare withholding under FICA, and federal unemployment tax (FUTA), regardless of what Tennessee itself requires. On top of that federal baseline, most states layer on their own obligations: income tax withholding, state unemployment insurance (SUI), and in some cases disability or paid-leave programs. Whether each of these applies, and at what rate, depends on Tennessee law. The first step for any new employer is registering with the right state agencies before running the first payroll. Our new employer payroll setup checklist walks through that process.
Minimum wage and overtime rules start with the federal Fair Labor Standards Act (FLSA), but Tennessee may set a higher minimum wage, stricter overtime triggers, or additional rules around tipped employees and meal or rest breaks. Overtime is generally 1.5 times the regular rate after 40 hours in a workweek under federal law, though some states calculate it differently. The FLSA employer guide covers the federal floor that every employer must meet before layering on Tennessee-specific requirements.
Final paycheck timing, new hire reporting deadlines, and pay stub requirements also vary by state. Missing a new hire report or paying a final check late can trigger penalties even when the payroll math itself was correct. New hires must be reported to the state's new hire registry, typically within a short window of the hire date, and every employer needs a state UI account number before the first unemployment filing is due.
For ongoing compliance, most employers file federal Form 941 quarterly, deposit federal withholding on a schedule based on prior-year liability, and file state withholding and unemployment returns on whatever schedule Tennessee assigns. Our federal payroll compliance checklist lays out the recurring tasks by frequency: new hire, every payroll, monthly, quarterly, and annual.
Rates, wage bases, and deadlines change from year to year and are specific to Tennessee. See the guides below for current Tennessee figures, or check directly with your state's revenue and labor agencies before filing.
Employers in Tennessee pay federal payroll taxes: Social Security and Medicare (FICA) and federal unemployment tax (FUTA), plus any state-level payroll taxes that apply, such as state income tax withholding and state unemployment insurance (SUI). Rates and wage bases vary and change annually, so always confirm current figures with your state's labor and revenue agencies.
Minimum wage in Tennessee is set by a combination of federal and state law, and the higher of the two rates always applies. Rates are reviewed regularly and can change from year to year, so check your state labor department's website for the current figure before running payroll.
New employers generally need a federal Employer Identification Number (EIN) from the IRS, plus registration with Tennessee's revenue department for state income tax withholding (where applicable) and its labor or workforce agency for state unemployment insurance. See our Tennessee guides for step-by-step registration instructions.
This site is for general informational purposes only and does not constitute legal, tax, or professional advice. Employment laws, tax regulations, and compliance requirements change frequently and may not be reflected here. Always consult a qualified attorney, CPA, or HR professional familiar with Tennessee law before making payroll or compliance decisions for your business.