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Taxes
Tennessee Payroll Taxes 2026: Complete Overview for Employers
No state income tax, but SUI on $7,000 and federal obligations still apply.
Practical, accurate resources for Tennessee small business owners — covering payroll taxes, labor laws, and compliance. Written by the payroll professionals at Pacific Data Services.
No state income tax, but SUI on $7,000 and federal obligations still apply.
How to register with Tennessee Department of Revenue and Tennessee Department of Labor and Workforce Development as a new Tennessee employer.
New employer rate 2.7%, experienced range 0.01%–10.00%, wage base $7,000.
Tennessee minimum wage is $7.25/hr. Tennessee has no state minimum wage law; the federal minimum of $7.25/hr applies statewide.
Semi-monthly pay required. Final pay: Final wages are due on the next regular payday or within 21 days of separation, whichever is later..
FICA, Social Security, Medicare, FUTA, federal withholding — the complete breakdown.
EIN, state registration, withholding setup, new hire reporting — complete checklist.
IRS classification rules, Tennessee-specific considerations, and misclassification penalties.
IRS lookback period, deposit thresholds, next-day rule, EFTPS, and penalties.
Federal and Tennessee new hire reporting requirements, deadlines, and penalties.
FLSA, IRS, and Tennessee recordkeeping — what to keep, how long, and why.
ALE threshold, penalties, 1094-C/1095-C filing, small business exemption.
Misclassifying workers, wrong withholding, missed deposits — mistakes that add up fast.
Gusto vs Paychex vs QuickBooks vs ADP for Tennessee small businesses.
Federal OT after 40 hrs/week, Tennessee overtime rules, exemptions, salary thresholds.