Tennessee New Employer Registration: Step-by-Step Guide

When you hire your first employee in Tennessee, you trigger a series of registration requirements at the federal and state level. Missing any of these steps can result in penalties, delayed payroll, and compliance headaches. This guide walks you through everything, in order.

Registration Overview

Here’s a checklist of what every new Tennessee employer needs:

• ☑ Federal Employer Identification Number (EIN)
• ☑ Tennessee state tax registration (Tennessee Department of Revenue)
• ☑ Tennessee SUI account (Tennessee Department of Labor and Workforce Development)
• ☑ Workers’ compensation insurance
• ☑ New hire reporting setup
• ☑ Payroll system or software

Step 1: Get Your Federal EIN

Your Employer Identification Number (EIN) is your federal tax ID. You need it for everything — federal tax filings, state registrations, opening a business bank account, and running payroll.

Apply online at IRS.gov/EIN. It’s free and you receive your EIN immediately.

Step 2: Register with Tennessee Department of Revenue

Visit the Tennessee Department of Revenue website to register for a state employer tax account. Even though Tennessee has no state income tax, you may still need to register for other state business taxes.

💼 From the Payroll Desk

Don’t wait until your first payroll to register. State registrations can take days or weeks to process. Start the registration process as soon as you know you’ll be hiring.

Step 3: Register for SUI

Register for a State Unemployment Insurance account through the Tennessee Department of Labor and Workforce Development. You’ll be assigned:

• An employer account number
• Your initial SUI rate (2.7% for new employers)
• Quarterly filing requirements

SUI is an employer-paid tax on the first $7,000 of each employee’s wages. See our Tennessee SUI Rates 2026 guide for details.

Step 4: Workers’ Compensation Insurance

Most Tennessee employers are required to carry workers’ compensation insurance, which covers employees who are injured on the job. Requirements vary by state — some states require coverage from the first employee, while others have minimum thresholds.

You can obtain workers’ comp through private insurance carriers or, in some states, through a state fund. Compare quotes from multiple carriers to find the best rate for your industry classification.

Step 5: New Hire Reporting

Federal and Tennessee law require you to report every new hire within 20 days of their start date. This information is used to enforce child support orders and prevent fraud.

Most states allow online reporting through their new hire reporting website. See our New Hire Reporting guide for details.

Step 6: Set Up Payroll

With all registrations complete, you’re ready to set up your payroll system. For Tennessee small businesses, we recommend:

• — Best overall for small businesses. Automated tax filings, easy setup, starting at $40/mo + $6/employee.
• — Best for growing teams with dedicated support needs.
• — Best if you already use QuickBooks for accounting.

Start running payroll in Tennessee today →

Frequently Asked Questions

How do I register as a new employer in Tennessee?

Register for a state tax ID with the Tennessee Department of Revenue and for an SUI account with the Tennessee Department of Labor and Workforce Development. You'll also need a federal EIN from the IRS.

When must I register as an employer in Tennessee?

You must register as soon as you hire your first employee or, in some cases, when you pay wages above a threshold in a calendar quarter. Register before your first payroll.

Do I need workers' compensation in Tennessee?

Most Tennessee employers are required to carry workers' compensation insurance. Check with the Tennessee Department of Labor and Workforce Development or your state's workers' compensation board for specific requirements.

What is an EIN and how do I get one?

An Employer Identification Number (EIN) is a federal tax ID from the IRS. Apply online at irs.gov/ein — it's free and you receive it immediately.