Payroll Tennessee Unique Aspects of Tennessee Payroll Law and Practice
Below is a MRR and PLR article in category Business -> subcategory Other.
Payroll in Tennessee: Unique Aspects of Tennessee Payroll Law and Practice
Summary:
Understanding Tennessee payroll involves navigating its distinct conditions and laws, including tax withholding, unemployment insurance, wage and hour laws, and child support withholding.
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Tennessee Payroll Overview:
Tennessee boasts a unique payroll landscape, primarily because the state does not impose an income tax. As a result, there is no state agency overseeing withholding deposits, no state W2 forms are required, and no supplemental wage withholding rates apply.
Key Points:
1. Cafeteria Plans and 401(k) Contributions:
- Unlike many states, Tennessee taxes cafeteria plans for unemployment insurance purposes.
- 401(k) plan contributions are also taxable for unemployment purposes.
2. Unemployment Insurance:
- Managed by the Department of Labor and Workforce Development.
- Taxable wage base for unemployment is $7,000.
- Employers with 250 or more employees must report wages quarterly via magnetic media.
- Unemployment records must be kept for seven years.
3. Wage and Hour Laws:
- No state-mandated minimum wage or specific overtime provisions outside of federal regulations.
- New hires and rehires must be reported within 20 days, including key employee and employer information.
- Employers may use direct deposit, adhering to federal Regulation E.
- Employees must be paid at least semimonthly, with specific lag times for payment.
- Final pay for terminated employees depends on the nature of termination, either by the next regular payday or within 21 days.
4. Child Support Withholding:
- Enforced by the Department of Human Services.
- Withholding begins 14 days after mailing, with payments sent within 7 days of payday.
- Maximum administrative fee is $5 per month or 5% of payment.
- Withholding limits are 50% of gross wages minus taxes and health insurance premiums.
5. Other Provisions:
- No provisions regarding tip credits or pay stub requirements.
- Unclaimed wages must be handed over to the state after one year, with records retained for 10 years.
- Employees must have a 30-minute rest during shifts exceeding 6 hours.
For further assistance, Tennessee’s Department of Labor and Workforce Development and the Department of Human Services are useful contacts for staying compliant with evolving laws.
Disclaimer:
This article is subject to change; always verify current regulations.
You can find the original non-AI version of this article here: Payroll Tennessee Unique Aspects of Tennessee Payroll Law and Practice.
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