Payroll Utah Unique Aspects of Utah Payroll Law and Practice
Below is a MRR and PLR article in category Business -> subcategory Other.
Understanding Utah Payroll: Key Aspects of State Payroll Law and Practice
Overview
Utah's payroll system has distinct characteristics that employers need to understand. This article outlines vital details regarding tax withholding, reporting obligations, unemployment insurance, wage and hour laws, and child support withholding in Utah.
Tax Withholding and Reporting
State Tax Commission
The Utah State Tax Commission manages the collection and reporting of state income taxes deducted from payroll checks. You can find them at:
- Address: 210 North 1950 West, Salt Lake City, UT 84134
- Phone: (801) 297-2200, Toll-Free (800) 662-4335 (in-state)
- Website: [Utah Tax Commission](http://tax.utah.gov/)
Tax Withholding
- Utah accepts the federal W-4 form for state income tax withholding calculations.
- Under Section 125 cafeteria plans, salary reductions aren't taxable for income tax but are taxable for unemployment insurance.
- 401(k) plan deferrals are not taxable for income tax but are taxable for unemployment purposes.
- Supplemental wages must be combined for state income tax calculations.
- Utah requires W-2 forms to be filed by magnetic media if federal law also requires it.
Unemployment Insurance Taxes
Workforce Services Department
The agency for unemployment insurance is:
- Address: 140 E. 300 South, P.O. Box 45288, Salt Lake City, UT 84145
- Phone: (801) 536-7400
- Website: [Workforce Services](http://jobs.utah.gov/employer/emservices.asp)
Key Information
- The taxable wage base for unemployment purposes is $22,700.
- Employers with 250+ employees must report wages using magnetic media quarterly.
- Unemployment records must be kept for a minimum of three years.
Wage and Hour Laws
Labor Commission
Enforcement of state wage and hour laws is managed by:
- Address: P.O. Box 146630, Salt Lake City, UT 84114-6630
- Phone: (801) 530-6801
- Website: [Labor Commission](www.labor.state.ut.us/)
Wage Guidelines
- Minimum Wage: $5.15 per hour.
- There is no state law mandating overtime pay for non-FLSA employers.
- Employers must report new hires and rehires within 20 days including specific employee and employer information.
- Utah does not mandate direct deposit except for employers where 2/3 of employees use it already.
- Pay stubs must include itemized deductions.
- Payment frequency should be at least semi-monthly or monthly for salaried employees.
- The time between the pay period end and payment must not exceed 10 days, or the 7th of the next month for monthly pay.
- Final pay for involuntarily terminated employees is due within 24 hours; for voluntary terminations, by the next regular payday.
Deceased Employees and Unclaimed Wages
- Wages for deceased employees are payable once due to successors after specific conditions are met.
- Unclaimed wages must be transferred to the state after one year, with wage records kept for five years.
Rest and Meal Breaks
- A 30-minute meal period is required after five hours of work, with 10-minute rest every four hours.
- Wage and hour records must be retained for three years.
Child Support Withholding
Office of Recovery Services
This agency manages child support orders:
- Address: 515 E. 100 S., P.O. Box 45011, Salt Lake City, UT 84145-0011
- Phone: (801) 536-8901
- Website: [Recovery Services](http://www.ors.state.ut.us/)
Withholding Guidelines
- Start Withholding: First pay period after five working days from service.
- Payment Submission: Within seven days of payday.
- Termination Notice: Within five days of termination.
- Fee: One-time $25 administrative fee.
- Withholding Limits: Governed by federal CCPA rules.
Please note that laws and policies change; always check for the most current information.
You can find the original non-AI version of this article here: Payroll Utah Unique Aspects of Utah Payroll Law and Practice.
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