Tennessee employer tax information
About Tennessee employer tax information
With Square, you can run payroll, pay your taxes and stay ahead of the compliance to focus on running your business. This guide is intended for your state taxes only. It’s important to note that laws vary by jurisdiction, and this guide does not attempt to address all jurisdictions or federal taxes — for example, counties or cities often have requirements that differ from federal and state law.
Before you begin
To sign up for Square Payroll in Tennessee, you must provide a valid Tennessee Employer Account Number and your state Unemployment Insurance (UI) tax rate.
The Tennessee Department of Labor & Workforce Development typically requires employers to file and pay unemployment taxes starting in the quarter that wages are first paid. If you become liable for unemployment taxes and register an account in a later quarter, it may be necessary to file these taxes retroactively. Visit the Tennessee website or contact the TN Department of Labor & Workforce Development directly to determine your requirements and ensure any outstanding tax filings are completed promptly to avoid penalties.
Tennessee payroll tax details
Square Payroll processes the following per the frequency for the listed state agencies.
Tennessee Department of Labor & Workforce Development
Premium Report (LB-0456): filed quarterly
Wage Report (LB-0851): filed quarterly
New Hire Report: filed per new employee
Unemployment Insurance Tax Payment: filed quarterly
Make Tennessee payroll tax payments
To make Tennessee unemployment tax payments, you must be registered with the Tennessee Department of Labor & Workforce Development and have an Employer Account Number. If you do not have an account number, you can register for one with the Tennessee Department of Labor & Workforce Development. You can make tax payments by mail, Automated clearing House (ACH) credit, or by ACH Debit through the Tennessee Premium and Wage Reporting System (TNPAWS).
To pay by mail, write a check payable to the Department of Labor and Workforce Development. Include your Employer Tax Account Number in the memo. Mail your check to:
State of Tennessee
Department of Labor and Workforce Development
Employer Accounts Operations
P.O. Box 101 Nashville, Tennessee 37202-0101
To pay by Automated Clearing House (ACH) Credit, complete the Electronic Funds Transfer Agreement and use the instructions outlined on the TN Department of Labor and Workforce Development website.
To pay by ACH debit through the Tennessee Premium and Wage Reporting System (TNPAWS), visit the TNPAWS website for more information.
Make unemployment insurance tax filings in Tennessee
Unemployment tax reports and payments are due by the last day of the month following the end of the calendar quarter (for example, on April 30 for the first quarter).
To file online, use the Tennessee Premium and Wage Reporting System (TNPAWS) and tax payments can be made via ACH Debit or ACH Credit.
To file by mail, download Form LB-0851 and include the completed form with a check for any payments due. Reports filed by mail are considered filed as of the date they are placed in the mail (postmark date).
You must file quarterly returns even if no contributions are due. As long as you have an active unemployment insurance account, you must file reports every quarter by the due date. If you are liable for unemployment insurance taxes for any part of a calendar year, you are liable for the entire year and must file quarterly reports for the entire year.
If you believe your business no longer meets the qualifications for unemployment insurance tax, you must notify the Tennessee Department of Labor and Workforce Development. In such cases, you must continue to file quarterly contribution and wage reports until you are notified that your account has been made inactive. You will be subject to a penalty if you fail to file.
For more information on state unemployment taxes, contact the Tennessee Department of Labor and Workforce Development at 615-741-2486 or visit www.tn.gov.
Add your Tennessee Employer Account Number to Square Payroll
Visit the Tennessee Department of Labor & Workforce Development website for instructions on obtaining an Employer Account Number. After you complete and mail in the required paperwork, the Department of Labor & Workforce Development will send you a form containing your eight-digit Employer Account Number and UI tax rate.
You can also contact the Department of Labor & Workforce Development by calling 844-224-5818.
If you’ve filed state payroll tax returns in the past, you can find your Tennessee Employer Account Number on any previously submitted quarterly wage report. Your Employer Account Number is an eight-digit number in the following format: XXXX-XXX X.
For assistance, call the Tennessee Department of Labor & Workforce Development at 615-741-2486.
Find your Tennessee unemployment insurance rate
You must provide your Unemployment Insurance (UI) rate when signing up for Square Payroll so we can accurately withhold this tax. To locate your UI rate:
If you are a new employer, this rate will be sent to you once you complete your registration for an Employer Account Number.
If you are an existing employer, you can find your UI rate on the Notice of Employer’s Premium Rate (LB-0482) mailed to each employer by the Department of Labor & Workforce Development in the first quarter of each year.
For assistance, call the Tennessee Department of Labor & Workforce Department at 615-741-2486.
You are responsible for ensuring Square Payroll has the correct UI rate for your business. If you need to update your rate, you can do so from your Tax Info in your Square Dashboard.