Your Ultimate Guide to New Hampshire Payroll

Not only do employers have the task of managing a workforce and growing a business, but they also have to navigate a variety of regulations and requirements to ensure proper payroll withholding in each US state. 

If you’re an employer in New Hampshire, this guide serves as an introduction to what you need to pay and withhold from payroll in New Hampshire. These payments include unemployment insurance, personal income tax, and workers’ compensation. 

Paying unemployment insurance

Among the employer payroll taxes to consider are federal taxes such as Medicare and Social Security, as well as unemployment insurance. Also known as UI, unemployment insurance is a federal-state program jointly financed through federal and state employer payroll taxes. 

As with other states, unemployment insurance in New Hampshire is administered by the US Department of Labor and provides financial assistance to eligible individuals who have involuntarily lost their jobs and are actively seeking new employment. 

Employers in New Hampshire can pay unemployment insurance through an online portal. Need more information? Visit the New Hampshire Employment Security website. 

State Unemployment Insurance (SUI) tax rates

The SUI tax is crucial for providing temporary assistance to employees who have lost their jobs. Below is a table detailing the SUI tax rates for the second quarter of 2024:

Employers can access their specific tax rates via the WEBTAX System, which provides both current and prior quarter rates.

Withholding personal income tax from your New Hampshire employee

Unlike the majority of states in the US, New Hampshire does not have any personal income tax. Therefore, you do not have to withhold any personal income tax after hiring your first employee in the state. The state only levies a 3.00% individual income tax rate on interest and dividends income.

Paying your New Hampshire workers’ compensation

Workers’ compensation is another payment to consider, and it is required for all employers who have employees in New Hampshire, even if there is only one employee in the state. 

The payment is a type of insurance that provides wage replacement and medical benefits to employees who suffer job-related injuries or illnesses. It also protects the employer against certain liabilities. 

Workers’ compensation in New Hampshire can be purchased from a qualified commercial carrier, a list of which can be found on the New Hampshire Department of Labor’s website. When making your choice of carrier, be sure that your workers’ compensation insurance is compliant with the state’s regulations for workers’ compensation.

Payroll tax due dates in New Hampshire

Timely submission of payroll taxes is essential to avoid penalties. The following table outlines the due dates for each quarter:

Reports are considered timely if filed no later than midnight (EST) within 2 business days after the due date.

State payroll tax submission guidelines

Employers must file Employer Quarterly Tax and Wage Reports and remit quarterly payments through electronic funds transfer (EFT) only. If the organization has Debit Blocks on the account from which payment will be made, they must first follow their financial institution's procedure to unblock the organization. Failed transactions resulting from not appropriately unblocking the organization will result in additional fees.

Workers compensation tax rates

Workers' compensation in New Hampshire is managed by the Workers' Compensation Division of the Department of Labor. Compensation is based on 60% of the worker’s average weekly wage for injuries occurring on or after February 8, 1994. The types of payments include Temporary Total (TT), Temporary Partial (TP), Permanent Total (PT), Permanent Partial (PP), Scheduled Permanent Impairment Lump Sum Awards, and Lump Sum Payments, each governed by specific conditions and durations.

Understanding these details ensures that your business not only complies with New Hampshire's payroll tax laws but also effectively manages its payroll obligations.

Simplify US payroll tax compliance with Deel

As a starting point, this guide provides essential information on New Hampshire payroll taxes, payroll compliance, and state requirements. However, there is a lot more information that extends beyond what is covered above. Deel offers a streamlined solution for managing payroll and compliance, making it easy for companies hiring employees across state lines. 

Discover our comprehensive solution for managing US and international payroll and request a demo with Deel today!