Article
8 min read
Your Ultimate Guide to Tennessee Payroll
US payroll

Author
Jemima Owen-Jones
Last Update
July 21, 2025

Table of Contents
Paying unemployment insurance (UI) in Tennessee
Tennessee state unemployment insurance (SUI) tax rates
Personal income tax in Tennessee
Paying your Tennessee workers’ compensation
Payroll tax due dates in Tennessee
Quarterly tax filings
Annual reconciliation
Payroll tax due dates in Tennessee
Submission process for payroll taxes in Tennessee
Simplify US payroll tax compliance with Deel
Key takeaways
- Employers must pay unemployment insurance in the state of Tennessee.
- Tennessee does not have any personal income tax.
- Tennessee employers do not need workers’ compensation unless they work in construction or have more than five employees.
Managing Tennessee payroll tax requirements can be complex, but understanding state-specific rules is crucial for employers.
In Tennessee, employers must handle unemployment insurance payments, navigate workers’ compensation rules, and meet specific payroll tax filing deadlines.
This guide simplifies these key obligations, helping you stay compliant and manage payroll effectively in Tennessee.
Paying unemployment insurance (UI) in Tennessee
On top of withholding federal taxes such as Medicare and Social Security taxes, you are also responsible for withholding and paying certain Tennessee state taxes from your employee’s payroll.
These taxes together are referred to as employer payroll taxes or payroll withholding. One of the taxes you must pay is unemployment insurance (UI).
Unemployment insurance is a national program administered by the US Department of Labor. The program provides temporary payments to people who are unemployed through no fault of their own.
You can manage your Tennessee unemployment insurance through the online portal.
Refer to the Tennessee Department of Labor and Workforce Development for more information on paying your unemployment insurance.
Related resources: State Income Taxes Explained: Your 2025 Guide

Tennessee state unemployment insurance (SUI) tax rates
Tennessee state unemployment insurance tax rates are determined annually based on the employer's experience rating and the balance of the state’s unemployment trust fund.
Employers can access their specific rates and make payments through the Tennessee Department of Labor and Workforce Development's online portal.
Experience Rating | Minimum Rate | Maximum Rate |
---|---|---|
New Employer | 2.7% | 2.7% |
Lowest Rate | 0.01% | 0.01% |
Highest Rate | 10.0% | 10.0% |
Employers are responsible for paying unemployment insurance contributions based on these rates. These contributions help support the unemployment fund, which provides benefits to eligible employees.
Personal income tax in Tennessee
Tennessee 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.
Related resources: Hiring in the United States
Deel US Payroll
Paying your Tennessee workers’ compensation
On top of paying your Tennessee payroll taxes, you will also need to pay for workers’ compensation. Unlike most other states, you will not need to purchase workers’ compensation in Tennessee unless you are in construction or have more than five employees.
Workers’ compensation is insurance for an employee’s injury while performing their job. Employers should purchase workers’ compensation from a qualified commercial carrier in the state.
Tennessee State provides information online to help you find a qualified commercial carrier.
Employers should verify that their workers’ compensation insurance complies with the state’s regulations for workers’ compensation.
Payroll tax due dates in Tennessee
Employers must adhere to payroll tax due dates to remain compliant and avoid penalties. Tennessee has specific deadlines for filing unemployment insurance taxes and other required payments:
Quarterly tax filings
Employers are typically required to file unemployment insurance tax reports quarterly. The due dates fall at the end of the month following each quarter:
Quarter | Months | Due date |
---|---|---|
Q1 | January - March | April 30 |
Q2 | April - June | July 31 |
Q3 | July - September | October 31 |
Q4 | October - December | January 31 |

Guide
Expanding your business in the US?
Annual reconciliation
An annual reconciliation of all payroll taxes must be submitted by February 28th of the following year. For more information on filing deadlines, visit the Tennessee Department of Labor and Workforce Development - Filing Deadlines.
Payroll tax due dates in Tennessee
Tax type | Frequency | Due date |
---|---|---|
Quarterly payroll | Quarterly | Last day of the month following the quarter |
Annual reconciliation | Annually | Last day of February following the tax year |
Submission process for payroll taxes in Tennessee
Tennessee employers are required to file unemployment insurance tax forms electronically using Tennessee’s online portal. This system ensures efficient and accurate filing. Employers should use forms and guidelines provided by the Tennessee Department of Labor and Workforce Development for all payroll-related submissions.
Tennessee Online Portal allows employers to register, file, and pay their payroll taxes electronically, supporting efficient and accurate tax filing and payments.
Related resources: Step-by-Step Guide to the US Payroll Process
Platform Tour
Simplify US payroll tax compliance with Deel
While this guide provides essential information on Tennessee payroll taxes, payroll compliance and state requirements extend beyond what is covered above. To streamline the process and ensure full compliance, companies can turn to Deel.
Deel offers a comprehensive solution for managing US and international payroll, including payments, taxes, worker classification, and more. Speak with an expert today to see how you can streamline your US payroll processes and ensure compliance with state regulations.
FAQs
What is payroll tax?
Payroll tax includes federal, state, and local taxes withheld from employees' wages.
Who needs to file payroll taxes in Tennessee?
Any employer who pays wages to employees in Tennessee.
What forms are required for payroll tax filing?
Forms include unemployment insurance tax forms and other specific tax withholding forms as needed.
How often do employers need to file payroll taxes?
Generally, payroll taxes are filed quarterly, with some annual reconciliation.
Where can employers find the necessary payroll tax forms?
Forms are available on the Tennessee Department of Labor and Workforce Development website under the 'Employer Payroll Tax Forms' section.
Can payroll taxes be filed electronically?
Yes, through Tennessee’s online portal.
What is the deadline for filing payroll taxes?
Deadlines vary, but quarterly reports are typically due by the end of the month following the quarter's end.
Who can employers contact for help with payroll taxes?
The Tennessee Department of Labor and Workforce Development.
Disclaimer: This article is provided for general informational purposes and should not be treated as legal or tax advice. Consult a professional before proceeding.

About the author
Jemima is a nomadic writer, journalist, and digital marketer with a decade of experience crafting compelling B2B content for a global audience. She is a strong advocate for equal opportunities and is dedicated to shaping the future of work. At Deel, she specializes in thought-leadership content covering global mobility, cross-border compliance, and workplace culture topics.