US State Tax Summeries

Your Ultimate Guide to US Payroll in Utah

Managing payroll in Utah? Read our state-by-state guide to US payroll taxes to learn what you must withhold and deduct from employee wages.

Jemima Owen-Jones
Written by Jemima Owen-Jones
August 7, 2023

Key takeaways

  1. Employers must pay unemployment insurance in the state of Utah.
  2. Personal income tax must be deducted from the employee’s wages and withheld by the employer.
  3. Utah employers must also pay for workers’ compensation, even if they only have one Utah employee.

Employers must navigate various regulations and requirements to ensure proper payroll withholding in each US state. This guide explains what employers must pay and withhold from payroll in Utah, including unemployment insurance, personal income tax, and workers’ compensation. 

Paying unemployment insurance 

On top of withholding federal taxes such as Medicare and Social Security taxes, employers are responsible for withholding and paying certain Utah state taxes from employees’ 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 and provides temporary payments to people who are unemployed through no fault of their own. You can manage your Utah unemployment insurance through an online portal. For more information on paying your unemployment insurance, refer to the Utah Department of Workforce Services.

Withholding personal income tax from your Utah employee 

Employers are also responsible for withholding personal income tax from their employee’s payroll. Personal income tax, also known as individual income tax or state income tax, is a tax on the income of Utah residents. The tax is deducted from the employee’s wages and is withheld by the employer. 

After you withhold the tax from your employee, you are responsible for paying the amount you withheld to the state. You can file and pay the withholding amount online. For more information on paying the withholding amount, refer to the Utah Tax Commission.

Paying your Utah workers’ compensation 

In addition to paying Utah payroll taxes, employers also need to pay for workers’ compensation. You must pay for workers’ compensation even if you only have one Utah employee. 

Workers’ compensation is insurance for an employee’s injury while performing their job. Workers’ compensation is typically purchased from a qualified commercial carrier in the state. Utah provides information online to help you find a qualified carrier. For more information on your rights and responsibilities regarding workers’ compensation, refer to the Utah Labor Commission

Employers should verify that their workers’ compensation insurance complies with the state’s regulations for workers’ compensation.

Simplify US payroll tax compliance with Deel

While this guide provides essential information on Utah 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.

Disclaimer: This article is provided for general informational purposes and should not be treated as legal or tax advice. Consult a professional before proceeding.

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