Article
3 min read
Your Ultimate Guide to Utah Payroll
US payroll
Author
Jemima Owen-Jones
Published
August 07, 2023
Last Update
August 16, 2024
Table of Contents
Paying unemployment insurance
Withholding personal income tax from your Utah employee
Paying your Utah workers’ compensation
Payroll tax due dates
Submission process for payroll taxes in Utah
Simplify US payroll tax compliance with Deel
Key takeaways
- Employers must pay unemployment insurance in the state of Utah.
- Personal income tax must be deducted from the employee’s wages and withheld by the employer.
- 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.
Here are the current SUI tax rates in Utah:
| SUI Tax Rate | Description |
|---|---|
| 0.3% | Minimum Tax Rate for new employers |
| 7.3% | Maximum Tax Rate |
| 1.0% | Delinquent Payment Surcharge |
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.
The current state withholding tax rate is:
| Tax Rate | Description |
|---|---|
| 0.3% | Minimum Tax Rate for new employers |
| 7.3% | Maximum Tax Rate |
| 1.0% | Delinquent Payment Surcharge |
| 4.55% | Flat withholding rate |
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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.
Payroll tax due dates
Timely submission of payroll taxes is crucial. Below is a table outlining the due dates for payroll tax submissions in Utah:
| Due Date | Task Description |
|---|---|
| January 31 | Distribute W-2 and 1099 forms; File and pay December withholding |
| February 28 | Pay January withholding |
| March 31 | Pay February withholding |
| April 30 | File Q1 returns; Pay March withholding |
| May 31 | Pay April withholding |
| June 30 | Pay May withholding |
| July 31 | File Q2 returns; Pay June withholding |
| August 31 | Pay July withholding |
| September 30 | Pay August withholding |
| October 31 | File Q3 returns; Pay September withholding |
| November 30 | Pay October withholding |
| December 31 | Pay November withholding |
Submission process for payroll taxes in Utah
Employers must follow a specific process to submit payroll taxes in Utah. Taxes can be filed online through the state's official website, tap.utah.gov. Payment methods include EFT ACH credit, ACH debit request, eCheck, or credit card. For those who prefer mailing, a completed payment coupon, form TC-941PC, should be included with the payment.
FAQs
Where can I file my payroll taxes online?
You can file your payroll taxes online at tap.utah.gov.
What are the accepted payment methods for payroll taxes in Utah?
Payments can be made via EFT ACH credit, ACH debit request, eCheck, or credit card.
Are employers required to file W-2 and 1099 forms in Utah?
Yes, employers must file all required W-2’s and 1099R’s electronically by January 31.
Can foreign employers file payroll taxes through TAP?
TAP is not available in most countries outside the US for security reasons. Employers outside the U.S. should ensure they have appropriate means to file electronically.
What are the exemptions for employer withholding in Utah?
Employers may be exempt from withholding if they do business in Utah for 60 days or less during a calendar year, with advance approval from the Tax Commission.
How can employers file unemployment insurance and new hire reports in Utah?
Employers can manually enter the report, upload a wage file, or view and amend past reports for unemployment insurance. For new hire reporting, employers can manually enter the report, upload a new hire file, view past new hire reports, and view uploaded file history.
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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.
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.
