| Tennessee has no State Income Tax. There for | | | | Tennessee has no State Wage and Hour Law |
| there is no State Agency to oversee withholding | | | | provisions concerning pay stub information. |
| deposits and reports. There are no State W2's to | | | | Tennessee requires that employee be paid no less |
| file, no supplement wage withholding rates and no | | | | often than semimonthly. |
| State W2's to file. | | | | Tennessee requires that the lag time between |
| Not all states allow salary reductions made under | | | | the end of the pay period and the payment of |
| Section 125 cafeteria plans or 401(k) to be | | | | wages earned in 1st half of month, pay by 5th of |
| treated in the same manner as the IRS code | | | | next month; wages earned in 2nd half, pay y |
| allows. In Tennessee cafeteria plans are taxable | | | | 20th of next month. |
| for unemployment insurance purposes. 401(k) plan | | | | Tennessee payroll law requires that involuntarily |
| deferrals are taxable unemployment purposes. | | | | terminated employees must be paid their final pay |
| Tennessee doesn't have income tax. | | | | with in 21 working days or next regular payday |
| The Tennessee State Unemployment Insurance | | | | and that voluntarily terminated employees must |
| Agency is: | | | | be paid their final pay within 21 days or by the |
| Department of Labor and Workforce | | | | next regular payday or by mail if employee |
| Development | | | | requests it. |
| 500 James Robertson Pkwy., 8th Fl. | | | | Deceased employee's wages of $10,000 must be |
| Nashville, TN 37245-1200 | | | | paid to designated beneficiary; if none, then |
| (615) 741-2486 | | | | surviving spouse; children if deceased was female |
| The State of Tennessee taxable wage base for | | | | and head of household. |
| unemployment purposes is wages up to $7000.00. | | | | Escheat laws in Tennessee require that unclaimed |
| Tennessee requires Magnetic media reporting of | | | | wages be paid over to the state after one year. |
| quarterly wage reporting if the employer has at | | | | The employer is further required in Tennessee to |
| least 250 employees that they are reporting that | | | | keep a record of the wages abandoned and |
| quarter. | | | | turned over to the state for a period of 10 years. |
| Unemployment records must be retained in | | | | There is no provision in Tennessee law concerning |
| Tennessee for a minimum period of seven years. | | | | tip credits against State minimum wage. |
| This information generally includes: name; social | | | | In Tennessee the payroll laws covering |
| security number; dates of hire, rehire and | | | | mandatory rest or meal breaks are only that all |
| termination; wages by period; payroll pay periods | | | | employees must have a 30-minute meal period or |
| and pay dates; date and circumstances of | | | | rest during shift of 6 hours (not during first hour |
| termination. | | | | of shift). |
| The Tennessee State Agency charged with | | | | There is no provision in Tennessee law concerning |
| enforcing the state wage and hour laws is: | | | | record retention of wage and hour records |
| Department of Labor and Workforce | | | | therefore it is probably wise to follow FLSA |
| Development | | | | guidelines. |
| Division of Labor Standards | | | | The Tennessee agency charged with enforcing |
| 710 James Robertson Pkwy. | | | | Child Support Orders and laws is: |
| Nashville, TN 37243 | | | | Department of Human Services |
| (615) 741-2858 | | | | Citizens Plaza Bldg., 12th Fl. |
| There is no provision for minimum wage in the | | | | 400 Deadrick St. |
| State of Tennessee. | | | | Nashville, TN 37248-0001 |
| There is also no general provision in Tennessee | | | | (800) 838-6911 |
| State Law covering paying overtime in a | | | | Tennessee has the following provisions for child |
| non-FLSA covered employer. | | | | support deductions: |
| Tennessee State new hire reporting requirements | | | | - When to start Withholding? 14 days after |
| are that every employer must report every new | | | | mailing. |
| hire and rehire. The employer must report the | | | | - When to send Payment? Within 7 days of |
| federally required elements of: | | | | Payday. |
| - Employee's name | | | | - When to send Termination Notice? "Promptly" |
| - Employee's address | | | | - Maximum Administrative Fee? lesser of $5 per |
| - date of hire | | | | month or 5% of payment. |
| - Employee's social security number | | | | - Withholding Limits? 50% of gross minus taxes |
| - Employer's name | | | | and child's health insurance premium. |
| - Employers address | | | | Please note that this article is not updated for |
| - Employer's Federal Employer Identification | | | | changes that can and will happen from time to |
| Number (EIN) | | | | time. |
| This information must be reported within 20 days | | | | Charles J. Read, CPA has been in the payroll, |
| of the hiring or rehiring. | | | | accounting and tax business for 30 years,the last |
| The information can be sent as a W4 or | | | | fifteen in private practice. Mr. Read is the author |
| equivalent by mail, fax or mag media. | | | | of "Tax and Accounting Issuesin Forming a New |
| There is a $20.00 penalty for a late report and | | | | Business." |
| $400 for conspiracy in Tennessee. | | | | To find professional payroll services at a budget |
| The Tennessee new hire-reporting agency can be | | | | price go to paperless payroll company. |
| reached at 888-715-2280 or on the web at | | | | For a full service payroll bureau with CPA's on |
| Tennessee does allow compulsory direct deposit | | | | staff visit . |
| but the employee's choice of financial institution | | | | See an excerpt of Mr. Read's interviews from |
| must meet federal Regulation E regarding choice | | | | William Shatner's "Heartbeat of America"television |
| of financial institutions. | | | | show on the web sites linked above. |