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