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The state of Utah is the perfect place to do payroll, but only if you know what you’re doing. Here’s our guide for employers with a sate-of-the-art operation.
Utah withholding id number lookup is a tool that can be used to find your employee’s tax information. This includes their social security number, name, address, and more.
Payroll in Utah is less complicated than in many other states. Utah has a flat income tax, which makes calculating the amounts to withhold from employee paychecks simple; nevertheless, there are certain special HR rules to follow. If you follow the steps below, learning how to perform payroll in Utah and calculating Utah payroll tax may be a rather simple procedure.
Using an all-in-one payroll provider like Gusto may make conducting your Utah payroll even simpler. Gusto helps you ensure that your payroll is right every time, from electronically onboarding new workers to calculating and reporting Utah payroll taxes. For a 30-day free trial, sign up now.
Gusto is a great place to visit.
How to Run Payroll in Utah: A Step-by-Step Guide
Here’s a quick rundown of how to conduct payroll in Utah.
Step 1: Register your company as an employer. To get a new Federal Employer Identification Number (FEIN), new businesses may need to use the federal Electronic Federal Tax Payment System (EFTPS) (FEIN). To pay federal taxes, you’ll need your FEIN.
Step 2: Register your company with the Utah Department of Commerce. If you’re starting a new company, go to the Utah OneStop Online Business Registration System, which is run by the Utah Department of Commerce. The Utah State Tax Commission requires every firm that pays workers in Utah to register.
Step 3: Set up your payroll system. If your company is brand new, you’ll have to start from beginning when it comes to payroll. You’ll need to figure out when you’ll pay workers, how frequently you’ll pay them, and what payment methods you’ll accept.
Step 4: Have staff complete the necessary paperwork. During their onboarding process, every employee at your company must fill out payroll documents. Every employee is required to complete the I-9 verification process. New hires must also have a completed W-4 and, if applicable, a direct deposit permission on file.
Step 5: Go through the time sheets and approve them. You’ll need to gather time sheets many days ahead of time to process payroll correctly. Reviewing your nonexempt workers’ time sheets allows you to talk with anybody who may have committed a mistake. Employee time tracking may be done in a variety of methods, some of which are free.
Step 6: Work out the gross compensation and taxes for each employee. It is not advisable to calculate Utah payroll by hand. Tax computations may get complicated, and even little errors can result in expensive fines and penalties. You may use payroll software, a calculator (for some simple time calculations, try our free timecard calculator), or even Excel (we have a free template). If you need additional information, look into how to calculate payroll.
Step 7: Reimburse employees for their salary, benefits, and taxes. Direct deposit is the most efficient method to pay your staff. However, you may also use cash or paper checks. Because there is no state minimum wage in Utah, the federal minimum wage of $7.25 per hour is used. You may pay your federal and state taxes online in the state of Utah. If you utilize a benefits provider, they should collaborate with you to make deductions as straightforward, automated, and electronic as possible.
Step 8: Make a backup of your payroll data. It’s a good idea to keep track of your company’s finances. Businesses in Utah are required to retain a record of all hours worked and earnings paid to each employee for at least three years, including their name, address, and date of birth. This is similar to the recordkeeping requirements of the Fair Labor Standards Act (FLSA).
Step 9: Register with the federal and state governments to file payroll taxes. All Utah state taxes must be paid on time, generally quarterly, to the appropriate state agency, which you may do online at the Utah State Tax Commission website. You may pay your federal taxes online using the EFTPS on one of the two schedules shown below:
- When the IRS sets you a monthly schedule, you must deposit employment taxes on payments received during that calendar month by the 15th of the next month.
- When the IRS gives you a semiweekly schedule, you must deposit employment taxes by the following Wednesday for payments made Wednesday, Thursday, and Friday, and by the following Friday for payments made Saturday, Sunday, Monday, and Tuesday.
Please keep in mind that the reporting and depositing of employment taxes are two separate things. You must submit taxes quarterly on Form 941 or yearly on Form 944, regardless of your payment schedule.
Step 10: Finish your payroll reports for the year. Payroll in Utah entails more than just paying workers on a regular basis. You’ll need to file payroll reports every year, including all W-2 and 1099 forms. These forms must be sent to workers by January 31 of the following year.
In this tutorial on how to conduct payroll, you may learn more about how to do payroll yourself. You may obtain a free checklist to ensure you don’t miss any tasks.
Utah Payroll Laws, Taxes & Regulations
Payroll in Utah necessitates the calculation of Utah payroll taxes as well as adherence to all federal and state employment rules. Review Utah’s applicable rules below to help you stay in compliance with payroll requirements.
Most employers in the United States are required to pay Federal Insurance Contributions Act (FICA) taxes, with a few exceptions. FICA tax rates for Social Security and Medicare are now 6.2 percent and 1.45 percent, respectively. These taxes will be paid by both the employer and the employee, with each contributing 7.65% of the total Social Security and Medicare taxes.
Taxes in Utah
Utah, like other states, has a set of taxes that employers must pay and deduct from employees’ paychecks. Employees in Utah are not subject to municipal taxes.
Taxes on income
While manually calculating withholding and taxes for your workers is not suggested, Utah’s flat income tax makes payroll a little simpler. All Utah workers are now subject to a 4.95 percent income tax rate.
Unemployment Taxes for Employers
In Utah, all companies are required to pay taxes under the State Unemployment Tax Act (SUTA). The current pay base is $38,900, with interest rates ranging from 0.2 to 7.2 percent. In Utah, the majority of new companies will pay an SUTA rate of 1.2 percent.
Taxes under the Federal Unemployment Tax Act (FUTA) are normally 6% of each employee’s first $7,000 in earnings; you are responsible for paying these and cannot pass the expense on to your employees. Businesses may get a 5.4 percent reduction on their FUTA taxes if they pay SUTA in full and on time. Check out our FUTA and Form 940 guide to learn more about the requirements.
Compensation for Employees
Utah requires every employer with one or more employees to carry Compensation for Employees insurance. Compensation for Employees insurance provides benefits to employees who suffer on-the-job injuries and covers the cost of medical treatment and lost wages. Average cost is around 78 cents per $100 of payroll you process.
Minimum Wage in Utah
The federal minimum wage in Utah is $7.25 per hour. Companies must pay at least $2.13 per hour to tipped workers if their tips bring them up to the hourly minimum wage. If this is not the case, the corporation will be required to make up the shortfall.
Overtime Calculation
Utah overtime laws are based on the Fair Labor Standards Act (FLSA), which mandates that all companies pay workers 1.5 times their usual hourly rate for hours worked above 40 in a workweek.
Use our overtime calculator to double-check that your overtime estimates are correct.
Employee Remuneration
Non-salaried workers must be paid at least twice a month, according to Utah law. Your firm may opt to pay workers more often, but you must maintain a consistent payday schedule. Employees must also be paid within ten days after the conclusion of the pay month. You must pay your workers on the prior weekday if the usually planned payday occurs on a weekend or holiday.
Salaried workers that generate a consistent yearly salary in Utah are subject to different requirements. If you pay a yearly wage to staff, you may pay them once a month if you choose. These workers must be paid by the seventh day of the month following the month in which the wages were received.
Employers in Utah may additionally pay employees using one of the following methods:
Pay Stub Regulations
Each regular payday, you must present workers with a pay stub. The pay stub might be physical or electronic, and it must include the following information:
- The name of the employee
- The starting salary rate
- The pay period’s dates
- The amount of time spent working
- Deductions for certain items
- The employee’s total net salary
Paycheck Deductions in Utah
For the following reasons, you may withhold wages from an employee’s paycheck:
- Money shortages
- Company property that has been broken, damaged, or destroyed
- Tools and clothing are required.
Additional earnings may be withheld, but only if the deductions fit one of the following criteria:
- Legally permissible under federal, state, or municipal law
- The employee authorizes the deduction in writing.
- Contributions to retirement and healthcare
Final Paychecks for Terminated Employees
When it comes to terminated workers, depending on how the employment relationship ended, you may be compelled to pay their final salary at various dates.
- You must pay an employee within 24 hours of their last workday if they were fired, dismissed, terminated, or laid off.
- You must pay an employee who leaves, resigns, or is suspended or resigned owing to a labor dispute on the next normal paycheck, or sooner.
Use one of our suggested methods to generate a free payroll check if you need to pay an employee right away and aren’t presently utilizing a service.
HR Laws in Utah That Affect Payroll
There are a few state-specific HR legislation that you should be aware of in Utah. Because the state mainly follows federal principles, you should have no trouble comprehending the extra Utah HR regulations if you are acquainted with them.
Reporting on New Hires in Utah
Every employer in Utah must report new hires and any rehired employees to the Utah Department of Workforce Services within 20 days of their first day of work. This information is used to enforce child support orders and must include The name of the employee, address, and Social Security number.
Breaks and Meals
Meal breaks of at least 30 minutes are required by law for workers under the age of 18 who are scheduled to work more than five hours in a row. You are not obligated to give any meal or break times for workers aged 18 and above. Breaks of less than 20 minutes must be compensated, however breaks or lunch times of more than 30 minutes are usually not.
Child Labor Laws in Utah
Children aged 16 and 17 are not restricted in their employment hours or days in Utah. On school days, however, children aged 14 and 15 are only allowed to labor for three hours. They may work up to eight hours per day and 40 hours per week on non-school days and while school is not in session.
For additional information on federal rules, see our guide to employing minors.
Requirements for time off and leave
Because Utah doesn’t need anything beyond that, you’ll need to follow federal time off restrictions for the most part. You must, however, guarantee that staff have enough time to vote. To view your time off needs, go through the tabs below:
The Family and Medical Leave Act (FMLA) mandates that all qualified companies give up to 12 weeks of unpaid leave to workers with a covered disability. Pregnancy and caring for a sick relative are two examples. Employers are not required to pay workers during this time off, but they must offer the employee with the same or a comparable position when they return to work, according to the FMLA.
Companies in Utah are not required to provide vacation and paid time off (PTO) benefits to their workers. Companies in Utah are allowed to set their own PTO rules, including whether or not to pay out accumulated and unused PTO to departing workers. Because organizations in Utah are not required to do so, it’s a good idea to have this clearly outlined in your company policy. The most crucial thing is to follow your policy’s restrictions, otherwise you might be held accountable.
Use our free PTO calculator if you provide paid time off and need assistance calculating your workers’ PTO accumulation.
Private businesses in Utah are not compelled to compensate workers for holidays or to pay them a higher rate if they work on a holiday. Companies may opt to pay higher rates or force holiday employees to work, as long as they comply with the FLSA.
Businesses in Utah are not required to provide paid sick leave to their workers. If you choose, your firm may make a policy, and you must follow it, keeping FMLA in mind.
If an employee does not have three consecutive non-working hours to vote while the polls are open, you must provide them up to two hours of PTO to vote. Businesses may ask workers to provide at least one day’s notice before requesting voting leave.
Businesses in Utah are not required to give bereavement leave to their workers, although they are free to do so if they like.
Forms for Payroll
While Utah collects state income tax, it does not have its own state W-4. Employees should use the federal W-4. Utah has no other state Forms for Payroll.
Federal Forms for Payroll
Here is a complete list and location of all the federal Forms for Payroll you should need.
- W-4 Form: Provides information on employee withholdings so you can properly calculate and withhold federal and state Taxes on income
- W-2 Form: This form is used to record each employee’s total yearly pay.
- W-3 Version: A summary form of the W2 that is used to report total yearly salaries for all workers.
- Form 940 is used to compute and submit unpaid unemployment taxes to the Internal Revenue Service (IRS).
- Form 941 is used to submit quarterly income tax returns.
- Form 944 is used to submit yearly income tax returns.
- Non-employee contract work 1099 forms: Provides information for non-employee contract work.
For a more detailed discussion of federal forms, check out our guide on the federal Forms for Payroll you may need.
Payroll Tax Resources in Utah
- Many forms, information on the most recent rules and regulations, and other employer-specific information are available from the Utah State Tax Commission.
- For new and current companies, Utah OneStop Online Business Registration includes a wealth of information to assist them in navigating licensing, taxes, and employer laws.
- Utah Labor Commission offers support and resources to help businesses ensure compliance with unemployment and Compensation for Employees, plus other labor laws.
Conclusion
Utah has a flat income tax but no local taxes. However, this doesn’t mean you should calculate your company’s payroll taxes by hand, as that could lead to costly errors. There are no state-specific Forms for Payroll and fairly straightforward HR laws. Combined, this makes Utah one of the easiest states to run payroll.
Using payroll software like Gusto, which leads you through Utah payroll every time, is your best hope for avoiding mistakes. Consider using Gusto to assist you in filing correctly and on time. It even offers free direct deposit to workers. Sign up for a free 30-day trial.
Gusto is a great place to visit.
The “utah unemployment employer registration” is a requirement for employers in Utah. It’s important to note that there are no exceptions for this rule.
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