Please note: this article is about the Justworks Payroll product. Not sure which product you're using? Check out: How Do I Know Which Justworks Product I Have?
Paying employees in Tennessee
When hiring employees in new states, you will need to register for relevant state tax accounts to facilitate their payment. In Tennessee, you must be registered with the Tennessee Department of Labor & Workforce Development for unemployment tax. As a reminder, TN does not have income tax.
Alternatively, Justworks Payroll can handle the registration process for you. We offer state tax registration services to assist with registering your business in new states. To request registration, please contact us at support@payroll.justworks.com.
Your Tennessee Accounts and Rate Info
Tennessee requires you to complete a Report to Determine Status, Application for Employer Number (LB-0441) and email it to EmployerStatus.Rates@tn.gov. Upon the states determination of your unemployment tax liability, you will receive an account number and tax rate in the mail within 2-3 weeks.
Find This Information
Locate your Tennessee Employer Account Number:
- You can locate your Employer Account Number (EAN) on any notices from the Department of Labor and Workforce Development, such as the “Premium Report” or “Wage Report.”
Locate your Unemployment Insurance Tax Rate:
- Your tax rate can be found on the “Notice of Premium Rate” sent to you by the agency.
- Tennessee uses a reserve-ratio to determine your premium rate. If you have trouble finding your rate, please contact the agency at (615) 741-2486
Entering State Tax Info in Justworks Payroll
Once you registered with the State and have a valid TN address added to your company’s offices, you can add your account info in Justworks Payroll by navigating to:
- Company > Settings in the left navigation bar
- Under ‘Company tax info’ click into “Tennessee” to edit the state tax information
In your Justworks Payroll account, you’ll want to enter your TN Employer Account Number (EAN) and your TN Unemployment Insurance Rate.
Third-party admin access
As your payroll provider, Justworks Payroll will utilize the provided account information to manage and report your TN tax liabilities. Occasionally, the state may issue notices related to payroll taxes.
Justworks Payroll can examine these notices if granted Third-party admin access to your TN state tax account. During onboarding, we will request that you sign state specific TPA forms, which authorizes us to handle and report your taxes to the state.
Why is this important?
Justworks Payroll calculates tax liabilities as part of payroll processing. If we cannot access your TN state tax accounts, we must return any unremitted tax liabilities to your company bank account, requiring you to remit and file your company’s state taxes manually.
Disclaimer
This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, legal or tax advice. If you have any legal or tax questions regarding this content or related issues, then you should consult with your professional legal or tax advisor.