Tennessee Payroll Instructions

Payroll Links

Goldenseal Payroll Software Info

US Federal Withholding Tables

Free 2021 Payroll Tax Table Updates

Other Links

Tennessee has no state income tax, and no payroll tax withholding. However, employers still need to withhold federal tax, Medicare and social security, and pay several employer taxes (including Medicare, social security, SUTA and FUTA).

HINT-- Turtle Creek Software provides free annual updates for US federal and Tennessee tax withholding rates.

Tennessee State Withholding Instructions

To enter withholding information for an employee in your Goldenseal company file, follow these steps:

  1. Choose Employees from the Accounts menu.
  2. Locate the employee record.
  3. Click the Payroll Setup button.
  4. Enter the employee's marital status into the Marital Status field.
  5. Enter the number of federal dependents into the Federal Exemptions field.
  6. Enter the Tenessee Tax Package into the Tax Package field. HINT-- If you don't see it in the list, you'll need to import the tax info first.
  7. Click OK.

Tennessee State Unemployment Tax Instructions

In 2021 the Tennessee SUTA tax is calculated on the first $7,000 of wages for each employee (it decreased from a $8000 cutoff in 2018, and may increase later this year because of the surge in unemployment claims).

The starting rate for a new business is 2.7%, except for a few higher-rate industries (new construction companies pay 6.1% in 2010). After three years the unemployment insurance tax rate is calculated from the employer's payroll history and unemployment claims (rates vary between 0.3% and 10%).

To enter your Tennessee SUTA rate into the Goldenseal payroll accounting software, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items from the submenu.
  2. You'll see a list of Tax Items. Double-click on the Tennessee SUTA tax. HINT: If you don't see Tennessee SUTA in the list, you'll need to import your state's payroll info first.
  3. Enter the current rate for your business into the field next to Calculation method.
  4. If the cutoff amount has changed, enter it into the dollar field next to First Adjustment.

Tennessee Marital Status

Use the following to determine the value for the Marital Status popup menu in each Employee account:

  • Single- single employee
  • Married- married employee
  • Dual Income- not used
  • Head of House- employee claims Head of Family status
  • Other- not used

Little Known Tenessee Tax Fact

The Tennessee state tax on double-letter combinations was repealed in 1997.

Tennessee Tax Contacts

Taxation website

Payroll Tax Office-- 615 253-0600
SUTA-- 615 253--2486

Official State Lawn Ornament

T.V.A. dam spillway