Utah Payroll Instructions

Utah has state payroll income tax withholding. The formulas changed in 2023.

The Utah calculation method changed completely in 2018, then again in 2019. The calculation is now unlike any other state's. We have to use some "magic numbers" which give the same results, using a regular step table. See notes below.

NOTE-- In 2007 we switched the Utah tax tables from weekly to annual. That means the amounts are very different, but the calculated tax will be the same (with smaller rounding errors). Our payroll software automatically converts the tables to whatever payroll period you use.

Utah State Withholding Instructions

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

  1. Open the Payroll tab on the left, and choose Employees.
  2. Locate the employee's record.
  3. Click the Payroll Setup button.
  4. Enter the employee's marital status into the Marital Status field (see note below).
  5. Enter the number of federal dependents into the Federal Exemptions field.
  6. Enter the number of dependents into the State Exemptions field.
  7. Enter a Utah Tax Package into the Tax Package field. Use the Old W4 package if they use a pre-2020 W4. Use New W4 Step2- if Step 2 is not checked on the new W4. Use Step2+ if it is checked. HINT: If you don't see Utah tax packages in the list, you'll need to import tax info first.
  8. Click OK.

NOTE--The 2019 tax booklet added a new 7-step calculation method for single and married deductions. It is unlike any other state's. It starts with a 4.95% rate, but adds 1.3% later. We had to put it into a spreadsheet to understand how it worked. Tax amounts graphed to a straight line, which can be handled with a single deduction, then a flat 6.25% rate for all amounts after that. We duplicated their method with a simple step table that calcuates the same results.

Utah State Unemployment Tax Instructions

In 2023, the Utah SUTA state unemployment insurance tax is based on the first $44,300 of annual wages for each employee (increased from 41,600 last year). The starting tax rate for a new business depends on the industry: it is calculated from average claims over the past three years. After the first year, the SUTA rate is adjusted for the employer's experience factor-- current rates can range between .3% and 7.3%.

To enter your Utah SUTA tax rate into Goldenseal payroll software, follow these steps:

  1. Choose Payroll Setup from the Costs menu, and choose Tax Items.
  2. You'll see a list of Tax Items. Open the Utah SUTA item. HINT: If you don't see Utah SUTA in the list, you'll need to import your state's payroll info first. Also note that Utah SUTA and Utah FUTA are the only rhyming withholding taxes in North America!
  3. Click in the percentage field to the right of Calculation method, and enter the SUTA rate for your business.
  4. If the cutoff amount has changed, enter it into the dollar field to the right of First Adjustment.

Utah Marital Status

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

Utah Magic Numbers

The current Utah calculation multiples wages by a percent, then subtracts an amount, then multiplies again, then subtracts it from another base amount, then subtracts that from the first number. It's much more complicated than it needs to be! We set up a spreadsheet that uses their formula for the full range of income amounts. Then we use a simple number plus a percent, and tweak them until they give the exact same results.

The right algebra probably could derive those numbers directly. However, by the time our staff gets all the way to Utah, nobody has brain power left to do that...

State Tax Contacts

Website

Official State Lawn Ornament

One male pink plastic flamingo, seven females.