Overview: When hiring employees in Tennessee, you must register for State Unemployment Insurance (UI) Tax through the Department of Labor & Workforce Development. Tennessee does not impose a state income tax, so UI registration is the only state-level payroll tax obligation for employers.
Important! This guide does not constitute legal or tax advice. You can consult a CPA or attorney for official guidance.
Taxes You Must Register For:
Tennessee State Unemployment Tax (UI)
The Tennessee Department of Labor & Workforce Development administers the state’s unemployment insurance tax. An employing unit becomes liable for UI tax if it:
Pays $1,500 or more in total gross wages in a calendar quarter, or
Has at least one employee during twenty different weeks in the current or preceding calendar year
(The employee does not have to be the same person each week, and can be part-time or full-time.)
Registration Steps
1. Register for an Employer Number
Go to the TN UI Tax homepage
Under “Obtain an Employer Number,” select the link for your business type
Complete the “Report to Determine Status Application” for Employer Account Number
Submitting this form will determine your liability for unemployment insurance
If determined liable, you will be assigned an 8-digit employer account number (e.g., 0000-000 0)
Fax the completed application to the Employer Services Unit at 615-741-7214
Allow 10 business days for processing
Your Employer Account Number will be mailed to the address listed on the application
Next Steps
Update your Buddy Punch account with your Tennessee Employer Number