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Navigating Tennessee Payroll Taxes
Tennessee employers must comply with multiple state-level payroll tax and reporting requirements to remain compliant. This page provides a comprehensive overview of Tennessee payroll compliance, including New Hire Reporting obligations and Unemployment Insurance (UI) wage and premium reporting. It explains who must be reported, what information is required, key filing deadlines, penalties for non-compliance, and how to make corrections when errors occur. Employers will also find detailed guidance on Tennessee’s required UI forms—Form LB-0851 (Wage Report) and Form LB-0456 (Premium Report).
Tennessee New Hire Reporting
New Hire Reporting is a mandatory legal requirement for all employers in Tennessee to report newly hired, rehired, or recalled employees to the Tennessee Department of Human Services (TDHS) through the Tennessee New Hire Reporting Program. This program supports child support enforcement and helps prevent fraud in unemployment insurance and public
assistance programs.
Who must report
All Tennessee employers — including private businesses, government agencies, and nonprofit organizations — are required to report newly hired, rehired, or recalled employees, regardless of the number of employees. There are no exemptions based on employer size or type. Learn more
Multi-State Employers
Multi-state employers have two reporting options under federal law:
- Report all new hires to Tennessee if Tennessee is chosen as the employer’s single designated reporting state; or
- Report new hires separately to each state in which the employee works
Multi-state employers who choose Tennessee as their designated reporting state must submit reports electronically.
Learn more
Reporting Independent Contractors
- Tennessee requires employers to report independent contractors who are paid for services performed. Independent contractors must be reported in the same manner as newly hired employees. Learn more
What to report
- Employee Details: Employee’s full legal name, Physical address, Social Security Number (SSN), Date of hire (the first day services were performed for pay).
- Employer Details: Federal Employer Identification Number (FEIN), Employer name, and business address.
When to report
Employers must report new hires, rehires, recalled employees, and independent contractors within 20 calendar days of the hire or contract date.
Employers submitting reports electronically may transmit data twice monthly, provided submissions are made at least
12 days apart.
How to report
Tennessee provides multiple reporting methods:
1. Online (Recommended):
- Submit reports through the official Tennessee New Hire Reporting Portal
- Supports single-entry reporting and bulk file uploads
- Electronic reporting is encouraged for faster processing and accuracy
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2. Fax:
- Complete the Tennessee New Hire Reporting Form and fax it to (800) 782-2923
- Keep the fax confirmation for your records
3. Mail:
Complete the New Hire Report and mail it to:
Tennessee New Hire Reporting Program
P.O. Box 1739
Nashville, TN 37202-1739
Use certified or trackable mail for proof of delivery.
New Hire Reporting Penalties
Employers who fail to report new hires or independent contractors within the required timeframe may be subject to a penalty of up to $25 per unreported individual.
If an employer conspires to avoid reporting, the penalty may increase to up to $500 per violation. Learn more
Corrections
Corrections to previously submitted new hire reports must be made through the Tennessee New Hire Reporting Portal following the program’s correction procedures.
Tennessee Unemployment Insurance (UI) Reporting — Form LB-0456 /
LB-0851
Tennessee employers must file quarterly unemployment insurance (UI) wage and premium reports using Form LB-0456 (Premium Report) and Form LB-0851 (Wage Report) with the Tennessee Department of Labor & Workforce Development (TDLWD), Employment Security Division. These reports ensure proper funding of the Tennessee Unemployment Insurance Trust Fund, which provides benefits to eligible workers who become unemployed through no fault of their own.
Who Must File
All Tennessee employers with covered employment are required to file quarterly UI reports if they have an active Tennessee unemployment insurance account. This includes private employers, nonprofit organizations, government entities, and any employer subject to Tennessee UI law
Employers must file even if no wages were paid or no premiums are due for the quarter.
Tennessee UI Forms
Tennessee UI reporting consists of two related forms:
-
Form LB-0456 – Premium Report
Used to report total wages, taxable wages, UI premium due, interest, and penalties.
-
Form LB-0851 – Wage Report
Used to report employee-level quarterly wage details, including Social Security Number, employee name, and total wages paid during the quarter.
Taxable Wage Base & Contribution Rates
Tennessee unemployment tax is assessed based on each employee’s taxable wages and the employer’s assigned
experience rate.
Annual Wage Base:
- For calendar year 2025, Tennessee’s unemployment insurance taxable wage base is $7,000 per employee.
- Wages paid to an employee above $7,000 are not subject to Tennessee UI tax for the calendar year.
Contribution Rate:
Tennessee assigns UI premium rates annually based on the employer’s experience rating and the balance in the state’s Unemployment Insurance Trust Fund:
-
New Employers:
- 2.70% standard new-employer rate.
- This rate generally applies until an employer has been subject to UI premiums and chargeable benefits for at least 36 consecutive months.
-
Experienced Employers:
- Experienced employer rates vary based on the employer’s reserve ratio (premiums paid versus benefits charged) and the applicable premium rate table.
- Statutory rate range: 0.01% to 10.00%.
- For the first half of 2025 (January 1–June 30), the effective rate schedule under Premium Table 6 ranges from 0.01% to 2.3% for positive-rated employers and from 5.0% to 10.0% for negative-rated employers. Learn more
What to Report
Employers must report the following information:
-
Employee Wage Information (Form LB-0851):
- Employee Social Security Number
- Employee's last name and first initial
- Total wages paid during the quarter
-
Employer Information:
- Tennessee UI Account Number
- FEIN
- Reporting quarter and year
- Total wages paid
- Excess wages
- Net taxable wages
- UI premium due (Taxable wages multiplied by the employer’s assigned unemployment insurance contribution rate)
- Interest and penalties, if applicable
When to File
Tennessee UI reports must be filed quarterly according to the following schedule:
- Q1 (January – March): Due April 30
- Q2 (April – June): Due July 31
- Q3 (July – September): Due October 31
- Q4 (October – December): Due January 31
Reports and payments must be submitted on or before the due date to avoid penalties and interest.
How to File
Tennessee provides multiple filing options for unemployment insurance reporting.
1. Online (Recommended):
Employers are encouraged to file electronically through the Tennessee Employer Services Portal:
- Submit Form LB-0456 and LB-0851 online
- Upload wage data files
- View account balances and filing history
- Make UI premium payments electronically
Electronic filing is strongly encouraged for accuracy and faster processing.
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2. By Mail:
Employers who file by paper must submit original forms only (no photocopies):
Mail the completed form to:
Tennessee Department of Labor & Workforce
Development
Employment Security Division
Employer Accounts Operations
P.O. Box 101
Nashville, TN 37202-0101
Payment checks must be made payable to:
Tennessee Department of Labor &
Workforce Development
3. By Fax:
- You can fax the completed form to (615) 741-2486
- Keep a copy of your fax confirmation for proof of submission
UI Premium Payments
UI premiums must be paid by the quarterly due date. Payment options include:
- Electronic payment through the Employer Services Portal
- Check mailed with the Premium Report
Late payments may result in interest and penalty assessments.
Tennessee UI Reporting Penalties (Form LB-0456 / LB-0851)
Employers must file UI reports and pay contributions on time. Failure to comply results in penalties.
Late Filing Penalty
- If an employer fails to file a quarterly wage and premium report (Form LB-0851 / LB-0456) by the due date, the employer must pay a late filing penalty of $10.00 per month (or portion of a month) that the report is late.
- The maximum penalty per report is $50.
- This penalty also applies if the report is intentionally incomplete (e.g., missing employee names, Social Security numbers, wage details).
Late Payment Penalty
- If UI premiums due under Form LB-0456 are not paid on time, interest accrues on the unpaid premium from the day after the due date until paid.
- Interest is computed at 1.5% per month (or fraction of a month) on the unpaid premium amount.
Tennessee Unemployment Corrections
Employers who discover errors on previously filed Tennessee Unemployment Insurance quarterly wage or premium reports must correct them through the state’s established process. Tennessee’s modern UI tax system allows online amendments through the Employer e-Services portal.
-
Amending Wage Reports Online
- Log in to the Employer e-Services portal on Jobs4TN.
- Navigate to View Wage Reports for the employer account and select the quarter you need to amend.
- Click “View or Amend Return” and follow the steps to update employee wages, add or remove employees, or fix other reporting details.
- Indicate the reason for amending the report and provide a brief explanation if required.
- Submit the amendment; a confirmation will be generated once accepted.
- If the amendment increases wages or adds employees, the report updates immediately; if it decreases wages or removes employees, the change will be reviewed by TDLWD staff before updating.
-
Adjustment or Refund Requests
- For corrections that involve over-reported wages or UI taxes, employers may need to file a Claim for Adjustment or Refund (Form LB-0459) to adjust prior reports or request a refund/credit.
- Employers can obtain Form LB-0459 and instructions from the TDLWD UI forms page or the local Employer Accounts Office. The form supports correction of errors, such as wages reported that should have been reported to another state, or improper classification of employees.
This consolidated approach lets Tennessee employers correct wage and premium reporting errors while maintaining compliance with UI reporting requirements. Learn more
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Frequently Asked Questions
What employees must I report to the Tennessee New Hire Reporting Program?
Employers must report all newly hired, rehired, or recalled employees — including independent contractors — to the Tennessee New Hire Reporting Center within 20 calendar days of their hire or contract date.
Do I have to report independent contractors to Tennessee New Hire Reporting?
Yes. Unlike some states, Tennessee requires employers to report independent contractors along with newly hired and rehired employees as part of new hire reporting.
What happens if I don’t report new hires on time?
Late or missing new hire reports can subject employers to penalties (e.g., per-person fines) under Tennessee law — including higher penalties if the failure was part of a conspiracy to avoid reporting.
How does Tennessee use new hire reports?
The state matches new hire data with unemployment claim files and other systems to reduce fraud, stop improper benefit payments, and support child
support enforcement.
How do I submit my Tennessee UI wage and premium reports (Forms LB-0851 / LB-0456)?
Quarterly reports must be filed online through Employer e-Services (Jobs4TN Employer portal). Traditional systems like TNPAWS or paper wage reports are no longer accepted for UI tax filing after 2025.
Can I file wage reports manually or upload a file?
Yes — in the Employer e-Services portal, you can either enter employee wage data manually or upload a file using ICESA text formats.
What if I make a mistake on a Tennessee wage report?
You can amend a wage report through Employer e-Services by selecting the quarter and using the “View or Amend Return” option — entering the corrected information and a reason for the amendment.
Can I manage multiple employer accounts with one login?
Yes. Employer e-Services allows users to access and file UI wage/premium reports for multiple Tennessee employer accounts with a single web login, and even assign secondary users with specific access levels.
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