Payroll Utah, Unique Aspects of Utah Payroll Law and Practice

The Utah State Agency that oversees the collection and reporting of State income taxes deducted from payroll checks is:

State Tax Commission

Withholding Tax Development

210 North 1950 West

Salt Lake City, UT 84134

(801) 297-2200

(800) 662-4335 (in state)

http://tax.utah.gov/

Utah allows you to use the federal form W4 to calculate state income tax withholding.

Not all states allow salary reductions made under Section 125 cafeteria plans or 401(k) to be treated in the same manner as the IRS code allows. In Utah cafeteria plans are not taxable for income tax calculation; not taxable for unemployment insurance purposes. 401(k) plan deferrals are not taxable for income taxes; taxable for unemployment purposes.

In Utah supplemental wages are required to be aggregated for the state income tax withholding calculation.

You must file your Utah State W-2s by magnetic media if you are required to file your federal W-2s by magnetic media.

The Utah State Unemployment Insurance Agency is:

Department of Workforce Services

140 E. 300 South

P.O. Box 45288

Salt Lake City, UT 84145

(801) 536-7400

[http://jobs.utah.gov/employer/emservices.asp]

The State of Utah taxable wage base for unemployment purposes is wages up to $22,700.00.

Utah requires Magnetic media reporting of quarterly wage reporting if the employer has at least 250 employees that they are reporting that quarter.

Unemployment records must be retained in Utah for a minimum period of three years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; payroll pay periods and pay dates; date and circumstances of termination.

The Utah State Agency charged with enforcing the state wage and hour laws is:

Labor Commission

Anti-Discrimination and Labor Division

P.O. Box 146630

Salt Lake City, UT 84114-6630

(801) 530-6801

[http://www.labor.state.ut.us/]

The minimum wage in Utah is $5.15 per hour.

There is no general provision in Utah State Law covering paying overtime in a non-FLSA covered employer.

Utah State new hire reporting requirements are that every employer must report every new hire and rehire. The employer must report the federally required elements of:

  • Employee’s name
  • Employee’s address
  • Employee’s social security number
  • Employer’s name
  • Employers address
  • Employer’s Federal Employer Identification Number (EIN)

This information must be reported within 20 days of the hiring or rehiring.

The information can be sent as a W4 or equivalent by mail, fax or mag media.

There is a $25.00 penalty for a late report and $500 for conspiracy in Utah.

The Utah new hire-reporting agency can be reached at 801-526-4361 or on the web at http://jobs.utah.gov/newhire/

Utah does not allow compulsory direct deposit except for large employers with 2/3 of employees already on direct deposit.

Utah requires the following information on an employee’s pay stub:

  • itemized deductions
  • Utah requires that employee be paid no less often than semimonthly; monthly if employee hired for yearly salary.

    Utah requires that the lag time between the end of the pay period and the payment of wages to the employee not exceed ten days; wages paid monthly—7th of next month.

    Utah payroll law requires that involuntarily terminated employees must be paid their final pay with in 24 hours and that voluntarily terminated employees must be paid their final pay by the next regular payday.

    Deceased employee’s wages must be paid when normally due to successor after affidavit stating estate does not exceed $25,000 at least 30 days since death, no petition for executor is pending, and entitlement to payment.

    Escheat laws in Utah require that unclaimed wages be paid over to the state after one year.

    The employer is further required in Utah to keep a record of the wages abandoned and turned over to the state for a period of 5 years.

    Utah payroll law mandates no more than $3.02 may be used as a tip credit.

    In Utah the payroll laws covering mandatory rest or meal breaks are only that all employees must have a 30-minute meal period after 5 hours; 10 minutes rest each 4 hours.

    Utah statute requires that wage and hour records be kept for a period of not less than three years. These records will normally consist of at least the information required under FLSA.

    The Utah agency charged with enforcing Child Support Orders and laws is:

    Office of Recovery Services

    Department of Human Services

    515 E. 100 S.

    P.O. Box 45011

    Salt Lake City, UT 84145-0011

    (801) 536-8500

    http://www.ors.state.ut.us/

    Utah has the following provisions for child support deductions:

    • When to start Withholding? First pay period after 5 working days from service.
    • When to send Payment? Within 7 days of Payday.
    • When to send Termination Notice? Within 5 days of termination.
    • Maximum Administrative Fee? one-time $25 fee
    • Withholding Limits? Federal Rules under CCPA.

    Please note that this article is not updated for changes that can and will happen from time to time.

    Payroll Texas, Unique Aspects of Texas Payroll Law and Practice

    There is no personal state income tax in Texas. Which means no withholding of State Income Taxes.

    The Texas State Agency charged with enforcing the state wage and hour laws is:

    The Texas Workforce Commission

    101 East 15th St.

    Austin, Texas 78778-0001

    512-837-9559

    http://www.twc.state.tx.us/

    Except for taxes and student loans there are no garnishments in Texas. No creditor other than the IRS or one of the student loan collection agencies can take money out of your paycheck without your permission.

    The agency that collects and pays unemployment benefits is the Texas Workforce Commission.

    Its main office is in Austin, Texas. Their address is:

    Texas Workforce Commission

    101 East 15th Street

    Austin, Texas 78778-0001

    512-837-9559

    http://www.twc.state.tx.us/

    The unemployment rate varies based on your company’s experience but the initial rate starts at 2.7% on the first 9000.00 of wages paid to an employee in the state.

    There is no requirement in Texas for a company to carry Workers Compensation Insurance. Texas is the only state where it is not required.

    Texas now allows mandatory imposition of Direct Deposit. The employer just cannot choose the financial institution the employee has the right to pick any financial institution that accepts direct deposits. There must be no additional fees to the employee for direct deposit.

    Another unique aspect of Payroll in Texas is there is no provision in the State law for overtime. All overtime is governed only by FLSA if appropriate. So a purely intrastate employer in Texas does not have to legally pay overtime premium.

    The state minimum wage in Texas is $5.15 per hour. It used to be well under federal rates.

    In Texas you must pay at least semi-monthly except that FLSA-exempt employee can be paid on a monthly basis.

    Payment on termination in Texas is six days for an involuntary termination and the next regular payday for a voluntary resignation

    Texas requires the following information on an employee’s paystub:

    • Employee’s Name
    • Pay rate
    • Gross and net earnings
    • Amount and purpose of deductions
    • Hours worked or work done if piece work

    Escheat laws in Texas require that unclaimed wages be paid over to the state after one year and 180 days if less than $100.00. The employer is further required in Texas to keep a record of the wages abandoned and turned over to the state for a period of 10 years.

    Wages due a deceased employee are not covered by any provision in Texas.

    Texas State new hire reporting requirements are that every employer must report every new hire and rehire. The employer must report the federally required elements of:

    • Employee’s name
    • Employee’s address
    • Employee’s social security number
    • Employer’s name
    • Employers address
    • Employer’s Federal Employer Identification Number (EIN)

    Plus they can optionally report

    • Date of Birth
    • Date of Hire
    • Payroll address for Child Support Notice

    This information must be reported within 20 days of the hiring or rehiring.

    The information can be sent as a W4 or equivalent by mail, fax or electronically.

    There is no penalty currently for a late report.

    The Texas new hire reporting agency can be reached at 888-839-4473 or on the web at [http://www.newhire.org/tx] .

    There is no provision in the Texas State Payroll laws covering mandatory rest or meal breaks.

    Cafeteria Plan and 401(k) deferrals that are exempt from federal income tax are counted as taxable income for unemployment insurance calculation in Texas.

    Texas requires magnetic media reporting of earnings and contributions for unemployment insurance purposes if the employer has at least 250 employees to report.

    Texas has no State Income tax so no State W2’s have to be prepared, distributed or transmitted to the state

    Texas has the following provisions for child support deductions:

    • When to start Withholding? Immediately after receipt of order.
    • When to send Payment? Within 7 days of Payday.
    • When to send Termination Notice? Within 7 days of termination.
    • Maximum Administrative Fee? $2 per month.
    • Withholding Limits? Federal Rules under CCPA.

    The Texas agency charged with enforcing Child Support Orders and laws is:

    Child Support Division

    Office of the Attorney General

    300 W. 15th Street

    Austin, TX 78701

    512-460-6000

    http://www.oag.state.tx.us/child/#services

    States have different requirements for maintaining wage and hour records that vary from the two or three years FLSA requires depending on the type of record. Texas has no provision in the law concerning retention

    Payroll Illinois, Unique Aspects of Illinois Payroll Law and Practice

    The Illinois State Agency that oversees the collection and reporting of State income taxes deducted from payroll checks is:

    Department of Revenue

    101 W. Jefferson St.

    P.O. Box 19022

    Springfield, IL 62794-9022

    (217) 785-0970

    (800) 732-8866 (in state)

    http://www.revenue.state.il.us

    Illinois requires that you use Illinois form “IL-W-4, Employee’s Illinois Withholding Allowance Certificate” instead of a Federal W-4 Form for Illinois State Income Tax Withholding.

    Not all states allow salary reductions made under Section 125 cafeteria plans or 401(k) to be treated in the same manner as the IRS code allows. In Illinois cafeteria plans are: not taxable for income tax calculation; not taxable for unemployment insurance purposes if used to purchase medical life insurance. 401(k) plan deferrals are: not taxable for income taxes; taxable for unemployment purposes.

    In Illinois supplemental wages are taxed at a 3.0% flat rate.

    You must file your Illinois state W-2s by magnetic media if you are have at least 250 employees and are required to file your federal W-2s by magnetic media.

    The Illinois State Unemployment Insurance Agency is:

    Department of Employment Security

    401 S. State St.

    Chicago, IL 60605-1289

    (312) 793-5700

    http://www.ides.state.il.us/

    The State of Illinois taxable wage base for unemployment purposes is wages up to $9,800.00.

    Illinois requires Magnetic media reporting of quarterly wage reporting if the employer has at least 250 employees that they are reporting that quarter.

    Unemployment records must be retained in Illinois for a minimum period of five years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; payroll pay periods and pay dates; date and circumstances of termination.

    The Illinois State Agency charged with enforcing the state wage and hour laws is:

    Department of Labor

    Labor Law Enforcement

    160 North LaSalle, Ste. C1300

    Chicago, IL 60601

    (312) 793-2800

    [http://www.state.il.us/agency/idol/]

    The minimum wage in Illinois is $6.50 per hour.

    The general provision in Illinois concerning paying overtime in a non-FLSA covered employer is one and one half times regular rate after 40-hour week.

    Illinois State new hire reporting requirements are that every employer must report every new hire and rehire. The employer must report the federally required elements of:

    • Employee’s name
    • Employee’s address
    • Employee’s social security number
    • Employer’s name
    • Employers address
    • Employer’s Federal Employer Identification Number (EIN)

    This information must be reported within 20 days of the hiring or rehiring.

    The information can be sent as a W4 or equivalent by mail, fax or electronically.

    There is a $15, $500 penalty for a late report in Illinois.

    The Illinois new hire-reporting agency can be reached at 800-327-4473 or on the web at [http://www.ides.state.il.us/employer/newhire/general.htm]

    Illinois does not allow compulsory direct deposit

    Illinois requires the following information on an employee’s pay stub:

  • itemized deductions
  • Illinois requires that employee be paid no less often than semimonthly; monthly for FLSA-exempt employees; union contract can provide different intervals.

    Illinois requires that the lag time between the end of the pay period and the payment of wages to the employee not exceed semimonthly-13 days; weekly-7days; monthly-21 days; daily-1 day.

    Illinois payroll law requires that involuntarily terminated employees must be paid their final pay immediately if possible, if not, by next regular payday; next regular payday if suspended due to labor dispute or temporarily laid off and that voluntarily terminated employees must be paid immediately if possible; if not, by next regular payday.

    Deceased employee’s unpaid wages must be paid when normally due to the person owed for funeral expenses, spouse, or child after small estate affidavit; estate no over $15,000.

    Escheat laws in Illinois require that unclaimed wages be paid over to the state after five years.

    The employer is further required in Illinois to keep a record of the wages abandoned and turned over to the state for a period of 5 years.

    Illinois payroll law mandates no more than 40% of minimum wage may be used as a tip credit.

    In Illinois the payroll laws covering mandatory rest or meal breaks are that employees must have 20 minutes during first 5 hours of 7and a half-hour shift.

    Alabama statute requires that wage and hour records be kept for a period of not less than five years. These records will normally consist of at least the information required under FLSA.

    The Illinois agency charged with enforcing Child Support Orders and laws is:

    Division of Child Support Enforcement

    Department of Public Aid

    509 S. 6th St.

    Springfield, IL 62701

    (800) 447-4278

    [http://ilchildsupport-employer.com/Default.aspx]

    Illinois has the following provisions for child support deductions:

    • When to start Withholding? 14 working days after the withholding order is mailed to the employer.
    • When to send Payment? Within 7 days of Payday.
    • When to send Termination Notice? “Promptly.”
    • Maximum Administrative Fee? $5 per payment.
    • Withholding Limits? Federal Rules under CCPA.

    Please note that this article is not updated for changes that can and will happen from time to time.