New Hampshire Hourly Paycheck Calculator
New Hampshire was one of the original 13 colonies, founded by tenacious adventurers and savvy citizens. Their strong spirit helped them survive the harsh New England winters.
If you’re a small business owner in New Hampshire, you undoubtedly have the grit to succeed. And if thinking about payroll taxes makes you shiver, we understand. We’ve got you covered with the key New Hampshire payroll tax information laid out below.
New Hampshire state payroll taxes
No state income tax
Since New Hampshire doesn’t tax employee wages, you won’t have to worry about withholding this tax. But there are some federal payroll taxes you’ll need to deal with and we talk about those in a bit.
New Hampshire unemployment tax
When you hire your first employee, don’t forget to register online for your New Hampshire Employment Security account.
New employers pay a 2.7% unemployment tax rate on the first $14,000 of each employee’s wages. After you’ve reported enough wages, you’ll receive a rate based on data such as the amount of claims paid to your former workers and your annual taxable wages.
The Employment Security office notifies employers of their rate each September.
Each quarter you’ll pay the tax and submit a summary report, even if you paid no wages or had no tax due. You can file the report online or via paper through the mail.
New Hampshire has a comprehensive employer handbook that covers unemployment tax and reporting requirements in detail.
Other New Hampshire paycheck rules
- New hire reporting: New or rehired employees must be reported to the New Hampshire Employment Security office within 20 days of starting work.
- Workers’ Compensation insurance: Requirements to obtain Workers’ Compensation vary by state, this table outlines some of these requirements. If you determine that your company is required to purchase Workers’ Compensation insurance in your state, learn how to sign up for this insurance with Gusto. Sometimes, companies get a request for a workers’ comp audit—head to this article and click the workers’ comp audit reports dropdown for more information.
- Minimum wage: The New Hampshire minimum wage follows the federal minimum wage which is $7.25 per hour.
- Minimum pay: An employee who reports to work at the employer’s request must be paid for a minimum of two hours.
- Final paychecks: When someone voluntarily quits or resigns, final wages are due by the next regular payday. If you terminate a person’s employment, then final wages are due within 72 hours of termination.
Overtime: Hourly employees must be paid overtime—at least time and a half of their regular pay rate—for all hours worked over 40 in a week.
Federal payroll taxes in New Hampshire
New Hampshire employers also need to collect and pay federal payroll taxes.
There are four to be mindful of. Some are paid only by the employer and some are paid only by the employee. One is shared between both.
|Federal Payroll Taxes|
FUTA – Federal unemployment tax
Like the state, the federal government also has an unemployment tax. It’s called FUTA and it’s an annual tax employers pay on the first $7,000 of each employee’s wages. The FUTA rate for 2022 is 6%, but most employers only have to pay 0.6% each year.
FIT – Federal income tax
Workers need to pay their federal income tax throughout the year. That means you’ll need to take tax out of their paychecks and send it to the IRS on their behalf.
How much you’ll take out depends on many factors, and the process starts with Form W-4, Employee’s Withholding Certificate. Have each employee fill this out when they start working for you. Although a new form isn’t required each year, it’s a good idea to have workers review it annually to ensure nothing has changed.
Using information from Form W-4, the employee’s pay amount, and the federal withholding tables, you’ll be able to figure out how much to take out. Instead of figuring this out for each employee for each pay period, consider using payroll software to automatically make the calculations.
Additional Medicare tax
You’re required to withhold the Additional Medicare tax from any employee earning more than $200,000 per year. The withholding rate is 0.9% on all wages greater than $200,000.
FICA – Federal Insurance Contributions Act tax
The Federal Insurance Contributions Act, or FICA tax, is made up of the Medicare tax and the Social Security tax. In 2022, the Social Security tax requires employers and employees to each contribute 6.2% of wages up to $147,000. The Medicare tax requires each to contribute 1.45% of all wages. See the IRS webpage for details, like maximum thresholds.
|Social Security tax||6.2% of the first $147,000 in wages in 2022|
|Medicare tax||1.45% on all wages|
Paying federal payroll taxes and filing returns
Now that you’ve calculated how much tax you owe, you’ll need to send the money off to the IRS. How frequently you’ll do it depends on how much you owe.
FICA, FIT, and Additional Medicare tax
These three taxes (FIT, FICA, and Additional Medicare) are paid at the same time and can be paid either monthly or semi-weekly, depending on how much is due. But there are times when next-day payments are required.
Regardless of how frequently you pay these three taxes, you’ll need to submit quarterly summary reports on Form 941, Employer’s Quarterly Federal Tax Return, which reconciles the amount of tax due with the amount of tax you’ve already paid.
Generally, FUTA is paid annually, but quarterly payments are required if you owe more than $500. Each time you pay, whether annually or quarterly, you’ll provide Form 940, Employer’s Annual Federal Unemployment (FUTA) Tax Return, to the IRS.
Be sure to remember to file your payroll reports on time to avoid penalties. If you prefer to have professionals keep track of the deadlines, comprehensive payroll providers can calculate your payroll and file your payroll tax returns.