Utah Hourly Paycheck Calculator
Utah is a land of extremes—tall snowy mountains and hot, dry deserts. But Utah balances these remarkable landscapes with uncomplicated payroll taxes and rules. With a flat income tax and few paycheck rules, you’ll quickly get up to speed so you can spend more time running your business.
Utah payroll taxes
Utah withholding tax
Utah uses a single tax rate for all income levels. For 2022, the rate is 4.85%—but that doesn’t mean you will withhold 4.85%. It’s more complicated than that.
Utah employers will withhold state income tax based on the employee’s federal Form W-4, Employee’s Withholding Certificate, and Utah’s withholding tables. If you don’t want to flip through the withholding tables, you can enter the Form W-4 information into payroll software to have the calculations made for you.
The frequency that you’ll need to pay the taxes depends on the amount you withhold. You can make payments electronically or by mail. When you mail your payment, you’ll need to include a payment coupon using form TC-941PC.
|Utah Withholding Tax Payment Frequency|
|If you:||Your payment frequency is:|
|Withhold $1,000 or more per month||Monthly|
|Withhold less than $1,000 per month||Quarterly|
|Report household employment taxes on Schedule H of your federal form 1040 or file form 944, Employer’s Annual Federal Tax Return||Annually|
You’ll also need to file a tax return for each filing period, even in periods when you don’t withhold any taxes. All returns must be filed electronically with the Utah State Tax Commission.
File your annual reconciliation by January 31 for the previous year’s wages. In addition to the tax form TC-941E, Utah Withholding Return for Employers, you’ll need to provide copies of your W-2s and 1099s if Utah taxes were withheld.
Most full-service payroll providers will prepare and file your returns for you so you never miss a deadline. If you decide to do it yourself, check out Utah’s helpful Withholding Tax Guide.
Utah unemployment insurance
Utah administers the Utah Employment Security Act, which provides unemployment insurance benefits to unemployed workers. These benefits are funded through contributions made by employers to the Utah Unemployment Compensation Fund.
These contributions, also known as unemployment tax, are assessed on the first $41,600 of each employee’s wages in 2022. All wages paid to employees must be reported online each quarter.
New Utah employers are assigned a rate based on the rates of other employers in their industry. After your first year of reporting, employers are provided an earned rate that factors in the history of benefits paid to your former workers. For 2022, Utah unemployment tax rates range from 0.3% to 7.3%.
Utah paycheck rules
Be aware of some of Utah’s paycheck rules.
- Workers’ Compensation insurance in Utah
- 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 in Utah
- In 2022, the minimum wage in Utah is $7.25 per hour.
- Overtime pay in Utah
- Utah follows the overtime rules set out in the federal Fair Labor Standards Act, which requires hourly workers to be paid at least 1.5 times their regular hourly rate when they work more than 40 hours a week.
- Final paychecks in Utah
- When you fire or lay off an employee, their final wages are due immediately and must be paid within 24 hours of termination. But if an employee resigns, they are due by the next regularly scheduled pay date.
- New hire reporting in Utah
Federal payroll taxes for Utah employers
Now that you’re up to speed with Utah’s payroll taxes and rules, let’s have a look at the federal payroll taxes.
There are four federal taxes to be aware of and two mimic some of Utah’s taxes.
Federal income tax (FIT)
Just like you’ll need to withhold state income tax, you’ll need to do the same for federal income tax. It will be easy because the process is similar.
Using the federal Form W-4, along with the federal tax tables, you can calculate withholding amounts. And like the Utah state income tax, payroll software can quickly make these calculations for you.
Form W-4 should be completed by employees when they start working for you. Although a new form isn’t required each year, it is wise to have employees review it to see if any changes are needed. Things like getting married, having children, or taking on a second job can impact how much tax they owe. These forms become part of your payroll records, so file them away safely.
Federal unemployment tax (FUTA)
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.
Additional Medicare tax
The Additional Medicare tax that’s been around since 2013 and it’s due from certain employees who earn above threshold amounts. You’ll need to withhold it on any wages you pay above $200,000 a year. For 2022, the tax rate is 0.9% on the excess wages.
Federal Insurance Contributions Act tax (FICA)
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.
|FICA Tax in 2022|
|Social Security tax||6.2% on the first $147,000 of wages in 2022|
|Medicare tax||1.45% on all wages in 2022|
Filing and paying federal income taxes
FICA, Additional Medicare, and federal income tax are paid either monthly or semi-weekly depending on how much tax is owed. And regardless of your payment frequency, you’ll have to file quarterly summary reports on Form 941.
FUTA can be paid annually using Form 940 if you owe less than $500. But if you owe more, you’ll have to make quarterly payments.
If you find yourself wanting more information or more help, track down a qualified accountant or sign up with a full-service payroll provider. Both can help you reach the finish line making sure your employees are paid correctly and on time.