Utah Salary Paycheck Calculator
As a Utah business owner, you understand the wonder and beauty Utah offers. You don’t want to be bogged down calculating payroll, so we’ve answered the most common questions employers ask about payroll taxes in Utah.
Utah payroll tax FAQs
How do Utah employers withhold state income taxes?
Since Utah has a flat income tax rate of 4.85% in 2022, employers need to withhold some of this tax from their employees’ paychecks.
Using the employee’s federal Form W-4, Employee’s Withholding Certificate, and Utah’s tax tables, employers will be able to calculate the state withholding tax. If you’re not a math person and prefer to have someone else figure out the amount for you, there are qualified accountants and payroll software companies that will gladly help you.
Does Utah have an unemployment tax?
Yes, Utah maintains an unemployment trust fund that provides benefits to unemployed workers. The fund is supplied with employers’ contributions, and these contributions are commonly referred to as the unemployment tax.
For 2022, only the first $41,600 of a workers’ wage is taxable for Utah’s unemployment tax, although wages above that amount must still be reported.
Rates in 2022 vary from a minimum of 0.3% up to a maximum of 7.3%, with new employers receiving an assigned rate based on their industry average. After a year of paying unemployment tax, employers will be given an earned rate based mainly on the amount of benefits paid to former employees.
When do Utah taxes need to be paid?
For income tax, your payment frequency depends on how much is due. You can pay monthly, quarterly, or annually.
| 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 |
Income taxes can be paid online or by mail. If you pay by mail, include a payment coupon using form TC-941PC, Payment Coupon for Utah Withholding Tax.
You’ll need to file a payroll tax return each time you pay. If there are filing periods when you have no withholding tax to pay, you’ll still need to file a zero return.
In addition to the payroll tax returns you’ll file throughout the year, you’ll also need to send an annual summary report by January 31 for the previous year. This summary report uses form TC-941E, Utah Withholding Return for Employers. Copies of W-2s and any 1099s with Utah taxes withheld need to be sent too.
Utah requires that payroll tax returns be filed online with the Utah State Tax Commission.
For unemployment tax, Utah requires employers to report wages online each quarter.
Don’t worry; you don’t have to memorize these deadlines. Full-service payroll providers can prepare and file your payroll-related returns for you.
What’s the salary threshold in Utah?
Because the state of Utah doesn’t have its own salary threshold, it adheres to the federal salary threshold, which is now $684 per week (equivalent to $35,568 per year for a full-year worker). The Department of Labor permits employers to count some bonuses, commissions, and other incentive payments toward meeting the standard salary level (up to 10%). Employees who earn at least $107,432 per year may qualify as “highly compensated.” See this Department of Labor fact sheet for details.
When is Workers’ Compensation insurance required 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.
How soon do newly hired employees need to be reported to the Utah Department of Workforce Services?
Employers need to report new employees to the state within 20 days of their first day of work.
When are final paychecks due to former employees?
It depends on whether they leave voluntarily or not. If they leave voluntarily (resign), you have until the next regularly scheduled pay date to provide their final wages. Otherwise, the final wages are due immediately and you have 24 hours to issue payment.
Federal payroll tax FAQs
How is federal income tax withholding calculated?
To find out how much federal income tax to withhold from employees’ paychecks, you’ll start with Form W-4, just like you did for state income tax withholding. You’ll use the IRS tax tables instead of Utah’s to calculate the tax amount.
Some of your employees may be exempt from withholding tax, and you’ll know that when you see their W-4. For these employees, there is no federal income tax withholding.
When do employers withhold the Additional Medicare tax?
The IRS requires you to collect the Additional Medicare tax from employees who earn more than $200,000 per year. For 2022, the rate is 0.9% on the excess wages.
Who pays the 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 many employers only have to pay 0.6% each year.
How is Social Security and Medicare tax paid?
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 for 2022 | |
| Social Security | 6.2% of the first $147,000 in 2022 |
| Medicare | 1.45% on all wages in 2022 |
Those are the basics. If you don’t want to do payroll on your own, check out Gusto.
Disclaimer
The information provided by the Employer Tax Calculator is for general information and estimation. All of the taxes or fees that apply to your business may not be accounted for, or fully up to date. Gusto, Inc. (dba “Gusto”) does not promise or guarantee that the information in the Employer Tax Calculator is accurate or complete, and Gusto expressly disclaims all liability, loss or risk incurred by employers or employees as a direct result or an indirect consequence of its use. By using the Employer Tax Calculator, you waive any rights or claims you may have against Gusto in connection with its use.