Easily manage employment in Utah

Payroll management in Utah

Utah has a strong economy supported by industries such as technology, healthcare, tourism, and manufacturing. With state-specific payroll regulations, including a minimum wage that aligns with the federal rate, a flat state income tax, and right-to-work laws, employers in Utah must ensure compliance with both state and federal payroll laws. Understanding these regulations is crucial for smooth payroll operations and compliance.

Payroll breakdown in Utah

Employers in Utah must adhere to both federal and state payroll regulations regarding wages, taxes, and benefits. Below is an overview of key payroll components:

Minimum wage and overtime

• Minimum wage: Utah follows the federal minimum wage of $7.25 per hour, as the state has not set a higher minimum wage.
• Overtime rules:
• Utah follows federal overtime laws, requiring employers to pay 1.5 times an employee’s regular rate for hours worked beyond 40 hours in a workweek.
• Some exemptions apply based on job classification and industry.

State income tax

• Utah has a flat state income tax rate of 4.65% as of 2024.
• Employers must withhold state income tax and remit it to the Utah State Tax Commission.

Unemployment insurance (UI) tax

• Employers must contribute to Utah’s Unemployment Insurance (UI) program, managed by the Utah Department of Workforce Services (DWS).
• The UI wage base in Utah is $47,000.
• UI tax rates vary based on an employer’s experience rating and range from 0.3% to 7.3%.
• New employers typically pay a 1.4% UI tax rate.

Workers’ compensation

• Utah law requires all employers with one or more employees to carry workers’ compensation insurance to cover medical expenses and lost wages for employees injured on the job.
• Some exemptions apply, including sole proprietors and certain independent contractors.

Payroll tax filing and payment deadlines

• Employers must register for a Utah Withholding Tax Account with the Utah State Tax Commission.
• State withholding tax returns must be filed quarterly or annually, depending on employer classification.
• UI tax reports must be submitted quarterly to the Utah Department of Workforce Services (DWS).
• Payroll tax payments can be made electronically through the Utah Taxpayer Access Point (TAP) system.

Quick facts: Important considerations for employers

• State minimum wage compliance: Utah follows the federal minimum wage of $7.25 per hour.
• Final paycheck rules:
• If an employee is terminated, employers must provide the final paycheck within 24 hours.
• If an employee resigns, the final paycheck must be provided by the next scheduled payday.
• New hire reporting: Employers must report new hires to the Utah New Hire Registry within 20 days.
• Paid sick leave: Utah does not require employers to provide paid sick leave, but employers may choose to offer it as a benefit.
• Payroll recordkeeping: Employers must maintain payroll records for at least three years to comply with state and federal laws.
• Right-to-work state: Utah is a right-to-work state, meaning employees cannot be required to join a union as a condition of employment.

Run payroll in Utah with Remote

Managing payroll in Utah requires careful attention to state-specific regulations, including minimum wage compliance, UI tax requirements, and workers’ compensation laws. Employers must stay informed about tax rates, wage laws, and reporting deadlines to ensure smooth payroll processing and avoid penalties.

The good news is, you can pay anyone, anywhere — from your team in the office to your team abroad, all with Remote Payroll. To see just how easy global payroll can be, book a demo with Remote today.