Easily manage employment in New Hampshire

Payroll management in New Hampshire

New Hampshire has a strong economy supported by industries such as healthcare, manufacturing, technology, and tourism. With no state minimum wage and no personal income tax, employers in New Hampshire must ensure compliance with federal payroll laws and state unemployment insurance tax requirements. Understanding these regulations is crucial for smooth payroll operations and compliance.

Payroll breakdown in New Hampshire

Employers in New Hampshire 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: New Hampshire does not have a state minimum wage, so employers must comply with the federal minimum wage of $7.25 per hour.
• Overtime rules:
• New Hampshire 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

• New Hampshire does not impose a state income tax on wages, meaning employers are only responsible for federal income tax withholding.
• However, the state levies a 5% tax on interest and dividend income exceeding $2,400 per year ($4,800 for joint filers).

Unemployment insurance (UI) tax

• Employers must contribute to New Hampshire’s Unemployment Insurance (UI) program, managed by the New Hampshire Employment Security (NHES).
• The UI wage base in New Hampshire is $14,000.
• UI tax rates vary based on an employer’s experience rating and range from 0.1% to 8.5%.
• New employers typically pay a 2.7% UI tax rate.

Workers’ compensation

• New Hampshire 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 certain independent contractors and self-employed individuals.

Payroll tax filing and payment deadlines

• Employers must register for a New Hampshire Employer Account with the New Hampshire Employment Security (NHES).
• UI tax reports must be submitted quarterly to the NHES.
• Payroll tax payments can be made electronically through the NH Unemployment Tax System (NHTS).

Quick facts: Important considerations for employers

• State minimum wage compliance: New Hampshire 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 72 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 New Hampshire New Hire Reporting Center within 20 days.
• Paid sick leave: New Hampshire 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: New Hampshire is a right-to-work state, meaning employees cannot be required to join a union as a condition of employment.

Run payroll in New Hampshire with Remote

Managing payroll in New Hampshire 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.