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Free Tennessee payroll tax
calculator (and TN tax rates)

 

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  • 1

    Pay Details

  • 2

    Exemptions

  • 3

    Federal Information

  • 4

    State Information

  • 5

    Locale Information

  • 6

    Voluntary Deductions

  • 7

    Calculate Paycheck

Welcome to our payroll calculator!

Before we jump in, who are you using this calculator for?

Thanks!

Our calculators are designed for employers, and they’ll ask for information you may not have. For a better experience, please check out this employee-focused paycheck calculator.

How much did your employee earn?

Gross Pay: This is the total amount of wages your employee earned before taxes and deductions are withheld.


For salaried employees, gross pay equals their annual salary divided by the number of pay periods per year. For hourly employees, gross pay equals the number of hours worked multiplied by their hourly wage.


(Don’t forget to add on any tips, commissions, or bonuses!)

Gross Pay Method: Is the gross pay amount based on your employee’s annual compensation, or by how many hours they worked in the last pay period?

Gross Pay YTD: Enter the total gross pay your employee has earned this year, prior to this paycheck. Normally, this can be found on the last pay stub.

Pay Frequency: How often do you normally issue paychecks?

Check Date: Enter the check date that should appear on your paycheck.

Is your employee exempt from any taxes?

Federal: In some cases, public and governmental employees are exempt from federal taxes. Check “yes” if your employee is exempt and Federal taxes should not be deducted.

FICA: In some cases, public and governmental employees are exempt from FICA. Check “yes” if your employee is exempt and FICA taxes should not be deducted.

Medicare: In some cases, public and governmental employees are exempt from Medicare taxes. Check “yes” if your employee is exempt and Medicare taxes should not be deducted.

Please enter your employee’s withholding information.

2020 W4: Would you like to use the 2020 withholding tables? Here’s an article that covers the 2020 W-4 updates if you aren’t sure.

Federal Filing Status: Select your employee’s filing status for federal withholding. This helps determine how much federal tax will be withheld.

Two Jobs: If the employee indicated that they have more than one job or are married and filing jointly with a working spouse, select Yes here.

Dependents Amount: Enter the amount your employee listed on Line 3 of their W-4, if any. This is where they claim dependents.

Other Income: If your employee listed another other income on line 4(a) of their W-4, enter the amount here.

Deductions: Enter any deductions that your employee listed on line 4(b) of their W-4, if applicable.

Additional Federal Withholding: If your employee has asked to have additional funds withheld from each paycheck, enter the amount here. If they have not, enter “0”.

Round Federal Withholding: Would you like us to round your employee’s withholding totals to the nearest dollar? (It’s not required, but it is permitted)

Now, add information for their state.

State: Select the state where withholding should be calculated. It should be the same state where the work was performed.

Now, add locale information if applicable.

Does your employee have any voluntary deductions?

Please add any additional deductions for items like health insurance, 401(k), HSAs/FSAs, or any other benefits.


Select type of deduction needed:

401(k)

Add deduction

HSA

Add deduction

Custom

Add deduction

Let’s finish crunching the numbers!

Click the button below to see your paycheck calculated.

Here’s your paycheck information:

Leave payroll to us.

We do all the hard work to set you up, starting at just $40 + $6 per employee.

Updated: May 6, 2024

At the top of this page is simple payroll calculator for small business owners in Tennessee. All you have to do is enter wage and W-4 information for each employee, and the calculator will do the rest. And even though Tennessee has no state income tax, don’t forget about federal income tax as well as unemployment insurance.

Federal payroll taxes for Tennessee employers

First of all, let’s give Uncle Sam his due. Here’s a quick rundown of the components that go into federal tax withholdings. For a more detailed explanation on all of the steps below, head on over to our comprehensive step-by-step guide.

  • Gross wages, which is simply the amount of money an employee has earned during the last pay period.
    • For hourly employees, multiply the number of hours worked by their pay rate — and make sure you don’t forget to take overtime into consideration.
    • For salaried employees, divide each employee’s annual salary by the number of pay periods you have over the course of a year.
    • Bonuses, commissions, and tips are all part of gross wages as well.
  • Subtract any pre-tax withholdings. If your employees have 401(k) accounts, flexible spending accounts (FSA), health savings accounts (HSA), or any other pre-tax withholdings, subtract them from gross wages prior to applying payroll taxes.
  • Deduct federal income taxes, which is the biggest tax that your employees will pay. The tax rate can range from 0% all the way up to 37%. We won’t get into the nitty-gritty here, but you can find all the withholding information you need through the IRS Publication 15-T.
  • Deduct and match any FICA taxes to cover Social Security and Medicare taxes:
    • For Social Security tax, withhold 6.2% of each employee’s taxable wages until they have earned $168,600 in 2024. As an employer, you must match this tax.
    • For Medicare tax, withhold 1.45% of each employee’s taxable wages until they have earned $200,000 in 2024. You also must match this tax. For employees who earn more than $200,000 per year, you’ll need to withhold an Additional Medicare Tax of 0.9%, which brings the total employee Medicare withholding above $200,000 to 2.35%. Fortunately for you, employers are not responsible for paying the Additional Medicare Tax.
  • Pay FUTA unemployment taxes, which is 6% of the first $7,000 of each employee’s taxable income, which comes out to a maximum tax of $420 per employee per year. The FUTA tax comes with a huge caveat that you need to know about. You can claim a tax credit of up to 5.4% for state unemployment tax you pay, as long as you pay in full and on time. It’s an easy way to save a whopping 90%, so make sure you take advantage! Only you as the employer are responsible for paying FUTA taxes, so you don’t need to withhold FUTA from your employees’ paychecks.
  • Subtract any post-tax deductions. Most of your employees won’t have any post-tax deductions, but you might need to withhold things like court-ordered wage garnishments, child support, etc.
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Tennessee state payroll taxes in 2024

Tennessee’s income tax is simple with a flat rate of 0%. For the calendar year 2023, Tennessee unemployment insurance rates range from 0.01% to 10%, with a taxable wage base of up to $7,000 per employee per year. The 2024 numbers have not been announced yet, but we’ll post the numbers as soon as they are available. The taxable wage base has been $7,000 since 2018. New employers pay a flat rate of 2.7%.

 

Staying compliant

Did you know that almost all employers in the state must carry workers’ compensation? Learn more about who needs coverage, the benefits it provides, and how to get a policy in our employer’s guide to Tennessee workers’ compensation.

Write those paychecks

Now this is music to your ears! You’ve figured out all your payroll needs, so now you can focus on the important stuff for your small business. Get your signature ready because after you’ve calculated your employees’ net pay by implementing all deductions, it’s time to write those checks. All you have to worry about is paying your employees on time and setting aside any taxes your company is responsible for (FICA and UI payments, we’re looking at you). You will need to fill out Form 941 to file federal taxes on a quarterly basis, and Form 940 to report your annual FUTA liabilities. You can pay taxes online using the EFTPS payment system. All the IRS employment tax due dates can be found here.

Additional Tennessee payroll tax resources

If you’re still looking to fill your brain with more juicy payroll tax facts, here are some additional resources and contact information:

 

Tennessee Department of Labor & Workforce Development (844) 224-5818 | Taxes and Insurance | Register Your Business

 

Tennessee Department of Revenue (800) 342-1003 | Tax Resources | Tennessee Withholding Requirement

 

These rates are based on local legislation and can change at any time. Always consult a tax professional if you are unsure about your obligations.

Other Tennessee payroll calculators to try

Employers in Tennessee can take advantage of the payroll calculator at the top of this page to quickly calculate their employees’ gross pay, net pay, and deductions in a few clicks. But occasionally, a company needs to do a little more math before they can cut staff paychecks. For example, do you operate a business where employees get tips from customers? Remember that you are responsible for withholding taxes from your employees’ paychecks based on the tips they receive. Additionally, if an employee leaves for another employer, you’ll need to calculate their final pay. So, if you need a little more help with the number-crunching, check out some of the calculators below.

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