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Insurance offered through OnPay Insurance Agency, LLC (CA License #0L29422)
Updated: January 6, 2023
According to the Small Business Administration, 99.3% of businesses in Utah are classified as small businesses, which translates to a quarter million businesses employing half a million employees. Whether you own the hippest new restaurant in Salt Lake City or the best bed & breakfast in the mountains, there is one thing you just can’t avoid: payroll taxes. Luckily, our Utah payroll calculator eliminates all the confusion associated with calculating payroll, so you can spend more time focusing on growing your business and less time on the administrative side of things.
All you have to do is enter wage and W-4 information for each employee, and our calculator will do the rest. It will figure out your employees’ gross pay, net pay, and deductions for both Utah and Federal taxes.
First and foremost, we have to give Uncle Sam his fair share. Here’s a quick rundown of what you need to know when it comes to calculating federal payroll taxes. If you would like to see a detailed rundown, head on over to our comprehensive step-by-step guide for more detailed information.
Now that we’re done with federal taxes, let’s talk about Utah state taxes, shall we?
Calculating Utah state income tax is very straightforward. Every employee pays a flat tax of 4.95%, so you don’t need to worry about tax brackets and marginal rates.
Easy peasy, right?
Utah doesn’t have state disability insurance, but it does have unemployment insurance, which covers those unemployed through no fault of their own. The wage base for 2023 is $44,800 (in 2022 is was $41,600) and rates range from 0.3% to 7.3%
If you’re a new employer, you’ll be assigned a rate based on your industry. And you receive it upon completing a registration process.
You’ve almost at the finish line! All that’s left to do after calculating your employee’s net pay is cut those checks. Just make sure you’re setting aside the amount your company needs to pay to avoid any FICA and UI tax fiascos.
You will need to use Form 941 to file federal taxes quarterly, and Form 940 to report your annual FUTA tax. You can pay taxes online using the EFTPS payment system. More details about employment tax due dates can be found here.
Just in case you want to learn even more about Utah payroll taxes, here are a few helpful links.
Department of Workforce Services: 801-526-WORK (9675) | Register Your Business | Unemployment Insurance | Veteran Employment Tax Credit
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.
Try OnPay out yourself to see how easy payroll and HR can be. To get started, just share a few basic details about your business. Our team of pros will set everything up and import your employees’ information for you.