Utah Wage and Payroll Tax Facts
February 02, 2024
Having to comply with unique state taxes and wage laws can make processing payroll doubly daunting. Here’s everything you need to know about these rates and laws for the state of Utah.
The Beehive State uses the same minimum wage rates that are required by the federal government in the Fair Labor Standards Act (FLSA), including standard and tipped minimum wage rates as well as tip credits.
When it comes to processing payroll, Utah-based organizations must handle the following taxes in addition to those required by the federal government:
- Personal Income (a.k.a. State Income Tax)
- State Unemployment Insurance (SUI)
The below information was last updated August 6, 2024. It is not intended as legal or tax advice.
Utah Minimum Wage Rates
|
Wage Type |
Utah Rates |
Federal Rates |
|
Minimum Wage |
$7.25 |
$7.25 |
|
Tipped Minimum Wage |
$2.13 |
$2.13 |
|
Actual Tip Credit |
$5.12 |
$5.12 |
Utah State Income Tax (SIT) Rates
Utah has a flat income tax rate of 4.55%, meaning all residents pay the same amount regardless of their income levels.
|
Additional Utah SIT Details |
|
|
Valid Filing Statuses |
|
| Exemptions | N/A |
|
Form W-4 |
Federal Form W-4* |
|
Reconciliation Frequency |
Annual |
*Even though Utah doesn't currently use a state-specific version of the federal Form W-4, employers may accept state-specific W4’s from other states in special circumstances, such as a military spouse withholding exemption.
Utah State Unemployment Insurance (SUI) Rates
SUI provides unemployment benefits to eligible workers who are unemployed through no fault of their own (as determined by state law) and meet the state’s eligibility requirements.
|
Utah SUI Tax Details |
|
|
Taxable Wage Base |
$47,000 |
|
Employee Subject to Tax |
No |
|
Rates for Experienced Employers |
0.3% - 7.3% |
|
Rates for New Employers |
0.3% - 7.3% |
|
Effective Period |
Calendar Year |
|
Voluntary Contributions Allowed |
No |
Utah State Disability Insurance (SDI) Rates
SDI benefits are funded by employees through mandatory payroll deductions from each paycheck. Utah, however, doesn't require employers to collect an SDI tax.
Miscellaneous Utah Tax Information
Reciprocal Agreement(s)
Reciprocal agreements are when workers who live and work in different states are only required to pay taxes to the state where they live. Utah currently has no reciprocal agreements with any other states.
This doesn’t mean, however, that interstate workers living in Utah pay double. It’s federally illegal for two states to tax the same income. In most cases, the employee’s work state will credit or refund them at tax time based on the taxes they owe their home state. If the tax rates differ, the employee must cover the difference.
Paid Sick Leave (PSL) Taxes
The state of Utah doesn’t require employers to collect PSL taxes, nor does the state have a program providing such leave to employees.
Paid Family and Medical Leave (PFML) Taxes
The state of Utah doesn’t require employers to collect PFML taxes, nor does the state have a program providing such leave to employees.
Utah Employer Registration
The agencies below can help with your state-based employer registration, including best practices, account numbers, and unemployment information. Contact the State Tax Commission for tax withholding topics and the Department of Workforce Services for unemployment tax topics.
|
Registration Details |
State Tax Commission |
Department of Workforce Services |
|
Phone |
(801) 297-2200 | (801) 526-9235 |
|
Online Registration |
Utah TAP Business Registration | |
|
Registration Form |
N/A | Form RFIB |
|
Registration Instructions |
Online registration is available. Account numbers will be issued within 24 hours via the online process. | Online and paper registration options are available. Account numbers will be issued during the online process or shortly thereafter via mail. |
|
Employer Self-Service Login |
TAP Login Page | Utahid Login Page |
Additional Utah Payroll Tax Resources
- State Tax Commission Home
- State Tax Commission Forms Library
- Department of Workforce Services Employer Handbook
This information is provided as a courtesy and may be updated at any time. It is not intended as legal or tax guidance. If you have questions or concerns, we encourage you to seek the advice of a qualified CPA, tax attorney, or advisor.
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