Utah Payroll, Unique Aspects of Utah Payroll Law and Practice
The Utah State Agency that oversees the collection and reporting of state income taxes deducted from payroll checks is:
State Tax Commission
Withholding tax development
210 North 1950 West
Salt Lake City, UT 84134
(801) 297-2200
(800) 662-4335 (in-state)
http://tax.utah.gov/
Utah allows you to use the federal W4 form to calculate state income tax withholding.
Not all states allow salary reductions made under Section 125 or 401(k) cafeteria plans to be treated in the same manner as the IRS code allows. In Utah, cafeteria plans are not taxable for income tax purposes; not taxable for unemployment insurance purposes. 401(k) plan deferrals are not subject to income taxes; taxable for unemployment purposes.
In Utah, supplemental wages are required to be added to state income tax with holding calculation.
You must file your Utah W-2 forms magnetically if you are required to file your federal W-2 forms magnetically.
The Utah State Unemployment Insurance Agency is:
Department of Employment Services
140 E. 300 South
PO Box 45288
Salt Lake City, UT 84145
(801) 536-7400
[http://jobs.utah.gov/employer/emservices.asp]
The Utah state wage base for unemployment purposes is wages up to $22,700.00.
Utah requires magnetic reporting of quarterly wage reports if the employer has at least 250 employees who are reporting that quarter.
Unemployment records must be kept in Utah for a minimum of three years. This information generally includes: name; Social Security number; hire, retirement and termination dates; wages per period; payroll periods and payment dates; termination date and circumstances.
The Utah State Agency charged with enforcing state wage and hour laws is:
Labor Commission
Anti-Discrimination and Labor Division
PO Box 146630
Salt Lake City, UT 84114-6630
(801) 530-6801
[http://www.labor.state.ut.us/]
The minimum wage in Utah is $5.15 per hour.
There is no general provision in Utah State Law that covers overtime pay at an employer not covered by the FLSA.
The state of Utah’s new hire reporting requirements are that every employer must report every new hire and rehire. The employer must report the elements required by the federal government of:
- Name of the employee
- employee address
- Employee Social Security Number
- Name of the employee
- Employee Address
- Employer Federal Employer Identification Number (EIN)
This information must be reported within 20 days of hire or rehire.
Information can be submitted as W4 or equivalent by mail, fax or magnetic media.
There is a fine of $25.00 for a late report and $500 for conspiracy in Utah.
You can contact the Utah New Hire Reporting Agency by calling 801-526-4361 or on the web at http://jobs.utah.gov/newhire/
Utah does not allow mandatory direct deposit except for large employers with 2/3 of employees already on direct deposit.
Utah requires the following information on an employee’s pay stub:
Utah requires that the employee be paid no less frequently than twice a month; monthly if the employee is hired for annual salary.
Utah requires that the time lapse between the end of the pay period and payment of wages to the employee not exceed ten days; wages paid monthly, on the 7th of the next month.
Utah payroll law requires involuntarily terminated employees to receive their final pay within 24 hours and voluntarily terminated employees to receive their final pay on the next regular payday.
The deceased employee’s wages are due when ordinarily due to the successor after an affidavit stating that the estate does not exceed $25,000 at least 30 days after death, no executor petition is pending, and you are entitled to payment.
Reversal laws in Utah require unclaimed wages to be paid to the state after one year.
In Utah, the employer is also required to keep a record of wages abandoned and turned over to the state for a period of 5 years.
Utah payroll law requires that no more than $3.02 may be used as a tip credit.
In Utah, the payroll laws that cover mandatory breaks or meal breaks are only that all employees must have a 30-minute meal period after 5 hours; 10 minute break every 4 hours.
Utah statute requires that wage and hour records be maintained for a period of not less than three years. These records will normally consist of at least the information required under the FLSA.
The Utah agency responsible for enforcing child support laws and orders is:
Office of Recovery Services
Department of Human Services
515 E. 100 S.
PO Box 45011
Salt Lake City, UT 84145-0011
(801) 536-8500
http://www.ors.state.ut.us/
Utah has the following provisions for child support deductions:
- When to start withholding? First payment period after 5 business days from service.
- When to send the payment? Within 7 days of payment day.
- When to send a termination notice? Within 5 days of termination.
- Maximum administrative fee? $25 one-time fee
- Retention limits? Federal Rules under CCPA.
Please note that this article is not updated for changes that may and will occur from time to time.