How to Do Payroll in Utah: Step-by-Step Guide

Last reviewed: July 2026

Utah runs a flat income tax and, unusually, doesn't ask employees to fill out a separate state withholding form. That simplifies one step but doesn't remove any of the others: you still need a federal EIN, a state withholding account, an SUI account, and a pay schedule that follows Utah's rules. Here's the process in order.

1. Get a Federal EIN

Every employer needs an Employer Identification Number from the IRS. Apply free at irs.gov/ein, and you'll have the number within minutes if you apply online. You'll use it for every registration and filing that follows.

2. Register for State Withholding

Register with the Utah State Tax Commission through the Taxpayer Access Point (TAP) to open a withholding account. Utah's income tax is a flat 4.45% for 2026 (reduced from 4.5% by legislation signed in March 2026, with updated withholding tables effective for pay periods beginning June 1, 2026). There's no Utah-specific withholding certificate for employees to fill out: you calculate withholding directly from each employee's federal Form W-4 using the tables in Utah Publication 14.

3. Set Up Your SUI Account

Register with the Utah Department of Workforce Services for an unemployment insurance account as soon as you have an employee. New employers typically pay around 1.1% on the first $50,700 of each employee's wages for 2026, though your exact new-employer rate depends on your industry classification and the department's reserve and social cost factors for the year.

4. Pay Frequency and Workers' Comp

Utah's Payment of Wages Act requires wages at regular intervals no longer than semimonthly, with each pay period's wages due within 10 days after that period ends. If a scheduled payday lands on a weekend or holiday, pay wages the preceding business day instead. Utah has no state minimum wage law of its own, so employers follow the federal rate of $7.25 per hour.

Workers' compensation insurance is mandatory in Utah from the first employee hired, with no headcount threshold to hide behind. A handful of narrow exemptions exist for sole proprietors, partners, and certain LLC members with no employees, but most businesses need coverage the day they make their first hire. The Utah Labor Commission oversees compliance, and penalties for going uninsured start at $1,000 or three times the unpaid premium, whichever is greater.

5. Report New Hires

Report every new or rehired employee to the Utah New Hire Registry within 20 days of their start date, through the Department of Workforce Services employer portal. You'll need the employee's name, address, Social Security number, start date, and your EIN. Most payroll software files this automatically.

6. Run Payroll and Make Deposits

Each pay period, calculate gross wages, withhold federal income tax from the employee's W-4, withhold Utah income tax using Publication 14's tables, and withhold FICA (Social Security and Medicare), matching the employee's FICA share as the employer. Deposit federal withholding and FICA on your IRS schedule, and remit Utah withholding on the schedule TAP assigns based on your total liability. File Form 941 each quarter for the federal side.

Use our paycheck calculator to check gross-to-net math for Utah employees, and send new hires to our W-4 helper since that federal form does double duty for state withholding here.

7. File Year-End W-2s

By January 31, issue Form W-2 to every employee, reporting both federal and Utah wages and withholding, and file copies with the Social Security Administration. File your fourth-quarter Form 941 and annual Form 940 by the same date, and reconcile your Utah withholding filings for the year through TAP. Keep your SUI wage reports current with the Department of Workforce Services on their normal quarterly schedule.

Payroll Software That Fits a Growing Utah Business

Utah's rules are approachable once you've registered everything once, but staying current on rate changes, deposit schedules, and Publication 14 updates takes ongoing attention. Gusto automatically calculates federal and Utah withholding, handles SUI filings with the Department of Workforce Services, and issues W-2s at year-end, which covers most of what a small Utah business needs without hiring a dedicated payroll staffer.

Frequently Asked Questions

What withholding form do Utah employees fill out?

Utah has no separate state withholding certificate. Employees fill out only the federal Form W-4, and employers calculate Utah withholding from that same form using the tables in Utah Publication 14, the state's Withholding Tax Guide.

What is the Utah state income tax rate for 2026?

Utah uses a flat state income tax rate of 4.45% for 2026, reduced from 4.5% by legislation signed in March 2026. The Utah State Tax Commission's updated withholding tables took effect for payroll periods beginning June 1, 2026.

How often must Utah employers pay employees?

Utah's Payment of Wages Act requires employers to pay wages at regular intervals no longer than semimonthly, with wages for each pay period due within 10 days after that period ends. If a payday falls on a weekend or holiday, wages are due the preceding business day.

What is the SUI wage base and new employer rate in Utah for 2026?

For 2026, Utah's SUI taxable wage base is $50,700 per employee. The standard new employer rate is 1.1% for most non-construction industries, though the Department of Workforce Services calculates each employer's actual new-employer rate using industry experience and reserve factors.