Tennessee Compliance and Regulatory Resources

Business owners spend about 74 hours each year maintaining regulatory compliance1. Paychex strives to simplify HR compliance by giving businesses resources to navigate the complex landscape of state compliance. Learn more about regulations your business in Tennessee may need to comply with including minimum wage, workers’ compensation, and more.

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State Tax Rates and Limits

State Unemployment Taxable Wage Base Limit
$7,000

State Unemployment Rate Range for Employers
0.01% to 10.0%

State Unemployment New Employer Rate
2.7% to 5.0% (Rates vary by industry)

State Hourly Minimum Wage
None adopted (federal standard of $7.25 applies)

State Minimum Wage for Tipped Employees
None adopted (federal standard of $2.13 applies)

E-Verify

Private employers with 35 or more employees must enroll in and use E-Verify.

  • Penalties: Could include per employee fines for not enrolling in E-Verify that escalate for repeat offenders for failure to verify.

Note to employers: Employers have requirements once enrolled in E-Verify, including but not limited to completion of Form I-9 and its verification (the Three Day Rule). Noncompliance could lead to significant civil fines. Some local municipalities also have E-Verify requirements.

Workplace Safety

TOSHA
Tennessee has an OSHA-approved state plan covering most private-sector workers and all state and local government workers. Federal OSHA covers most workers not covered under the state plan.

Workers' Compensation

  • Coverage is mandatory for employers with five (5) or more employees
  • LLC members and corporate officers are included in employee count provided they meet the definition of employee
  • Exception: All Contractors are required to have coverage regardless of the number of employees

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The information provided might be applicable only for certain businesses. For example, a state’s minimum wage is generally determined by legislative statute and in some states employer size, geography, industry, or other factors could impact coverage. Please refer to the website(s) provided for additional information.
*Supplemental wages are funds paid to employees in addition to regular wages. In states with individual state tax, the tax withholding rates are different than rates for regular wages. Some examples of supplemental wages include bonuses, commissions, prizes and awards, overtime pay, and retro pay increases, to name a few.

[1] 2024 Priorities for Business Leaders, Paychex