How to Manage Payroll in Utah?

Payroll is less complicated than in many other states. Utah has a flat income tax, which makes calculating the amounts to withhold from employee paychecks simple; nevertheless, there are certain special HR rules to follow. If you follow the steps below, learning how to perform Utah payroll, then calculating payroll tax may be a rather simple procedure.

How to Run Utah payroll?

Step 1: Register your company as an employer. To get a new Federal Employer Identification Number, new businesses may need to use the federal Electronic Federal Tax Payment System. 

Step 2: Register your company with the Utah Department of Commerce. The Utah State Tax Commission requires every firm that pays employees in Utah to register.

Step 3: Set up your Utah payroll system. If your company is brand new, you’ll have to start from the beginning when it comes to payroll. You’ll need to figure out when you’ll pay employees, how often you’ll pay them, and what payment methods you’ll accept.

Step 4: Be prepared to have staff needed to complete the necessary paperwork. During their on-boarding process, every employee at your company must fill out payroll documents. 

Step 5: Go over the timesheets and approve them. You’ll need to gather timesheets many days ahead of time to process payroll correctly. Reviewing your non-exempt worker’s timesheets allows you to talk with anyone who may have committed a mistake. 

Step 6: Work out the gross compensation and taxes for each employee. It is not advisable to calculate Utah payroll by hand. Tax computations may get complicated, and even little errors can result in expensive fines and penalties. 

Step 7: Reimburse employees for their salary, benefits, and taxes. Direct deposit is the most efficient way to pay your staff. However, you can also use cash or paper checks. 

Step 8: Make a backup of your payroll records. It’s a good idea to keep track of your company’s finances. Businesses in Utah are required to retain a record of all hours worked and earnings paid to each employee for at least three years, including their name, address, and date of birth. This is similar to the recordkeeping requirements of the Fair Labor Standards Act.

Step 9: Register with the federal and state governments to file payroll taxes. All Utah state taxes must be paid on time, usually quarterly, to the appropriate state agency, which you can do online at the Utah State Tax Commission website. You can pay your federal taxes online using the EFTPS either monthly or semi-weekly.

Step 10: Payroll reports throughout the entire year. payroll entails more than simply paying employees on a regular basis. 

Employers subject to the payroll statute are required to pay wages at least semi-monthly and no later than 10 days after the end of a pay period, or the day before if a payroll day falls on any weekends, or legal holiday. Employers can pay employees every month if they are hired on an annual wage basis under the payroll.

And to solve your Utah payroll problem and simplify it to an extent, we are here to assist you at Helpside. And the members of our payroll department have seen it all. They take care of your payroll so you can concentrate on your workers’ and company’s growth and success.

It is advised to keep in mind that the reporting and depositing of employment taxes are two separate things and you must submit taxes quarterly on Form 941 or yearly on Form 944, regardless of your payment schedule.