How to run payroll in Utah (step by step)
By the FirstHire Team · Last updated Nov 2026
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Running payroll in Utah means two sets of rules: federal (IRS) and state (Utah State Tax Commission for income tax withholding, and Utah Department of Workforce Services for unemployment). Here is the order to do it in, with each step linked to the official source.
Step 1: Get an EIN from the IRS
Utah Pub 14 says employers must get a federal Employer Identification Number (EIN) from the IRS before registering in Utah. You can apply through the IRS online EIN application.
Step 2: Open a Utah withholding account
Apply online at Taxpayer Access Point (tap.utah.gov) using "Apply for a tax account(s) – TC-69." Pub 14 is blunt about why this matters: it is a class B misdemeanor to have Utah employees without a withholding license. Your Utah withholding account number is a 14-digit number ending in WTH, and it goes on every W-2.
Step 3: Register with Utah DWS for unemployment insurance
Utah DWS says you are subject to the Employment Security Act if you employ one or more people for some portion of a day during a calendar year (domestic, agricultural and some nonprofit employers have different thresholds). Register through the DWS employer site. Key 2026 numbers from DWS:
- Taxable wage base: $50,700 per employee.
- Overall rates range from 0.1% to 7.1%.
- New employers get a basic rate based on the two-year average benefit cost ratio of their major industry, but not less than 1% (before the reserve factor and social cost adjustments). New out-of-state contractors pay 7.1%.
Unemployment tax is paid by the employer only. It is not withheld from paychecks.
Step 4: Collect paperwork from your employee
Have the employee fill out federal Form W-4. Utah does not use its own withholding form: Pub 14 says you withhold Utah tax based on the federal W-4 and the Utah schedules. Then report the new hire to the Utah New Hire Registry within 20 days. See our Utah new hire reporting guide.
Step 5: Calculate each paycheck
For every pay period, figure:
- Federal income tax from the employee's W-4 and IRS tables.
- Social Security and Medicare (FICA). The IRS lists 6.2% Social Security and 1.45% Medicare for the employee, and the same amounts again for the employer.
- Utah income tax. The 2026 Utah schedules in Pub 14 multiply Utah taxable wages by 4.45%, then subtract a base allowance that shrinks as pay rises. Pub 14's own example: a single weekly employee earning $400 has $12 of Utah tax withheld.
Employer-only costs are FICA's matching share, federal unemployment (FUTA) and Utah unemployment. The IRS says FUTA is 6.0% on the first $7,000 per employee, but most employers get a 5.4% credit, bringing it to 0.6%. To see what all of this adds up to, try the true cost calculator.
Step 6: Deposit federal taxes
The IRS assigns you a monthly or semiweekly deposit schedule based on a lookback period. Monthly depositors deposit by the 15th of the following month. If you ever pile up $100,000 or more in a day, it's due the next business day. FUTA is deposited quarterly once it reaches more than $500; smaller amounts carry over to the next quarter.
Step 7: Pay and file Utah withholding
Utah has its own schedule, separate from the IRS:
| If you withhold | You pay | You file TC-941E |
|---|---|---|
| Less than $1,000 a month | Quarterly | Apr 30, Jul 31, Oct 31, Jan 31 |
| $1,000 or more a month | Monthly, by the last day of the next month | Quarterly, same dates |
All Utah returns must be filed electronically. The 4th-quarter return doubles as the annual reconciliation, due January 31 with your W-2s. Late payments cost the greater of $20 or 2% to 10% of the tax, depending on how late. Every date is on our Utah payroll deadline calendar.
Step 8: File federal returns and Utah unemployment reports
- Form 941 each quarter (or Form 944 yearly if the IRS approves it for very small employers).
- Form 940 yearly for FUTA.
- W-2s to employees and the government by January 31.
- Utah DWS quarterly wage report and contributions, filed online by the last day of the month after each quarter. DWS charges a late penalty starting at 5% of the contribution due, at least $25.
Step 9: Decide who runs it
You can do every step yourself, but it is a lot of dates. Our plain-English payroll for small business guide compares DIY, software and an accountant.
Want this as a printable checklist? The $9 First Hire Kit has a Utah first-employee checklist, a payroll deadline calendar and a cost calculator spreadsheet. Everything in this guide is free either way.
FAQ
Does Utah follow the IRS semiweekly deposit schedule?
No. Utah Pub 14 says Utah only requires monthly, quarterly or annual payments. The IRS semiweekly and $100,000 next-day rules do not apply to Utah withholding.
What is Utah's withholding rate?
The 2026 Utah withholding schedules in Pub 14 (Rev. 04/26) start by multiplying Utah taxable wages by 4.45%, then subtract a base allowance that phases out. Use the schedule or table for your pay period.
Do I file a Utah return if I paid no wages?
Yes. Pub 14 says you must file a return for each period, even with zero withholding, or you may get an estimated tax assessment.
What is the 2026 Utah unemployment wage base?
$50,700 per employee, according to Utah DWS. Wages above that are reported but not taxed.
Can payroll software do all of this?
Software can calculate, file and pay for you, but Pub 14 notes the employer is still responsible if returns and payments are late.
Sources: Utah Pub 14, Utah withholding, Utah DWS tax rates, Utah DWS employer FAQ, IRS employment tax due dates, IRS Topic 751, IRS Topic 759, IRS EIN. Checked Nov 3, 2026. Not tax or legal advice.