Do I need a permit to hire employees?

Hiring Employees in Utah: Licensing and Permit Requirements

When hiring employees in Utah, you do not need a specific permit solely for the act of hiring. However, there are important registration and compliance steps to complete before bringing employees on board.

Key Operational Steps Before Hiring Employees

• Register Your Business with the Utah State Tax Commission: You must register for state employer taxes, including withholding tax and unemployment insurance tax.
• Obtain an Employer Identification Number (EIN): This federal number from the IRS is required for payroll reporting and tax purposes.
• Register with the Utah Department of Workforce Services: This enables you to manage unemployment insurance and comply with state labor regulations.
• Comply with Utah Labor Laws: Ensure adherence to wage, hour, and workplace safety regulations.
• Set Up Payroll Systems: Implement payroll processing, tax withholding, and recordkeeping to stay compliant with federal and state requirements.

Additional Compliance and Operational Considerations

• Workers' Compensation Insurance: Most Utah employers must carry workers' compensation insurance before employees start work.
• Employee Classification: Correctly classify workers as employees or independent contractors to avoid compliance issues.
• Recordkeeping: Maintain accurate employee records, including hiring documents, tax forms, and payroll records.
• Reporting Requirements: Submit new hire reports to the Utah New Hire Registry within 20 days of hiring.

As of 2026, these steps ensure operational compliance when hiring employees in Utah. While no specific hiring permit is required, completing these registrations and maintaining compliance with tax and labor regulations is essential for smooth business operations.