What payroll tax accounts should new businesses register for?

Payroll Tax Accounts for New Businesses in Utah

When starting a business in Utah, registering for the correct payroll tax accounts is essential for compliance and smooth operations. Below are the key payroll tax accounts new businesses should register for:

• Utah State Withholding Tax Account: All employers must register to withhold Utah state income tax from employee wages. This requires setting up an account with the Utah State Tax Commission to submit withholding taxes regularly.
• Unemployment Insurance (UI) Account: Employers must register with the Utah Department of Workforce Services for unemployment insurance. This account is used to report wages and pay unemployment taxes based on your payroll.
• Federal Employer Identification Number (EIN): Obtain an EIN from the IRS to report federal payroll taxes, including Social Security, Medicare, and federal income tax withholding. This is mandatory before hiring employees.
• Federal Payroll Tax Accounts: Using your EIN, you will need to deposit and report federal payroll taxes via the Electronic Federal Tax Payment System (EFTPS). This covers Social Security, Medicare, and federal income tax withholding.

Additional Operational Considerations: As of 2026, ensure your payroll system automates tax calculations and filings to reduce errors. Maintain accurate payroll records and stay updated on any changes in tax rates or reporting requirements from both Utah and federal agencies.