Wage and Premium Reports
Find information on filing wage reports, paying taxes, and registering for and managing your unemployment tax account. Take advantage of online services, tax tips and resources, or contact a tax office.
Timing Is Everything
The Tennessee Department of Labor and Workforce Development, Division of Employment Security Wage Report (LB- 0851) and Premium Report (LB-0456) and any premiums due are submitted to the Department quarterly and are due within one month after the end of each calendar quarter.
The Wage and Premium Reports and any premiums due become delinquent after:
Timely wage reporting and premium payments will prevent costly interest and penalty charges and will prevent assessments. The Wage and Premium Reports are mailed to employers each calendar quarter. Return the original to the Department with your premium payment.
Methods of Filing Wage Reports
- Paper form - Online reporting is the quickest and most convenient method of filing. However, employers with less than ten (10) workers have the option of filing a paper form. Wage and Premium Report forms can be obtained online or by contacting the Employer Services unit at (615) 741-2486 at least 7 business days before the quarterly due date.
- Electronically (via magnetic tape, CD or online) - this is mandatory with 10 or more employees (see Filing Wage Reports Electronically) Files are accepted in a 58 character text layout, and an abbreviated ICESA format.
Paying Unemployment Taxes
There are three ways to pay your premiums: 1. by check with your paper Premium Report (or with your payment coupon if filing via the Internet), 2. electronically by Automated Clearing House (ACH) Debit through the TNPAWS system or 3. Automated Clearing House (ACH) Credit (see Paying Premiums Electronically by Automated Clearing House (ACH) Credit).
Professional Employer Organizations (PEO)
A PEO must keep separate records and file separate Wage and Premium Reports for each client under the individual client account. Client accounts are assigned from the Client Account Application and have the same federal employer identification number (FEIN) as the PEO. If you do not receive your Wage and Premium Report forms contact your local Employer Accounts Office or call (615) 741-2486.
Reporting Total Monthly Employment
In the center of the Premium Report are blocks for reporting the number of workers who were on an employer's payroll during the first, second, and third months of the quarter. Employers must report all full-time and part-time employees who worked during or received pay for the payroll period that included the 12th of the month. Wages must be listed by social security number and employee name on the Wage Report. Wages are reported on the Wage Report and Premium Report in the calendar quarter in which the wages are paid, not the calendar quarter in which the wages are earned.
For example: If an employee worked for you the last week in June, but was not paid for that work until the first week in July, the wages paid for his work in the last week of June would be reported on your third quarter Wage Report and Premium Report, rather than your second quarter report.
The Tennessee Premium and Wage Reporting System (TNPAWS) allows active employers to complete the quarterly unemployment Premium and Wage Report via the Internet.
Register a User Name and Password and begin the filing process. Tax preparers can file reports for all clients using the same user name and password.
An access code is assigned to every eligible employer and is printed on your Premium Report (LB-0456) to the right of line 1 (Total Wages). Employers who have filed using TNPAWS in the past, will receive a letter providing the Access Code and rate in lieu of the Premium and Wage Reports. Additionally, access codes can be retrieved online by clicking on the Locate Your Access Code option after logging into TNPAWS. For security reasons, the access code will change every year and will only be provided on the Premium Report.
An employer may choose to file a “No Payroll” report, or a Premium and Wage Report. A “No Payroll” report can be filed quickly and without incurring postal charges. If a Premium and Wage Report is filed, the employer must enter the monthly employment figures, each employee’s Social Security Number, Name, and Gross Wages. Large employers may prefer the wage upload option to eliminate the need the key this information.
Regardless of the method used to input wages, the employee wage information entered into TNPAWS is retained from one quarter to the next, thus eliminating the task of entering the same data quarter after quarter. In subsequent quarters, the employer adds and/or deletes employees to prepare their current quarterly report. TNPAWS calculates total, excess, and taxable wages before determining the premium amount due. Employers may override the excess wage calculation, if they so choose, before submitting their report. A confirmation number is assigned to each report to notify the user that the information has been successfully transmitted. The employer is prompted to print a copy of the report for their records, and if premiums are due, the employer is prompted to print the payment coupon. Employers can pay their premiums by mailing a check with the payment coupon, by ACH Debit through TNPAWS or ACH Credit (see Paying Premiums Electronically by Automated Clearing House (ACH) Credit). If paying by check, the employer should enclose the payment coupon. The payment coupon ensures that the employer’s remittance will be applied to the submitted report. Failure to include the payment coupon could result in your account not being properly credited.
- Paying Premiums Electronically by Automated Clearing House (ACH) Credit
ACH Credit is a banking term that applies to the electronic transfer of funds in which you, the customer, initiate the transaction by instructing your bank to transfer funds from your bank account to the Unemployment Insurance bank account. Your banking institution may require you to install software on your computer to create a file that the bank can use to process the ACH-Credit transaction. There will be fees charged to you by your banking institution for costs associated with processing each ACH-Credit transaction.
If ACH-Credit is the payment method you choose, you must return a completed Electronic Funds Transfer Agreement. We use the CCD+ format for ACH funds transfer.
Employers must use the following addenda record format (record type 7) in processing your electronic funds transfer under the ACH credit method. Please note, failure to use this format may result in your payment being processed later than the due date. Payments should be submitted to your financial institution no later than 2 days prior to the due date. If late, appropriate interest will be charged.
State of Tennessee Addenda Record Format for Unemployment Insurance Premiums FIELD DESCRIPTION FIELD LENGTH ENTRY Identifies this payment as the standard UI tax payment format 3 TXP Field Separator 1 * Taxpayer Identification 8 Tennessee UI Account Number (8 digit) Field Separator 1 * Tax Type Code 5 99999 Field Separator 1 * Tax Period Ending Date 6 YYMMDD (Last Calendar Day of Quarter) Field Separator 1 * Amount Type 1 T Field Separator 1 * Amount 1 To 10 $$$$$$$$CC (Payment for this Employer) Field Separator 1 * Federal Identification 9 Federal EIN (9 digits) Field Separator 1 * Employer Name 25 Employer Name (up to 25 characters) Field Separator 1 * Field Separator 1 * Terminator 1 \ (Signifies end of record)
Account number 1234-567 8 Last calendar day of the quarter June 30, 1999 Amount paid for this account number $300.25 Federal Identification Number Employer Name: Tennessee's Best Company Addenda Record:
TXP*12345678*99999*990630*T*30025*123456789*Tennessee's Best Company**\
Account number 1234-567 8 Last calendar day of the quarter June 30, 1999 Amount paid for this account number $30,350,200.25 Federal Identification Number Employer Name: Tennessee's Best Company Addenda Record: TXP*12345678*99999*990630*T*3035020025*123456789*Tennessee's Best Company**\