Struggling to keep up with payroll and HR in Tennessee? From local ordinances to statewide labor laws, we’ll help you save time and focus on growing your business.
Payroll services in Tennessee
How Paylocity helps Tennessee employers
Payroll that gets it done
- Seamless automation: Eliminate repetitive tasks with automated workflows that boost accuracy and save time.
- Smart safeguards: Built-in audits and integrations flag issues before they become errors.
- Transparent calculations: Easily manage overtime, bonuses, and local tax changes, even across overlapping jurisdictions.
Your extra HR team member
- Automated workflows: Use ready-made templates for common tasks or build custom processes that fit your business.
- One employee record: A single source of truth for employee data keeps everything organized and compliant.
- Effortless Time & Labor: Schedule quickly, track clock-ins and meal breaks, and standardize time-off requests.
Compliance made simple
- Compliance dashboard: Get a clear view of requirements with updated forms and expert HR support.
- Built-in data access: Quickly find work authorizations, EEO/FLSA data, pay records, certifications, and industry updates.
- Always up-to-date forms: Access the latest state and federal forms right from the platform.
Challenges facing employers in Tennessee
Tennessee maintains a complex compliance landscape that requires a careful balance between federal standards and state mandates.
As an employer, you must grapple with:
- Stricter employment regulations ranging from pay equity to final paycheck mandates.
- State laws that limit non-compete agreements and require E-Verify use for employers with 35 or more employees.
- Additional safety and health requirements under the Tennessee State OSHA plan.
Tennessee payroll fast facts
Minimum wage
$7.25*
State income tax rate
None
Right to work laws
Yes
State unemployment tax rate
- 2.70% (new employers)
- 0.01% - 10.00% (experienced employers)
*This state has no minimum wage law and defers to federal rates.
Last updated: January 22, 2026
Tennessee tax and compliance resources
FAQs about paying employees in Tennessee
Does Tennessee have a state income tax?
No, Tennessee does not impose or collect state income tax.
Is Tennessee a right to work state?
Yes, Tennessee is a right to work state under T.C.A. § 50-1-201 et seq.
What are the Tennessee final pay laws?
Tennessee employees who voluntarily resign or are involuntarily terminated from a job must receive their final paycheck by the next regular payday or within 21 days after giving notice or being terminated, whichever is later.
Are there Tennessee work break laws?
In Tennessee, employers must provide each employee with a 30-minute unpaid meal or rest period if the employee is scheduled to work six consecutive hours, except in workplace environments that (by their nature of business) already provide ample opportunity to take a rest or appropriate break.
More than just payroll
Why employers in Tennessee choose Paylocity
Healthcare leader cures its HR headaches and boosts retention
This University of Tennessee affiliate found a way to provide its staff with a modern and seamless HR experience.
