Wage and Premium Reports
Timing Is Everything
The Tennessee Department of Labor and Workforce Development, Division of Employment Security Wage Report and Premium Report and 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. Approximately six weeks before each due date, employers will be mailed a letter reminding them of their filing obligation and the Premium Rate in effect for the quarter.
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.
Reporting Total Monthly Employment
The Premium Report contains fields 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.
Reporting Employee Wages
Wages must be listed by social security number and employee name on the Wage Report. Wages are reported 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 that 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.
Filing Wage and Premium Reports on the Internet (TNPAWS)
The Tennessee Premium and Wage Reporting System (TNPAWS) allows active employers to complete the quarterly unemployment Premium and Wage Report via the Internet. TNPAWS is designed specifically for small employers.
Register a User Name and Password and begin the filing process. Tax preparers can file reports for all clients using the same user username and password.
An access code is assigned to every eligible employer and is printed on the quarterly letter. Additionally, access codes can be retrieved online by clicking on the Locate Your Access Code option after logging into TNPAWS. 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. Employers can pay their premiums online by ACH Debit or ACH Credit.
Third Party Upload (TPU) is reporting method to transmit multiple returns in a single ICESA formatted file. The ICESA file must be in text format and not exceed 300MB. TPU will scan the incoming file for proper file type and formatting. If any errors are detected, a message will be displayed explaining the error. Once the file passes all edits, it will be accepted and a confirmation message will be displayed and emailed to the registered user. TPU receives the corresponding payment from ACH Credit files.
An example of the Interstate Conference of Employment Security Agencies (ICESA) file layout is available here: "ICESA File Format"
Paying Unemployment Taxes
The payment of premiums may be made by Automated Clearing House (ACH) Debit through the TNPAWS system or by Automated Clearing House (ACH) Credit (see 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.
Employers must use the following Addenda Record Format (record type 7) in processing your electronic funds transfer under the ACH Credit method. Failing 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 the payment is 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|
|Taxpayer Identification||8||Tennessee UI Account Number (8 digit)|
|Tax Type Code||5||99999|
|Tax Period Ending Date||6||YYMMDD (Last Calendar Day of Quarter)|
|Amount||1 To 10||$$$$$$$$CC (Payment for this Employer)|
|Federal Identification||9||Federal EIN (9 digits)|
|Employer Name||25||Employer Name (up to 25 characters)|
|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**\\