Collected by both the federal and state governments, Tennessee's portion is a credit against part of the federal taxes owed.
Tax is paid by employers only.
Cannot be deducted from employee's wages. After 3 full calendar years, the employer is evaluated and a tax is assigned. Employer's history of taxes and employees laid off determines the tax. Reporting New employers must file an initial report to determine their taxpaying status and receive their Tennessee account number. Wage reports and contribution reports must be filed quarterly.