What Every NH Employer Needs to Know About Payroll Taxes

New Hampshire is one of only nine U.S. states without a state income tax on wages, which can make payroll appear deceptively simple. In reality, employers still face several payroll-related obligations that require careful tracking and timely filing. 

From state unemployment insurance to federal taxes and workers’ compensation, accuracy and documentation are key to staying compliant. Employers who understand how these elements fit together can avoid costly errors and create a smoother payroll experience for their teams.

No State Income Tax

Because New Hampshire does not levy a state income tax on earned wages, employers don’t need to withhold or remit state income tax from employee paychecks. However, that does not mean payroll runs itself. Businesses must still:

• Withhold federal income tax based on each employee’s Form W-4.
• Deduct and match Social Security and Medicare (FICA) contributions.
• Pay Federal Unemployment Tax (FUTA) on qualifying wages.

The absence of a state tax means employees keep a bit more of their pay, but it also puts greater importance on accurate federal setup within each payroll run. Employers should confirm that their payroll software or provider applies current IRS tables and deposit schedules.

For additional context, see our overview of New Hampshire payroll laws.

Unemployment Insurance Tax

The New Hampshire Unemployment Compensation Fund, governed by RSA 282-A, is the state’s primary payroll-related tax. Employers—not employees—finance this fund through quarterly contributions.

New businesses begin with a standard rate assigned by the New Hampshire Employment Security (NHES) office. After several quarters of reporting, that rate adjusts according to the employer’s claims experience. For 2025, the taxable wage base remains $14,000 per employee, with contribution rates generally between 0.1 percent and 7.5 percent.

Quarterly wage reports and payments must be submitted through the NHES Web Tax Portal. Each filing lists total wages for every covered employee. Missing or late filings can increase future rates, so most employers use automated systems to generate and file these reports directly from payroll data.

Workers’ Compensation and Payroll Impact

All New Hampshire employers are required under RSA 281-A to carry Workers’ Compensation insurance. Although not a tax, the premium is directly tied to payroll and job classification. Insurers use payroll totals, risk categories, and claims history to calculate rates.

Accurate time and pay records protect both employer and employee interests. Overstating payroll can inflate premiums, while misclassifying a worker’s job duties can trigger penalties or coverage disputes. Employers can review detailed requirements through the New Hampshire Department of Labor Workers’ Compensation Division.

Federal Payroll Obligations

Even without state income tax, employers must meet several federal payroll tax responsibilities.

Federal Income Tax Withholding

Employers are required to withhold federal income tax from each paycheck according to the employee’s Form W-4 and the IRS withholding tables. Deposits are due either monthly or semi-weekly, depending on total liability. All payments and forms (such as 941s and W-2s) must be filed accurately and on time.

FICA (Social Security and Medicare)

Under the Federal Insurance Contributions Act, both employer and employee contribute 6.2 percent for Social Security and 1.45 percent for Medicare. Employers must also withhold the additional 0.9 percent Medicare surtax from employees earning more than $200,000 annually.

Together, these deductions form the backbone of employees’ future retirement and healthcare benefits, so precision in calculation is critical.

Federal Unemployment Tax (FUTA)

FUTA is paid solely by employers at 6 percent on the first $7,000 of each employee’s wages. Businesses that pay state unemployment taxes on time receive a credit of up to 5.4 percent, effectively reducing the federal rate to 0.6 percent. Timely coordination between federal and state filings ensures you qualify for the maximum credit.

For comprehensive details, review the IRS FUTA guidelines.

Avoiding Errors in NH Payroll Tax Processing

Most payroll-tax issues stem from misclassification, missed filings, or inaccurate recordkeeping. Employers should confirm that every worker meets the correct legal definition of “employee” under the
NH DOL Criteria to Establish an Employee or Independent Contractor. Misclassifying contractors can lead to back taxes and penalties.

Common pitfalls include:

• Neglecting quarterly unemployment reports.
• Forgetting to remit FUTA after claiming the state credit.
• Failing to maintain wage and hour documentation for at least three years.
• Using outdated IRS deposit schedules or rate tables.

Cross-checking totals each quarter against payroll registers helps catch discrepancies early. Partnering with a payroll provider that automatically updates rates and filing calendars can further reduce errors.

Additional guidance on employer responsibilities is available in our New Hampshire Payroll Laws article, which summarizes recent state-level changes and poster requirements.

How Trivantus Helps Employers Stay Compliant

Managing payroll taxes in New Hampshire demands precision across federal and state systems. Trivantus provides integrated payroll and HR technology that automates calculations, deposits, and quarterly filings—reducing administrative time and risk.

Our clients benefit from:

• Built-in compliance checks for wage and tax limits.
• Automatic reporting for NH unemployment and federal tax forms.
• Secure digital access to payroll records and year-end documents.

Trivantus pairs advanced technology with personalized support, enabling businesses of all sizes to confidently meet their obligations and focus on what matters most: their people.

Stay Compliant with NH Payroll Taxes

Payroll tax compliance in New Hampshire may be simpler than in other states, but accuracy still matters. From unemployment insurance to federal filings, each payment contributes to your business’s credibility and financial stability.

Stay current, stay compliant, and simplify your process with Trivantus.Talk to a Payroll Expert Today