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Payroll New Hampshire, Unique Aspects of New Hampshire Payroll Law and Practice
New Hampshire has no State Income Tax. There for there is no State Agency to oversee withholding deposits and reports. There are no State W2's to file, no supplement wage withholding rates and no State W2's to file. Not all states allow salary reductions made under Section 125 cafeteria plans or 401(k) to be treated in the same manner as the IRS code allows. In New Hampshire cafeteria plans are taxable for unemployment insurance purposes. 401(k) plan deferrals are taxable unemployment purposes. In New Hampshire supplemental wages are required to be aggregated for the state income tax withholding calculation. The New Hampshire State Unemployment Insurance Agency is: Department of Employment Security Unemployment Compensation Bureau 32 S. Main St. Concord, NH 03301-4857 (603) 224-3311 www.nhworks.state.nh.us/ucpage.htm The State of New Hampshire taxable wage base for unemployment purposes is wages up to $8000.00. New Hampshire requires Magnetic media reporting of quarterly wage reporting if the employer has at least 250 employees that they are reporting that quarter. Unemployment records must be retained in New Hampshire for a minimum period of six years. This information generally includes: name; social security number; dates of hire, rehire and termination; wages by period; payroll pay periods and pay dates; date and circumstances of termination. The New Hampshire State Agency charged with enforcing the state wage and hour laws is: Department of Labor Inspection Division 95 Pleasant St. P.O. Box 2076 Concord, NH 03302-2076 (603) 271-3176 www.labor.state.nh.us/ The minimum wage in New Hampshire is $5.15 per hour. The general provision in New Hampshire concerning paying overtime in a non-FLSA covered employer is one and one half times regular rate after 40-hour week. New Hampshire State new hire reporting requirements are that every employer must report every new hire and rehire and contractors over $2,500. The employer must report the federally required elements of: Employee's name Employee's UI ID Employee's address Employee's social security number Employer's name Employers address Employer's Federal Employer Identification Number (EIN) This information must be reported within 20 days of the hiring or rehiring. The information can be sent as a W4 or equivalent by mail, fax or electronically. There is a $25.00 penalty for a late report in and $500 for conspiracy in New Hampshire. The New Hampshire new hire-reporting agency can be reached at 800-803-4485 or 603-229-4371 or on the web at www.nhworks.state.nh.us/newhire/newhire.htm New Hampshire does not allow compulsory direct deposit New Hampshire requires the following information on an employee's pay stub: statement of deductions New Hampshire requires that employee be paid no less often than weekly; biweekly, semimonthly, or monthly if commissioner agrees. New Hampshire requires that the lag time between the end of the pay period and the payment of wages to the employee not exceed eight days after workweek when wages are earned. New Hampshire payroll law requires that involuntarily terminated employees must be paid their final pay with in 72 hours; next regular payday if suspended due to labor dispute or temporarily laid off. Voluntarily terminated employees must be paid their final pay by the next regular payday or by mail if employee requests it; within 72 hours if 1 pay period's notice is given. Deceased employee's wages of $500 must be paid to the surviving spouse; adult children; parent; siblings; funeral expenses (in that order). Escheat laws in New Hampshire require that unclaimed wages be paid over to the state after one year. The employer is further required in New Hampshire to keep a record of the wages abandoned and turned over to the state for a period of 10 years. New Hampshire payroll law mandates no more than $2.77 may be used as a tip credit. In New Hampshire the payroll laws covering mandatory rest or meal breaks are only that must have 30 minutes rest after five hours of work. There is no provision in New Hampshire law concerning record retention of wage and hour records therefor it is probably wise to follow FLSA guidelines. The New Hampshire agency charged with enforcing Child Support Orders and laws is: Division of Child Support Services Department of Health and Human Services Health and Human Services Bldg. 129 Pleasant St. Concord, NH 03301 (603) 271-4427 www.dhhs.state.nh.us New Hampshire has the following provisions for child support deductions: When to start Withholding? 14 days after receipt of order. When to send Payment? Payday. When to send Termination Notice? Within 15 days of termination. Maximum Administrative Fee? $1 per payment. Withholding Limits? Federal Rules under CCPA.
Please note that this article is not updated for changes that can and will happen from time to time.
Charles J. Read, CPA has been in the payroll, accounting and tax business for 30 years, the last fifteen in private practice. Mr. Read is the author of ?How to Start a New Business.? To find professional payroll service at a budget price go to www.PayrollonaBudget.com a paperless payroll company. For a full service payroll bureau with CPA?s on staff visit www.CustomPayroll.com . See an excerpt of Mr. Read?s interviews from William Shatners ?Heartbeat of America? television show on the web sites linked above.
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