Payroll tax in New Hampshire: What employers need to know [2024]

New Hampshire is a small state of just over 1 million residents, known as the first state to declare independence from England. But it also ranks high in business friendliness. Although New Hampshire doesn't impose a state income tax, employers are still responsible for state unemployment insurance tax—along with FICA taxes like Social Security and Medicare.

Whether starting a small business or running a global company, employers with New Hampshire employees must understand the intricacies of its tax system, including tax rates, filing due dates, and who pays what. Read on for everything you need to know about the state's payroll tax requirements. 

New Hampshire payroll taxes

The New Hampshire Department of Revenue Administration (DRA) manages the reporting, collection, and enforcement of payroll taxes in the state. If you have any employees who work in New Hampshire, whether they are residents or non-residents of the Granite State, you must withhold employment taxes from their paychecks. It’s important to note that, unlike most states in the US, New Hampshire doesn’t have a personal income tax. 

The only state-level tax in New Hampshire is the state unemployment insurance (SUI) tax. On the federal level, employers are also responsible for withholding federal income tax and Medicare and Social Security contributions.

When you hire a new employee and add them to your payroll, file a new hire report via WebTax within 20 days of their hiring date. This ensures your employee is correctly registered for tax purposes for their first pay period. 

State unemployment insurance tax

Unemployment insurance is a federal-state program that provides financial assistance to individuals who have lost their jobs through no fault of their own and are actively seeking new employment. In New Hampshire, the US Department of Labor administers the program, and employers must contribute to state and federal unemployment taxes under the Federal Unemployment Tax Act (FUTA).

Employers' SUI tax rates are determined by an "experience rating" system that considers their payroll, tax payment history, and whether they filed their taxes on time. 

The new employers' tax rate is 1.7% on the first $14,000 of each employee's wages during their first year of operation. After the first year, businesses are assigned a new tax rate every September.

Understanding the intricacies of a state’s payroll taxes can be overwhelming. Rippling’s payroll compliance software simplifies New Hampshire's payroll tax laws. Rippling automatically handles your tax calculations and submissions on the federal and state levels, ensuring constant compliance. If you need even more support, Rippling’s PEO can register and maintain your state tax accounts, making the payroll tax process even more automated.

Payroll tax due dates in New Hampshire

New Hampshire employers must pay SUI taxes and submit tax and wage reports to the New Hampshire Employment Security (NHES) each quarter. The deadlines are as follows:

• First quarter (January-March): Due April 30
• Second quarter (April-June): Due July 31
• Third quarter (July-September): Due October 31
• Fourth quarter (October-December): Due January 31

If one of these dates falls on a weekend or a legally recognized holiday, you must complete your tax filing responsibilities by the following business day. 

Submitting tax and wage reports on time is essential to avoid penalties. You will be charged a late filing fee of 10% of the tax due or a minimum of $25.00 for each occurrence. There will also be an interest charge of 1% of the tax due each month or any part of the month that the tax remains unpaid.

How to submit payroll taxes in New Hampshire

Now that we’ve covered the types of payroll taxes in New Hampshire, it’s time to fulfill your tax filing obligations. Similar to other states, New Hampshire tax filing is done mainly online. Let's review.

Enroll in e-Services

If you're an employer looking for a quick, simple, and secure way to manage tax payments, paying online is a great option. The New Hampshire Unemployment Insurance System (NHUIS) provides a portal where you can pay state unemployment insurance taxes. You can choose your unique username and password during registration to access the NHUIS Benefit Payment System.

Employers can also use WEBTAX, which allows you to file quarterly tax and wage reports, make tax payments through electronic funds transfer, and view filing status and tax rates. The WebTax application can only be used by employers with no more than 1,000 employees.

If you have 1,001 or more employees, you must file the wage report via Magnetic Media or CD and mail the tax report to:

New Hampshire Employment Security
Attn: Cashier
PO Box 2058
Concord NH 03302-2058

Rippling’s full-service payroll software

If you're looking for a hassle-free way to file your taxes, Rippling’s payroll software is the perfect solution. With its powerful automation capabilities, Rippling handles all your compliance work. It ensures that your federal and New Hampshire state payroll taxes are filed accurately and on time with the relevant agencies, including the IRS.

FAQs about New Hampshire payroll taxes

Are there local tax laws in New Hampshire?

No, the state of New Hampshire doesn’t allow municipalities to collect local taxes.

Can your tax returns be audited in New Hampshire?

Yes, the New Hampshire Department of Revenue Administration reserves the right to audit the state tax returns of its residents to confirm they’re paying the correct tax amounts.

Disclaimer: Rippling and its affiliates do not provide tax, accounting, or legal advice. This material has been prepared for informational purposes only, and is not intended to provide or be relied on for tax, accounting, or legal advice. You should consult your own tax, accounting, and legal advisors before engaging in any related activities or transactions.