Tennessee Unfiled Payroll Tax Returns Checklist
Introduction
Unfiled unemployment insurance returns in Tennessee occur when employers fail to file required quarterly wage and premium reports by the deadline, even if unemployment insurance premiums were paid on time. This issue matters because the Tennessee Department of Labor and Workforce Development tracks filing compliance separately from payment compliance, meaning a business can pay unemployment insurance premiums on time but still face penalties for failing to file the wage report.
Ignoring unfiled returns triggers escalating notices, additional penalties, and potential enforcement action. Understanding what unfiled unemployment insurance returns mean and what steps to take next helps clarify your position with the state.
What This Issue Means
An unfiled unemployment insurance return is a required state tax filing that was not submitted to the Tennessee Department of Labor and Workforce Development by the due date. This is distinct from owing unpaid unemployment insurance premiums, as it explicitly means that the paperwork documenting your wages, covered employment, and unemployment tax liability was not filed on time.
Why the State Issued This or Requires This
Tennessee requires employers to file quarterly wage and premium reports to verify that unemployment insurance premiums were calculated correctly and remitted to the state. The state uses these filings to track individual employee wages, reconcile premium payments against the taxable wage base, and ensure compliance with unemployment insurance laws.
Proper reporting enables the state to maintain accurate experience rating records and to calculate future contribution rates based on account history.
What Happens If This Is Ignored
If unfiled returns are not addressed, the Tennessee Department of Labor and Workforce
Development typically issues additional notices and may assess penalties for non-filing.
Continued non-compliance can lead to enforcement action, including liens, levies, or other collection activities.
What This Does NOT Mean
An unfiled return does not automatically mean unemployment insurance premiums were not paid correctly. You may have remitted unemployment insurance premiums on time, but simply failed to submit Form LB-0851 or Form LB-0456 itself.
Checklist: What to Do After Identifying an Unfiled
Unemployment Insurance Return
Step 1: Locate Your Filing Records
Gather all payroll records, premium payment confirmations, and unemployment insurance documentation for the period in question.
1. Retrieve payroll registers or payroll service records showing gross wages, covered employment, and employee information.
2. Collect all proof of unemployment insurance premium payments made to the state, including payment receipts or confirmation numbers.
3. Identify the specific tax quarters that were not filed.
4. Note the original filing deadline for each period, which falls on the last day of the month following the end of each quarter.
- Call the Tennessee Department of Labor and Workforce Development or use the contact
- Have your Employer Account Number ready when you call.
- Ask which specific quarters show as unfiled in the state’s system.
- Request information about any penalties assessed related to non-filing and confirm the
- Document the date, time, and representative’s name if you speak with someone.
Step 2: Contact the Tennessee Department of Labor and Workforce
Development
Reach out to the state agency to confirm which returns are unfiled and what information they have on record. method listed on official state notices. current wage base that applies to your unfiled periods.
Step 3: Determine Which Returns Need to Be Filed
Confirm the exact tax periods and return forms required based on the state’s records. Identify whether returns are for quarterly wage reports, quarterly premium reports, or both, then obtain blank Form LB-0851 and Form LB-0456 from the Tennessee Department of Labor and
Workforce Development website.
- Calculate total wages paid to employees for each quarter, ensuring you identify wages
- Calculate total unemployment insurance premiums due based on the applicable wage
- Organize data by pay period and quarter as required, noting which employees reached
- Verify that the numbers match your payroll records and premium payment confirmations,
Step 4: Gather and Organize Payroll Data
Compile the payroll information needed to complete the unfiled returns accurately. up to the taxable wage base for unemployment insurance purposes. base for each employee during the reporting period. the wage base limit during the quarter. and confirm that you applied the correct taxable wage base when calculating premiums owed.
Step 5: Complete the Unfiled Return Forms
Prepare the required state unemployment insurance return forms using your payroll records.
Use the official Tennessee Department of Labor and Workforce Development return forms for the applicable quarters, entering all required information, including employee counts, wage totals up to the wage base, and unemployment insurance premiums withheld.
Step 6: Prepare a Cover Letter or Statement
Include a brief explanation when submitting the unfiled returns. Write a short letter identifying yourself as the filer with your business name, Employer Account Number, and contact information, then state the quarters covered by the unfiled returns being submitted.
Step 7: Submit the Completed Returns
Send the unfiled returns to the Tennessee Department of Labor and Workforce Development using the method specified by the state. Check the state website or your notice for the correct mailing address or electronic filing instructions, and send returns via certified mail or use a delivery method that provides proof of receipt.
- State enforcement notices and responses
- Sales tax audits, assessments, and collections
- Payroll & trust fund tax enforcement issues
- Penalty and interest reduction options
- Payment plans and state tax relief eligibility
- Representation before state tax agencies
Step 8: Monitor for Follow-Up Communication
Watch for responses from the Tennessee Department of Labor and Workforce Development.
Allow four to six weeks for initial processing after submission, watch for additional notices regarding the filed returns or any penalties, and contact the state if you do not receive acknowledgment within a reasonable timeframe or if you receive updated experience rating information reflecting the newly filed returns.
Common Mistakes to Avoid
Employers often miss resubmission deadlines included in notices for filing unfiled returns, which can result in additional penalties or enforcement action. Submitting incomplete information creates problems because unfiled returns must include all required fields and supporting documentation, or the state may return them.
Ignoring follow-up notices from the state leads to complications, as each notice requires attention while the state processes unfiled returns. Sending documents without tracking or proof means you cannot confirm they were received. Employers sometimes miscalculate wages subject to the taxable wage base by reporting total wages rather than limiting them to the taxable wage base, creating discrepancies in premium calculations and delaying processing.
Closing
Unfiled unemployment insurance returns represent a compliance gap that requires attention but can be corrected by filing the necessary forms and documentation. Understanding what unfiled
returns mean, gathering your payroll records, and submitting them to the Tennessee
Department of Labor and Workforce Development are straightforward steps that resolve the non-filing issue. Take time to organize your documents, submit complete information, and keep documentation of your submission.
Facing State Tax Enforcement Action?
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