PEO services in Tennessee
A PEO helps Tennessee employers manage multi-state payroll, and benefits while staying compliant with Tennessee's rules. As of 2026, Tennessee's minimum wage is $7.25/hr and the state unemployment (SUTA) taxable wage base is $7,000. ONYX benchmarks the top PEOs against your current setup so Tennessee companies stop overpaying by 15–40%.
Tennessee employer snapshot (2026)
The structural facts that shape payroll and benefits cost in Tennessee. Verify current figures with the state agency before relying on any single number.
No state minimum wage law; follows federal $7.25 (FLSA).
Standard employer base; some states assign a higher base to max-rated employers.
No state income tax on wages.
Coverage available through private carriers and PEO programs.
The short answer
No state income tax on wages; at-will, employer-friendly, no state minimum wage. SUTA wage base ($7,000) is trust-fund-balance dependent.
Major metros we serve in Tennessee: Nashville, Memphis, Knoxville, Chattanooga.
Common Tennessee PEO questions
Can a PEO operate in Tennessee?
Yes. PEOs operate in Tennessee and handle Tennessee payroll tax, the $7,000 SUTA wage base, benefits, and workers' comp through competitive carriers. ONYX benchmarks the PEOs that operate in Tennessee against your current setup.
What is the 2026 minimum wage in Tennessee?
Tennessee's minimum wage is $7.25/hr as of 2026. No state minimum wage law; follows federal $7.25 (FLSA).
How much can a Tennessee company save with a PEO?
Most companies ONYX works with save 15–40% of total people cost by moving to a better-fit PEO. We model the exact savings for your Tennessee census for free in 3–5 business days.
PEO services in other states
Compare PEOs for your Tennessee team.
Get a free, no-pressure PEO audit. We'll compare your current setup against the top PEOs and show you the savings in 3–5 business days.