New Hampshire Payroll Laws and Processing: What Companies Should Know

Processing payroll in New Hampshire (NH) is a lengthy process. Before paying an employee in the state, you must consider several areas of New Hampshire Payroll Laws, including the minimum wage, hours worked, overtime, allowed deductions, payroll taxes, and more.

Here is everything you need to know to process payroll in New Hampshire.

New Hampshire Paycheck Laws and NH Payroll Processing for 2024

Understanding federal and state payroll laws is essential to avoid disputes with employees or the government.

Not all businesses have the resources to understand the legislation or comply with it, and as such, many turn to a New Hampshire payroll service for assistance. Improved compliance is one of the many benefits of outsourcing payroll in New Hampshire. 

Here is what New Hampshire businesses should understand in order to process payroll in the state. It is recommended that employers review and ensure that the appropriate topics are included in an employee handbook too.

Minimum Wage for 2024

New Hampshire workers are entitled to receive an hourly Minimum Wage rate according to New Hampshire Labor Laws and the Fair Labor Standards Act (FLSA).

As of 2009, New Hampshire Minimum wage has been $7.25 per hour (federal minimum wage), with some exceptions.

Exceptions to Minimum Wage

Exceptions to minimum wage include the following professions in New Hampshire:

• Those engaged in household labor
• Those engaged in domestic labor
• Those engaged in farm labor
• Outside sales representatives
• Minors employed at summer camps
• Newspaper carriers
• Non-professional ski patrol
• Golf caddies

Additionally, tipped workers who work in the following capacities may be paid a New Hampshire tipped minimum wage rate of no less than 45% of the state minimum wage, so long as their tips customarily and regularly equal at least $30 per month:

• Restaurants
  
• Hotels
  
• Motels
  
• Inns
  
• Cabins

Overtime Rates and Requirements

New Hampshire Minimum Wage Law also covers overtime pay rates. 

Other than those employees classified as exempt under FLSA rules, employees are entitled to a rate of pay that is 1.5 times their regular hourly rate for all hours worked in excess of 40 in a given week.

Exceptions

Additionally, in New Hampshire in addition to FLSA-exempt employees, seasonal workers whose employer operates for less than six months of the year are also exempt from overtime pay.

Important to note is that these employees may still be covered under federal overtime law.

Payroll and Wage Deductions

One of the most important areas of NH payroll to get right is deductions. Improper New Hampshire payroll deductions can not only lead to trouble for your business with the law, but can drive a serious wedge between you and your employees if a mistake is made. 

Wage deductions are where payroll software can really play a part in ensuring payroll accuracy, as well as reducing payroll errors.

Here are instances in which deductions from pay are permissible: 

Deductions Permitted by Law

An employer may deduct pay from an employee's wages whenever it is permissible by law.

Additionally, deductions may be made pursuant to any rules or regulations for medical, surgical, or hospital care or service.

Deductions for Employee Benefits

Businesses may withhold a portion of wages as part of a written authorization by the employee for benefits deductions, these can include but are not limited to:

• Medical, surgical, hospital, and other group insurance benefits
• Required clothing not covered by the definition of uniform
• Payments into savings funds held by someone other than the employer

Written Authorization or via an Agreement with the Employee

Employers may deduct pay from wages: 

• Upon an employee's written request, for certain items from the employee's wages, provided that the employer shall provide a written itemized accounting of such requested deductions to the employee at least once per month
• If the employee requests in writing that deductions may be made for contributions to a political action committee from the employee's wages
• If the employer has a written request from the employee, made at the time of the original request without coercion or pressure, that authorizes the employer to deduct from the employee's final wages at the termination of employment any amount the employee may owe for voluntary payments for vacation pay, paid time off pay, earned time pay, personal time pay, annual pay, sick pay, sick dependent pay, and bereavement pay made pursuant to a written employment policy as required by RSA 275:49, III, when the payments have been requested and paid to the employee in advance of eligibility.

Pay Frequency and Paycheck Timing

Under New Hampshire Pay Frequency Law, employers have the option of paying employees either weekly, or biweekly. 

Weekly wages must be paid within eight days after the expiration of the work week. Biweekly wages must be paid within 15 days after the expiration of the work week.

Pay frequency laws are crucial to understand to avoid fines, especially when it comes to things such as Submitting Payroll on the Day of a Holiday.

Exceptions

Businesses who wish to pay employees on a schedule not described above may apply to do so.

Employers must have prepared:

• Method of payment 
• Whether the employer wishes to pay  semi-monthly or monthly
• When each pay period begins and when each pay period ends
• Designated payday
• Classification of employees
• The salary range of the employees involved
• The employer’s federal identification number

Once the above information has been provided to the New Hampshire Department of Labor, a decision will be made. Employers can make a request on the NH DOL website.

Final Pay Rules

Whenever an employee is terminated in New Hampshire, any due wages must be paid out under New Hampshire Final Paycheck Law. It does not matter if the employee was voluntarily or involuntarily terminated. 

Wages that are due upon termination include: 

• Vacation Pay
• Severance Pay
• Personal Days
• Holiday Pay
• Sick Pay
• Payment of employee expenses (when such benefits are a matter of employment practice or policy)

All of the above fall under the definition of wages in New Hampshire.

When Is Final Pay Due?

The circumstance of termination will determine when final wages are due in New Hampshire. 

When an employee is fired or discharged, employee wages are due in full within 72 hours of termination. If an employee is laid off, or work is suspended due to a labor dispute, all wages earned at the time of suspension or layoff are due in full on the next regular scheduled payday.

When an employee quits, there are further circumstances to consider.

Generally, when an employee quits wages are due in full on the next regular scheduled payday. However, if an employee gives at least one pay period's notice of intention to quit then wages are due in full within 72 hours of the final shift.

How to Deliver Final Paychecks

Final pay should be made using the same pay channels that an employee would typically receive payment through. However, if an employee is laid off or quits, they may request final pay by mail.

New Hampshire Required Pay Law

New Hampshire Required Pay Law is one of the more unique requirements of the state. 

In New Hampshire, it is unlawful to have employees report to work, at the request of the employer, without being paid.

Under the law, employees must be compensated for at least 2 hours worked at his or her regular rate of pay, regardless of how long they actually worked.

However, exceptions do include: 

• Employees of counties or municipalities
• Ski and snowboard instructional employees at ski resorts provided that these employees receive other compensation that is at least equal to their rate of pay
• Employers who make a good-faith effort to notify an employee not to report to work

Compensation for Travel Time in New Hampshire

Generally, employers must follow the rules of the FLSA when it comes to compensation for travel time. 

As such, compensation for travel time may be required in the following circumstances:

• Travel time in certain emergency situations
• Time spent traveling as part of a special assignment outside their normal workplace
• Employees whose travel is part of their typical workday
• When an employee is required to travel away from home overnight, the employer must compensate that employee for all time spent traveling during the employee’s normal working hours

Unemployment Tax (SUI)

Employers in the state need to be aware of their responsibilities regarding New Hampshire unemployment tax.

In New Hampshire, the Employment Security's Unemployment Compensation Bureau is responsible for collecting taxes from employers to fund the state's unemployment benefit payments.

The New Hampshire new employer unemployment insurance tax rate is 2.7 % minus any Fund Reduction or plus any Emergency Power Surcharge in place for the applicable quarter. 

Covered employers are also required to file a Tax and Wage Report for every quarter.

New Hampshire Payroll Taxes

In New Hampshire, the only state payroll tax that employers must be aware of is the State Unemployment Insurance Tax (SUI) detailed above. 

However, employers must still withhold wages for federal income tax, Medicare, and Social Security contributions.

In addition to understanding payroll taxes, businesses should also ensure they understand what small business tax credits are available to them.

Federal 401(k) Limit

The IRS announced changes back in November, 2023 to 401(k) limits and planning. Employees in 2024 may contribute up to $23,000, up from $22,500 for 2023.

The contribution limit applies to employees with 401(k)s, 403(b)s, most 457 plans, and Thrift Savings Plans.

Get Started with New Hampshire Payroll Services

Believe it or not, many if not most businesses in New Hampshire do not have the resources to be able to maintain compliance when processing payroll without the proper software or services at their back. 

Even the largest of organizations with the resources to do so, still have challenges. That is why it is important to find a New Hampshire Payroll Company that can help maintain compliance while ensuring payroll runs smoothly and efficiently. 

To learn more about how Trivantus is helping countless New Hampshire businesses process payroll, contact us today.