Most of the following information was taken from the Tennessee Department of Labor and Workforce Development Web site: 

Contact your Tax Advisor or Accountant for the most current information concerning Employer Unemployment Liability Requirements and Regulations.

What is Unemployment Insurance?

Unemployment Insurance is a joint federal and state program that provides benefits to unemployed workers who lose their jobs through no fault of their own. Unemployment Insurance benefits are paid from the Tennessee Unemployment Insurance Trust Fund. This fund is used only to pay benefits to Tennessee’s unemployed; it is financed entirely by Tennessee employers. 

Who is liable for Unemployment Insurance coverage?

Check the following website for updates and FAQ pertaining to Employer Liability.

Most employers are liable under the Tennessee Employment Security Law. An employer’s liability is based on criteria set by federal law. Liable employers include:

  • all governmental employers.
  • certain nonprofit, domestic, and agricultural employers.
  • all other employers who have a total payroll of $1,500 or more in any quarter in the current or previous calendar year, or who have at least one employee for any day during 20 different weeks during the current or previous calendar year.

How do employers establish an Unemployment Insurance account?

See the following Site for FAQ concerning the Unemployment Trust Fund

All employers doing business in Tennessee are required to complete and file the Report to Determine Status/Application for Employer Number, LB-0441, to determine their liability for Unemployment Insurance. Employers liable for Unemployment Insurance will be assigned an employer account number.

For premium rate information, call 615-741-3246.

How can an employer reduce benefit charges?

  • Keep accurate records. If an employee claims he was paid more than he/she actually was, the employer needs proof of actual earnings.
  • Document circumstances leading up to and relating to a separation.
  • Answer any request for separation information completely and by the date specified on the form. Failure to do so could result in unnecessary benefit charges.
  • Verify each statement of benefit charges.
  • Appeal claims decisions believed to be incorrect within 15 calendar days of the notice. (If the claim is awarded anyway, the employer can appeal and request a hearing in front of a referee. )

How does the appeals process work?

Once a person files a claim for unemployment benefits, the Department of Labor and Workforce Development investigates whether he/she is entitled to benefits, and issues a written decision. The claimant or the employee can file an appeal if they do not agree with the decision. To do so, they must notify the Appeals Tribunal in writing within 15 calendar days of the mailing date of the Department’s decision. Form LB-0897 is used, and submitted to: 

Department of Labor and Workforce Development Telephone: 615-741-1857 

Division of Employment Security, Appeals Operations
220 French Landing Drive
Nashville, TN 37243-1002

What are the employer requirements when separating an employee?

  • Employers are required to give each separated employee the Separation Notice, LB-0489, within 24 hours of the separation. Separation Notices help the department make a more accurate determination of benefit eligibility.
  • An employer who separates 25 or more workers simultaneously due to lack of work may file the Mass Separation Notice, LB-0490, instead of giving each employee a Separation Notice.

Contact your local Employment Security Office for any of the referenced forms.

Useful Tennessee Employer Forms:

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