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Before you can pay employees in a new state, you must register with the state’s tax agencies. This lets you file and pay the right taxes.
🎥 Watch a quick video to learn how registering in a new state works
📚 See our blog for full state business guides
Expand the sections below to learn more. Use CMD + F (or CTRL + F) to search for words in the article.
Gusto works with Middesk to register your business for state tax accounts when you hire employees or start working in a new state. We set up state income tax withholding and state unemployment insurance so we can run payroll and file taxes on your behalf.
We can start your registration after all of these are true:
You added a company work address in the new state.
You assigned that address to a new or existing employee.
You checked your Gusto Home page for a registration to-do.
If required, you registered with preliminary state agencies (like the Secretary of State or Department of Licensing and Regulatory Affairs) first and confirmed it's done.
States that require SOS registration before tax setup: Michigan, Missouri, New Jersey, New Mexico, and Vermont.
Middesk cannot help with registration if your business is:
A non-profit that is not a 501(c)(3)
A business that left a PEO
A business that bought another business that was already registered
A business that changed its legal entity type (for example, LLC to Corp)
A Limited Partnership (LP) or Limited Liability Partnership (LLP)
You must also:
Have a FEIN in Gusto
Not already have a tax account in that state
If you already registered with the state, Middesk will cancel the order and you will not be charged.
Included
Middesk registers your business for:
State income tax withholding
State unemployment insurance (SUI)
Not included
Middesk does not register your business for:
Local tax agency registration
Paid Family and Medical Leave (PFML) registration
Third-Party Agent (TPA) access
Power of Attorney (POA) authorization
Some states require TPA or POA for Gusto to file and pay taxes. In most cases, you must set this up yourself after registration. If you need to register for local taxes or PFML, or set up TPA or POA, use the state-specific article for step-by-step instructions.
The cost, steps, and timeline depend on the state. Before you submit anything in Gusto, we show you:
The price
What is included
How long registration usually takes
You are not charged until the order is marked as completed. The charge appears on your next Gusto monthly invoice.
You can also visit the Middesk Help Center to see estimated processing times for each state.
Here is what to expect when Middesk handles your registration:
You answer questions about your business, including:
Basic company info
Contact details
Addresses
Owner or officer info
State-specific details
Middesk reviews your information.
Middesk usually submits your registration within two business days.
A state agency may contact you to verify the request.
⚠️ Important: If you do not respond to a verification call or email within 3–5 business days, the order may be canceled and refunded.
After your order is marked as complete, we add the charge to your next Gusto monthly invoice.
When Middesk receives your tax account numbers, they enter them in Gusto (for most states and agencies). You will get emails from Gusto and Middesk with updates and next steps.
For most states, Middesk receives agency mail during registration and adds your tax info to Gusto. You can view this mail in a digital mailbox. After registration is complete, the agency updates its mailing address to your business address. If you need to take action, we will notify you by email or Home page to-do.
States that mail tax account info directly to your business: Alabama, Arizona, Delaware, Idaho, Iowa, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Montana, Nevada, New Hampshire, Oklahoma, Rhode Island, Washington, Washington DC, and West Virginia. When you receive the letter, check your email for instructions on how to send the info to Middesk.
You can run payroll before registration finishes. However:
Gusto cannot file or pay taxes until all tax account numbers are added.
You may receive late notices or penalties. These are your responsibility.
For unemployment tax, use your state’s new employer rate until you receive the correct one.
Note: You can cancel orders before they are sent to Middesk. Once an order is submitted to Middesk, it cannot be canceled or refunded.
If you need help with any of the registration questions, check Middesk’s Help Center.
In your web browser:
Go to Taxes & Compliance → Tax setup.
Find [State name] Tax Setup.
Click Learn more under “Let us help you register.”
Review the price, process, and timeline. We do not charge you until after your order is complete.
Click Get started on Middesk.
Review everything carefully before submitting. Mistakes can delay registration.
In the Gusto mobile app:
Open the Gusto mobile app and sign in.
In the bottom-right corner, tap More.
Select Taxes & compliance.
Scroll down to Quick links and choose Setup tax accounts.
Scroll down to [State name] tax setup. Tap Learn more.
Review the process, timeline, and pricing. We do not charge you until after your order is complete.
Tap Get started on Middesk.
Share your business information and review everything carefully before submitting. Mistakes can delay registration.
To check your Middesk registration status in Gusto:
Go to Taxes & Compliance → Tax setup.
Find the state and view the status.
Possible statuses include:
Tax registration in progress
We need more information
The state is working on your order
Your registration is complete
Your order is on hold (often due to state requirements)
You have existing tax accounts
We could not complete your registration
If you entered the wrong eligibility date, email [email protected].
Some states require Gusto to have TPA or POA on file before we can file and pay taxes. Middesk usually does not set this up.
Check the state-specific registration article to see if TPA or POA is required for your state.
If there is no TPA or POA section in the state article, it is not needed right now.
If TPA or POA requires an agency portal:
If Middesk creates the agency account during registration, you will find the login details in Gusto: go to Taxes & Compliance → Tax setup after registration.
If Middesk does not create the account but the state requires portal access, you must create the account yourself.
You can only cancel an order before it is submitted to Middesk. Once submitted, orders cannot be canceled or refunded.
To cancel your order:
Go to Taxes & Compliance, select Tax Setup, and scroll to the applicable state.
In the Finish your [state] registration order banner, select Cancel order.
Q: Do I need a FEIN to use Gusto’s registration service?
A: Yes. You must have a FEIN to register through Gusto. If your business is merging or being acquired, Middesk cannot help with registration.
Q: Why can’t I enter 0% ownership or add a commercial owner?
A: Some states require a minimum ownership percentage or an individual owner. If your situation does not meet state rules, you will need to register outside of Gusto.
Q: What if the responsible party is international without an SSN or ITIN?
A: Middesk cannot help in this case. You will need to register directly with the state.
Q: What if I’m not liable for unemployment tax yet?
A: Use today’s date or the expected liability date. Use the new employer rate until you get your company-specific rate.
Q: I need to change information I already submitted. What do I do?
A: Email [email protected].
Q: What if the tax agency contacts me?
A: Respond right away, within 3–5 business days. Missing a verification call or email can cancel your registration order.
Q: When will my tax account numbers be available?
A: Timelines vary by state. Check Middesk’s guidance for estimates.
Q: Can Middesk close my state tax accounts?
A: No. You must close accounts directly with the state.
Visit the Middesk Help Center for help with registration-specific questions.
Contact Gusto from the ( ? ) in your account for all other payroll or tax setup help.
Expand the sections below to learn how to register with state agencies.
You'll work with the following Arizona agencies when registering for payroll taxes:
Arizona Department of Revenue (DOR): Handles income tax withholding.
Arizona Department of Economic Security (DES): Handles unemployment tax.
Arizona requires that you start your registration for both withholding and unemployment taxes from the same online site. The two state tax agencies process your application separately, and each agency will notify you once your registration is complete and active.
You have a few options for how you can register:
Register online: May take 2–3 weeks to complete. Keep this time frame in mind when planning your first payroll in Arizona.
Register in person: Visit a local Arizona Department of Revenue office. Registration is processed the same day.
Go to the AZTaxes website.
Both agencies will process the single application separately and notify you after.
If your browser does not load the page, try using Microsoft Edge or Firefox.
Find the Businesses section.
Review the overview of the registration process and complete registration for the general AZTaxes account before proceeding.
If your business is not licensed or registered, you can create an AZTaxes account here.
Once your general AZTaxes account is created, complete any remaining prompts to register for both a withholding and unemployment account.
Once you receive your withholding account number, sign in to your AZTaxes account.
Go to the Link Accounts section and link your withholding account number to your AZTaxes account. Detailed instructions can be found here.
If you have questions about withholding taxes, contact the AZ Department of Revenue at (602) 255-3381. For unemployment tax questions, contact the AZ Department of Economic Security at (602) 771-6602.
Most companies become liable for state unemployment insurance tax once the company has:
Paid $1,500 in wages during a calendar quarter, or
Had at least one Arizona employee working for any part of the week for 20 or more different weeks during a calendar year
If you need to run payroll but do not yet meet the above requirements, you can still do so. Enter the new employer rate for Arizona in Gusto for now, and update the rate once you receive it.
Make sure during registration that the AZ Department of Economic Security knows when you plan to become liable.
Give Gusto third-party access (TPA) so we can help manage your taxes with the agency.
Enter your tax account information in Gusto once you add a valid Arizona work address for one or more employees.
If you've already registered in Arizona, you need to enter your tax account details in Gusto. You need to be registered with one or more of the following agencies for Gusto to file and pay taxes on your behalf:
Arizona Department of Revenue (DOR): Handles income tax withholding.
Arizona Department of Economic Security (DES): Handles unemployment tax.
If you still need to register, see the Register for AZ income and unemployment tax on your own section earlier in this article.
Once you add a valid Arizona work address in Gusto for one or more employees, you can enter your state tax account information.
To add your Arizona tax account information:
Go to Taxes & compliance, then select Tax setup.
Find Arizona Tax Setup and select Manage taxes.
Follow the instructions below for each tax type.
Important: If you edit a tax account number after payments or filings have been made, there may be tax implications. Learn how to pull reports in Gusto that can help you correct any historical tax issues related to tax account number updates.
Gusto uses your Federal Employer Identification Number (FEIN) to make payments and filings on your behalf. You do not need to enter a company-specific withholding account number in Gusto.
Your FEIN should already be linked to your withholding account if you've run payroll in Arizona in the past.
Next to Employer Account Number, click Edit to enter your unemployment account number. This number is typically eight digits long (for example, 12345678).
Notices from the Arizona Department of Economic Security (DES)
If you cannot find your account number, contact the agency at (602) 771-6602.
Next to Unemployment Insurance Tax Rate, click Edit to enter your unemployment rate.
Your annual rate notice from the Arizona Department of Economic Security (DES). The rate typically takes effect on January 1 each year.
If you cannot find your rate, contact the agency at (602) 771-6602.
If you do not have your assigned rate yet, enter the new employer rate for Arizona in Gusto in the meantime. Update the rate once you receive it.
In Arizona, if the total tax amount for a given quarter is less than $10, the payment is exempt, but the filing still needs to be processed. In these cases, Gusto will still submit the quarterly filing and refund you for the tax amounts withheld.
For Gusto to keep your Arizona tax information up to date and help troubleshoot tax issues, we need to be authorized as your third-party agent (TPA) for the AZ Department of Revenue (DOR).
To become your third-party agent, a notarized form authorizing Gusto as your payroll provider must be submitted to the agency. To make this easy, we'll prepare the necessary document for you to e-sign in Gusto, then submit the form directly to the agency.
This form will only populate once you've assigned an Arizona work address to your first Arizona employee.
Have the company signatory sign in to their profile in Gusto.
Click the applicable AZ to-do item from your Home page.
We'll submit the form directly to the agency on your behalf. For general information about the form and its instructions, visit the agency website.
Note: For existing Arizona employers, we used to collect Form 285. If you have not already signed Form 285, we may ask you to sign Form 821-PSC instead. If you'd like to review the new form outside of Gusto, download Form 821-PSC from the agency website.
Arizona employees need to fill out Form A-4 in Gusto. To find the form, employees should go to My profile, then select Taxes.
Important: Employees should complete Form A-4 before their first paycheck of the year or their first paycheck processed with Gusto. If an employee does not choose a rate before then, Gusto will use a default 2% rate until they select a different one.
Employees should choose their own tax rate to make sure the correct amount is taken out of their paycheck, and taxes are not under- or over-withheld.
Learn more about state and local withholding certificates.
A1-WP* (Payment of AZ Income Tax Withholding)
A1-QRT (Quarterly Withholding Tax Return)
A1-R (Withholding Reconciliation Return)
UC-018 (Unemployment Tax and Wage Report)
State W-2 (Wage and Tax Statement)
AZ Report for New Hire
You can view forms in Taxes & Compliance, then Tax documents. Switch between the tabs to find federal, state, W-2s, and 1099s.
Some forms show an asterisk (*). Forms like payment vouchers or coupons that were filed electronically may not show in your Gusto account. Sign in to the agency's portal to view filings and payments.
To see what Gusto has paid for you, run the Agency Payments report.
Revenue Agency: Arizona Department of Revenue (DOR)
Phone: (602) 255-3381
Workforce or Labor Agency: Arizona Department of Economic Security (DES)
Phone: (602) 771-6606
Learn how to close or reopen tax accounts.