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Before you can pay employees in a new state, you must register with the stateβs tax agencies. This lets you file and pay the right taxes.
π₯ Watch a quick video to learn how registering in a new state works
π 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.
Let Gusto Business Compliance register your business in this state and keep you compliant after that. We'll register you with the state, act as your registered agent, file your annual reports, watch your government mail, and give you a concierge team. Learn more about Gusto Business Compliance.
Prefer not to use Business Compliance? We can still help you register in this state through our partner Middesk, with no monthly subscription. Order a one-time state tax registration.
Expand the sections below to see if you qualify, what's covered, how to sign up, and what happens next.
You can add Business Compliance if all of these are true:
You run payroll with Gusto. Business Compliance is not sold on its own.
You're on the Solo, Simple, Plus, or Premium plan. It's included with Premium at no extra cost.
Your business is a corporation or an LLC. Corporations include S corporations and nonprofit corporations. An LLC qualifies however it's taxed.
New sign-ups are not available for professional entities, including professional corporations and professional limited liability companies (PLLCs). If you already have a Business Compliance subscription as a professional entity, your coverage continues as it is.
Business Compliance is not available yet for sole proprietors, general partnerships, limited partnerships, or limited liability partnerships (LLPs). It's also not available for cannabis-related businesses, on any plan.
Not sure if you qualify? Chat with us before you sign up.
Business Compliance works state by state. Each state you add includes:
Registered agent β we accept legal and government mail for your business in that state.
Change of registered agent β we file the change so your mail comes to us.
Foreign qualification β we register your business with the Secretary of State so you can legally work there.
State tax registration β we register you with the state's tax agencies when you hire or start working there, including local tax agencies and Paid Family and Medical Leave (PFML) agencies wherever Gusto is able to register with them.
Annual report filing β we file the yearly report that keeps your business in good standing.
Government mail monitoring β we scan mail from state agencies into Gusto. Each notice comes with a plain-language summary of what it means and what to do next.
Proactive alerts β we tell you about deadlines before they're due.
You also get a compliance concierge team, no matter how many states you cover.
Cost: $85 per state, per month, billed monthly. Adding a state commits you to 12 months of coverage in that state. It's included with Premium at no extra cost. State filing fees are charged at cost, vary by state and business type, and show on your invoice.
Local tax and PFML coverage follows what Gusto's state tax registration supports, and not every agency can be registered through Gusto. Delaware and Maine do not allow a third party to register for Paid Family and Medical Leave, so you'll register with those agencies yourself. If we cannot register one of your agencies, we'll show it on your registration page under what you'll complete on your own. See Let Gusto help you with state tax registration.
Sign in to Gusto.
Go to Taxes & Compliance.
Select Business compliance.
Answer the questions about your business and the states where you work.
Review the price and what's included, then confirm.
After your first state is set up, you'll see its registrations and anything left to do.
When you add an employee or work location in a new state, that state shows up under Your states as Setup in progress, with your next step. Steps often include telling us more about your business there and moving your registered agent to us.
Select Start on a task to finish it, or View state details to see everything for that state. When every step is done, the state changes to Active.
To be your registered agent in a state, we file a change of registered agent with that state.
When a state needs this, you'll see a task on that state's card under Your states. Select Start to begin.
Keep your current registered agent until we confirm the transfer is done. A gap in coverage can put your business out of good standing in that state.
Once a state is active, we take over the ongoing work. We review your government mail, track your deadlines, and give you a concierge team to ask about any of it.
Your Business compliance page also shows your Compliance documents and Tax account details for each state.
Because we're your registered agent, legal mail for your business comes to us.
Other mail from state agencies is scanned into Agency notices on your Business compliance page. Each notice shows the state it came from, when it arrived, and a plain-language summary of what it means and what to do next. Select Unread or State to filter the list.
Still not sure what a notice means? Select Ask concierge about this mail on that notice. Your concierge team will follow up and explain what, if anything, you need to do.
If a notice is about your state payroll taxes, your concierge team brings in our tax resolution team. Learn more in How to handle a tax notice from an agency.
When you sign up, you get a compliance concierge team. They'll:
Learn about your business and the states where you work.
Check in regularly to make sure your filings are on track.
Explain any government mail you're unsure about.
Answer questions about your account.
To reach them, select Talk to a compliance concierge on your Business compliance page, or email [email protected].
We track filing and renewal deadlines for the states you cover. This includes annual reports, franchise tax filings, and business license renewals.
You'll get a notice in Gusto and by email before each deadline.
We file what we can for you. If a filing needs your approval, we'll send it to you with time to review.
Go to Taxes & Compliance β Business compliance β Manage subscription.
To stop coverage in one state, select Remove next to that state.
To cancel Business Compliance, select Leave Business Compliance.
Each state you add runs for a 12-month term, and you're billed monthly over that term. If you want to remove a state or leave Business Compliance before that term is up, email your compliance concierge team at [email protected] first. They'll tell you what happens to the rest of the term.
If Business Compliance is included with your Premium plan, you'll see a note on this page.
Before you remove a state: We'll stop being your registered agent there. Most states require one, so appoint a new agent to stay in good standing. We'll also stop tracking that state's mail and deadlines.
These services are charged separately from your subscription, on your regular Gusto invoice. Order them from your Business compliance page when you need them:
Certificate of good standing β $99 per certificate. Official proof that your business can operate and is in good standing. You may need one for a loan, a contract, or investors.
State account closure β $549 per order. We close your state tax accounts when you stop working in a state.
State filing fees are charged on top of these prices, at cost. They vary by state and by business type, so you'll see your total before you confirm the order. The filing fee appears as its own charge, separate from the service itself.
Legal and tax advice. We do not give legal or tax advice. For advice about your business, talk to a lawyer or an accountant.
Payroll taxes. Gusto payroll already handles the taxes tied to paying your team. Business Compliance covers what your business owes as a business.
Forming a new business. We register an existing business in a new state. We do not form new businesses.
Sales tax. We do not register you for sales tax or file sales tax returns.
Professional and industry licenses. We do not get or renew licenses for your profession or industry, or handle their reporting.
Reinstatements and reopened accounts. We do not reinstate a business with the Secretary of State or reopen closed payroll tax accounts.
General mail. We monitor payroll and compliance notices from government agencies, not your other mail.
Q: Why does my business need to register in a state?
A: Once you have an employee, a location, or other business in a state, that state's rules apply to you. This includes registration, filings, taxes, and renewals. It's separate from registering to run payroll there.
Q: How is this different from the payroll taxes Gusto already handles?
A: Gusto payroll handles the taxes tied to paying your team. Business Compliance covers what your business owes as a business, like Secretary of State registration, annual reports, and registered agent service.
Q: I'm already registered in my state. Do I still need this?
A: Registering is just the first step. Staying in good standing is ongoing. We keep you there by acting as your registered agent, watching your mail, filing your annual reports, and alerting you before deadlines.
Q: How much does Business Compliance cost?
A: $85 per state, per month, billed monthly. When you add a state, you are committing to 12 months of coverage in that state. It's included with Premium at no extra cost. State filing fees are charged at cost, and they vary by state and business type. One-time services are charged separately from your subscription. You'll see the price before you confirm.
Q: How do Business Compliance charges show up on my bill?
A: They appear on your regular Gusto invoice, not a separate bill. Your subscription, each one-time service you order, and state filing fees show up as their own charges, with the state named, so you can see what each one is for.
Q: I already paid for a one-time registration. What happens if I add Business Compliance?
A: Email your compliance concierge team at [email protected]. They'll review your account and share your options.
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 2β3 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.
Use this list to find Arizona's tax forms and where to view each one.
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
To view these forms, go to Taxes & compliance, then Tax documents, and select the State tab.
A1-WP (Payment of AZ Income Tax Withholding)
To view these filings, sign in to the Arizona agency portal.
To see what we've paid for you, run the Agency payments report.
Use this list to reach Arizona's payroll tax agencies by phone or website. It covers income tax withholding and unemployment insurance.
Phone numbers and links can change. If one does not work, search the agency's official website for the latest contact info.
Income tax withholding β Arizona Department of Revenue (DOR): (602) 255-3381
Unemployment insurance β Arizona Department of Economic Security (DES): (602) 771-6606
Learn how to close or reopen tax accounts.