Arizona registration and tax info

What you need to do

• Add a new work address in Gusto for a different state, and;
• Hire an employee and assign them to that address.

Cost and timeline

Prices vary by state. You can see the cost, process, and how long it takes in step four below.

What the process looks like

1. You give us some basic business information.
2. Gusto and CorpNet will check your info.
3. Your registration is usually submitted within 3–5 business days.
4. Watch for mail with your tax account numbers and rates from the state. The state usually sends your tax account numbers and rates directly to you.
   
   • Heads up: If CorpNet doesn’t enter some information into Gusto, they can show you how to do it yourself.

Third-Party Agent (TPA) authorization reminder

Some state agencies need Gusto to have TPA access to file and pay your taxes. Usually, CorpNet doesn’t set this up, so you’ll have to do it yourself after registration.

Check the state registration articles to see if TPA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA isn't needed right now.

Prices vary by state. You can see the cost, process, and how long it takes in step four below.

1. Sign in to Gusto as an admin.
2. Go to Taxes & compliance and click Tax setup.
3. Under “[State name] Tax Setup”, click Have us register for you.
   • The state will only show up if you’ve added a company work address there and assigned an employee to it.
4. Look at the price, process, and how long it will take.
   
   • We will not charge you until you send in your order.
5. Click Continue.
6. Answer a few questions to see if you're eligible.
   • We can only register for you if you do not already have a state account.
7. Click Save & continue.
8. Enter some company information (we'll fill in what we already know).
9. Click Save & continue.
10. Tell us who the responsible party is. This is the person in charge of the company’s tax matters and good standing. 
    • If you're a nonprofit and need help, check our FAQs below.
11. Click Save & continue.
12. Enter some state-specific operational information.
13. Click Save and continue.
14. Review all info carefully. Mistakes can delay things. 
    • Heads up: State and local agencies might add fees or take longer than expected. CorpNet will notify you if that happens.
15. Check the box to confirm all your info is correct and agree to the Terms of Service.
16. Click Send registration order.
    • We’ll email you with order updates and add the cost to your next monthly bill.

Some reminders

• You need to give Gusto third-party access (TPA) to your tax accounts. CorpNet doesn’t do this for you.
  • Check the state registration articles to see if TPA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA isn't needed right now.
• Watch your mail for registration info. The state will send you your tax account numbers and rates.
  • CorpNet can help you enter tax info into Gusto, but they won’t do it for you.

When your order is complete, you’ll receive emails from both Gusto and CorpNet. They’ll detail the next steps, which include:

• Reviewing registration details
• Any other state-specific instructions

Before your order is done, use the link in the state registration email from Gusto to check your order's status.

You can also check the status in your Gusto account:

1. Click Taxes & compliance and select Tax setup.
2. Scroll to the state's section.
3. Click Check the status of your registration.

If your order is still in progress, you can cancel from your Gusto account:

1. Click Taxes & compliance and select Tax setup.
2. Scroll to the state's section.
3. Click Check the status of your registration.
4. On the right-side of the page, under “Changed your mind?”, click Cancel your order.
5. Let us know why you're canceling.
6. Click Cancel your order.

If you were already charged, you'll get a refund in a few business days.

If you canceled your order but would like to re-open it, contact CorpNet directly at (888) 449-2638. Or email them at [email protected].

Q: Can I run payroll before my registration is done?

A: Yes, you can usually run payroll before all state tax info is added in Gusto. You may be asked to enter tax rates and tax deposit frequencies, but can use temporary info.

Important reminders

• We cannot submit tax payments or filings until all tax account numbers are added.
• If you run payroll before finishing registration, you might get notices about late tax payments or filings. Any penalties are your responsibility.
• If you’re only registering for unemployment tax and don’t have your rate yet, use the new employer rate for your state in Gusto until you get the correct one. Update the rate once you get it.

Q: Can I use Gusto to register in a new state without a Federal Employer Identification Number (FEIN)? What if my business is merging or being acquired?

A: No, you need a FEIN in Gusto to get registration help for state taxes.

If your business is merging or being acquired, CorpNet cannot help with registration. You'll need to work with a tax advisor and state agencies directly.

Q: Where can I find my tax information?

A: You can find your tax info in several places: 

• In Gusto: Go to Taxes & compliance and click Tax setup, then scroll to state tax setup.
• In CorpNet: Create an account and sign in to see your info.
• In your state’s online portal: Find your account details there.
• By mail: Some agencies send tax info by mail. If that happens, CorpNet will let you know, and you'll need to enter this info in Gusto.

Gusto’s state tax registration service does not contain tax, legal, financial, or HR advice. Since rules and regulations change over time and can vary by location, consult a lawyer, HR expert, or accountant for specific guidance.

Q: What if I'm not liable for unemployment tax yet?

A: If you want CorpNet to start setting up an unemployment account number before you're liable, you can:

• Use today’s date as the first date the employee(s) in the new state will be paid. 
• Enter the start date of the quarter you expect to meet the liability threshold.
  • Check the state’s liability info in the Register on your own section (go to the SUI dropdown). If there’s no info, contact the state agency directly.

Q: Can CorpNet help if the responsible party is international without an ITIN or SSN?

A: CorpNet might be able to help. Contact them at [email protected] or call 1(888) 449-2638.

Q: Why can’t I enter 0% ownership for the responsible party or add a commercial owner?

A: Some states have a 1% minimum for the responsible party ownership percentage. These states include: ID, KS, MN, OH, SC, DC, DE, MD, NJ, NY, and RI.

You’ll need to place registration orders directly with CorpNet outside of Gusto or register directly with the agency.

Some states require an individual owner to be listed. If you’re a non-profit or unsure, contact CorpNet for help at [email protected] or call 1(888) 449-2638.

Q: Does CorpNet help with giving Gusto third-party access (TPA) for tax payments?

A: Some state agencies need Gusto to have TPA access to file and pay your taxes. Usually, CorpNet doesn’t set this up, so you’ll have to do it yourself after registration.

Check the state registration articles to see if TPA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA isn't needed right now.

Q: Does CorpNet help close state tax accounts?

A: No, you'll need to close the tax account yourself.

• Arizona Department of Revenue (DOR) - income tax withholding
• Arizona Department of Economic Security (DES) - unemployment tax

Arizona requires that you start your registration for both withholding and unemployment taxes from the same online site.

You have a few options for how you can register:

• Register online—may take 2–3 weeks to complete.
  • You'll need to keep that time frame in mind when planning for your first payroll in Arizona. 
• Register in person at a local Arizona Department of Revenue office—registration is processed the same day. 

The two state tax agencies process your application separately, and each agency will notify you once your registration is complete and active.

For unemployment tax, you're not liable until you've paid $1500 in wages in a calendar quarter, or had one employee for part of a day in 20 different weeks in a calendar year. If after you register, you do not have your assigned unemployment rate yet (because you're not liable), enter the new employer rate for your state in Gusto in the meantime. Then, update the rate once you receive it. 

Register in Arizona online

1. Visit the AZ Taxes website. 
   
   • Both agencies listed above will process the single application separately and notify you after.
   • If the browser you're using doesn't load the page, try using Internet Explorer or Firefox. 
2. Locate the “Businesses” section.
3. Click on Enroll to File and Pay Online. 
4. Review the overview of the registration process—complete registration for the general "AZTaxes" account before proceeding.
   • If your business is not licensed or registered, you can create an AZTaxes account here.
5. Once your general AZTaxes account is created, complete any remaining prompts to register for a withholding account.
6. Once you get your withholding account number, sign in to your AZTaxes account.
7. Head to the Link Accounts section and link your withholding account number to your AZTaxes account—detailed instructions can be found here. 
8. Add Gusto as your third-party agent for the AZ DOR.  

If you have questions about your withholding taxes, call the AZ Department of Revenue directly at (602) 255-3381.

Enter the tax account information in Gusto

You do not need to enter a company-specific withholding account number in Gusto for us to file and pay taxes on your behalf—we use your Federal Employer Identification Number (FEIN).

We'll still need your unemployment account number and rate.

Your company becomes liable for state unemployment insurance tax once the company has:

• Paid $1500 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.

Running payroll in Gusto before you're liable for SUI

If you need to run payroll and do not yet meet the above requirements, Gusto allows it—enter the new employer rate for your state in Gusto in the meantime. Update the rate once you receive it.

You'll want to make sure during registration that the AZ Department of Economic Security knows when you plan to become liable—eventually, Gusto will need:

• Your unemployment account number—required to file and pay taxes on your behalf.
• Your company-specific unemployment tax rate—assigned by the agency.

Register for unemployment tax when you register for withholding tax

Arizona requires that you start your registration for both withholding and unemployment taxes from the same online site.

You have a few options for how you can register:

• Register online—may take 2–3 weeks to complete.
  • You'll need to keep that time frame in mind when planning for your first payroll in Arizona. 
• Register in person at a local Arizona Department of Revenue office—registration is processed the same day. 

The two state tax agencies process your application separately, and each agency will notify you once your registration is complete and active.

Register in Arizona online

1. Visit the AZ Taxes website. 
   
   • Both agencies listed above will process the single application separately and notify you after.
   • If the browser you're using doesn't load the page, try using Internet Explorer or Firefox. 
2. Locate the “Businesses” section.
3. Click on Enroll to File and Pay Online. 
4. Review the overview of the registration process—complete registration for the general "AZTaxes" account before proceeding.
   • If your business is not licensed or registered, you can create an AZTaxes account here.
5. Once your general AZTaxes account is created, complete any remaining prompts to register for both a withholding and unemployment account.

Once you've received your unemployment account number, enter it in Gusto following the steps below.

Enter the tax account information in Gusto

Once a valid Arizona work address has been added in Gusto for one or more employees, you can add your tax account information:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the “Arizona Tax Setup” headline and select Manage taxes.
3. Enter your unemployment account number—this is typically an 8-digit number.
   • Ex: 12345678
     • Learn how to update your rate.
   • If you edit a tax account number after payments or filings have already 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.

You can always get your unemployment account number and rate by calling the AZ Department of Economic Security at (602) 771-6602.

SUI payments and filings

Gusto uses your Federal Employer Identification Number (FEIN) to make payments and filings on your behalf—your FEIN should already be linked to your withholding account if you've run payroll in Arizona in the past. 

Don't forget to add Gusto as your third-party agent for the AZ DOR.  

You can find your unemployment account number and rate by:

• Reviewing notices received from the Arizona Department of Economic Security (DES).
  • You receive your Unemployment Insurance (UI) rate with an annual notice from the DES, and it typically takes effect on Jan 1 each year. 
• Giving the AZ DES a call at (602) 771-6602.

SUI payments and filings

Once a valid Arizona address has been added in Gusto for one or more employees, you can add your tax account information:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the “Arizona Tax Setup” headline and select Manage taxes.
3. Enter the applicable account numbers and rates.

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, we’ll submit the form directly to the agency.

Add Gusto as your third-party agent (TPA) in Arizona

This form will only populate once you’ve assigned an AZ work address to your first AZ employee.

1. Have the company signatory sign in to their profile in Gusto.
2. Click the applicable AZ to do item from your Home page.
3. E-sign the auto-generated Form 821-PSC in Gusto.
   • For general information about the form and its instructions, click here. 
   • For existing AZ employers: We used to collect Form 285. If you haven’t already signed Form 285, we may ask you to sign Form 821-PSC.
     • If you’d like to review the new form outside of Gusto, download it here.

We’ll submit this to the agency directly on your behalf—you’re all set for now.