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Setting up payroll in Arizona for the first time
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.
Use the dropdowns below to learn more. Use CMD + F (or CTRL + F) to search for words in the article.
Gusto works with Middesk to help you register with tax agencies in new states.
For now, this includes: Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
Get help registering for state taxes
We can help you register for state tax accounts after you:
Cost, timeline, and who can register
The cost, steps, and turnaround time depend on the state. Gusto will show you these details when you start the registration process.
Middesk cannot help if your company is:
What the process looks like
Third-Party Access (TPA) and Power of Attorney (POA)reminder
Some state agencies need Gusto to have TPA or a POA on file to file and pay your taxes. Usually, Middesk does not set this up, so you’ll have to do it yourself after registration.
Check the state registration articles to see if TPA or POA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA is not needed right now.
If setting up TPA requires online agency portal access:The cost, steps, and turnaround time depend on the state. Gusto will show you these details when you start the registration process.
Need help with registration questions?
If you’re not sure how to answer one of the registration questions, check Middesk’s Help Center or email them at [email protected].
How to get started with state tax registration in Gusto:
Important: You may need to give Gusto access
Some states require you to give Gusto third-party access (TPA) or a Power of Attorney (POA) to your tax accounts. Middesk does not do this for you.
Need to make a change?
If you already submitted your info but need to fix something, email [email protected] to update it.
When your order is complete, you’ll get emails from Gusto and Middesk. They’ll detail the next steps, which include:
Before your order is done, you can check the order status in your Gusto account:
For most states where tax registration info is sent by physical mail, here's what to expect:
Q: Can I run payroll before my registration is done?
A: Yes. You may be asked to enter tax rates and tax deposit frequencies, but you can use temporary info.
Important reminders
Q: I need to change some of the registration information that was submitted. What do I do?
A: Email Middesk at [email protected].
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, Middesk cannot help with registration. You'll need to work with a tax advisor and state agencies directly.
Q: What if I'm not liable for unemployment tax yet?
A: If you want Middesk to start setting up an unemployment account number before you're liable, you can:
Q: Can Middesk help if the responsible party is international without an ITIN or SSN?
A: No. Middesk cannot help in this scenario, you'll need to register on your own.
Q: Why am I unable to enter 0% ownership for the responsible party or add a commercial owner?
A: Some states have a 1% minimum for the responsible party's 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 Middesk 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 Middesk for help at [email protected].
Q: When will my tax account information be available?
A: Each state and agency takes a different amount of time to process a registration. To estimate when your state tax account info will be available, check the Post Submission Questions in Middesk's help article.
Q: Where can I find my tax information?
A: You can find your tax info in several places:
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: Does Middesk help with giving Gusto third-party access (TPA) or Power of Attorney (POA) for tax payments?
A: Some state agencies need Gusto to have TPA or POA access to file and pay your taxes. Usually, Middesk does not set this up, so you’ll have to do it yourself after registration.
Check the state registration articles to see if TPA or POA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA is not needed right now.
If setting up TPA or POA requires online agency portal access:
Q: Does Middesk help close state tax accounts?
A: No, you'll need to close the tax account yourself.
Q: Can I cancel my Middesk order?
A: At this time, we do not support order cancellations or refunds.
Q: What is Middesk's phone number?
A: To get support from Middesk, you must email them at [email protected]. They can help with registration-specific questions, or changing info that's already been submitted. For all other questions, you can message Gusto.
Click the dropdowns below to learn how to register with state agencies—don't forget to give Gusto the third-party access (TPA) we'll need to file and pay certain taxes on your behalf.
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:
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.
If you have questions about your withholding taxes, call the AZ Department of Revenue directly at (602) 255-3381.
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:
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:
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:
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
Once you've received your unemployment account number, enter it in Gusto following the steps below.
Once a valid Arizona work address has been added in Gusto for one or more employees, you can add your tax account information:
You can always get your unemployment account number and rate by calling the AZ Department of Economic Security at (602) 771-6602.
If you've already registered in the state, you'll need to enter your tax account details in Gusto.
You'll need to be registered with one or more of the below agencies in order for Gusto to file and pay taxes on your behalf:
If you still need to register, click the applicable dropdown above in this article.
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 Employer Account Number (for unemployment) and rate by:
Once a valid Arizona address has been added in Gusto for one or more employees, you can add your tax account information:
In order for Gusto to keep your Arizona tax information up-to-date and help troubleshoot tax issues, we'll need you to authorize us 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, we’ll submit the form directly to the agency.
This form will only populate once you’ve assigned an AZ work address to your first AZ employee.
We’ll submit this to the agency directly on your behalf—you’re all set for now.
Remind your Arizona employees:
They need to fill out Arizona Form A-4 in Gusto. To find it, they should go to My profile > Taxes in their Gusto profile.
Important tips:
Learn more about state and local tax forms (withholding certificates).
You can view forms in Taxes & Compliance > Tax documents. Switch between the tabs to find federal, state, W-2s, and 1099s.
To see what Gusto has paid on your behalf, run the Agency Payments report.
Learn how to close or reopen tax accounts here.