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Setting up payroll in Arkansas 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. You can also learn to fix agency authorization issues (if needed).
Register with the Arkansas Department of Finance and Administration (DFA) to receive:
You should receive your DFA Account ID and filing schedule by mail in 1-2 weeks. Keep this time frame in mind when planning your first Arkansas payroll.
If you're having any Gusto-specific authorization issues, scroll to the "Troubleshoot Department of Finance and Administration authorization issues" headline below.
Once a valid Arkansas work address is added in Gusto for one or more employees, add your tax account information:
Some agencies require special authorization for Gusto to pay or file your taxes. If we're having trouble getting access to your account, confirm that the company details entered in Gusto match exactly what the agency has on file. You can do this by calling them at (501) 683-2827 or (877) 280-2827.
Here's what should match:
Most companies become liable for Arkansas unemployment insurance tax once the company has at least one Arkansas-employee working 10 or more days during a calendar year.
When you become liable can vary by business type (general, non-profit, etc.), so we recommend contacting the agency directly to confirm when your specific business is liable.
If you need to run payroll and do not yet meet the above requirements, enter the new employer rate for your state in the meantime. Update the rate once you receive it.
You'll want to make sure during registration that the AR Division of Workforce Services knows when you plan to become liable. Gusto will eventually need:
Registration takes about 5 minutes to complete, and you'll receive a confirmation email when you're done. Check out this employer handbook if you run into any issues.
Register with the Arkansas Division of Workforce Services here.
Unemployment tax rate (experience rate)
New employers should complete registration to get their agency-assigned new employer rate. The AR Experience Rate will also appear on the Rate Notice you receive from the Arkansas Division of Workforce Services.
If you do not know your rate, call the agency directly at (501) 682-3798.
Once a valid Arkansas work address is added in Gusto for one or more employees, add your tax account information:
If you've already registered in the state, enter your tax account details in Gusto.
In order for Gusto to file and pay taxes on your behalf, register with the following agencies:
If you still need to register, click the applicable dropdown above in this article.
If you've run payroll in Arkansas previously, find your Withholding Account ID (also called a DFA Account ID) and filing frequency by:
Some agencies require special authorization for Gusto to pay or file your taxes. If we're having trouble getting access to your account, confirm that the company details entered in Gusto match exactly what the agency has on file. You can do this by calling them at (501) 683-2827 or (877) 280-2827.
Here's what should match:
You can find your DWS ID on Arkansas Division of Workforce Services notices (ex. Rate Notices of the Quarterly Contribution and Wage Report: Form DWS-ARK-209B) .
The AR Experience Rate appears on the Rate Notice that you receive from the Arkansas Division of Workforce Services each year, and typically takes effect on Jan 1.
If you do not have your assigned rate yet, enter the new employer rate for your state in the meantime—update the rate once you receive it.
Once a valid Arkansas work address has been added in Gusto for one or more employee(s), you can add your tax account information:
If you have employees who live in Texarkana, Arkansas, or Texarkana, Texas, and work in Texarkana, Arkansas, they qualify for an exemption from Arkansas withholding tax.
If either of these scenarios applies to your business:
To let the agency know about an employee exemption, email [email protected] the following information:
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.