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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
đź“š See our blog for full state business guides
🤝 Let Gusto register for you
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 Delaware agencies when registering for payroll taxes:
Delaware Division of Revenue: Handles income tax withholding.
Delaware Department of Labor: Handles unemployment tax and paid family and medical leave.
City of Wilmington (where applicable): Handles local taxes.
After registering, you'll receive your:
Withholding account number
UC Employer account number
Unemployment tax rate
To register with the Delaware Division of Revenue:
Register with the Delaware Division of Revenue.
Most companies can register online, except construction companies — see the Special registration requirements section below.
Scroll down the page to the Registration icon and click Get Started.
For more information about the registration process, see Opening a Business in Delaware.
If you have questions about the application, call the agency at (302) 577-8779.
If you do not receive an account number or do not know your agency-assigned unemployment tax rate, call the Unemployment Insurance Employer Contributions Unit at (302) 761-8484.
If you do not have your assigned rate yet, enter the new employer rate for Delaware in Gusto in the meantime. Update the rate once you receive it.
Construction companies must register by paper and supply proof of Workmen's Compensation insurance. See the Registration Information Fact Sheet for more information.
Complete Part A and Part B, which is required for all companies that must pay income tax withholding on behalf of their employees.
Complete Page 9.
Supply the additional information listed on Page 10.
Send the completed Form CRA (Combined Registration Application for State of Delaware Business License and/or Withholding Agent) by:
Fax: (302) 577-8203
Mail: Delaware Division of Revenue, c/o Withholding Tax Unit, 820 N. French St., Wilmington, DE 19801
Businesses operating in Wilmington, or that have an employee who lives or works in Wilmington, need a Wilmington Account Number to file the City's Earned Income Tax and Head Tax.
New employers in the City of Wilmington must register with the city by completing the Application for Earned Income Taxpayer Account and mailing it to the address on the form. You'll receive your account number:
Within 5–10 business days when registering by mail
On the same day if registering in person
If you already have a Wilmington Account Number, call the agency at (302) 576-2415 to confirm it.
If your business has an older six-digit number, add two zeros at the beginning when entering the number in Gusto.
Once you complete registration, take these steps:
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 Delaware work address for one or more employees.
If you've already registered in Delaware, 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:
Delaware Division of Revenue: Handles income tax withholding.
Delaware Department of Labor: Handles unemployment tax and paid family and medical leave tax.
Companies with 10 or more employees must take part in Delaware's Paid Family and Medical Leave (PFML) Program.
Companies with fewer than 10 employees can choose to join, but Gusto does not handle tax withholding, payments, or filings for this optional coverage.
City of Wilmington (where applicable): Handles local taxes.
If you still need to register, see the Register for DE income, unemployment, paid family and medical leave (PFML), and local taxes on your own section earlier in this article.
Once you add a valid Delaware work address in Gusto for one or more employees, you can enter your state tax account information.
To add your Delaware tax account information:
Go to Taxes & compliance, then select Tax setup.
Find Delaware 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.
Notices from the Delaware Division of Revenue, such as the Withholding Tax Return (Form W1)
If you cannot find your account number, contact the agency at (302) 577-8779.
Notices from the Delaware Department of Labor, such as the Quarterly Tax Report or Notice of Assessment Rate
If you cannot find your account number, contact the agency at (302) 761-8482.
Form UC-12 from the Delaware Department of Labor
If you cannot find your rate, contact the agency at (302) 761-8484.
If you do not have your assigned rate yet, enter the new employer rate for Delaware in Gusto in the meantime. Update the rate once you receive it.
See the Delaware paid family and medical leave (PFML) section for steps to find your account number.
Businesses operating in Wilmington, or that have an employee who lives or works in Wilmington, need a Wilmington Account Number to file the City's Earned Income Tax and Head Tax.
If you already have a Wilmington Account Number, call the agency at (302) 576-2415 to confirm it.
If your business has an older six-digit number, add two zeros at the beginning when entering the number in Gusto.
New employers in the City of Wilmington must register with the city by completing the Application for Earned Income Taxpayer Account and mailing it to the address on the form. You'll receive your account number:
Within 5–10 business days when registering by mail
On the same day if registering in person
Companies with 10 or more employees must take part in Delaware's Paid Family and Medical Leave (PFML) Program.
Note: Companies with fewer than 10 employees can choose to join, but Gusto does not handle tax withholding, payments, or filings for this optional coverage.
For companies that must participate, Gusto calculates and withholds employer contributions and any optional employee contributions. Gusto then sends the payments and filings to the state. Delaware's Family and Medical Leave Insurance Program is paid for with these contributions.
Your responsibility depends on the number of employees you have:
0–9 employees: Employers do not need to provide parental leave, medical leave, or family caregiving leave.
10–24 employees:
Parental Leave is required. Employers pay 0.32% of employee wages.
Medical Leave and Family Caregiving Leave are optional.
Employers cannot cover 100% of employee PFML taxes. Consult a tax advisor.
25 or more employees:
Employers must provide:
Parental Leave: 0.32%
Medical Leave: 0.4%
Family Caregiving Leave: 0.08%
Employers cannot cover 100% of employee PFML taxes. Consult a tax advisor.
Gusto calculates which lines of PFML coverage your company needs to provide based on the number of employees you have working in Delaware, according to Gusto's records (employees you've added and paid through Gusto).
Check the Register for Delaware PFML email Gusto sent to see which coverage applies to your company.
Throughout each year, Gusto will calculate which lines of PFML coverage your company is required to provide based on employees working in Delaware:
If you reach 10 or more employees, Gusto will ask you to register for PFML and set up an account for Parental Leave.
If you reach 25 or more employees, Gusto will update your withholdings, payments, and filings to include Parental, Medical, and Family Caregiver Leaves, and will let you know your taxes will go up.
If you have not yet done so, register with Delaware One Stop.
Sign in to or create your myDelaware account.
Select the DOL LaborFirst Employer tile.
Complete the registration questionnaire for LaborFirst, providing your owner/operator details, qualifications, address, and similar information.
In the Paid Leave Enrollment section, select Register for Paid Leave.
Once registered, your PFML account number will be on your Employer Portal Home Screen.
Complete the registration questionnaire for PFML, providing information about private plans, enrollment in DE PFML, and similar details.
Only select the lines of coverage you're required to provide. Gusto does not yet support optional additional lines of coverage.
Review your registration summary, then select Next to submit your registration.
Save a copy of your account info, including your PFML Employer Account Number (listed as Name under Account Divisions).
Give Gusto access to your PFML and unemployment accounts by following the instructions in the Authorize Gusto with Delaware agencies section.
The full contribution amount is ultimately an employer's responsibility, but you can choose to have your employees help pay up to 50% of the tax.
You cannot start deductions in the middle of a quarter. Set it up before you submit your first payroll in a quarter for it to take effect ongoing.
Go to Taxes & compliance, then select Tax setup.
Find Delaware Tax Setup and select Manage taxes.
Next to Percent of PFML paid by employees, click Edit.
Make your selections and click Save.
Gusto will ask companies to either enter their PFML tax account info or set up an exemption.
If you're exempt from PFML or have an approved private plan, confirm with the state to avoid back taxes or penalties.
Once confirmed, set up the company-level exemption in Gusto.
Employers can file a waiver to let the Division of Paid Leave know which employees are:
Temporary (working less than 12 months a year)
Limited (working fewer than 25 hours per week)
Temporary and limited employees are not eligible for Delaware's PFML Program.
To file a waiver:
Submit a waiver through the LaborFirst portal. To get started:
Open the LaborFirst User Manual.
Scroll to page 48 of the downloaded PDF (or page 45 of the document itself).
Find the Waiver Form header and follow the instructions.
Once approved, no employer or employee contributions are required. Set up an employee-level exemption in Gusto (for both employee and employer Paid Leave taxes) to account for this in payroll.
On the add exemption page in Gusto, select My employee is exempt from paying this tax.
Choose the employee and tell us why they're exempt with a brief description.
For the question "Which tax is this employee exempt from paying?" choose both:
Delaware Paid Leave - Employee
Delaware Paid Leave - Employer
Enter the start date of the exemption, click the checkbox to acknowledge the statement, and click Save exemption.
Important:
The waiver stays in effect until removed, revoked, or the employee leaves the company.
Delaware will notify you when an employee reaches 25% of the 12-month or 1,250-hour limit.
You will not get a notice in the mail about a past-due amount, but you'll need to pay it directly to the agency outside of Gusto.
You can choose to keep them on the waiver if you expect them to stay under the limit.
If you remove a waiver early, Delaware will calculate and add any past-due contributions to your next quarter's balance of total amount due.
For Gusto to keep your Delaware tax information up to date and help troubleshoot tax issues, you need to authorize Gusto as your third-party agent (TPA) for the agency below:
Delaware Department of Labor: Paid family and medical leave tax and unemployment tax.
Only the Account Administrator of your tax account can give Gusto access. If you have not yet done so, you'll need to register for a PFML account in myDelaware.
Sign in to your myDelaware account.
Select the DOL LaborFirst Employer tile.
In the hamburger menu on the top left, select Account Services, then select Add/Manage TPA Access.
On the Third-Party Administrators screen, select New to create a New Entity Relationship.
Enter the following info:
Third Party Administrator: Gusto
Access start date: Jan 1, 2025
Authorization type: Administrator
Select Save.
If the system does not let you add Gusto, the agency will need to add it for you. Email [email protected] with:
Your company name
TPA name: Gusto
Authorization type: Administrator
Once Gusto has access, let us know in your Gusto account:
On your Home page, click the to-do titled Give Gusto access to Delaware Paid Family and Medical Leave account.
Click the checkbox to let us know we have access.
Click Submit.
DE W1* (Delaware Withholding Income Tax Return, for monthly filers)
DE W1A* (Delaware Withholding Income Tax Return, for eighth monthly filers)
DE W1Q* (Delaware Withholding Income Tax Return, for quarterly filers)
DE W3/ DE W3A (Delaware Annual W/H Reconciliation)
DE UC-8 (Employer's Contribution and Wage Report)
State W-2 (Wage and Tax Statement)
DE New Hire Report
Various local returns
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: Delaware Division of Revenue (DOR)
Phone: (302) 577-8779
Workforce or Labor Agency: Delaware Department of Labor, Division of Unemployment Insurance (DOL)
Phone: (302) 761-8482
Learn how to close or reopen tax accounts.