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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 Hawaii agencies when registering for payroll taxes:
Hawaii Department of Taxation: Handles income tax withholding.
Hawaii Department of Labor and Industrial Relations (DLIR): Handles unemployment tax.
You have a few options for how to register. Keep each time frame in mind when planning your first payroll in Hawaii:
Register in person at a local Hawaii Department of Taxation office. You'll get your tax information the same day.
Register online. This can take 2β3 days, in full.
Register by mail. Registrations can take 3 weeks to process.
If you get stuck during registration, watch the agency's registration video.
Register online with the Hawaii Department of Taxation.
In the "Start" section, click Get Started.
You'll be taken to the Hawaii Business Express page.
Click Sign Up or Create an account to set up an online account.
Once you've created a Business Express login, you'll need to make sure a withholding account is associated with your business.
Go to Hawaii Tax Online.
Scroll to the Registration card and click Register New Business License.
In the BB-1 Business Application section, click BB-1 Basic Business Application.
Use Form BB-1 to request a withholding (WH) account number.
Adding Gusto as your third-party agent is not required for Gusto to file and pay withholding taxes on your behalf, but Gusto may request access as needed. Gusto will let you know if that's the case.
New employers in Hawaii need to register online with the Department of Labor and Industrial Relations (DLIR) within 20 days of hiring an employee. After you complete the registration, you'll get an email with:
Your account number
Your agency-assigned contribution rate
If you do not have your assigned rate yet, enter the new employer rate for Hawaii in Gusto in the meantime. Update the rate once you receive it.
If you do not know your account number or rate, call the agency at (808) 762-5752.
You'll also need to add Gusto as your third-party administrator (TPA) so Gusto can file and pay your unemployment taxes. See the Authorize Gusto with Hawaii agencies section.
Hawaii employers are required to provide Temporary Disability Insurance (TDI) coverage for eligible employees to help cover non-work-related injuries and illnesses.
Employers can choose to:
Cover the entire cost
Withhold up to 0.5% of eligible employees' wages (up to the annual maximum set by the state) to share the cost of coverage
Gusto can help withhold employee deductions, but does not handle TDI payments as these are sent to private TDI insurance carriers that your company selected and will pay directly.
All plans must be submitted to this TDI division for review with Form TDI-15 and must be approved before they can be put into effect.
If you choose to deduct 0.5% from any of your employees, Gusto will withhold the amount from their regular wages and leave that amount in your bank account. You'll need to pay the carrier directly.
Go to Taxes & compliance, then select Tax setup.
Find Hawaii Tax Setup and select Manage taxes.
Next to TDI Employee Deduction, click Edit.
Select one of the options:
If you want your employees to contribute to the TDI cost, select Yes, deduct up to 0.5% from employees.
If you want to cover the full cost of TDI, select No, don't deduct my employees for TDI.
Note: Gusto only withholds the employee deductions for TDI on regular payrolls. If you run an off-cycle payroll and need to withhold the TDI amount, set up a one-time employee deduction in their profile for 0.5% before you run the off-cycle payroll. Gusto will leave that amount in the company's bank account to include with the rest of your carrier payment.
Once you complete registration, take these steps:
Give Gusto third-party access (TPA)Β so Gusto can file and pay your unemployment taxes.
Enter your tax account information in Gusto once you add a valid Hawaii work address for one or more employees.
If you've already registered in Hawaii, 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:
Hawaii Department of Taxation: Handles income tax withholding.
Hawaii Department of Labor and Industrial Relations (DLIR): Handles unemployment tax.
If you still need to register, see the Register for HI income tax, unemployment tax, and temporary disability insurance (TDI) on your own section earlier in this article.
Once you add a valid Hawaii work address in Gusto for one or more employees, you can enter your state tax account information.
To add your Hawaii tax account information:
Go to Taxes & compliance, then select Tax setup.
Find Hawaii 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.
Next to Hawaii Withholding ID, click Edit to enter your withholding account number. This number uses the format WH-000-000-0000-01 (or -02).
If your account number starts with letters other than "WH" (like "GE"), the account number is not for withholding tax. You must request a withholding tax account number using the BB-1 Business Application on Hawaii Tax Online.
Notices from the Hawaii Department of Taxation, such as the Withholding Tax Return (Form HW-14)
If you cannot find your account number, call the agency at (800) 222-3229.
Hawaii Withholding IDs use the format WH-000-000-0000-01 (or -02). The agency is no longer accepting IDs formatted as W00000000-00.
If you have a number that starts with a W, or if you're having trouble finding the withholding account number that starts with "WH":
Go to Hawaii Tax Online.
Scroll to the Business section and click Search Tax Licenses.
In the Taxpayer Name field, enter your company name.
Click Search.
If you do not see an account number that starts with "WH," you need to request a withholding tax account number using the BB-1 Business Application on Hawaii Tax Online.
Next to Unemployment account number, click Edit to enter your unemployment account number.
Notices from the Hawaii Department of Labor and Industrial Relations, such as the Contribution Rate Notice or the Quarterly Wage Report (Form UC-B6)
If you cannot find your account number, call the agency at (808) 762-5752.
Next to Unemployment tax rate, click Edit to enter your unemployment tax rate. Do not include the E&T rate component β only enter the experience rate.
Notices from the Hawaii Department of Labor and Industrial Relations, such as the Contribution Rate Notice or the Quarterly Wage Report (Form UC-B6)
If you cannot find your rate, call the agency at (808) 762-5752.
If you do not have your assigned rate yet, enter the new employer rate for Hawaii in Gusto in the meantime. Update the rate once you receive it.
If you choose to deduct 0.5% from any of your employees, Gusto will withhold the amount from their regular wages and leave that amount in your bank account. You'll need to pay the carrier directly.
Go to Taxes & compliance, then select Tax setup.
Find Hawaii Tax Setup and select Manage taxes.
Next to TDI Employee Deduction, click Edit.
Select one of the options:
If you want your employees to contribute to the TDI cost, select Yes, deduct up to 0.5% from employees.
If you want to cover the full cost of TDI, select No, don't deduct my employees for TDI.
Note: Gusto only withholds the employee deductions for TDI on regular payrolls. If you run an off-cycle payroll and need to withhold the TDI amount, set up a one-time employee deduction in their profile for 0.5% before you run the off-cycle payroll. Gusto will leave that amount in the company's bank account to include with the rest of your carrier payment.
For Gusto to keep your Hawaii tax information up to date and help troubleshoot tax issues, you need to authorize Gusto as your third-party agent (TPA) for the agencies below:
Hawaii Department of Taxation: Income tax withholding.
Hawaii Department of Labor and Industrial Relations (DLIR): Unemployment tax.
Adding Gusto as your TPA is not required for Gusto to file and pay withholding taxes on your behalf, but online access is helpful in resolving notices and other issues on your behalf.
Gusto may request access to your withholding tax account from the state agency directly, and it typically will not require any action on your end. Gusto will reach out if unable to view your online withholding account and needs your help getting access.
To let Gusto file and pay your taxes, you need to give Gusto third-party access (TPA).
Here's how it works:
Create a Hawaii DLIR online account (if you do not already have one).
Once your account is set up, Gusto will send a request through the agency's website, and your company admin will get an email.
Accept Gusto's request in your Hawaii account and give Gusto the right roles or access (see below).
You can see and accept the request seven business days after creating your DLIR account.
Have the following information available before beginning the registration:
Hawaii Unemployment Insurance (UI) Account Number.
For existing Gusto customers, this can be found in Gusto by going to Taxes & compliance, selecting Tax setup, and scrolling to the Hawaii Tax Setup section.
For new Gusto customers, this number can be found on the annual tax rate notice from the DLIR.
Company's FEIN and Business Name
Recent quarter's Total Wages Paid in Hawaii (the website may ask you for information for more than one quarter).
For existing Gusto customers, you can find this amount by:
Going to the Company section and selecting Documents, then
Finding the Quarterly Package for the requested quarter(s).
The quarterly package should have your Hawaii Quarterly Wage, Contribution, and Employment and Training Assessment Report. Your Total Wages Paid can be found on Line 6.
Go to the DLIR website.
Scroll down and click Employer Registration.
Click Create Online Profile to create an employer online user profile (pages 1β11) for your existing unemployment account number. Complete the setup of the profile.
Within 7 business days, have your company Administrator sign in to Employer Services with their new login info and approve Gusto's TPA request. To do so:
On the right-hand side, click User Management.
Approve Gusto's access request.
Click Edit for Gusto and assign the following rights:
Account Inquiry
Enter Quarterly Wage Data
Submit Quarterly Wage Data
Forms
Payments
Request Credit Refunds
Notifications
Do not select Gusto for any of the following roles:
File Weekly Report of Low Earnings
Appeals
E-Response
If you have questions, contact the agency at (808) 762-5752.
Once you've authorized Gusto, sign in to Gusto and:
Go to Taxes & compliance, then select Tax setup.
Scroll to the Hawaii Tax Setup section.
Select Manage taxes.
Click Edit next to UI Registrations.
Select Yes, I have authorized Gusto.
Click Save.
If you're having trouble setting up third-party authorization, make sure you've completed all of the following:
Entered the unemployment account number in Gusto that matches what the agency has on file.
Assigned all necessary roles and access listed above.
If you get an error message while creating your profile in DLIRβs system, it could be because youβre missing a prior period filing. To fix this, call (808) 762-5752.
Use this list to find Hawaii's tax forms and where to view each one.
HI HW-14/ VP-1 (Hawaii Withholding Tax Return)
State W-2 (Wage and Tax Statement)
HI New Hire Report
To view these forms, go to Taxes & compliance, then Tax documents, and select the State tab.
HI HW-3 (Hawaii Annual Withholding Reconciliation)
You will not see the HI HW-3 form in Gusto. Hawaii only requires it as a physical form, and we e-file.
HI UC-B6 (Hawaii Quarterly Contribution)
Unemployment tax
To view these filings, sign in to the Hawaii agency portal.
To see what we've paid for you, run the Agency payments report.
Use this list to reach Hawaii'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 Hawaii Department of Taxation (DOT): (808) 587-4242
Unemployment insurance β Hawaii Department of Labor and Industrial Relations, Unemployment Insurance Division (DLIR): (808) 762-5752
Learn how to close or reopen tax accounts.