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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
📖 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.
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 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 2–3 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) 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 — 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 1–11) 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 DLIR’s system, it could be because you’re missing a prior period filing. To fix this, call (808) 762-5752.
HI HW-14/ VP-1 (Hawaii Withholding Tax Return)
HI HW-3* (Hawaii Annual Withholding Reconciliation)
You will not see the HI HW-3 form in Gusto. It's only required to be filed with physical forms, and Gusto e-files.
HI UC-B6* (Hawaii Quarterly Contribution)
Unemployment tax
State W-2 (Wage and Tax Statement)
HI New Hire Report
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: Hawaii Department of Taxation (DOT)
Phone: (808) 587-4242
Workforce or Labor Agency: Hawaii Department of Labor and Industrial Relations, Unemployment Insurance Division (DLIR)
Phone: (808) 762-5752
Learn how to close or reopen tax accounts.