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To pay employees in a new state, where you’ve never operated or paid people, you must register with the state tax agencies there. This lets you pay and file the taxes you and your employees are liable for.
Watch this quick tutorial to learn more.
Registering for taxes may not be the only to-do when starting or running a business in a new state. Go to our blog for complete guides on starting and running a business in each state.
Gusto works with CorpNet to help you register your business in new states.
What you need to do
Cost and timeline
Prices vary by state. You can see the cost, process, and how long it takes in step four below.
What the process looks like
Third-Party Agent (TPA) authorization reminder
Some state agencies need Gusto to have TPA access to file and pay your taxes. Usually, CorpNet does not set this up, so you’ll have to do it yourself after registration.
Check the state registration articles to see if TPA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA is not needed right now.
Prices vary by state. You can see the cost, process, and how long it takes in step four below.
Some reminders
When your order is complete, you’ll receive emails from both Gusto and CorpNet. They’ll detail the next steps, which include:
Before your order is done, use the link in the state registration email from Gusto to check your order's status.
You can also check the status in your Gusto account:
If your order is still in progress, you can cancel from your Gusto account:
If you were already charged, you'll get a refund in a few business days.
If you canceled your order but would like to re-open it, contact CorpNet directly at (888) 449-2638. Or email them at [email protected].
Q: Can I run payroll before my registration is done?
A: Yes, you can usually run payroll before all state tax info is added in Gusto. You may be asked to enter tax rates and tax deposit frequencies, but can use temporary info.
Important reminders
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, CorpNet cannot help with registration. You'll need to work with a tax advisor and state agencies directly.
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: What if I'm not liable for unemployment tax yet?
A: If you want CorpNet to start setting up an unemployment account number before you're liable, you can:
Q: Can CorpNet help if the responsible party is international without an ITIN or SSN?
A: CorpNet might be able to help. Contact them at [email protected] or 1(888) 449-2638.
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 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 CorpNet 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 CorpNet for help at [email protected] or 1(888) 449-2638.
Q: Does CorpNet help with giving Gusto third-party access (TPA) for tax payments?
A: Some state agencies need Gusto to have TPA access to file and pay your taxes. Usually, CorpNet does not set this up, so you’ll have to do it yourself after registration.
Check the state registration articles to see if TPA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA is not needed right now.
Q: Does CorpNet help close state tax accounts?
A: No, you'll need to close the tax account yourself.
Click the dropdowns below to learn how to register with state agencies. Don't forget to give Gusto the Power of Attorney (POA) we'll need to pay certain taxes on your behalf.
Before you register online for Iowa state withholding tax, you'll need your Federal Employer Identification Number (FEIN). This is issued by the Internal Revenue Service (IRS).
Corporations, Partnerships, Limited Liability Companies, and Associations must also have each business owner’s full name and Social Security Number (SSN) available.
After you register, you'll get your tax account information in about 4-6 weeks. Keep this time frame in mind when planning your first Iowa payroll.
Once registered, you'll receive the below within 4–6 weeks:
For questions about registration, or to confirm your information, call the Iowa Department of Revenue at (515) 281-3114.
Once you add a valid Iowa work address to Gusto for at least one employee, you can add your tax account information:
Reminder
The Iowa IDR ID (formerly known as the Business e-file Number or BEN) is no longer required in Gusto for us to file and pay taxes, but it can help Gusto troubleshoot tax issues. If you're prompted to enter the number in Gusto, you can find your IDR ID by logging into your GovConnectIowa account.
Most companies become liable for Iowa unemployment insurance tax once the company has paid one Iowa-employee at least $1.00.
Liability thresholds can vary by business type (general, non-profit, etc). We recommend contacting the agency directly to confirm when your specific business will be liable.
If you need to run payroll and do not yet meet the above requirements, we just suggest you add the "New employer SUI tax rate" for Iowa in Gusto the meantime. Update it once you get your agency-assigned rate.
You should receive your unemployment insurance (UI) account number and tax rate (contribution rate) instantly after registering online.
If you cannot find your account number or rate, call the agency at (866) 239-0843.
Once a valid Iowa work address has been added in Gusto for one or more employee(s), you can add your tax account information:
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.
Iowa now manages its tax accounts using "GovConnectIowa." To access your tax information, you'll need to set up login credentials and enter an access code for GovConnectIowa.
If you have questions, call the agency at (515) 281-3114 or (800) 367-3388.
Your Permit Number should be a nine-digit withholding account number that starts with a "3."
The Iowa IDR ID (formerly known as the Business e-file Number or BEN) is no longer required in Gusto for us to file and pay taxes, but it can help Gusto troubleshoot tax issues. If you're prompted to enter the number in Gusto, you can find your IDR ID by logging into your GovConnectIowa account.
Find your UI Account Number by:
Find your unemployment tax rate by:
Rates are updated annually, and new rates are sent out the November before a new rate goes into effect, typically effective Jan 1.
Don't forget to give Gusto the Power of Attorney (POA) we'll need to pay certain taxes on your behalf.
If you don't have your assigned rate yet, enter the new employer rate for Iowa in Gusto in the meantime—update the rate once you receive it.
Once a valid Iowa address has been added in Gusto for one or more employee(s), you can add your tax account information:
If you edit a tax account number after payments or filings have already 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.
Power of Attorney (POA), similar to third-party authorization (TPA), is required for the below agency so we can make electronic payments on your behalf:
Gusto needs special authorization to get electronic payment authorization (ACH credit enrollment process)—to do so, we'll request a 17-digit ACH credit number from the agency on your behalf.
For our request to be successful, you'll want to verify that the following information you have entered in Gusto matches exactly what the agency has on file:
If your state employer registration is incomplete, we may also have trouble getting the ACH Credit code needed to make your payments.
Gusto will then complete your ACH Credit enrollment process.
There is no need for you to complete Form 53-0110 (Application for ACH Credit Transfer) if provided by the agency, we complete this process for you.
If Gusto does not have a signed Power of Attorney (POA) on file, or our previous attempts to gain access to your online account were unsuccessful, you may need to give us access directly in your MyIowaUI account.
Authorize Gusto to view your Iowa Workforce Department account
If both Gusto and your accountant (or partner) are completing the same third-party authorization form, we may inadvertently override each other's access.
If your accountant or partner selected “All Roles” on their authorization form (Power of Attorney form), this will remove Gusto's access.
Accountants should only select:
These two roles should give them the access they need to support your company without impacting Gusto's access.
If you're not sure the type of access you want your accountant or partner to have, you can find a list of what each role means in this Agent FAQ, or you can call the agency at (888) 848-7442 for more information.
How to find forms in your account
Asterisk info (if applicable)
If a form has a star (*) next to it, it will not show up in your tax documents in Gusto. These forms are usually payment vouchers or other forms (ex. coupons) filed electronically.
You can check if tax payments were made by running an "Agency Payments" report.