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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.
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 — we accept legal and government mail for your business in that state.
Change of registered agent — we file the change so your mail comes to us.
Foreign qualification — we register your business with the Secretary of State so you can legally work there.
State tax registration — 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 — we file the yearly report that keeps your business in good standing.
Government mail monitoring — 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 — 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 → Business compliance → 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 — $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 — $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 Kentucky agencies when registering for payroll taxes:
Kentucky Department of Revenue (DOR): Handles income tax withholding.
Kentucky Office of Unemployment Insurance: Handles unemployment tax.
Local Kentucky tax agencies: Handle various local taxes. See the Register for KY local taxes on your own section for details.
You should receive your account number and tax deposit schedule 1–2 days after registering online.
Review what you'll need to register on the Kentucky Department of Revenue website.
Complete your online registration via the Kentucky Business OneStop portal. Click Create new Account to get started.
If you need help, contact the agency at (502) 564-3306.
If you're asked whether you're using a common paymaster or pay agent, select No.
Most companies become liable for Kentucky unemployment insurance tax once the company has:
Paid $1,500 in wages during a calendar quarter
Had at least one Kentucky employee working for any part of the week for 20 or more different weeks during a calendar year
Liability thresholds can vary by business type (general, nonprofit, and similar). Contact the agency directly to confirm when your specific business will be liable.
If you need to run payroll but do not yet meet the above requirements, you can still do so. Enter the new employer rate for Kentucky in Gusto for now, and update the rate once you receive it.
In August 2026 Kentucky moved unemployment tax to the new Kentucky Unemployment Insurance Portal (KUIP). Employers and third-party administrators will now use KUIP for Kentucky unemployment tax filing, payments, and account management.
If you're registering for Kentucky unemployment tax for the first time, register through Kentucky’s KUIP employer portal:
Navigate to the Kentucky Unemployment Insurance Self-Service web page and click the Employer Login button to access KUIP.
On the Login screen, click No account? Create User Login button to create a new user account.
On the Create Account screen, enter the email address you’d like to use for your account. Then click Next.
Follow Kentucky’s guidance to create your KUIP login and complete your employer account setup.
After you register, Kentucky will assign your Kentucky unemployment account number in the new KUIP format.
If you already registered and have a Kentucky unemployment account, do not register a second unemployment account. You should have received details in your old KEWES account and by mail from the agency. Follow Kentucky’s guidance to activate your existing employer account in KUIP.
During registration, you’ll need the new 9-digit KEIN and the 8-digit activation code Kentucky provided by mail and in KEWES.
Employers must activate their own KUIP account. A third-party administrator cannot complete employer account activation for you.
Visit Kentucky’s KUIP resources page for the latest setup guides, videos, and job aids.
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 Kentucky work address for one or more employees.
Kentucky employers may also be subject to local taxes depending on where their employees work. Expand the sections below to learn more about each local tax type.
Employers are required to withhold local city or county taxes in cities where their employees work. This is often called an Occupational License Fee (OLF).
The OLF is imposed for the privilege of engaging in any business, professional occupation, or trade within city limits, regardless of the legal residence of the employee. Tax rates vary based on where the business activity occurs. For city-specific requirements, contact the applicable local agency directly.
Visit the Kentucky OneStop website to learn more about Occupational Licenses.
The Louisville Metro Revenue Commission requires employers to create an eMINTS account on the city's website. Gusto needs access to your account to file and pay the tax on your behalf.
To give Gusto access:
If you have not done so already, create a master username on the main eMINTS page.
Gusto will request access to your account.
You'll receive a notice in the mail from the Louisville Metro Revenue Commission with an access code.
Send the notice and access code to Gusto.
After Gusto receives the code, Gusto will complete accessing your account.
Some counties (for example, Boone, Cumberland, Fayette, Marshall, Scott, and Warren) impose a school tax for work performed in the county by residents. Check the KY Department of Education website for the most current list of localities.
Several Kentucky counties impose a tax for all work performed in any city within their county, regardless of the legal residence of the employee.
If the business is inside the city limits of a city that imposes a tax, the employer may only owe license fees to the city and may not owe the county license fees.
If the business is located outside the city limits, the employer needs to register for and pay the county taxes.
Visit the Kentucky districts and localities page for a full list. If you have questions about your company-specific requirements, contact the applicable agency directly.
Corbin city spans three counties (Knox, Whitley, and Laurel), but tax requirements differ by county:
Corbin, Knox County: 1% Corbin city tax and 1% Knox County tax, for a total of 2% per employee (paid to Corbin city).
Corbin, Whitley County: 1% Whitley County tax only.
Corbin, Laurel County: 1% Whitley County tax only.
If an employee lives in Whitley or Laurel county and you see both city and county taxes being withheld, you can set up an employee exemption for the Corbin city tax, as only the county tax applies.
If you've already registered in Kentucky, 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:
Kentucky Department of Revenue (DOR): Handles income tax withholding.
Kentucky Office of Unemployment Insurance: Handles unemployment tax.
Local Kentucky tax agencies: Handle various local taxes.
If you still need to register, see the Register for KY income and unemployment tax on your own and Register for KY local taxes on your own sections earlier in this article.
Once you add a valid Kentucky work address in Gusto for one or more employees, you can enter your state tax account information.
To add your Kentucky tax account information:
Go to Taxes & compliance, then select Tax setup.
Find Kentucky 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 Withholding Account Number, click Edit to enter your withholding account number. This number is six digits. If you have a nine-digit number with three leading zeros, omit the zeros when entering it in Gusto.
Any return from the Kentucky Department of Revenue, such as Form K-1, K-1E, K-3, or K-3E
If you cannot find your account number, contact the agency at (502) 564-3306.
Next to Filing Frequency, click Edit to enter your agency-assigned tax filing frequency. The agency will assign one of the following schedules:
Twice monthly
Monthly
Quarterly
Annually
Note: If you do not know your filing frequency, select the most frequent schedule for now to prevent late payments or penalties. Contact the agency at (502) 564-3306 to confirm your assigned frequency, then update it in Gusto.
Your registration confirmation from the Kentucky Department of Revenue
If you cannot find your filing frequency, contact the agency at (502) 564-3306.
In August 2026, Kentucky converted existing unemployment account numbers to a new nine-digit KEIN format. Existing employers will keep the same base number, but the KEIN will automatically be converted to the new KUIP format.
In your Gusto account, next to Kentucky Employer Identification Number, click Edit to enter your nine-digit KEIN in Kentucky's new KUIP format.
Use the new nine-digit KEIN format issued for KUIP.
Do not enter an older KEIN from the legacy Kentucky unemployment system.
If you already had a Kentucky unemployment account, use the converted KEIN Kentucky issued for the new portal. Employers and TPAs can no longer use the old KEIN format to file wages or make payments.
Your KUIP account
The mailed notice from Kentucky with your new KEIN
A pop-up message in your KEWES account
If you cannot find your account number, contact the agency at (502)-564-3326.
Next to Adjusted UI Tax Rate, click Edit to enter your adjusted UI tax rate.
Note: Do not include the surcharge rate for the Service Capacity Upgrade Fund (SCUF). Gusto automatically adds this to your rate in the years it is in effect.
Your Notice of Contribution Rate from the Kentucky Division of Unemployment Insurance: look for the UI Rate section
If you cannot find your rate, contact the agency at (502) 564-2272.
If you do not have your assigned rate yet, enter the new employer rate for Kentucky in Gusto in the meantime. Update the rate once you receive it.
For Gusto to keep your Kentucky 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:
Kentucky Department of Revenue (DOR): Withholding tax.
Kentucky Office of Unemployment Insurance (KUIP): Unemployment insurance tax
If Gusto is having trouble gaining access to your account, call the agency at (502) 564-7287 and verify that the following information in Gusto matches exactly what the DOR has on file:
Official company name and address
Federal Employer Identification Number (FEIN)
Withholding Tax Account Number
If all information matches, contact the agency directly to resolve why Gusto cannot successfully pay and file tax returns.
Effective Q3 2026, Gusto will need to be authorized as your third-party administrator (TPA) in KUIP in order to pay and file your Kentucky unemployment taxes.
Note: If you previously granted Gusto access, that access should have transitioned to the new portal. If we do not have access to your account, we will submit a Third Party Authorization (TPA) request.
How the KUIP TPA process works:
First, set up or activate your employer account in KUIP and confirm your new KEIN.
If we weren't able to get access to your account during the portal transition, we'll request TPA access in KUIP.
Kentucky will notify you by mail or email when the request is sent.
You will also get a notification in the Notification Center on your KUIP employer homepage.
To accept our request, scroll to Associated TPAs.
Click the arrow to the right of the TPA authorization hyperlink to expand the section.
Click the Authorize button.
You’ll see Gusto’s Agent Name and Agent ID. Our Agent ID is 8411.
Click Approve, then click Submit.
You have 14 calendar days to approve or deny the request.
If you do not respond within 14 calendar days, Kentucky automatically grants the requested access.
You can view TPA details in your KUIP account by going to Account Maintenance, then Maintain Third Party Administrator (TPA) Authorization.
Important: Gusto cannot file or pay Kentucky unemployment tax in KUIP until TPA access is approved or automatically granted.
Use this list to find Kentucky's tax forms and where to view each one.
K-1 (Employer's Return of Income Tax Withheld)
For one day, twice monthly, monthly, or quarterly filers
K-3 (Employer's Return of Income Tax Withheld)
For annual filers
UI-3 (Employer's Quarterly Unemployment Wage and Tax Report)
State W-2 (Wage and Tax Statement)
KY New Hire Report
Various local returns
To view these forms, go to Taxes & compliance, then Tax documents, and select the State tab.
KY0033-138 (Occupational License Fee - Mercer County)
42A806 (Transmitter Report for Filing Kentucky Wage Statements)
To view these filings, sign in to the Kentucky agency portal.
To see what we've paid for you, run the Agency payments report.
Use this list to reach Kentucky'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 — Kentucky Department of Revenue (DOR): (502) 564-7287
Unemployment insurance — Kentucky Division of Unemployment Insurance: (502) 564-2168
Learn how to close or reopen tax accounts.