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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 Maryland agencies when registering for payroll taxes. You register with each one separately:
Comptroller of Maryland: Handles income tax withholding.
Maryland Department of Labor: Handles unemployment tax.
Maryland uses two agencies for payroll taxes, and you register with each one separately:
Comptroller of Maryland: Register through Maryland Tax Connect to get your Central Registration Number (CRN) for income tax and your withholding deposit schedule (filing frequency).
Maryland Department of Labor: Register through BEACON, the Maryland Unemployment Insurance Portal for employers to get your Employer Account Number for unemployment tax.
Registering with the Comptroller does not open your unemployment insurance account. You need to register with both agencies before Gusto can file and pay all of your Maryland payroll taxes.
Business taxpayers in Maryland can use a service called Maryland Tax Connect from the Office of the Comptroller. For more registration resources, visit the Comptroller's Starting a New Business in Maryland page.
Register online, and you should get your tax account information in 3–5 business days. Keep this timeline in mind when planning your first payroll for Maryland employees.
If there are any problems with the information you submit, it might take longer.
If you get stuck while registering, try the agency's step-by-step guide or watch their walkthrough video.
Go to Maryland Tax Connect.
Under Quick Links, click Register a Business in Maryland - Combined Registration Application.
Read the Terms and Conditions of Service, click the checkbox at the bottom of the page to agree, then click Next.
Enter your business contact information.
Enter your business demographic information (for example, business FEIN, entity type, ownership type, legal business name, trade name, mailing address, and phone number).
Select a reason for applying (for example, "New Business").
Check the box for Employer Withholding Tax Account, then complete any remaining applicable fields.
Complete the remaining fields and the rest of the registration:
Provide the NAICS code for your business activity. Click the Help Icon for resources.
For Related Parties, enter at least two owners, partners, corporate officers, trustees, or members related to the business. If you're registering as a Sole Proprietorship, only one name is required.
You do not need to request paper coupons in the mail.
Complete the Signatory and Power of Attorney page. This must be done by the business owner or authorized preparer.
Carefully review the Summary Page to confirm the information entered is accurate.
On the Signature Page, select Yes to acknowledge that you're authorized to submit CRA on behalf of the entity.
Print or keep your confirmation number for future reference. You'll get one if your submission is successful. After you successfully submit your business application, you'll get an acknowledgment email.
The Combined Registration Application sets up your Comptroller tax accounts. It does not open your unemployment insurance account — register for that with the Maryland Department of Labor, below.
If you have not received your CRN or withholding deposit schedule (filing frequency) within 7 business days, you can get them sooner by contacting the Comptroller at (800) 638-2937 or emailing [email protected] or [email protected].
Your CRN usually starts with a 0, 1, 2, or 3.
The Maryland Department of Labor assigns your Employer Account Number for unemployment tax. The Comptroller cannot give you this number.
Go to BEACON, the Maryland Unemployment Insurance Portal for employers.
Select Register an Account and follow the prompts.
For what else Maryland expects from new employers, see the Department of Labor's New Employers page.
Your Employer Account Number usually starts with 00 or 01.
To reach either agency by phone, see Agency websites and contact info later in this article.
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 Maryland work address for one or more employees.
If you've already registered in Maryland, 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:
Comptroller of Maryland: Handles income tax withholding.
Maryland Department of Labor: Handles unemployment tax.
If you still need to register, see the Register for MD income and unemployment tax on your own section earlier in this article.
Once you add a valid Maryland work address in Gusto for one or more employees, you can enter your state tax account information.
To add your Maryland tax account information:
Go to Taxes & compliance, then select Tax setup.
Find Maryland 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 already been made, there may be tax implications. Learn how to pull reports in Gusto that can help you correct historical tax issues related to tax account number updates.
Next to Central Registration Number, click Edit to enter your eight-digit CRN. This number usually starts with a 0, 1, 2, or 3.
The letter you received from the Comptroller of Maryland after registering
Your Withholding Tax Returns (Form MW506 or MW508)
If you cannot find your CRN, contact the agency at (410) 260-7980.
Next to Filing Frequency, click Edit to enter your withholding deposit schedule. The agency assigns one of these filing frequencies: accelerated, monthly, quarterly, or annual.
Most new employers have a monthly or quarterly filing frequency, based on what was chosen during registration.
The letter you received from the Comptroller of Maryland after registering
If you cannot find your filing frequency, contact the agency at (410) 260-7980.
Note: The agency may decide your business needs a different deposit schedule. If this happens, they'll send an additional letter with your new deposit schedule. You can update this in the Taxes & compliance section of Gusto.
Next to Employer Account Number, click Edit to enter your 10-digit unemployment account number. This number usually starts with 00 or 01.
Any notice from the Maryland Department of Labor, Division of Unemployment Insurance
Form DLLR/DUI 15 (your Unemployment Insurance Quarterly Contribution Report)
The top of your annual tax rate notice mailed by the agency in December each year
Your account in BEACON, the Maryland Unemployment Insurance Portal for employers
If you cannot find your account number, call the agency at (800) 492-5524, then press 1, followed by 6.
Next to Unemployment Rate, click Edit to enter your unemployment contribution rate.
The Contribution Rate box of your current year's Experience Rate Notice from the Maryland Department of Labor
If you cannot find your rate, call the agency at (800) 492-5524, then press 1, then 2.
If you do not have your assigned rate yet, enter the new employer rate for Maryland in Gusto in the meantime. Update the rate once you receive it.
In Maryland, county taxes are paid and filed together with state income tax in one lump sum to the Comptroller of Maryland. When payroll is run, we'll automatically add the county-specific tax amount (based on an employee's home address) to the state income tax amount.
Note: Maryland county taxes are based on where an employee lives, not where they work.
If you or an employee compares the income tax from a Gusto paystub to another provider's, Gusto's withholding may appear higher because the previous provider may have separated county taxes. Look at your combined withholdings from previous providers before comparing them to a Gusto paystub.
Employees and employers can get tax estimates and find the current year's tax rates by using the agency's estimated payment and withholding calculators.
The FAMLI program lets workers take paid time off to care for themselves or their family while keeping their job. They can get up to $1,000 per week for up to 12 weeks.
On April 7, 2025, the Maryland General Assembly passed a final bill postponing the implementation dates for Maryland's FAMLI program. The governor signed this into law in May.
This is the new timeline:
Payroll deductions start January 1, 2027
Leave benefits begin January 3, 2028
To keep your Maryland tax information up-to-date and help fix tax problems, authorize Gusto as your third-party agent (TPA) for the agencies below.
To become your agent for unemployment tax, a signed power of attorney form authorizing Gusto must be submitted to the Maryland Division of Unemployment Insurance. To make this easy, we'll prepare the form for you to e-sign in Gusto, then submit it to the agency for you.
The form will be ready to sign once the following is completed in Gusto:
A company work address is added in Maryland
A Maryland work address is assigned to an employee's work location in their profile
The Maryland state tax information is filled out in the Taxes & compliance section of your account
The Maryland employee's state-specific tax elections have been made
To sign the form in Gusto:
Have the company signatory sign in to their profile in Gusto.
On the Home page, click the applicable MD to-do item.
The form we'll submit is the Maryland Division of Unemployment Insurance's Employer Power of Attorney Authorization Form Designating Agent. You do not need to fill it out or submit it yourself—we'll submit it to the agency directly on your behalf.
To keep your Maryland withholding information up-to-date and help troubleshoot tax issues, you'll need to authorize Gusto with the Comptroller of Maryland.
The administrator on the Maryland Tax Connect account must follow the steps below to give Gusto access. If you run into any issues, follow this step-by-step guide from the agency.
Log in to Maryland Tax Connect.
Open the Profile Information dropdown, then select Manage Authorized Users.
Click Add New Authorized User.
Enter Gusto's User ID and Registration Confirmation Number:
User ID: Gusto
Registration Confirmation Number: TU00000346714
Click Next.
Under the Taxpayer Authorizations section, select your company or account by clicking the checkbox in the View column on the left.
Important: You'll need to grant access to both the Withholding/Filing and the Withholding/Reconciliation accounts.
Enter a start date. We recommend using the first day in the quarter you started running payroll with Gusto.
For example, if March 4, 2025 was your first payroll with Gusto, enter January 1, 2025 as the start date (the beginning of Q1).
Do not enter an end date at this time.
In the Assignments section, select Taxpayer Functions under Authorize Manually.
Select the following as the Authorized Taxpayer Functions:
Document upload service request
File returns for all taxes
Make payments for all taxes
View tax type specific notices for all taxes
Click OK.
In the Assignments section, select Account Authorizations under Authorize Manually.
Select the Account Type as Withholding Tax.
Enter a start date. We recommend using the first day in the quarter you started running payroll with Gusto.
For example, if March 4, 2024 was your first payroll with Gusto, enter January 1, 2024 as the start date (the beginning of Q1).
Do not enter an end date at this time.
Click Account Functions and select the following as the Account Authorizations:
File Returns
Make Payments
View Tax Type Specific Notices
Click OK.
After selecting all the assignments (Taxpayer Functions and Account Authorizations), click Save.
Note: Gusto only needs access to the Withholding account. We do not need access to the other accounts (Sales and Use, Motor Fuel, etc.).
After clicking Save, you'll see a New User Confirmation page. Verify that all the Taxpayer Functions and the Account Functions match what's outlined above, then click Confirm.
After you successfully grant access to the new authorized user, you'll see a confirmation message. Both the Administrator and Authorized User will receive a confirmation email with Authorization Information.
Use this list to find Maryland's tax forms and where to view each one.
MW506/ MW506M (Employer Return of Income Tax Withheld)
Tax coupons available in Gusto beginning Nov 2024.
MW508 (Annual Employer Withholding Reconciliation Report)
MD DLLR/ DUI 15 (Maryland Unemployment Insurance Quarterly Employment Report)
State W-2 (Wage and Tax Statement)
Maryland Employee New Hire Report
At this time, we do not file new hire reports for contractors
To view these forms, go to Taxes & compliance, then Tax documents, and select the State tab.
To see what we've paid for you, run the Agency payments report.
Use this list to reach Maryland's payroll tax agencies by phone or website. It covers income tax withholding, unemployment insurance, and paid family and medical leave.
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 — Comptroller of Maryland, Revenue Administration Division (RAD): (800) 638-2937
Unemployment insurance — Maryland Department of Labor, Division of Unemployment Insurance (DOL): (410) 767-2412
Paid family and medical leave — Maryland Paid Leave Program. Email: [email protected]
If MarylandSaves notifies you about enrollment, you can automate payroll deductions and streamline your plan administration by integrating your company’s auto-IRA with Gusto.
Learn how to close or reopen tax accounts.