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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. Don't forget to give Gusto third-party access (TPA) so we can file and pay your taxes for you.
You'll work with the following Massachusetts agencies when registering for payroll taxes:
Massachusetts Department of Revenue (DOR): Handles income tax withholding and Paid Family and Medical Leave (PFML). Accessed through MassTaxConnect.
Department of Unemployment Assistance (DUA): Handles unemployment tax and EMAC.
Companies pay business taxes to the Department of Revenue through MassTaxConnect. When you register, you'll also register for Paid Family and Medical Leave (PFML).
For help getting your business started in Massachusetts, try these business resources.
Learn what you need to register your business with MassTaxConnect.
If you already have a MassTaxConnect account, learn how to add withholding and PFML below.
If you already have an MA withholding account that starts with "WTH" but haven't had recent payrolls in Massachusetts, you may need to reactivate your account. Call the Department of Revenue at (617) 887-6367, Option 4.
Select the most applicable option from the table of contents. The agency has step-by-step instructions, screenshots, and video tutorials to help guide you.
Create a MassTaxConnect account.
Under New to MassTaxConnect, click Sign up.
Click Register a Business.
If you need help, call the Department of Revenue at (617) 887-6367.
Click Next and follow the prompts to register for both:
Employer withholding (the DOR accepts your Federal Employer Identification Number (FEIN) or another format like WTH-000...)
After you register, you'll receive your:
Account ID
Filing frequency (tax deposit schedule)
The agency assigns these to your company.
Under the "I want to" section, click Add an account type/new location.
Select both tax types if not already selected:
Employer Withholding tax
Paid Family and Medical Leave
Most companies must pay Massachusetts unemployment insurance tax once the company has:
Paid $1,500 in wages during a calendar quarter, or
Had one or more employees working on a permanent, temporary, or part-time basis on one or more days in each of 13 weeks during a calendar year
Your business type (general, nonprofit, etc.) can affect when you're responsible for paying this tax. Contact the agency to confirm when your company will be liable.
If you need to run payroll but don't yet meet the above requirements, you can still do so. Enter the new employer rate for Massachusetts in Gusto for now, and update the rate once you receive it.
The Department of Unemployment Assistance has a step-by-step registration guide you can follow.
Go to the Unemployment Services for Employers homepage.
Scroll to Online registration and click Register your Business.
Enter your company info, including:
Federal Employer Identification Number (FEIN)
User role
Initial liability questions
Business information, attributes, and addresses
Submit the registration when you've completed all prompts.
For most employers, registration is processed immediately. You'll receive an email with instructions on how to set up your web login through a single sign-on. You'll also receive your:
Unemployment account number
Unemployment contribution rate
COVID-19 Recovery Assessment Tax (RAT) rate, if applicable
For some employers (such as 501(c)(3) or religious employers), registration will go through an internal review first.
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 Massachusetts work address for one or more employees.
If you've already registered in Massachusetts, 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:
Massachusetts Department of Revenue (DOR): Handles income tax withholding and Paid Family and Medical Leave (PFML).
Department of Unemployment Assistance (DUA): Handles unemployment tax and EMAC.
If you still need to register, see the "Register with MA agencies on your own" section earlier in this article.
Once you add a valid Massachusetts work address in Gusto for one or more employees, you can enter your state tax account information.
To add your Massachusetts tax account information:
Go to Taxes & compliance, then select Tax setup.
Find Massachusetts 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 Withholding Account ID, click Edit to enter your MA Withholding Account ID. This number uses the format WTH-########-###.
Note: The agency used to accept either your Federal Employer Identification Number (FEIN) or Withholding Account ID for filing purposes. This is no longer the case. If Gusto was using your FEIN, you'll need to add your company's Withholding Account ID.
Pull up your company record.
Under Withholding Tax, find the box labeled Account.
Your Withholding Account ID will be in the box with the format WTH-########-###.
If you have questions about your account number or have trouble signing in to MassTaxConnect, contact the agency at (617) 887-6367.
Next to Filing Frequency, click Edit to enter the filing frequency the agency assigned you:
Weekly
Monthly
Quarterly
Annually
If you don't know your filing frequency yet, choose weekly (the fastest option) and update it once the agency assigns one.
If you have questions about your filing frequency, contact the agency at (617) 887-6367.
Next to Paid Family and Medical Leave Account ID, click Edit to enter your PFML account ID. This number uses the format PFM-########-###.
Pull up your company record.
Under Paid Family and Medical Leave, find the box labeled Account.
Your PFML Account ID will be in the box with the format PFM-########-###.
Next to Required to pay PFML employer portion?, click Edit and choose one of these options:
Yes, I'm liable for the employer portion of MA PFML effective Jan 1, 202X.
No, I am not liable for the employer portion of MA PFML effective Jan 1, 202X.
All employers with 25 or more covered individuals (including W-2 employees and 1099 contractors) in Massachusetts must pay the employer portion of this tax. Not sure if you're subject? Use the MA PFML calculator. You can edit your selection until March 31 each year.
Next to PFML employee portion paid by employer, click Edit to indicate if you want to pay some or all of the employee contribution for your employees. Enter a whole number between 0 and 100%.
Next to Unemployment Insurance Account Number, click Edit to enter your account number. This number is eight digits long.
The number appears on forms as "XXXXXXXX". Enter it in Gusto even if the field shows dashes between some digits.
If your account number is shorter than eight digits, add leading zeros.
Your Massachusetts UI Account Number (also called an Employer Account Number or EAN) appears on the notice you receive from the Massachusetts Department of Unemployment Assistance (DUA) each year.
If you can't find your account number, contact the agency at (617) 626-5075.
Next to UI contribution rate, click Edit to enter your unemployment contribution rate. Do not include:
The Workforce Training Rate
The COVID Recovery Assessment Rate (this is entered separately)
Your contribution rate appears on the notice you receive from the Massachusetts Department of Unemployment Assistance (DUA) each year.
If you don't have your assigned rate yet, enter the new employer rate for Massachusetts in Gusto in the meantime. Update the rate once you receive it.
If you can't find your rate, contact the agency at (617) 626-5075.
Next to COVID-19 Recovery Assessment Tax (RAT) rate, click Edit to enter your RAT rate.
This tax helps keep employer rates low after COVID-19 impacted unemployment funds. Key details:
Applies to new employers (non-construction and construction) for the first 3 years after receiving a new UI rate
Added on top of standard unemployment contribution rates (to reduce its impact, the agency recalculated the standard contribution rates)
In effect since January 1, 2021
Massachusetts EMAC is an additional contribution that some employers must pay. Check if your company is subject to EMAC.
Your company is exempt from paying EMAC if you've been an employer for three years or less. To set your exemption in Gusto:
Next to Employer Medical Assistance Contribution, click Edit.
Select Exempt.
Note: MA also exempts companies with an average of fewer than six employees. Gusto checks if you have more than six employees at the end of each quarter and calculates the tax if applicable. Don't apply an exemption if you've been in business for longer than three years but have fewer than six employees. We've got you covered.
Once you've been an employer in Massachusetts for three years, you may be subject to EMAC. To update your status in Gusto:
Next to Employer Medical Assistance Contribution, click Edit.
Select Not exempt.
Select your EMAC rate.
Find your EMAC rate on the "Notice of Employer's Unemployment Insurance Rate" you receive annually from the Department of Unemployment Assistance.
If you can't find your EMAC rate, contact the agency at (617) 626-5075.
Employers register for withholding (income) tax and PFML at the same time.
Gusto withholds both the employee and employer amounts (if applicable) and files with the MA Department of Family and Medical Leave at the end of each quarter.
For a full breakdown of Massachusetts family and medical leave requirements, check out this agency overview.
Not sure if your company is subject? Use the MA PFML calculator.
The total contribution rates for 2026 stay the same as 2025. Employers must send the total contribution to the state. Employers can deduct a portion from employee wages.
If you have 25 or more covered individuals: The total contribution is 0.88%.
Employers must pay at least 0.42% (the employer share).
Employers may deduct up to 0.46% from the employee's wages.
If you have fewer than 25 covered individuals: The total contribution is 0.46%.
Employers are not required to pay an employer share.
Employers can deduct the full 0.46% from the employee's wages.
Gusto withholds deductions from employee wages, but not from contractor payments. More info about contractors can be found below.
The employer portion of MA PFML is deducted at the end of each quarter. We'll notify you of the amount before any deductions happen. Employer contributions are based on employees' wages only, not contractors'. More info about contractors can be found below.
For more information, visit the MA PFML page for employers.
Go to Taxes & compliance, then select Tax setup.
Find Massachusetts Tax Setup and select Manage taxes.
Under State Tax Settings, next to Required to pay PFML employer portion?, click Edit.
Select Yes if you owe this tax, or No if you're not liable.
If you're subject, click Edit next to "Paid Family and Medical Leave Account ID" and enter your assigned account number.
A few reminders before you begin:
These settings apply to all employees in the state.
These settings only apply to PFML deductions in MA.
Settings go into effect the quarter following the one in which you make edits. For example, if you make an edit in July (during Q3), the company will start covering employee deductions starting October 1 (beginning of Q4).
Until then, you can give non-taxable reimbursements at the end of the quarter to repay all or part of the amount deducted from employees.
To set the percentage of employee PFML deductions you'd like to cover:
Go to Taxes & compliance, then select Tax setup.
Find Massachusetts Tax Setup and select Manage taxes.
Under State Tax Settings, next to PFML employee portion, click Edit.
Enter the percentage you'd like to cover.
Click Save.
Covered individuals under the MA PFML program include W-2 employees and some qualified 1099 contractors that perform services within your trade or business.
Independent contractors who meet the qualifications in this three-part test are not covered individuals under the MA PFML program.
Gusto doesn't support tax withholding for 1099 contractors. If you have a contractor that should be included in the MA PFML program under the agency's definition:
Withhold PFML for the individual outside of Gusto
Submit a separate file and payment for contractor premium withholdings
Private plans are not supported in Gusto, but if your plan exceeds MA PFML standards, you can set up an employer exemption in your Gusto account.
Learn how to authorize Gusto as your third-party agent (TPA) for the agencies below.
Once you give Gusto access, we can monitor your Massachusetts tax account and update it automatically when we find out about changes. This helps avoid notices, penalties, and interest.
Important: Only the master administrator of your tax account can give Gusto access.
Select Manage My Profile.
Go to the More tab.
Under Third Party Access, select View Access Requests From Third Parties.
Find Gusto's access request and select Approve.
For both your Withholding and Paid Family and Medical Leave accounts:
Under Give Rights, select the checkbox.
Under Granted Rights, set the access type to All.
Select Next.
On Summary, review the request and click Submit.
After you approve access with the agency, let us know in Gusto:
On your Home page, under Things to do, click Give Gusto access to your Massachusetts Department of Revenue account.
Click the checkbox to indicate you've completed the task in your tax account.
Click Submit.
Gusto can't pay or file taxes on your behalf until you give us access. You can give us access in two ways:
Complete the steps below before we send a request for access
Respond to Gusto's request for access in your online portal
Important: Only the master administrator of your tax account can grant Gusto access.
If you have questions or run into any issues, watch this video created by the agency.
Click the Additional Services tab.
Under Access management Panel, select Manage third party admin access.
Any current or historic TPA access is displayed here. If there's no "Access End" date, the listed TPA is current.
Gusto's TPA information shows as:
Name: ZenPayroll Inc.
Agent ID: 102976
In the top-right of the panel, click Add Third Party administrator.
In the "Agent ID" field, enter Gusto's agent ID: 102976.
Select Next.
Select the roles you'd like to grant access to. We need access to Revenue Functions.
We don't need access to Perform benefit charges protests or Wage and separation mailing.
Review and submit the request. A confirmation page will appear letting you know the request has been submitted.
After you grant access with the agency, let us know in Gusto:
On your Home page, under Things to do, click Give Gusto access to your Massachusetts Department of Unemployment Assistance account.
Click the checkbox to indicate you've completed the task in your tax account.
Click Submit.
If you have questions or run into any issues, watch this video created by the agency.
Click the Action center tab.
If we've already requested access, the first panel will display an action item that shows Respond to a Third Party Access Request.
Click Click here to respond to a third party access request. You'll see a page to review the Third Party Access request showing:
Third party name: ZenPayroll Inc.
Third party ID: 102976
Third party email: [email protected]
Select Yes, then click Next.
Select the roles you'd like to grant access to. We need access to Revenue Functions.
We don't need access to Benefit charges view or protest or Wage and separation mailing.
Select Next.
Confirm you'd like to grant access and click Submit. A confirmation page will appear letting you know the request has been submitted.
If Gusto is having trouble getting access to your account, verify that the following information in Gusto matches what's on file with the MA Department of Unemployment Assistance:
Official company name
Company address
Federal Employment Identification Number (FEIN)
Unemployment Account Number
If you're still having trouble, contact the agency at (617) 626-5075.
Use this list to find Massachusetts's tax forms and where to view each one.
M-3 (Reconciliation of Massachusetts Income Taxes Withheld for Employers)
Paid Family & Medical Leave Quarterly Filings
Quarterly Employment and Wage Detail Report
Unemployment tax, EMAC, and workforce training fund
State W-2 (Wage and Tax Statement)
MA New Hire Report
To view these forms, go to Taxes & compliance, then Tax documents, and select the State tab.
To view these filings, sign in to the Massachusetts agency portal.
To see what we've paid for you, run the Agency payments report.
Use this list to reach Massachusetts'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 — Massachusetts Department of Revenue (DOR): (617) 887-6367
Unemployment insurance — Massachusetts Department of Unemployment Assistance (DUA): (617) 626-5075
Learn how to close or reopen tax accounts.