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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. 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.
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 W2 (Wage and Tax Statement)
MA 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: Massachusetts Department of Revenue (DOR)
Phone: (617) 887-6367
Workforce or Labor Agency: Massachusetts Department of Unemployment Assistance (DUA)
Phone: (617) 626-5075
Learn how to close or reopen tax accounts.