Payroll blocked? Check out our payroll blocked troubleshooting tips article.
Reminder
Gusto only reports your payroll withholding, so you'll need to file Form 5080/5081 outside of Gusto and include sales tax details for the amount of "sales and use tax" owed—learn more below.
Use the dropdowns below to learn more, or use CMD + F (or CTRL + F) to search for keywords throughout the article.
To pay employees in a state where you’ve never operated or paid people before, you must register with the relevant state tax agencies. This lets you pay and file the taxes you and your employees are liable for.
Watch this quick tutorial to learn more.
Once a work address has been added in a new state and a new employee has been hired and assigned a work address in that state, you can get registration assistance in Gusto.
Pricing varies by state—get started below and during step 4, you'll review the price, process, and estimated timeline to completion.
Here’s a snapshot of the process:
CorpNet can walk you through entering any info that they themselves do not enter in Gusto on your behalf.
After you send your order, we’ll email you with status updates and add your order total to your next monthly invoice.
When your order is complete, you’ll receive emails from both Gusto and CorpNet. They’ll detail the next steps which include:
Before your order is completed, you can use the link in the state registration confirmation email from Gusto to check the status of your order.
You can also check the status in your Gusto account:
If your order is still in progress, you can cancel from your Gusto account:
Q: Can I run payroll for my employees before my registration is complete?
A: Not in most cases—you typically need to have a withholding account number and required tax rate(s) in Gusto before you can run payroll.
If you’re registering in a state where there is no income tax withheld, you can use the state-specific “new employer rate” in this article until you receive your company-assigned rate from the agency.
Q: Can I use Gusto to register in a new state if I don't have a Federal Employer Identification Number (FEIN) yet, or if the business is undergoing a merger or acquisition?
A: No–you must have a FEIN entered in Gusto to order a state tax registration.
If your company is going through a merger or being acquired, CorpNet cannot assist with registration. Work with your tax advisor and state agencies directly to navigate this change and register your business.
Q: Where can I see all my tax information?
A: You can see all tax details in the following locations:
Gusto’s state tax registration service does not contain tax, legal, financial, or HR advice. Since rules and regulations change over time and can vary by location, consult a lawyer, HR expert, or accountant for specific guidance.
Q: What if I'm not liable for unemployment yet (referring to the minimum wage threshold in some states)?
A: In order for CorpNet to start the registration process for an unemployment account number before you're liable, you can:
Q: Can I register with CorpNet if the responsible party is based internationally and does not have an ITIN/SSN?
A: CorpNet may be able to assist directly—reach out to [email protected] or call 1(888) 449-2638.
Q: My company is a nonprofit—why can't I enter 0% in the responsible party section, or add a commercial owner?
A: Some states have a 1% minimum for the responsible party ownership percentage. Those states are: ID, KS, MN, OH, SC, DC, DE, MD, NJ, NY, and RI. Registration orders will need to be placed directly through CorpNet, outside of Gusto, or you'll need to register directly with the agency yourself.
Some states require that an individual owner be listed on the account. If you're a non-profit and not sure how to proceed, contact CorpNet directly at [email protected] or call 1(888) 449-2638.
Q: Does CorpNet help with state tax account closures?
A: No—you'll need to close the tax account on your own.
Click the dropdowns below to learn how to register for various tax types in Michigan.
During registration, you'll be asked if you're using a payroll service and need a power of attorney form to be filled out. Once you've assigned a MI work address to your first MI employee, and entered MI tax account information in Gusto, we'll generate the Power of Attorney (POA) form for you to electronically sign.
If you have trouble registering your business or have questions regarding the status of your application, contact the Registration Unit at (517) 636-6925.
Reminder
Third-party authorization is required so we can pay and file your withholding taxes. We'll attempt to access your Withholding Tax account online, behind the scenes.
If we're unable to get the access we need using the information we have on file, we'll notify you and request some more information—zip code, last payment amount, or most recent total tax due.
Once a valid Michigan work address has been added in Gusto for one or more employee(s), you can add your tax account information:
You'll need to register with the Michigan Unemployment Insurance Agency to receive the unemployment account numbers and tax rates—you should receive your Employer Account Numbers and rates a few days after registering.
For questions about your unemployment tax number or rate, contact the agency at (855) 484-2636, option 5.
Once a valid Michigan work address has been added in Gusto for one or more employee(s), you can add your tax account information:
Some agencies require special authorization for Gusto to pay or file your taxes. To make sure we have authorization, make sure the following information you entered in Gusto matches what's on file with the Michigan Unemployment Insurance Agency:
If we're having trouble gaining access to your account, call the agency to troubleshoot at (855) 484-2636, option 5.
Michigan local taxes are assessed based on where an employee works, and where they live. However, it's only mandatory for employers to deduct and remit the taxes for the locality where the wages are earned (where they worked).
Every employer is required to withhold taxes if they:
If an employer is doing business in a city with a local income tax, they're required to withhold from the following employees:
Gusto handles the payment of these taxes, but as a business owner, you'll need to register with the city/cities that your employees are working in—registration in each city is unique.
Click a city name below to find the form that needs to be mailed to that city to register—the most up-to date registration form resources can be found on the Department of Treasury website.
Multiple cities in Michigan levy an income tax on residents and nonresidents who work in these specific cities. These taxes are typically 1% income tax on residents, and 0.5% on nonresidents.
If you have multiple business locations in Michigan, each of your employees will have a "Predominant Work City" field in their Gusto profile.
Employees must identify their predominant work city on the city's W-4 by December 1 for the next calendar year, then update their Gusto profile.
There are a few cases where an employee may not have an option to select a predominant work city in Gusto, or where a predominant work city doesn't technically exist:
Employees can view or update their "Predominant Work City" in Gusto
Admins can update this on employees' behalf
If you already know the MI employee who needs a predominant work city update, you can access their profile from the Team Members section of your account.
To view all employees associated with Michigan, to find the employee profile that needs updating:
If you've already registered in the state, you'll need to enter your tax account details in Gusto to pay employees.
You'll need to be registered with one or more of the below agencies in order for Gusto to file and pay taxes on your behalf:
If you still need to register, click the applicable dropdown above in this article to learn more.
If you've run payroll in the past in Michigan, you can find your 9-digit MI Withholding Tax ID Number (XX-XXXXXXX) on notices you've received from the Department of Treasury.
If you have questions, call the agency at (517) 636-6925.
Unemployment tax account number
If you've run payroll in Michigan in the past, you'll find your 10-digit MI UIA Account number (XXXXXX XXX) on notices that you've received from the agency.
If you're unsure of your ID, call the agency at (855) 484-2636, option 5.
Unemployment tax rate
Your total unemployment rate appears on the bottom right of Form UIA 1771, the "Tax Rate Determination For Calendar Year" notice that you receive annually from the Unemployment Insurance Agency—this rate includes the Obligation Assessment (OA) Tax.
If you're unsure of your rate, call the agency at (855) 484-2636, option 5.
Multiple cities in Michigan levy an income tax on residents and nonresidents who work in these specific cities. These taxes are typically 1% income tax on residents, and 0.5% on nonresidents.
If you have multiple business locations in Michigan, each of your employees will have a "Predominant Work City" field in their Gusto profile.
Employees must identify their predominant work city on the city's W-4 by December 1 for the next calendar year, then update their Gusto profile.
There are a few cases where an employee may not have an option to select a predominant work city in Gusto, or where a predominant work city doesn't technically exist:
Employees can view or update their "Predominant Work City" in Gusto
Admins can update this on employees' behalf
If you already know the MI employee who needs a predominant work city update, you can access their profile from the Team Members section of your account.
To view all employees associated with Michigan, to find the employee profile that needs updating:
Once a valid Michigan work address has been added in Gusto for one or more employee(s), you can add your tax account information:
Learn how to authorize Gusto as your third-party agent (TPA) for the agencies below.
Third-party authorization is required so we can pay and file your withholding taxes.
We'll attempt to access your Withholding Tax account online, behind the scenes.
If we're unable to get the access we need using the information we have on file, we'll notify you and request some more information—zip code, last payment amount, or most recent total tax due.
Amendments often call for a different filing method than original returns. This agency requires that we have third-party access to your online Michigan Web Account Manager (MiWAM) in order to submit an amendment on your behalf.
Form 5080/5081 are the monthly, quarterly, and annual forms filed by businesses operating in Michigan. These forms are combined returns, meaning they include payroll withholdings alongside sales tax reporting.
Because this form includes reporting of sales tax and this is information that Gusto does not have, we will file this form with only the withholding tax information.
Since Gusto will only be reporting your payroll withholding, you will need to file an additional Form 5080 / 5081 with the completed sales tax details for the amount of sales and use tax owed. If sales and use tax are not owed, enter zeros on this form for these amounts. Leave the withholding tax portion of the form blank.
Michigan will then be able to combine the sales and use tax amounts from your filed form with the payroll withholding amounts from the form filed by Gusto.
Form 5080
The sales tax portion must be filed no later than the 20th of the month following the end of the return period (e.g. monthly filers must file by the 20th day of the following month and quarterly filers file by the 20th day after the end of the quarter).
If you owe sales and use tax in Michigan, this form must be completed either by paper or electronically. If you complete it by paper you should mail it to the address below:
Michigan Department of Treasury
P.O. Box 30324
Lansing, MI 48909-7824
Form 5081
This annual form is due by the end of February, and can be filed electronically via the state website or on paper and mailed to:
Michigan Department of Treasury
P.O. Box 30401
Lansing, MI 48909-7901
If the due date falls on a weekend or holiday, the due date will be the business day following the weekend or holiday.
Where to find the forms available in your account
Head to the Taxes & compliance section and select Tax documents.
Use the tabs on the page to toggle between federal, state, W-2, and 1099 forms.
Asterisk info—only if applicable
Filings marked with an asterisk (*) will not appear in your Tax documents tab—these are coupons, payment vouchers, or other forms that are filed electronically.
You can confirm tax payments were made by running an agency payments report.