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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
Important: Gusto only reports your payroll withholding, so you'll need to file Form 5080 and 5081 outside of Gusto and include sales tax details for the amount of sales and use tax owed. Learn more below.
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.
You'll work with the following Michigan agencies when registering for payroll taxes:
Michigan Licensing and Regulatory Affairs (LARA): Registers your business entity with the state. Complete this first.
Michigan Department of Treasury: Handles income tax withholding.
Michigan Unemployment Insurance Agency: Handles unemployment tax.
Local Michigan tax agencies: Handle various city taxes.
Before you can register for Michigan payroll taxes, you must register your business entity with the Michigan Licensing and Regulatory Affairs (LARA). Complete this step first — it is required before you can set up income tax withholding or unemployment insurance.
Note: Requirements can vary depending on your business type. We recommend consulting a business advisor or attorney to make sure you’re meeting all legal requirements.
If your business is a Sole Proprietorship or General Partnership, you must instead register a DBA (“Doing Business As”) with the county clerk for every county where you operate. Contact your local county clerk for registration instructions.
Choose a unique business name that is not already in use by another registered business in Michigan.
Check name availability on the Michigan Business Registry website.
Follow this video guide to create a MiLogin for Business account and complete registration online.
File the required form for your business type. The form you need depends on your business type.
To file online: View available forms on the LARA forms page. Each form lists the filing fee and includes a link to file online via the MiLogin for Business portal. Online processing takes around 24–48 hours.
To file by mail: Paper forms are available here, and their relevant mailing addresses are available here. Processing by mail takes approximately 7–10+ business days. Make checks or money orders payable to the “State of Michigan.”
Appoint a Registered Agent — an individual or entity with a physical Michigan address who is authorized to receive legal and tax documents on your business’s behalf.
When you're done, go to your Home page in Gusto, find the related to-do, and click Complete task.
When you register, you'll be asked if you use a payroll service provider and need a Power of Attorney form filled out. After you assign a Michigan work address to an employee in Gusto and add your state tax account info, we'll create the POA form for you to e-sign.
Follow their step-by-step guides to register. You can register online using Michigan Treasury Online (MTO) or mail Form 518.
MTO online registration is authenticated 10–15 minutes after you submit.
If you mail Form 518, allow 4–6 weeks for processing.
If you have registration questions or want to know about the status of your application, call the Registration Unit at (517) 636-6925.
After you register, you should get your Employer Account Number and unemployment tax rates in a few days.
You'll need to register with the Michigan Unemployment Insurance Agency to receive your unemployment account number and tax rate.
Go to the Unemployment Insurance Agency website.
Find Employer Services.
Click Register a business (direct link here).
Click Start eRegistration to begin the eRegistration process.
Review what you'll need to register, then click Next step when you're ready.
Complete all prompts and submit your application.
For questions about your unemployment tax number or rate, call the agency at (855) 484-2636, option 4.
Michigan local taxes are based on where an employee works and lives. However, employers only have to deduct and send in the taxes for the place where the employee works (where the wages were earned).
Every employer must withhold taxes if they:
Have a business location in the city
Do business in the city, even without a physical location there
If a business is in a city with a local income tax, they must withhold taxes from:
All employees who live in the city, even if they work outside the city
All employees who do not live in the city but mainly work there
Gusto pays these taxes, but as the business owner, you need to register with the cities where your employees work. Each city's registration is different.
Click a city name below to find the form to mail for registration. Go to the Department of Treasury for other forms or for questions.
City
Additional info
Download the City of Albion Employer Registration Packet under Withholding.
Go to the agency website. On the right side of the page, under Withholding Tax Filing and Payments, click Pay or File Online. Do not enter anything in the Look Up Account section. Instead, click Request an Account at the bottom-right of the page.
Visit the city's website for more information.
People who live in Detroit have to pay the City of Detroit income tax, but employers only have to withhold the tax if they do business in Detroit. If you do not do business in Detroit but want to withhold this tax as a courtesy, you can register with the City of Detroit to do so.
Visit the city's website for more information.
Visit the city's website for more information.
Download SS-4 Withholding Registration under Withholding Forms.
Visit the city's website for more information.
Visit the city's website for more information.
Visit the city's website for more information.
Hudson
Call the city at (517) 448-8983.
Visit the city's website for more information.
Visit the city's website for more information.
Visit the city's website for more information.
Visit the city's website for more information.
Visit the city's website for more information.
Choose the current year and download Tax Withholding Book.
Visit the city's website for more information.
Visit the city's website for more information.
Visit the city's website for more information.
Visit the city's website for more information.
Visit the city's website for more information.
Visit the city's website for more information.
Many cities in Michigan charge an income tax on people who live or work there. Usually, it's 1% for residents and 0.5% for nonresidents.
Heads up: Detroit, Grand Rapids, Highland Park, and Saginaw have different rates. Check the full list of cities in Michigan with their tax rates.
If you have several business locations in Michigan, each employee will have a "Predominant Work City" field in their Gusto profile.
Put simply, a predominant work city is the city where the employee thinks they'll earn the most money from their job.
The actual definition reads: "...that city imposing a tax under a uniform city income tax ordinance other than the city of residence, in which the employee estimates he will earn the greatest percentage of his compensation from the employer."
Employees must choose their predominant work city on the city's W-4 by Dec 1 for the next 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 does not technically exist:
The employee works and lives in the same city.
No action needed.
Predominant work city only applies to work done outside the city they live in.
If asked for a predominant work city, employees can choose "No Predominant City."
There's only one Michigan work location for an employer.
No action needed.
If asked for a predominant work city, employees can choose "No Predominant City."
An employee works in no place more than 25% of the time.
In this case, the local tax goes to the home location. Contact Gusto to set this up correctly.
Employees can view or update their "Predominant Work City" in Gusto
Click My profile and select Taxes.
Scroll to the “Michigan Taxes” section and click edit.
View or edit the Predominant Work City selection. All work cities with a Michigan local income tax will be available to choose from.
If the employee works more than 25% in any listed city (as elected on the city W-4), select the city where the most work will be done.
Admins can update this for employees
Click the People section and find the profile of the team member you want to make the update for.
If you need to view all Michigan employees to find the person who needs the update:
Click the Taxes & compliance section and select Tax setup.
Scroll to "Michigan Tax Setup" and click Manage taxes.
Scroll to the "Employees in Michigan" section and click on an employee's name to go to their profile.
Scroll to the "Michigan Taxes" section and click edit.
Select a Predominant Work City and click Save.
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 Michigan work address for one or more employees.
If you've already registered in Michigan, 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:
Michigan Department of Treasury: Handles income tax withholding.
Michigan Unemployment Insurance Agency: Handles unemployment tax.
If you still need to register, see the Register for MI income, unemployment, and local taxes on your own section earlier in this article.
Once you add a valid Michigan work address in Gusto for one or more employees, you can enter your state tax account information.
To add your Michigan tax account information:
Go to Taxes & compliance, then select Tax setup.
Find Michigan 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 ID/Taxpayer ID, click Edit to enter your withholding account number. This number is always the same as your company's Federal Employer Identification Number (FEIN).
Letters from the Michigan Department of Treasury
If you cannot find your account number, contact the agency at (517) 636-6925.
Next to Filing Frequency, click Edit to enter the frequency the agency assigned you.
If you do not know your filing frequency yet, choose weekly (the fastest option) and update it once it's assigned.
Your registration confirmation from the Michigan Department of Treasury
If you cannot find your filing frequency, contact the agency at (517) 636-6925.
Next to UIA Employer Account Number, click Edit to enter your 10-digit unemployment account number. The format looks like XXXXXX XXX.
Note: If your number has only 7 digits, add three zeros at the end (000) to make it 10 digits.
Letters from the Michigan Unemployment Insurance Agency
If you cannot find your account number, contact the agency at (855) 484-2636, then press 4.
Next to Unemployment Insurance Total Tax Rate, click Edit to enter your total unemployment tax rate.
This rate includes the Obligation Assessment (OA) Tax.
Form UIA 1771 (Tax Rate Determination for Calendar Year), which you receive annually from the Unemployment Insurance Agency. The rate is on the bottom right of the form.
If you cannot find your rate, contact the agency at (855) 484-2636, then press 4.
If you do not have your assigned rate yet, enter the new employer rate for Michigan in Gusto in the meantime. Update the rate once you receive it.
If you have a delinquent wage base of $9,500 instead of the standard $9,000, Gusto needs you to upload your unemployment rate notice in Gusto.
Learn how to authorize Gusto as your third-party agent (TPA) for the agencies below.
Gusto needs third-party authorization so we can pay and file your withholding taxes. We'll attempt to get that authorization ourselves in your Withholding Tax account online.
If we run into any issues, we'll notify you and ask for some additional information, like zip code, last payment amount, or most recent total tax due.
The MI Unemployment Insurance Agency requires that Gusto have third-party authorization (TPA) to pay and file your taxes.
Make sure the information you entered in Gusto matches what's on file with the agency, specifically the:
Federal Employer Identification Number (FEIN)
Unemployment Account Number (UIA)
If you run into any issues giving TPA to Gusto, call the agency at (855) 484-2636, option 4 to get help.
This agency needs Gusto to have third-party access to your online MiUI account.
Sign in to your MiLogin for Business portal. You need a MiLogin for Business account to log in. If you do not have one, create one using the agency's guidance.
Go to your Michigan Unemployment (MiUI) Employer Portal.
In the left menu, click Account Maintenance.
Click Maintain Third-Party Administrator (TPA) Authorization.
Select New to create a new TPA relationship. Only one TPA relationship can exist on an account at any given time.
On the Assign Third-Party Administrator (TPA) screen, enter Gusto’s TPA ID: 50000010.
On the Third-Party Administrator (TPA) information screen, enter a begin date for service. This should be the first of the quarter when you joined Gusto (ex. If you joined in Q1 2026 put Jan 1 2026)
You do not need to enter an end date for service
Assign these roles that we need:
Submit Employment and Wage Detail
Edit Rate Notice and Voluntary Contribution
Edit Tax Payments Update and Submit
Click Save.
Double-check that TPA and all required roles have been assigned correctly.
Form 5080 and 5081 are the monthly, quarterly, and annual forms filed by businesses operating in Michigan. These forms are combined returns that include both payroll withholdings and sales tax reporting.
Form 5080 and 5081 report sales tax. Gusto does not have this information, so we'll file it with only the withholding tax data.
Since Gusto only reports your payroll withholding, you must file an additional Form 5080/5081 with the completed sales tax details for the amount of sales and use tax owed.
If you do not owe sales and use tax, enter zeros on Form 5080/5081 for these amounts. Leave the withholding tax portion of the form blank.
Michigan can then combine your sales and use tax from your filed form with the payroll withholding from Gusto's filed form.
The sales tax must be filed by the 20th of the month after the return period. Monthly filers must file by the 20th of the following month. Quarterly filers must file by the 20th after the quarter ends.
Note: If the 20th falls on a weekend or holiday, the due date is the next business day.
If you owe sales and use tax in Michigan, you can complete Form 5080/5081 electronically or by paper. If you complete it by paper, mail it to:
Michigan Department of Treasury P.O. Box 30324 Lansing, MI 48909-7824
This is an annual form due by the end of February. You can file it electronically on the state website or by paper. If you complete it by paper, mail it to:
Michigan Department of Treasury P.O. Box 30401 Lansing, MI 48909-7901
Note: If the due date falls on a weekend or holiday, the due date is the next business day.
MI 5080/ 160 (Michigan Monthly/Quarterly Return)
MI 5081 (MI Sales, Use and Withholding Tax Annual Return)
MI UIA 1028 (Michigan Employer's Quarterly Wage/Tax Report)
Unemployment tax
MI 447 (Transmittal of Mag Media reporting of W-2)
State W-2 (Wage and Tax Statement)
MI New Hire Report
Various local returns
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: Michigan Department of Treasury (DOT)
Phone: (517) 636-6925
Workforce or Labor Agency: Michigan Unemployment Insurance Agency (UIA)
Phone: (855) 484-2636
Learn how to close or reopen tax accounts.