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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.
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 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.
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 7-digit unemployment account number. The format looks like XXXXXXX.
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.
Use this list to find Michigan's tax forms and where to view each one.
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
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 Michigan'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 — Michigan Department of Treasury (DOT): (517) 636-6925
Unemployment insurance — Michigan Unemployment Insurance Agency (UIA): (855) 484-2636
Learn how to close or reopen tax accounts.