Having payroll issues? Learn how to troubleshoot blocked payroll.
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
đź“š 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.
You'll work with the following New Mexico agencies when registering for payroll taxes:
New Mexico Secretary of State (SOS): Business registration.
New Mexico Taxation & Revenue Department: Handles income tax withholding.
New Mexico Department of Workforce Solutions (NMDWS): Handles unemployment tax.
Before you can sign up for New Mexico state tax accounts, you must register your business with the New Mexico Secretary of State (SOS).
Note: Rules may be different based on your business type. Consider speaking with a lawyer or business expert to make sure you're meeting all legal requirements.
You do not need to register if your business is one of the following:
Benefit Corporation
Close Corporation
Cooperative
Sole Proprietor or General Partnership (unless you're operating under a business name that's different from the legal name of the owner)
Pick a unique business name. Make sure no one else in New Mexico is using it. You can search the New Mexico business name database to check.
Choose and complete the form that matches your business type (for example, LLC or Corporation).
Once the form is complete, pay the registration fee. The fee depends on your business type.
After your registration order is processed, you'll receive a Registration ID. Keep your Registration ID in a safe place because you'll need it to register for state taxes.
Register with the New Mexico Taxation & Revenue Department for Wage Withholding Tax (WWT).
You should receive your account number and tax deposit schedule the same day after registering online. If you get stuck, watch the Taxation & Revenue Department's video on how to register.
Under Businesses, click Apply for a New Mexico Business Tax ID.
Enter your business information and create a TAP login to complete the registration.
When you sign in to your TAP account for the first time, you may need to complete extra steps, such as setting up two-factor authentication (2FA).
Make sure you register for Wage Withholding Tax (WWT) so Gusto can file and pay for this tax type.
When you're done, click Submit. You'll receive a confirmation number.
If you have questions about registration, call the agency at (866) 285-2996.
Most companies in New Mexico must start paying unemployment insurance tax once they have:
Paid $500 in wages during a calendar quarter, or
Had at least one New Mexico employee working for any part of the week for 20 or more different weeks during a calendar year
Your business type (general, nonprofit, and similar) can impact when the company is responsible for paying this tax. Contact the agency to confirm when your company will be liable.
If you need to run payroll but do not yet meet the above requirements, you can still do so. Enter the new employer rate for New Mexico in Gusto for now, and update the rate once you receive it.
New employers must register with the NMDWS using the Unemployment Insurance Tax Self-Service System. The application can take up to ten business days to process. Once approved, you'll receive:
An Employer Account Number (EAN) to use for all your business with NMDWS
A notice with a User ID and Password for the system. You'll need to activate your account before NMDWS can accept wage records and payments.
To register:
Go to the New Mexico Department of Workforce Solutions website.
Click Register Now to go to the UI Employer Registration page.
Click Next.
Complete all remaining steps.
Note: For new employers, the unemployment rate may vary depending on the industry. Call the agency at (877) 664-6984 to get your account number and rate.
The New Mexico Workers' Compensation Act controls the Workers’ Compensation Assessment Fee in New Mexico.
Note: This fee is different from your Workers’ Compensation insurance.
Employers with 3 or more employees must pay this fee, even if only one person works in New Mexico, or if some workers are contractors or temporary.
The fee is based on the number of covered workers at the end of each quarter. For more details, check the New Mexico Workers’ Compensation Administration website.
Click the Taxes & Compliance section and click Tax setup.
Scroll to the "New Mexico Tax Setup" section.
Click Manage Taxes.
Next to "State tax account details", click Edit.
For "Workers' Comp. Act Coverage", click Covered.
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 New Mexico work address for one or more employees.
If you've already registered in New Mexico, 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:
New Mexico Taxation & Revenue Department: Handles income tax withholding.
New Mexico Department of Workforce Solutions (NMDWS): Handles unemployment tax.
If you still need to register, see the Register for NM income, unemployment, and workers' comp assessment fee on your own section earlier in this article.
Once you add a valid New Mexico work address in Gusto for one or more employees, you can enter your state tax account information.
To add your New Mexico tax account information:
Go to Taxes & compliance, then select Tax setup.
Find New Mexico 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 NMBTIN, click Edit to enter your New Mexico Business Tax Identification Number. This number was formerly called the CRS Identification Number.
Form CRS-1 or other notices from the New Mexico Taxation & Revenue Department
Your TAP account
If you cannot find your account number, contact the agency at (505) 827-0700.
Next to Filing Frequency, click Edit to enter the tax deposit schedule the agency assigned you. This may be labeled as Filing Status on your Registration Certificate from the Department.
Gusto supports the following filing frequencies: monthly, quarterly, or semiannually.
Note: Filing frequencies can change annually. Make sure to update the information in Gusto if you receive a new filing schedule.
Your Registration Certificate from the New Mexico Taxation & Revenue Department
Your TAP account
If you cannot find your filing frequency, contact the agency at (505) 827-0700.
Next to Employer Account Number, click Edit to enter your unemployment account number (EAN).
Notices from the New Mexico Department of Workforce Solutions, such as the Quarterly Wage and Contribution Report
Your NMDWS online account
If you cannot find your account number, contact the agency at (877) 664-6984.
Next to Contribution Rate, click Edit to enter your total contribution rate. This is your unemployment tax rate and excess claims rate combined.
Your Employer Contribution Rate notice from the New Mexico Department of Workforce Solutions
If you cannot find your rate, contact the agency at (877) 664-6984.
If you do not have your assigned rate yet, enter the new employer rate for New Mexico in Gusto in the meantime. Update the rate once you receive it.
The New Mexico Workers' Compensation Act controls the Workers’ Compensation Assessment Fee in New Mexico.
Note: This fee is different from your Workers’ Compensation insurance.
Employers with 3 or more employees must pay this fee, even if only one person works in New Mexico, or if some workers are contractors or temporary.
The fee is based on the number of covered workers at the end of each quarter. For more details, check the New Mexico Workers’ Compensation Administration website.
Click the Taxes & Compliance section and click Tax setup.
Scroll to the "New Mexico Tax Setup" section.
Click Manage Taxes.
Next to "State tax account details", click Edit.
For "Workers' Comp. Act Coverage", click Covered.
Click Save.
Go to Taxes & compliance, then select Tax setup.
Find New Mexico Tax Setup and select Manage taxes.
Next to State tax account details, click Edit.
For Workers' Comp. Act Coverage, select Covered.
Click Save.
Third-party authorization (TPA) is needed for the agencies below:
NM Taxation and Revenue Department: Helps keep your tax information up to date and allows Gusto to help troubleshoot tax issues.
NM Department of Workforce Solutions: Required to pay and file taxes.
Gusto will try to access your withholding account online, but you'll need to give Gusto access in your TAP account first.
Log in to your TAP account.
In the upper-right corner, select Manage My Profile.
Select More Profile Options…
Under Access, select Manage Third Party Access.
Verify the following settings. If the settings read differently, change them to match.
Allowed: Yes
Default Access: Standard
Default Account Access: File Returns and Make Payments
Click Add to start the Grant 3rd Party Access flow.
On the instructions page, click Next.
Enter Gusto's TPA-identifier: [email protected].
Select Add/Edit Account Access.
Enter the following:
Account type: Wage Withholding
Access level: File Returns and Make Payments
Click Add.
Click Submit.
After you receive your confirmation number, click Ok.
If Gusto cannot view your account, we may ask you for additional information, such as your zip code, last payment amount, or most recent total tax due.
Giving Gusto third-party access (TPA) for this agency helps keep your tax information up to date and allows Gusto to help troubleshoot tax issues.
In the upper-right corner, click Manage My Profile.
Select More Profile Options…
Under Access, select Manage Third Party Access.
Verify the following settings. If the settings read differently, change them to match.
Allowed: Yes
Default Access: Standard
Default Account Access: File Returns and Make Payments
Click Add to start the Grant 3rd Party Access flow.
Read the instructions page and click Next.
Enter Gusto's logon/TPA identifier: [email protected].
Select Add/Edit Account Access.
Enter the following:
Account type: Workers' Compensation Fee
Access level: File Returns and Make Payments
Click Add.
After you receive your confirmation number, click Ok.
Gusto needs third-party access (TPA) for this agency to pay and file unemployment tax for you.
If you get stuck, use the agency's instructions for how to assign a third-party agent.
Go to the NM Department of Workforce Solutions website.
Click the Employer Login icon.
Enter your User ID and Password, then click Login.
On the Employer Homepage, click Account Maintenance.
Click Third Party Administrator (TPA) Authorization.
Click New.
Enter Gusto's TPA ID: 500001831.
Click Next.
A page will display Gusto's information. Gusto's legal business name, Zenpayroll, may populate as the Agent Name. Initially, no roles will be assigned to Gusto.
Enter the date that Gusto will begin performing services for your company.
Set the TPA start date to the beginning of the quarter you're starting with Gusto: Q1 = 01/01, Q2 = 04/01, Q3 = 07/01, Q4 = 10/01.
Select only the following checkboxes. Do not select other roles.
Account Maintenance Update and Submit
Payments Update and Submit
Employment and Wage Detail Update and Submit
Do not select Benefit Claim Matters or any other role not listed above. If Gusto receives critical mail because of incorrectly assigned roles, you may miss important dates and deadlines (for example, benefits claim details).
Click Save. The page will update with a grid showing Gusto's assigned roles.
Click Logoff in the upper-left part of the page to close your session.
Selecting effective dates: The begin date must be the beginning of the quarter (Q1 = 01/01, Q2 = 04/01, Q3 = 07/01, Q4 = 10/01) or Gusto may not be able to file or make tax payments. Leave the TPA end date blank.
Prior payroll service provider: If you're switching from another provider, you must un-assign roles from the previous provider and assign roles to Gusto. Update the TPA end date for the prior provider to the end of the quarter they last filed for you (Q1 = 03/31, Q2 = 06/30, Q3 = 09/30, Q4 = 12/31). The previous TPA access and roles need an end date before roles can be assigned to Gusto.
Multiple locations: If your company has more than one reporting unit or location, make sure Gusto has TPA roles for each unit. By default, the agency's system assigns Gusto TPA roles to all reporting units.
Make sure all required units are assigned to Gusto.
Log in to the NM DWS portal.
From the left menu, select Account Maintenance.
Select Third Party Administrator (TPA) Authorization.
Enter Gusto's TPA ID in the search bar: 500001831.
Click Search.
Click the link for Gusto's (ZenPayroll Inc.) TPA ID.
Verify the Assigned Roles screen has these settings:
Payment Update and Submission: All units are assigned.
Employment and Wage Detail Submission and Update: 001.
If one of these fields shows "No units are assigned," click Assign Units, then check the Assign All checkbox.
Click Save.
If you have questions about assigning Gusto's roles to your account, contact NMDWS at (877) 664-6984.
Use this list to find New Mexico's tax forms and where to view each one.
TRD-41414 (Employer Wage Withholding Form)
RPD-41072 (Annual Withholding Form)
ES-903A (Employer's Quarterly Wage and Contribution Report)
WC-1 (Workers' Compensation Fee Form)
State W-2 (Wage and Tax Statement)
NM New Hire Report
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 New Mexico'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 — New Mexico Taxation and Revenue Department (TRD): (505) 827-0700
Unemployment insurance — New Mexico Department of Workforce Solutions (DWS): (877) 664-6984, option 3
Learn how to close or reopen tax accounts.