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NC withholding allowance requirements—for employers and employees
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To pay employees in a new state, where you’ve never operated or paid people, you must register with the state tax agencies there. This lets you pay and file the taxes you and your employees are liable for.
Watch this quick tutorial to learn more.
Registering for taxes may not be the only to-do when starting or running a business in a new state. Go to our blog for complete guides on starting and running a business in each state.
Gusto works with Middesk to help you register your business in new states.
For now, this includes: Alaska, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Louisiana, Maine, Minnesota, Mississippi, Nebraska, New York, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, South Carolina, South Dakota, Texas, Utah, Virginia, Wisconsin, and Wyoming.
What you need to do
Cost, timeline, and eligibility considerations
Prices vary by state. During the first few steps in Gusto, you can see the cost, process, and estimated turnaround time.
For now, Middesk cannot help these types of companies register:
What the process looks like
Third-Party Agent (TPA) authorization reminder
Some state agencies need Gusto to have TPA access to file and pay your taxes. Usually, Middesk does not set this up, so you’ll have to do it yourself after registration.
Check the state registration articles to see if TPA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA is not needed right now.
If setting up TPA requires online agency portal access:Prices vary by state. During the first few steps in Gusto, you can see the cost, process, and estimated turnaround time.
If you have questions about answering any of the questions, try Middesk’s Help Center or contact Middesk at [email protected].
When Middesk gets your tax account information back after registering, they'll enter it in Gusto for you.
Each state and agency takes different amounts of time to process a registration. To estimate when your state tax account info will be available, check the Post Submission Questions in Middesk's help article.
Important reminder
When your order is complete, you’ll get emails from Gusto and Middesk. They’ll detail the next steps, which include:
Before your order is done, you can check the order status in your Gusto account:
Q: Can I run payroll before my registration is done?
A: Yes. You may be asked to enter tax rates and tax deposit frequencies, but can use temporary info.
Important reminders
Q: I need to change some of the registration information that was submitted, what do I do?
A: Email Middesk at [email protected].
Q: Can I use Gusto to register in a new state without a Federal Employer Identification Number (FEIN)? What if my business is merging or being acquired?
A: No, you need a FEIN in Gusto to get registration help for state taxes.
If your business is merging or being acquired, Middesk cannot help with registration. You'll need to work with a tax advisor and state agencies directly.
Q: What if I'm not liable for unemployment tax yet?
A: If you want Middesk to start setting up an unemployment account number before you're liable, you can:
Q: Can Middesk help if the responsible party is international without an ITIN or SSN?
A: No. Middesk cannot help in this scenario, you'll need to register on your own.
Q: Why am I unable to enter 0% ownership for the responsible party or add a commercial owner?
A: Some states have a 1% minimum for the responsible party ownership percentage. These states include ID, KS, MN, OH, SC, DC, DE, MD, NJ, NY, and RI.
You’ll need to place registration orders directly with Middesk outside of Gusto or register directly with the agency.
Some states require an individual owner to be listed. If you’re a non-profit or unsure, contact Middesk for help at [email protected].
Q: When will my tax account information be available?
A: Each state and agency takes different amounts of time to process a registration. To estimate when your state tax account info will be available, check the Post Submission Questions in Middesk's help article.
Q: Where can I find my tax information?
A: You can find your tax info in several places:
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: Does Middesk help with giving Gusto third-party access (TPA) for tax payments?
A: Some state agencies need Gusto to have TPA access to file and pay your taxes. Usually, Middesk does not set this up, so you’ll have to do it yourself after registration.
Check the state registration articles to see if TPA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA is not needed right now.
If setting up TPA requires online agency portal access:
Q: Does Middesk help close state tax accounts?
A: No, you'll need to close the tax account yourself.
Q: Can I cancel my Middesk order?
A: At this time, we cannot support order cancellations or refunds.
Click the dropdowns below to learn how to register with state agencies. Do not forget to give Gusto third-party access so we can help keep your tax information updated and fix tax issues.
You'll need the following information to submit your business registration application online:
Use this business registration list for detailed information to help you prepare to register.
After you register with the Department of Revenue online, you'll need to enter two things in Gusto:
You'll usually get your Account ID right away after registering online. However, it might take a few days to get a letter in the mail confirming your filing frequency. This letter often comes with a “coupon booklet” that includes your Account ID and how often you need to file taxes.
Here’s what your tax schedule might be based on the booklet:
After a work address in North Carolina is assigned to one or more employees, you can add your tax account information:
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 any historical tax issues related to tax account number updates.
Most companies in North Carolina must start paying unemployment insurance tax once they have:
If you need to run payroll but do not yet meet the requirements, Gusto lets you enter the new employer rate for your state temporarily. Update the rate once you get it.
After registering, you'll get your account number and tax rate in 4–6 weeks. Keep this in mind when planning your first payroll in this state.
Do not forget to give Gusto third-party access (TPA) to this agency so we can help keep tax information up-to-date.
After a work address in North Carolina is assigned to one or more employees, you can add your tax account information:
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 any historical tax issues related to tax account number updates.
If you've already registered in the state, you'll need to enter your tax account details in Gusto.
You need to be registered with one or more of the agencies listed below so that Gusto can file and pay your taxes for you.
If you still need to register, click the applicable dropdown above in this article.
If you've run payroll in North Carolina before, you can find your nine-digit Withholding Account ID and Filing Frequency by:
If you do not know your tax deposit schedule, choose semi-weekly (the fastest option) for now, and then update it once it's assigned.
If you've run payroll in North Carolina before, you can find your Employment Security Account Number (UI Account Number) and Unemployment Insurance Rate by:
If you do not have your rate yet, enter the new employer rate for North Carolina in Gusto for now. Update the rate once you get it.
Do not forget to give Gusto third-party access (TPA) to this agency so we can help keep tax information up-to-date.
After a work address in North Carolina is assigned to one or more employees, you can add your tax account information:
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 any historical tax issues related to tax account number updates.
Authorize Gusto as your third-party agent (TPA) for the NC Division of Employment Security (DES) so we can keep certain tax information up-to-date and help troubleshoot tax issues.
In North Carolina, employees need to fill out one of three forms for tax withholding: NC-4 (the full version), NC-EZ (a shorter version), or NC-NRA (for non-resident alien employees).
Employees should complete the "North Carolina Taxes" section in their Gusto account after deciding which form and allowances to use. You can review the NC withholding forms to help your employees determine their filing status and allowances.
Here’s the difference between NC-4 and NC-EZ:
If an employee chooses "Do not Withhold" in Gusto (also called "Exempt from withholding" on the NC form) or selects more than 10 allowances, you may need to take extra steps. Gusto will notify you if this happens on your Home page. Learn more in the File the NC withholding certificate dropdown below.
Go to our W-4 article to learn where to find a copy of your employee’s W-4s.
Employers must send the NC-4, NC-EZ, or NC-NRA to the North Carolina Department of Revenue when:
If Gusto notifies you that an employee falls into one of these categories, you'll need to mail the form to:
North Carolina Department of Revenue
Tax-Compliance-Withholding Tax
PO Box 25000
Raleigh, NC 27640-0001
The due dates for filing these forms depend on how often you deposit/submit withholding taxes (your filing frequency):
You can submit the form earlier if you prefer.
You can view forms in Taxes & Compliance > Tax documents. Switch between the tabs to find federal, state, W-2s, and 1099s.
To see what Gusto has paid on your behalf, run the Agency Payments report.
Learn how to close or reopen tax accounts here.