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Before you can pay employees in a new state, you must register with the stateβs tax agencies. This lets you file and pay the right taxes.
π₯ Watch a quick video to learn how registering in a new state works
π See our blog for full state business guides
Important: North Carolina has specific withholding allowance requirements.
Employees must use the NC-4, NC-EZ, or NC-NRA to determine their state withholding allowance total. See the Employee setup for NC withholding taxes section for details.
Employers are required to send these forms to the North Carolina Department of Revenue in certain situations. See the File the NC withholding allowance certificate section for details.
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 β we accept legal and government mail for your business in that state.
Change of registered agent β we file the change so your mail comes to us.
Foreign qualification β we register your business with the Secretary of State so you can legally work there.
State tax registration β 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 β we file the yearly report that keeps your business in good standing.
Government mail monitoring β 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 β 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 β Business compliance β 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 β $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 β $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 North Carolina agencies when registering for payroll taxes:
North Carolina Department of Revenue (DOR): Handles income tax withholding.
North Carolina Division of Employment Security (DES): Handles unemployment tax.
Before you register, gather the following information to submit your business registration application online:
Your Social Security Number (SSN) or Federal Employer Identification Number (FEIN), and North Carolina Secretary of State Number (SOS), if applicable
An FEIN is required when registering for wage withholding tax. The NC Secretary of State Identification Number is required if the corporation is registered with the NC Secretary of State's Office.
Your business name, address, and phone number
Business partner or responsible person information, if applicable (name, title, SSN, address)
Details about your business (begin date, type of business, and similar details)
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 receive your Account ID and filing frequency.
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:
Quarterly Withholding Return (Form NC-5): You file taxes every three months (most common for new employers).
Monthly Withholding Return (Form NC-5): You file taxes every month.
Withholding Payment Voucher (Form NC-5P) and Quarterly Income Tax Withholding Return (Form NC-5Q): You file taxes semi-weekly (typically twice a week).
If you have questions, contact the agency at (877) 252-3052.
Most companies in North Carolina must start paying unemployment insurance tax once they have:
Paid $1,500 in wages during a calendar quarter, or
Had at least one North Carolina employee working for any part of the week for 20 or more different weeks during a calendar year
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 North Carolina in Gusto for now, and update the rate once you receive it.
After registering, you'll get your account number and tax rate in 4β6 weeks. Keep this in mind when planning your first payroll in this state.
Go to the Division of Employment Security website.
Read the instructions, and when you're ready, create your online account.
Follow the agency's steps to register.
If you have questions, contact the agency at (866) 278-3822.
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 North Carolina work address for one or more employees.
If you've already registered in North Carolina, 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:
North Carolina Department of Revenue (DOR): Handles income tax withholding.
North Carolina Division of Employment Security (DES): Handles unemployment tax.
If you still need to register, see the Register for NC income and unemployment tax on your own section earlier in this article.
Once you add a valid North Carolina work address in Gusto for one or more employees, you can enter your state tax account information.
To add your North Carolina tax account information:
Go to Taxes & compliance, then select Tax setup.
Find North Carolina 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 Account ID, click Edit to enter your account number. This number is usually nine digits long.
The coupon booklet the agency sends (your Account ID and tax deposit schedule are pre-printed)
If you cannot find your account number, contact the agency at (877) 252-3052.
Next to Filing Frequency, click Edit to enter the tax deposit schedule the agency assigned you.
Here's what your tax schedule might be based on the coupon booklet:
Quarterly Withholding Return (Form NC-5): You file taxes every three months (most common for new employers).
Monthly Withholding Return (Form NC-5): You file taxes every month.
Withholding Payment Voucher (Form NC-5P) and Quarterly Income Tax Withholding Return (Form NC-5Q): You file taxes semi-weekly (typically twice a week).
The "coupon booklet" from the NC Department of Revenue
If you do not know your tax deposit schedule yet, choose semi-weekly (the fastest option) and update it once it's assigned.
Next to UI Account Number, click Edit to enter your Employment Security Account Number (EAN). This number is usually seven digits long.
The Unemployment Tax Rate Assignment (Form NCUI 104) from the NC Division of Employment Security
If you cannot find your account number, contact the agency at (866) 278-3822.
Next to Unemployment Insurance Tax Rate, click Edit to enter your unemployment rate.
The Unemployment Tax Rate Assignment (Form NCUI 104) from the NC Division of Employment Security
If you cannot find your rate, contact the agency at (866) 278-3822.
If you do not have your assigned rate yet, enter the new employer rate for North Carolina in Gusto in the meantime. Update the rate once you receive it.
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.
Log in to NC SUITs.
From the left menu, select Account Maintenance.
Select Agent Assignment.
Click Add Agent.
In the Agent ID field, enter Gusto's Agent ID: 15813.
Click Search.
Confirm that Gusto's name appears in the Agent Name field.
Select Agent Authorization, then click Save.
Select the checkboxes next to the following roles to assign them to Gusto:
Wage Reports
Payments
Account Maintenance
Tax Rate Information
Note: Do not check the boxes for Unemployment Insurance Claims because Gusto does not support these.
In the Access Begin Dates field, enter the first day of the quarter you want Gusto to file on your behalf. For example:
If your first check date with Gusto was February 17, enter January 1 (the first day of Q1).
If your first check date with Gusto was June 23, enter April 1 (the first day of Q2).
Do not enter an Access End Date.
In North Carolina, employees need to fill out one of three forms for tax withholding:
The NC-4 requires more details and calculations than the NC-EZ, so it might give more accurate tax withholding.
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.
Note: 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. See the File the NC withholding allowance certificate section for details.
To find a copy of your employees' W-4s, see our W-4 article.
To follow North Carolina tax laws, employers must send the employee's state tax form (NC-4, NC-EZ, or NC-NRA) to the Department of Revenue if:
The employee claims more than 10 allowances, or
The employee says they are "Exempt" from taxes and they usually make over $200 per week
Note: In Gusto, when an employee chooses Do Not Withhold, it is the same as "Exempt from withholding" on the NC form.
If Gusto notifies you that an employee falls into one of these categories, 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 your filing frequency, but you can always submit them earlier:
Quarterly filers: If you receive the form during the current quarter, send it by that quarter's due date.
Monthly filers: If you receive the form during the current quarter, send it by the 20th of the third month.
Use this list to find North Carolina's tax forms and where to view each one.
NC 3 (Annual Withholding Reconciliation)
NC 3M (Annual Withholding Reconciliation, Monthly Filers)
NC 5Q (Withholding Return, Semi-weekly payers)
NCUI 101 (Employer's Quarterly Tax and Wage Report)
NCUI 101B (Employer's Quarterly Tax and Wage Report)
Filed as needed/required
Quarterly Tax Payment Voucher
Wage and Tax Statement (State W-2)
New Hire Report
To view these forms, go to Taxes & compliance, then Tax documents, and select the State tab.
NC 5 (Withholding Return, Quarterly or Monthly Filers)
NC 5P (Withholding Payment Voucher)
To view these filings, sign in to the North Carolina agency portal.
To see what we've paid for you, run the Agency payments report.
Use this list to reach North Carolina'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 β North Carolina Department of Revenue (DOR): (877) 252-3052
Unemployment insurance β North Carolina Department of Commerce, Division of Employment Security (DES): (866) 278-3822 (employer line)
Learn how to close or reopen tax accounts.