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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
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. Remember to give Gusto third-party access (TPA) so we can help with any tax issues on your behalf.
You'll work with the following Ohio agencies when registering for payroll taxes:
Ohio Department of Taxation: Handles income tax withholding.
Ohio Department of Job and Family Services: Handles unemployment tax.
Local Ohio tax agencies: Handle various municipal taxes. See the Register for OH local taxes on your own section for details.
To run payroll and file Ohio withholding taxes in Gusto, you must first register for an Ohio Withholding Tax account. You can register in one of two ways:
OH|TAX eServices
Ohio Business Gateway
You only need to use one of these options.
During registration, the state will ask for your expected annual withholding tax amount. This number sets your filing frequency, which we also need in Gusto.
If you’re unsure, use the current year’s Ohio Withholding Tax Filing Guidelines.
If you need help, contact the Ohio Department of Taxation at (888) 405-4039 or use one of their contact methods.
To register through OH|TAX eServices:
Go to the OH|TAX eServices website.
Click Log in or Create an OHID Account.
If you already have an OHID, sign in.
If not, create an OHID account first.
Log in to OH|TAX eServices using your OHID.
On the dashboard, click the Additional Services tab.
Select Register a new Business Tax account.
Choose Withholding Tax as the account type.
Fill out all required registration information.
Submit the registration (and payment, if required).
Save the confirmation code shown on the confirmation page for your own record.
Once approved, your Withholding Account Number will appear in the Summary section.
Enter that account number in Gusto.
If you need help, contact the Ohio Business Gateway at (866) 644-6468 or message them online.
To register through the Ohio Business Gateway:
Go to the Ohio Business Gateway website.
Click Log In, then Create Account.
Complete account setup (email, personal info, username, password, recovery options, and terms).
After your account is created, go to the New Transaction tab.
Under Quick Links, click Registration Wizard.
If you’re not registered yet, you may also see a Get Started banner that says, "You are not currently registered to file any transactions. Let us help you!".
Follow the wizard steps to register for Withholding Tax. Generate the Registration Letter when asked to get your Withholding Account Number.
Submit the registration (and payment, if required).
Save the confirmation code shown on the confirmation page for your own record.
Once approved, your Withholding Account Number will appear in the Summary section.
Enter that account number in Gusto.
The Ohio Department of Taxation does not require you to give Gusto third-party access to your account. We can file and pay your Ohio withholding taxes without it.
Most companies become liable for Ohio unemployment insurance tax once the company has:
Paid $1,500 in wages during a calendar quarter, or
Had at least one Ohio employee working for any part of the week for 20 or more different weeks during a calendar year
Your business type (e.g., general, nonprofit) can affect when you need to start paying. Contact the agency directly 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 Ohio in Gusto temporarily, then update the rate once you receive it.
Register with the Ohio Department of Job and Family Services as soon as you become liable. Gusto will need:
Your unemployment account number
Your company-specific unemployment tax rate
You should receive your account number and unemployment rate instantly after registering online, or within 3–4 weeks if you register by mail.
Register your business or check your liability with the Ohio Department of Job and Family Services.
Complete all prompts.
Give Gusto third-party access so we can manage your tax payments and filings with fewer complications.
If you have owners or officers who are exempt from Ohio unemployment insurance taxes, their wages must be excluded from your quarterly wage reports to the state. If they're included, the entire filing will be rejected. To make sure we do not report their wages, set up an exemption for the owner or officer in Gusto.
To view or update the owner or officer information the agency has on file:
Sign in to The Source using your personal username and password.
Under Your Account(s), select Account Maintenance.
Under Employer Account, select Employer Maintenance.
Under Other Information, select the Ownership Summary tab to review the business owners you have listed with the agency.
To add, remove, or modify owners or their information, click Edit Ownership.
Contact the agency if you're not sure which owners or officers should be marked as exempt. If the exemptions in Gusto do not match the exemptions The Source has on record, your tax filings will be rejected.
Note: The wages for an officer of a corporation, S-corp, or LLC filing federal taxes as a corporation are generally taxable. The wages for a sole proprietor, partners, or LLC filing federal taxes as a sole proprietor or partnership are generally not taxable.
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 Ohio work address for one or more employees.
Ohio has various local taxes depending on where your employees live and work. Expand the sections below to learn how to register with local agencies.
City taxes in Ohio are primarily based on the employee's work location. Employers must:
Register to withhold and pay for the area in which the employee works
Withhold for an employee's home taxes in some cases
To register:
Enter employee work addresses in the Municipal Tax tool to get the municipality name for your employee's city taxes.
Go to the Department of Taxation site and click the name of the municipality you need to register for.
Register with the agency using the resources or options offered.
Once registered, enter your tax account information in Gusto. In some cases, a city will use your Federal Employer Identification Number (FEIN) as their account number. If you're not issued a separate number, we will not ask you to enter one in Gusto.
Some cities outsource their tax collecting, using third-party tax collectors like RITA instead. If you owe income tax to a local municipality that RITA administers, register with RITA online.
If you prefer to register by paper:
Fill out the sections that apply to your company.
If you've already filed a registration Form 48 and have a new physical location within a RITA municipality, you'll need to fill out a new Form 48 for the new location (worksite).
If you have questions, try the RITA website or contact the agency directly.
If we need any tax information from you, you'll have a to-do on your Home page. In some cases, a city will use your FEIN as their account number. If you're not issued a separate number, we will not ask you to enter one in Gusto.
If the company is required to withhold home (resident) taxes from the employee: If an employee has consulted a tax professional and prefers not to withhold their Ohio local tax, you can set up a tax exemption for them on their behalf.
If withholding home (resident) taxes from the employee is optional for the company: If an employee does not want to pay tax to their resident city, they can remove the courtesy withholding in Gusto and pay estimated taxes directly to their resident city.
For employees used to seeing only their work-location tax withheld on payroll, you can verify that the residential (home) tax now being withheld is accurate. Use the Ohio Tax Finder to check. Enter the employee's home or work address (as listed in Gusto) and review the expected taxation.
If needed, employees can update their home address in Gusto, but employers must update an employee's work address.
For employees who live and work in different cities where both cities consider them liable to pay income tax, they're often allowed a full or partial credit for the tax owed and paid to the city they live in. Gusto processes these tax credits in real time on payroll.
If you've already registered in Ohio, 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:
Ohio Department of Taxation: Handles income tax withholding.
Ohio Department of Job and Family Services: Handles unemployment tax.
Local Ohio tax agencies: Handle various municipal taxes.
If you still need to register, see the Register for OH income and unemployment taxes on your own or Register for OH local taxes on your own sections earlier in this article.
Once you add a valid Ohio work address in Gusto for one or more employees, you can enter your state tax account information.
To add your Ohio tax account information:
Go to Taxes & compliance, then select Tax setup.
Find Ohio 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 already been made, there may be tax implications. Learn how to pull reports in Gusto that can help you correct historical tax issues related to tax account number updates.
Enter your Withholding Account Number. This is an 8-digit number beginning with "5" (for example, 51-234567).
Your Registration Confirmation Letter from the Ohio Department of Taxation
The Employer's Payment of Ohio Tax Withheld (Form IT-501)
If you cannot find your account number, contact the agency at (888) 405-4089.
Next, enter your withholding tax filing frequency.
The Department of Taxation assigns your company one of these tax filing frequencies based on your total tax liability (for state and school district taxes) for the 12-month period ending June 30 of the previous year:
Quarterly
Monthly
Partial-weekly
If you have questions about your filing requirements, check out these FAQs from the agency.
Enter your Unemployment Compensation Tax Account Number issued by the Department of Job and Family Services.
The Determination of Employer's Liability (Form JFS 66314)
The Contribution Rate Determination, issued in November
If you cannot find your account number, contact the agency at (614) 466-2319.
Next, enter your Ohio unemployment contribution rate (also known as the unemployment tax rate).
This year's Determination of Employer's Liability (Form JFS 66314)
The Contribution Rate Determination
Your The Source account
If you're not liable for unemployment tax yet, the agency website (The Source) will show a 0% rate until you've let them know what date you'll become liable. Do not enter a 0% rate in Gusto. Instead, enter the new employer rate for Ohio. Once you become liable to pay unemployment tax, check your actual rate in The Source and update your rate in the Taxes & compliance section of your account.
If you do not have your assigned rate yet, enter the new employer rate for Ohio in Gusto in the meantime. Update the rate once you receive it.
If you have owners or officers that are exempt from Ohio unemployment insurance taxes, their wages must be excluded from your quarterly wage reports to the state. If they're included, the entire filing will be rejected. To make sure we do not report their wages, set up an exemption for the owner or officer in Gusto.
To view or update the owner or officer information the agency has on file:
Sign in to The Source using your personal username and password.
Under Your Account(s), select Account Maintenance.
Under Employer Account, select Employer Maintenance.
Under Other Information, select the Ownership Summary tab to review the business owners you have listed with the agency.
To add, remove, or modify owners or their information, click Edit Ownership.
Contact the agency if you're not sure which owners or officers should be marked as exempt. If the exemptions in Gusto do not match the exemptions The Source has on record, your tax filings will be rejected.
Note: The wages for an officer of a corporation, S-corp, or LLC filing federal taxes as a corporation are generally taxable. The wages for a sole proprietor, partners, or LLC filing federal taxes as a sole proprietor or partnership are generally not taxable.
Once a valid local address has been added in Gusto for one or more employees, you can add your local tax account information:
Go to Taxes & compliance, then select Tax setup.
Find Ohio Tax Setup and select Manage taxes.
Enter the applicable local tax account number.
In some cases, a city will use your Federal Employer Identification Number (FEIN) as their account number. If you're not issued a separate number, we will not ask you to enter one in Gusto.
Give Gusto third-party access (TPA) to the Ohio agencies below so we can help manage your taxes with the agency:
Ohio Department of Job and Family Services: Handles unemployment tax.
Ohio Department of Taxation: Handles income tax withholding — we'll request TPA if we need it to help with tax-related issues.
To become your third-party agent, a signed form authorizing Gusto as your payroll provider must be submitted to the agency. To make this easy, we'll prepare the necessary document for you to e-sign in Gusto, then submit the form directly to the agency.
The form will be ready to sign once the following is completed in Gusto:
A company work address is added in Ohio
An Ohio work address is assigned to an employee's work location in their profile
The Ohio state tax setup information is filled out
To sign the form in Gusto:
Have the company signatory sign in to their profile in Gusto.
Click the applicable OH to-do item from your Home page.
For general information about the form, visit the agency website.
If Gusto needs to help with tax-related issues specific to this agency (for example, you received a tax notice), we'll request access to your account so you can authorize us as your third-party agent (TPA).
You do not need to give Gusto TPA access to this account unless we request it.
Only the Filing Administrator on your Ohio Business Gateway profile can approve our request.
Click the padlock icon, then Account Access Requests.
Find ZenPayroll or Gusto's access request and click the check mark.
Click Confirm in the pop-up.
Under the "Service Areas" tab, click + next to "Employer Withholding and Municipal Taxation Withholding Tax".
If missing, another user may have it assigned. Unassign it first from the other user, then assign it to Gusto.
Click Transaction Types, then + next to "Income Tax Withholding and Municipal Tax Withholding Selections".
Go to the User Authorization tab and make sure Gusto has "non-filer" access.
IT-941( Employer's Annual Reconciliation of Income Tax Withheld)
SD-101 (Employers Payment of School District Income Tax Withheld)
OH IT-501 (Ohio Income Tax Withheld Deposit Payment)
JFS-20125 (Unemployment Compensation Quarterly Tax Return)
For the Ohio Department of Job and Family Services
Form 11 (Employer's Municipal Tax Withholding Statement)
SD-141 (School District Employer's Annual Reconciliation)
IT-3 (Transmittal of Wage and Tax Statements)
State W-2 (Wage and Tax Statement)
New Hire Report
Various local returns
No longer supported: IT-942 (Employer's Quarterly Reconciliation of Income Tax Withheld).
Not required after Q2 2024.
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: Ohio Department of Taxation (DOT)
Phone: (888) 405-4039
Workforce or Labor Agency: Ohio Department of Job and Family Services (JFS)
Phone: (614) 466-2319
Learn how to close or reopen tax accounts.