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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.
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. 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.
Required — Report Gusto as your authorized Payroll Service Provider/Bulk Filer with the OH Department of Taxation.
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.
Required — Report Gusto as your authorized Payroll Service Provider/Bulk Filer with the OH Department of Taxation.
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.
Before we can file and pay your Ohio employer withholding taxes for you, you need to authorize Gusto as your Payroll Service Provider and Bulk Filer. The Ohio Department of Taxation (ODT) requires this step.
To do it, you send a secure web message through your OH|TAX eServices account. You need your OHID username and password to sign in. If you have not created an OHID yet, you can create one from the OH|TAX eServices login page.
How to report Gusto as your authorized Payroll Service Provider/Bulk Filer:
Go to OH|TAX eServices and select Log in or Create an OHID Account.
Enter your OHID username and password, then select Log in.
From your OH|TAX eServices dashboard, select the Additional Services tab.
Find the Messages tile and select Send us a message.
Under "Which account is this message concerning?", select Employer Withholding Tax.
Under "Which period is this message concerning?", select "This message doesn't concern a specific period."
Under "Select Message Type," select Employer Withholding Payroll Provider Update.
Fill in the Message fields exactly as shown below:
Subject: Payroll Service Provider/Bulk Filer
Message: [Your company's legal name] hereby confirms that it has elected Gusto as its authorized Payroll Service Provider and Bulk Filer.
Replace [Your company's legal name] with the legal business name you registered with the Ohio Department of Taxation.
Select Send.
After you send the message, you see a confirmation that reads "Your message has been sent." Once ODT processes your message, we can file and pay your Ohio employer withholding taxes for you.
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.
Use this list to find Ohio's tax forms and where to view each one.
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
To view these forms, go to Taxes & compliance, then Tax documents, and select the State tab.
IT-942 (Employer's Quarterly Reconciliation of Income Tax Withheld) — not required after Q2 2024.
To see what we've paid for you, run the Agency payments report.
Use this list to reach Ohio'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 — Ohio Department of Taxation (DOT): (888) 405-4039
Unemployment insurance — Ohio Department of Job and Family Services (JFS): (614) 466-2319
Learn how to close or reopen tax accounts.