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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.
You'll work with the following South Carolina agencies when registering for payroll taxes:
South Carolina Department of Revenue (DOR): Handles income tax withholding.
South Carolina Department of Employment and Workforce (DEW): Handles unemployment tax.
You'll receive the following within 24 hours after registering online, or 3 weeks if registering by mail:
Withholding File Number
Tax deposit schedule
Keep these time frames in mind when planning your first South Carolina payroll.
Go to the SC Department of Revenue website.
Scroll to the Applications & Searches section and click Business Tax Application.
You can reference the agency's help guidance as you go.
Scroll to the Select the type of registration section and complete all remaining prompts.
If you have questions, call the agency at (803) 898-5000 or email [email protected].
Most companies become liable for South Carolina unemployment insurance (SUI) tax once the company has:
Paid $1,500 in wages during a calendar quarter
Had at least one South Carolina employee working for any part of the week for 20 or more different weeks during a calendar year
Liability thresholds can vary by business type (general, nonprofit, and similar). Contact the agency directly to confirm when your specific business 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 South Carolina in Gusto for now, and update the rate once you receive it.
You'll receive a six-digit Employer Account Number (EAN) 2–3 weeks after registering.
Go to the SC Department of Employment and Workforce website.
Click Employers.
Scroll to the I Need To section and under Register for an Account, click Employers.
Review what you'll need to register, check the box to acknowledge you understand SECTION 41-41-10, and click Next.
Complete all remaining prompts.
If you have questions, call the agency at (803) 737-3080.
If you have owners or partners who are exempt from unemployment insurance liability, their wages need to be excluded from quarterly wage reports to the state. If their wages are not excluded, it could cause the company's entire tax filing to be rejected.
To exclude exempt owners' wages:
Verify which owners are listed as exempt from unemployment insurance liability in your South Carolina State Unemployment Insurance Tax System (SC SUITS) account — see the steps below.
Set up an employee exemption in Gusto so Gusto does not report their wages in error.
If you have an online SC SUITS account, follow these steps to view or update owner information:
Sign in to your SC SUITS account using your personal username and password.
Under Your Options, select Account Maintenance.
Under Employer Account, select the Employer Maintenance link.
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.
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 South Carolina work address for one or more employees.
If you've already registered in South 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:
South Carolina Department of Revenue (DOR): Handles income tax withholding.
South Carolina Department of Employment and Workforce (DEW): Handles unemployment tax.
If you still need to register, see the Register for SC income and unemployment tax on your own section earlier in this article.
Once you add a valid South Carolina work address in Gusto for one or more employees, you can enter your state tax account information.
To add your South Carolina tax account information:
Go to Taxes & compliance, then select Tax setup.
Find South 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 File Number, click Edit to enter your withholding account number.
Notices from the South Carolina Department of Revenue
If you cannot find your account number, contact the agency at (803) 896-1450.
Next to Tax Deposit Schedule, click Edit to enter your withholding tax deposit schedule.
Notices from the South Carolina Department of Revenue
If you cannot find your deposit schedule, contact the agency at (803) 896-1450.
Next to Employer Account Number, click Edit to enter your six-digit Employer Account Number (EAN). If you have a seven-digit number with a leading zero, omit the zero when entering it in Gusto.
Your Employer Package, Liability Letter, or Employer Quarterly Contribution and Wages Report (Form UCE-120) from the South Carolina Department of Employment and Workforce
If you cannot find your account number, contact the agency at (803) 737-3080.
Next to Unemployment Tax Rate, click Edit to enter your unemployment tax rate.
Important: Do not enter the Department Administrative Contingency Assessment (DACA) rate of 0.06%. Gusto automatically accounts for this. Subtract the DACA rate from the total unemployment rate on your notice to get the rate to enter in Gusto.
Most tax rate notices include the following in the total rate:
Unemployment Insurance Tax rate
Trust Fund Replenishment rate
DACA rate of 0.06% — do not include this in the rate you enter in Gusto
Enter the sum of the Unemployment Insurance Tax rate and the Trust Fund Replenishment rate (less the DACA rate of 0.06%).
Example: A total rate of 0.87% would be entered in Gusto as 0.81% (0.87% - 0.06% = 0.81%).
Your Rate Notice from the South Carolina Department of Employment and Workforce
If you cannot find your rate, contact the agency at (803) 737-3080 or email [email protected].
If you do not have your assigned rate yet, enter the new employer rate for South Carolina in Gusto in the meantime. Update the rate once you receive it.
South Carolina requires SOC codes for unemployment tax reporting. Enter SOC codes for every employee working in South Carolina.
If you have owners or partners who are exempt from unemployment insurance liability, their wages need to be excluded from quarterly wage reports to the state. If their wages are not excluded, it could cause the company's entire tax filing to be rejected.
To exclude exempt owners' wages:
Verify which owners are listed as exempt from unemployment insurance liability in your South Carolina State Unemployment Insurance Tax System (SC SUITS) account — see the steps below.
Set up an employee exemption in Gusto so Gusto does not report their wages in error.
If you have an online SC SUITS account, follow these steps to view or update owner information:
Sign in to your SC SUITS account using your personal username and password.
Under Your Options, select Account Maintenance.
Under Employer Account, select the Employer Maintenance link.
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.
For Gusto to keep your South Carolina tax information up to date and help troubleshoot tax issues, you need to authorize Gusto as your third-party agent (TPA) for the agency below:
South Carolina Department of Employment and Workforce (DEW): Unemployment tax.
To become your TPA for this agency, a notarized form authorizing Gusto as your payroll provider must be submitted to the agency. To make this easy, Gusto will prepare the necessary document for you to e-sign in Gusto, then submit the form directly to the agency.
This form will only populate once you've assigned a South Carolina work address to your first South Carolina employee.
Have the company signatory sign in to their profile in Gusto.
On your Home page, click the applicable South Carolina to-do item.
E-sign the auto-generated Form UCE-1010 in Gusto. The company signatory must sign this form.
To review the form outside of Gusto, visit the SC DEW website.
Gusto will submit the form directly to the agency on your behalf.
WH-1601* (Withholding Tax Payment)
WH-1605 (Withholding Quarterly Tax Return)
WH-1606 (Withholding Fourth Quarter/Annual Reconciliation/W-2 Transmittal)
WH-1612 (W-2/Magnetic Media Transmittal Form)
UCE-101/ UCE-120 (Employer Quarterly Contribution and Wage Reports)
UCE-120A (Employer's Quarterly Continuation Sheet)
Wage and Tax Statement (State W-2)
New Hire Report
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: South Carolina Department of Revenue (DOR)
Phone: (803) 898-5000
Workforce or Labor Agency: South Carolina Department of Employment and Workforce (DEW)
Phone: (803) 737-2400
Learn how to close or reopen tax accounts.