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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, Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Louisiana, Maine, Minnesota, Mississippi, Nebraska, North Carolina, North Dakota, Ohio, Oregon, South Carolina, South Dakota, Texas, Utah, Virginia, and Wisconsin.
What you need to do
Cost and timeline
Prices vary by state. During the first few steps in Gusto, you can see the cost, process, and estimated turnaround time.
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 for income and unemployment tax in South Carolina—includes information about local taxes.
You'll receive the below within 24 hours after registering online, or 3 weeks if registering by mail:
Keep those time frames in mind when planning your first South Carolina payroll.
If you have questions while you register, you can call the agency at (803) 898-5000, or email them at "[email protected]".
Once a valid South Carolina work address has been added in Gusto for one or more employee(s), you can add your tax account information:
Most companies become liable for South Carolina unemployment insurance (SUI) tax once the company has:
Liability thresholds can vary by business type (general, non-profit, etc), so we recommend contacting the agency directly to confirm when your specific business will be liable.
If you need to run payroll and do not yet meet the above requirements, Gusto allows it—enter the new employer rate for your state in Gusto in the meantime and update the rate once you receive it.
You'll receive a six-digit Employer Account Number (EAN), commonly referred to as your State Tax ID, in 2–3 weeks after registering.
Once you've completed registration with the agency, we recommend authorizing Gusto as your third-party agent so we can help troubleshoot any tax issues.
Once a valid South Carolina address has been added in Gusto for one or more employee(s), 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 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.
Next steps:
Checking the company’s owner’s information on file with the state
If you have an online SC SUITS account, follow these instructions to view or update owner information:
If you've already registered in the state, you'll need to enter your tax account details in Gusto to pay employees.
You'll need to be registered with one or more of the below agencies in order for Gusto to file and pay taxes on your behalf:
If you still need to register, click the applicable dropdown above.
If you've run payroll in South Carolina in the past, you can find your Withholding File Number and tax deposit schedule by:
Find your Employer Account Number (EAN) by reviewing your Employer Package, Liability Letter, or Employer Quarterly Contribution and Wages Report (Form UCE-120) received from the agency (Department of Employment and Workforce).
Account numbers are typically six digits—if you have a seven-digit number with a leading zero, omit the zero when entering your number in Gusto.
You can find your unemployment tax rate by:
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.
Next steps:
Checking the company’s owner’s information on file with the state
If you have an online SC SUITS account, follow these instructions to view or update owner information:
Once a valid South Carolina address has been added in Gusto for one or more employee(s), 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.
Learn how to authorize Gusto as your third-party agent (TPA) for the agency below.
In order for Gusto to help troubleshoot tax issues, we'll need you to authorize Gusto as your third-party agent (TPA). Gusto will become your TPA for the agency below:
To become your third-party agent, a notarized 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, we’ll submit the form directly to the agency.
Add Gusto as your third-party agent
This form will only populate once you’ve assigned a SC work address to your first SC employee.
We’ll submit this to the agency directly on your behalf—you’re all set for now.
How to find forms in your account
Asterisk info (if applicable)
If a form has a star (*) next to it, it will not show up in your tax documents in Gusto. These forms are usually payment vouchers or other forms (ex. coupons) filed electronically.
You can check if tax payments were made by running an "Agency Payments" report.