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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, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Louisiana, Maine, Minnesota, Mississippi, Nebraska, New York, 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.
Most companies in South Dakota must start paying unemployment insurance tax once they have:
Your business type (general, non-profit, etc) can impact when the company is responsible for paying this tax. We recommend contacting the agency to confirm when the company will be liable. You can see if you're liable and register with the South Dakota Department of Labor UI Division.
If you need to run payroll but do not yet meet the requirements, Gusto lets you enter the new employer rate for your state temporarily. Update the rate once you get it.
You can register online with the South Dakota Department of Labor UI Division. After registering, you’ll get:
After a work address in South Dakota is assigned to one or more employees, you can add your tax account information:
If you do not have your rate yet, enter the new employer rate for South Dakota temporarily. Update the rate once you get it.
If you're already registered in South Dakota, you'll need to enter your tax account details in Gusto.
If you're not registered yet, use the dropdown above in this article to get started.
If you've run payroll in South Dakota, you can find your unemployment account number and tax rate by:
If you do not have your rate yet, enter the new employer rate for South Dakota temporarily. Update the rate once you get it.
After a work address in South Dakota is assigned to one or more employees, you can add your tax account information:
If you do not have your rate yet, enter the new employer rate for South Dakota temporarily. Update the rate once you get it.
You can view forms in Taxes & Compliance > Tax documents. Switch between the tabs to find federal, state, W-2s, and 1099s.
To see what Gusto has paid on your behalf, run the Agency Payments report.
Learn how to close or reopen tax accounts here.