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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 Vermont agencies when registering for payroll taxes:
Vermont Secretary of State (SOS): Handles business registration.
Vermont Department of Taxes (DOT): Handles income tax withholding, Health Care Coverage (HCC), and Child Care Contribution (CCC) tax.
Vermont Department of Labor (DOL): Handles unemployment tax.
You must register with the Vermont Secretary of State before signing up for any state tax accounts.
Rules may be different based on your business type, so it's always a good idea to talk to a lawyer or business expert to make sure you're meeting all legal requirements.
Who does not need to register?
Benefit Corporation
Close Corporations
Cooperatives
Sole Proprietors and General Partnerships (unless using a business name that's different from the owner's legal name)
If you're not on this list, you must register.
Pick a unique business name.
Make sure no one else in Vermont is using it. You can search names online to check.
Fill out the online registration form.
If you're unsure about your business type, check the state's website for help.
Pay the registration fee.
The amount depends on your type of business.
Get your registration ID.
The state will send this after your form is processed. Keep it safe. You'll need it later to register for state taxes.
Most businesses in Vermont need to register with the Vermont Department of Taxes. You'll need a "business tax account" for things like:
Withholding (Gusto needs this account number)
Sales and Use
Meals and Rooms
And more
Keep the registration timelines below in mind when planning your first payroll in Vermont.
Online registration: You'll get your account number in 5–7 days.
By mail or fax: It takes 10 business days to process.
Nonprofit organizations that qualify for exemptions need to register before using an exemption certificate. You can learn more about how to register a nonprofit organization.
Step one: Register with the Secretary of State
Vermont offers an online service center to help you register your business and apply for any and all licenses or insurance you need. Here's how:
Go to the Secretary of State website.
It's a good idea to talk to a lawyer or an accountant when choosing your business type.
Click Register Online.
Read the "Important Notice Regarding Online Filing."
Click Click to Acknowledge.
Click Create a User Account.
If you already have an account, sign in.
Follow the prompts, create an account, and fill out all required information.
You'll also need to register for a "Business Tax" account (learn how below) to get your:
Withholding account number
Filing frequency
Step two: Register for the Business tax
You should get your account number within 5–7 days.
Under "Need an account?" click Sign Up.
Click the link in the "For Businesses and Corporations" section.
You'll need info like:
Taxpayer ID (for example, FEIN or SSN)
Taxpayer Name
Taxpayer Mailing and Location Address
Account Name(s)
Account Mailing and Location Address(s)
Account Start Date and Other Relevant Attributes
Location Information (Sales and Use and Meals and Rooms only)
Names, addresses, and identification numbers of your business principals
Click Next.
Fill out all required information.
If you have questions, contact the agency at (802) 828-6802 or email [email protected].
Business tax account number format: It should start with "WHT" followed by a "10" or "11" (for example, WHT10###### or WHT11######).
Most companies in Vermont must start paying unemployment insurance tax once they have:
Paid $1,500 in wages during a calendar quarter
Had at least one Vermont employee working for any part of the week for 20 or more different weeks during a calendar year
Your business type (general, nonprofit, and similar) can affect when the company is responsible for paying this tax. Contact the agency to confirm when the company will be liable.
If you need to run payroll but do not yet meet the above requirements, enter the new employer rate for Vermont in Gusto in the meantime. Update the rate once you receive it.
You'll receive your Employer Number and unemployment tax rate approximately two weeks after registering online.
Go to the Vermont Department of Labor to check if you're required to pay this tax and register.
Fill out all required information.
Note: Vermont usually assigns new tax rates each year starting on July 1. When you receive your new rate, update it in Gusto with the right start date. If you do not know your rate, call the agency at (802) 828-4344.
Once you complete registration, take these steps:
Give Gusto third-party access (TPA) by sending a notarized Power of Attorney (POA) to Gusto so we can file and pay your unemployment taxes.
Enter your tax account information in Gusto once you add a valid Vermont work address for one or more employees.
If you've already registered in Vermont, 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:
Vermont Department of Taxes (DOT): Handles income tax withholding, Health Care Coverage (HCC), and Child Care Contribution (CCC) tax.
Vermont Department of Labor (DOL): Handles unemployment tax.
If you still need to register, see the Register for VT Secretary of State business registration, income tax, Health Care Coverage (HCC), Child Care Contribution (CCC), and unemployment tax on your own section earlier in this article.
Once you add a valid Vermont work address in Gusto for one or more employees, you can enter your state tax account information.
To add your Vermont tax account information:
Go to Taxes & compliance, then select Tax setup.
Find Vermont 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 Account ID, click Edit to enter your withholding account number. This number starts with "WHT" followed by a "10" or "11" (for example, WHT10###### or WHT11######).
Letters from the Vermont Department of Taxes
If you cannot find your account number, call (802) 828-2551, option 3, or email [email protected].
Next to Employer Number, click Edit to enter your 7-digit unemployment account number.
Letters from the Vermont Department of Labor, such as the Contribution Rate Notice or the Quarterly Wage and Contribution Report (Form C-101)
If you cannot find your account number, contact the agency at (802) 828-4344.
Next to Unemployment Tax Rate, click Edit to enter your unemployment tax rate.
Letters from the Vermont Department of Labor, such as the Contribution Rate Notice or the Quarterly Wage and Contribution Report (Form C-101)
If you cannot find your rate, contact the agency at (802) 828-4344.
If you do not have your assigned rate yet, enter the new employer rate for Vermont in Gusto in the meantime. Update the rate once you receive it.
Note: Vermont usually assigns new tax rates each year starting on July 1. When you receive your new rate, update it in Gusto with the right start date.
Vermont has two additional employer tax obligations you'll need to be aware of: Health Care Coverage (HCC) and the Child Care Contribution (CCC) tax.
When setting up Vermont taxes in Gusto:
You'll be asked if you provide health care for your employees.
Employees will be asked if they are covered under Vermont law.
Review Vermont Form HC-2 for more info.
If you do not offer health care to all employees, Gusto will estimate your HCC cost with each payroll and make adjustments at the end of the quarter based on the agency's rules.
Note: Some businesses may be exempt if they have a certain number of full-time employees. Check with the Vermont Department of Taxes for the latest details.
Employees who do not get health insurance from their job (an employer-sponsored health plan) must fill out Form HC-2 each year to declare their health coverage status.
Keep this form for three years. You do not need to send it to the state. Gusto does not collect or store this form.
Important:
If an employee's health coverage changes during the year, they must fill out a new Form HC-2 and give it to you.
If an employee does not have coverage and you do not have an HC-2 form, the law says you must treat them as "uncovered."
For more info, contact the agency at (802) 828-2551 or [email protected].
Vermont requires employers to give employees a yearly statement showing:
The total monthly premium for any employer-sponsored health plan
The employer's share of the premium
The employee's share of the premium
Any money the employer contributes toward the employee's cost-sharing requirement or other out-of-pocket expense
To find this information in Gusto:
Go to the Reports section.
Find Benefits Reports.
Select the Health Insurance option, choose the date range Annual, and select the tax year.
Run the report.
Starting July 1, 2024, employers in Vermont must pay a 0.44% payroll tax on Vermont employee wages. Gusto will calculate and pay this tax for you (paid to the Department of Taxes).
Employers can also choose to deduct up to 25% of the tax (0.11%) from employees' wages. To do this:
Go to Taxes & compliance, then select Tax setup.
Find Vermont Tax Setup and select Manage taxes.
Next to Percent of CCC paid by employees, click Edit.
Click Add a new setting.
Select an effective date.
If you've already run payroll in the current quarter, to remain compliant, you can only choose an effective date in a future quarter.
Enter a deduction percentage between 0–25%.
This percentage applies to all Vermont employees.
Click Save.
Once payroll is run for the quarter, the percentage can only be updated for the next quarter.
CCC payroll tax is paid to the state at the same time and in the same way as income tax withholding, with quarterly reporting on the WHT-436.
Power of Attorney (POA) is needed for:
Vermont Department of Labor (DOL): Unemployment tax payments and filings.
Vermont Department of Taxes (DOT): Amended withholding tax returns (as needed).
To let Gusto file and pay your Vermont unemployment tax, you need to submit a notarized Power of Attorney (POA) form to the Vermont Department of Labor. Here's how:
Go to Taxes & compliance, then select Tax setup.
Find Vermont Tax Setup and select Manage taxes.
Next to Submit DOL POA Form, click Edit.
Download the pre-filled Power of Attorney (POA) form.
Note: Gusto fills out the second page for you.
Print the form and get it notarized.
Mail the notarized form to Gusto at: ATTN: Tax Ops - Audit Team Gusto 1201 16th Street Mall, Suite 350 Denver, CO 80202
To let Gusto submit withholding tax amendments for you, you need to give Gusto third-party access (TPA) to your Vermont myVTax account. Follow these steps:
Sign in to your myVTax account.
On your Home page, under I want to, click Third Party Access.
In the Enter Third Party Username field, enter Gusto, Inc or Zenpayroll1.
Check that the Name field shows Gusto (or Zenpayroll).
Decide if you want Gusto to designate other users to access your account (this is optional).
Select Withholding account, then click Next.
Choose the range of tax years for Gusto's access.
Start with the first day of the first quarter you had a payroll check date in Gusto.
Under Access Level, choose View, File and Pay (this is needed for Gusto to file amendments).
Check the confirmation box and click Submit.
VT WHT-430* (Vermont Withholding Tax Payment)
VT WHT-434 (Vermont Annual W/H Reconciliation)
VT WHT-436 (Quarterly Withholding Reconciliation)
VT C-101 (Vermont Quarterly Contribution)
Unemployment tax
VT W-2 (Vermont State W-2)
State W-2 (Wage and Tax Statement)
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: Vermont Department of Taxes (DOT)
Phone: (802) 828-2551
Workforce or Labor Agency: Vermont Department of Labor (DOL)
Phone: (802) 828-4344
Learn how to close or reopen tax accounts.