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Before you can pay employees in a new state, you must register with the stateβs tax agencies. This lets you file and pay the right taxes.
π₯ Watch a quick video to learn how registering in a new state works
π 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 β we accept legal and government mail for your business in that state.
Change of registered agent β we file the change so your mail comes to us.
Foreign qualification β we register your business with the Secretary of State so you can legally work there.
State tax registration β 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 β we file the yearly report that keeps your business in good standing.
Government mail monitoring β 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 β 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 β Business compliance β 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 β $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 β $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.
You'll work with the following agency when registering for payroll taxes:
California Employment Development Department (EDD): Handles income tax withholding and unemployment tax.
Watch this video tutorial on how to register for an employer payroll tax account number and follow the steps below as you watch.
To create your EDD e-Services account:
Go to the EDD's e-Services for Businesses site.
Click Enroll on the right side of the page.
Enter your personal information and click Continue.
Choose your security questions, answer them, then select Continue.
Review the Enrollment Summary and print a copy for your records, then click Submit.
Click the verification link in the email the EDD sent you to complete enrollment.
Some employers are only required to withhold and deposit Personal Income Tax (PIT). To find out if you're required to deposit PIT only or are subject to all payroll taxes, refer to the agency's Information Sheets. If you're PIT-only or not required to pay certain taxes, you can set up tax exemptions in Gusto.
To register for an Employer Payroll Tax Account Number:
Sign in to your E-services for Businesses profile using the username and password you created above.
Click New Employer.
Choose Register for Employer Payroll Tax Account Number.
If you're depositing only personal income tax, select the PIT-only option.
Enter the requested information about your business and its operations in California. Here are tips for questions that may affect your payroll in Gusto:
First quarter your wages exceeded $100: You can select the prior quarter or the current quarter. Gusto will only begin filing your taxes once you run a payroll with California wages. If you select a prior quarter, you'll need to file returns with the agency on your own in the meantime.
Taxpayer Representative Contact Information: Do not add Gusto as a Taxpayer Representative.
Are you an authorized Payroll Agent?: Select No.
Does this business use professional assistance for payroll reporting?: Select No.
Agency where you want your tax mailings sent?: Enter your own company name and mailing address. This makes sure your company directly receives important communications from the EDD.
Click Submit to complete your online registration application.
To get your account number quickly, give the agency all the requested documents. Registration for non-profit employers can take longer if the organization does not provide non-profit paperwork with their registration (for example, your 501(c) determination letter from the IRS).
You'll typically receive your account number in the mail 10β15 business days after your registration request is sent.
To view the status of your registration, sign in to e-Services for Business. If you have questions, contact the agency directly.
If you submitted paperwork in person rather than online, registration can take up to 7 days.
Once youβve registered, enter the tax account information in Gusto.
Once you complete registration, enter your tax account information in Gusto after adding a valid California work address for one or more employees.
If you've already registered in California, you need to enter your tax account details in Gusto. You need to be registered with the following agency for Gusto to file and pay taxes on your behalf:
California Employment Development Department (EDD): Handles income tax withholding and unemployment tax.
If you still need to register, see the Register for California income and unemployment tax on your own section earlier in this article.
Once you add a valid California work address in Gusto for one or more employees, you can enter your state tax account information.
To add your California tax account information:
Go to Taxes & compliance, then select Tax setup.
Scroll to California 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 EDD account number. This is an eight-digit number in the format 123-4567-8.
Your New Employer Account Registration Info letter from the EDD
The upper right-hand corner of any agency correspondence, listed as Account ID
If you cannot find your account number, contact the EDD at (888) 745-3886.
Next, enter your agency-assigned unemployment (UI) rate. Do not include the Employment Training Tax (ETT) rate in the rate you enter in Gusto.
Your e-Services for Business account: Under I Want To, click Get My UI Rate.
Your UI Rate and Reserve Account letter from the EDD
If you cannot find your rate, contact the EDD at (888) 745-3886.
If you do not have your assigned rate yet, enter the new employer rate for your state in Gusto in the meantime. Update the rate once you receive it.
Some employers are only required to withhold and deposit Personal Income Tax (PIT). To find out if you're required to deposit PIT only or are subject to all payroll taxes, refer to the agency's Information Sheets.
PIT-only businesses usually have an EIN beginning with "8." For any taxes you're not required to pay, set up tax exemptions in Gusto (for example, for unemployment or state disability insurance).
The California State Disability Insurance (SDI) program provides short-term Disability Insurance (DI) and Paid Family Leave (PFL) wage replacement benefits to eligible workers who need time off work.
If you have employees in San Francisco, review the city's Paid Parental Leave Ordinance for additional employer requirements.
If you have employees working in San Francisco, you may be subject to local taxes and filing requirements that Gusto does not handle.
Gusto does not file or pay the Gross Receipts Tax. We do not have enough information about your business to file this tax accurately.
Most companies doing business in San Francisco are subject to this tax. Visit the San Francisco Treasurer's Gross Receipts Tax page to learn more, including how to file and pay online.
Gusto does not file or pay the San Francisco Overpaid Executive Tax (sometimes called the Overpaid Executive Gross Receipts Tax). We do not have enough information about your business to file this tax accurately.
This tax applies to companies where the highest-paid manager earns significantly more than the average worker in San Francisco. You file this tax with the Annual Business Tax Return. For more information, visit the San Francisco Treasurer's Overpaid Executive Tax page.
Gusto does not file the Employer Annual Reporting Form required by the Health Care Security Ordinance. You need to complete this form on your own.
Employers covered by the Health Care Security Ordinance must submit the Employer Annual Reporting Form by April 30 each year. If you do not submit the form, you could face steep penalties.
The California Consumer Privacy Act of 2018 (CCPA), as amended by the California Privacy Rights Act (CPRA), is a comprehensive consumer privacy law. It gives people rights over their personal information. It also requires some companies to follow rules to protect this information if they do business in California.
Your company needs to follow the CCPA if any of the following apply:
Annual gross revenues greater than $25,000,000.
Annually buys, sells, or shares the personal information of 100,000 or more California consumers or households.
Derives 50 percent or more of annual revenue from selling or sharing California consumers' personal information.
If your company is subject to the CCPA, you need to:
Respond to consumer requests to disclose the personal information you've collected about them.
Delete specific types of personal information upon request.
Allow consumers to opt out of the sale or sharing of their personal information.
Provide notices and get consent from consumers for certain activities.
Contractually limit data sharing by third parties and maintain an updated privacy policy.
If you have questions about how this law affects your company, consult a lawyer. They can give guidance for your specific situation.
We've updated our privacy policy to make it CCPA-compliant. If you have CCPA-related requests for Gusto, submit them through our online form.
Use this list to find California's tax forms and where to view each one.
DE 9 (Quarterly Contribution Return and Report of Wages)
DE 9C (Combined Payroll Tax Payment Coupon)
To view these forms, go to Taxes & compliance, then Tax documents, and select the State tab.
DE 88 (Payroll Tax Deposit Coupon)
DE 34 (CA Report of New Hires)
To view these filings, sign in to the California agency portal.
To see what we've paid for you, run the Agency payments report.
Use this list to reach California's payroll tax agency by phone or website. One agency handles both 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 and unemployment insurance β California Employment Development Department (EDD): (888) 745-3886
Learn how to close or reopen tax accounts.