California registration and tax info
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To pay employees in a state where you’ve never operated or paid people before, you must register with the relevant state tax agencies. This lets you pay and file the taxes you and your employees are liable for.
Watch this quick tutorial to learn more.
How it works
Once a work address has been added in a new state and a new employee has been hired and assigned a work address in that state, you can get registration assistance in Gusto.
Pricing varies by state—get started below and during step 4, you'll review the price, process, and estimated timeline to completion.
Here’s a snapshot of the process:
- We’ll collect some basic business information from you.
- Gusto and CorpNet will check the information for accuracy.
- Your registration application(s) are usually submitted within 3-5 business days.
- Check the mail for registration info—the state will typically send your tax account numbers and rates to you directly.
CorpNet can walk you through entering any info that they themselves do not enter in Gusto on your behalf.
Important reminder: Some state agencies require that Gusto have third-party access (TPA) to your account to file and pay taxes on your behalf—in most cases, CorpNet does not give Gusto this access, so you'll need to do so on your own after registration is complete. For the states you do business in, check out our state registration articles to determine if TPA is required, and how you can set it up on your own.
Get started with state tax registration
- Sign in to Gusto as an admin.
- Click the Taxes & compliance section and select Tax setup.
- Under “[State name] Tax Setup”, click Have us register for you.
- The state you want to register in will only appear in this location once a work address has been added in a new state and an employee has been assigned a work address in that state.
- Review the price, process, and estimated timeline to completion.
- We will not charge you the registration service fee until you send us your order.
- Click Continue.
- Answer a couple eligibility questions.
- Note: Gusto can only register for you if you don't yet have a state account already.
- Click Save & continue.
- Enter some company information.
- We’ll pre-populate the information we already have.
- Click Save & continue.
- Tell us about your responsible party–this is the person who is to be held accountable for the company’s good standing and a point of contact within the organization for tax purposes.
- If you're a nonprofit and run into any issues, check out our FAQ section below for more information.
- Click Save & continue.
- Enter some state-specific operational information.
- Click Save and continue.
- Review all information thoroughly–if any information is incorrect, it may delay the process.
- Heads up: State and local agencies may charge additional fees and increase the estimated turnaround time shown. CorpNet will let you know if that happens.
- Check the box to acknowledge all info is accurate and you agree to the Terms of Service.
- Click Send registration order.
After you send your order, we’ll email you with status updates and add your order total to your next monthly invoice.
Check the status of your order
When your order is complete, you’ll receive emails from both Gusto and CorpNet. They’ll detail the next steps which include:
- Reviewing registration details
- Any other state-specific instructions
Before your order is completed, you can use the link in the state registration confirmation email from Gusto to check the status of your order.
You can also check the status in your Gusto account:
- Head to the Taxes & compliance section and select Tax setup.
- Scroll to the state's headline.
- Click Check the status of your registration.
Cancel your order
If your order is still in progress, you can cancel from your Gusto account:
- Head to the Taxes & compliance section and select Tax setup.
- Scroll to the state's headline.
- Click Check the status of your registration.
- On the right-side of the page, under "Changed your mind?", click Cancel your order.
- Let us know why you're canceling.
- Click Cancel your order.
FAQs
Q: Can I run payroll for my employees before my registration is complete?
A: In most cases, you can run payroll before all state tax information is added in Gusto. As long as the info that is immediately required is completed—typically your tax rate(s) and deposit frequency—you'll be able to run payroll.
Important reminders- Until we have all tax account numbers, we're unable to submit payments and filings on your behalf.
- If you run payroll before you've completed registration with the necessary agencies and entered the info in Gusto, you may get agency-notices as a result of late tax payments/filings.
- Any penalty or interest that may occur is the company's responsibility to pay.
If you’re registering in a state where there is no income tax withheld, you can use the state-specific “new employer rate” in this article until you receive your company-assigned rate from the agency.
Q: Can I use Gusto to register in a new state if I don't have a Federal Employer Identification Number (FEIN) yet, or if the business is undergoing a merger or acquisition?
A: No–you must have a FEIN entered in Gusto to order a state tax registration.
If your company is going through a merger or being acquired, CorpNet cannot assist with registration. Work with your tax advisor and state agencies directly to navigate this change and register your business.
Q: Where can I see all my tax information?
A: You can see all tax details in the following locations:
- Gusto–head to the Taxes & compliance and select Tax setup, and scroll to the applicable state tax setup.
- CorpNet–create a CorpNet account and login at any time to review information.
- State online account–once you’ve gained access to your agency accounts, your tax details will also be available there.
- Some agencies issue tax details by mail. If this is the case, CorpNet will notify you, and you'll need to enter this information into Gusto directly.
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: What if I'm not liable for unemployment yet (referring to the minimum wage threshold in some states)?
A: In order for CorpNet to start the registration process for an unemployment account number before you're liable, you can:
- Use today’s date as the first date the employee(s) in the new state will be paid.
- Enter the start date of the quarter you expect the employee(s) to first make $1500.
Q: Can I register with CorpNet if the responsible party is based internationally and does not have an ITIN/SSN?
A: CorpNet may be able to assist directly—reach out to [email protected] or call 1(888) 449-2638.
Q: My company is a nonprofit—why can't I enter 0% in the responsible party section, or add a commercial owner?
A: Some states have a 1% minimum for the responsible party ownership percentage. Those states are: ID, KS, MN, OH, SC, DC, DE, MD, NJ, NY, and RI. Registration orders will need to be placed directly through CorpNet, outside of Gusto, or you'll need to register directly with the agency yourself.
Some states require that an individual owner be listed on the account. If you're a non-profit and not sure how to proceed, contact CorpNet directly at [email protected] or call 1(888) 449-2638.
Q: Does CorpNet help with giving Gusto any required third-party access (TPA) needed to file and pay taxes?
A: Some state agencies require that Gusto have third-party access (TPA) to your account to file and pay taxes on your behalf—in most cases, CorpNet does not give Gusto this access, so you'll need to do so on your own after registration is complete. For the states you do business in, check out our state registration articles to determine if TPA is required, and how you can set it up on your own.
Q: Does CorpNet help with state tax account closures?
A: No—you'll need to close the tax account on your own.
Click the dropdowns below to learn how to register with the state agency.
- CA Employment Development Department (EDD) - income tax withholding and unemployment tax
Register with the EDD
Check out this video tutorial for registration guidance: Enroll as an employer in e-Services for Business (YouTube).
- Start by heading to the EDD's e-services for businesses site.
- Enroll for a username and password by clicking Enroll on the right-side of the page.
- Enter your personal information and click Continue.
- Once you've created the account, sign in to your E-services for Businesses profile.
- Select New Customer.
- Choose Register for Employer Payroll Tax Account Number.
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You'll be asked for information about your business and its operations in California—here are a few tips for certain questions that may affect your payroll with Gusto:
- “First quarter your wages exceeded $100.”
- Gusto will only begin filing your taxes once you run a payroll with California wages.
- You may choose the prior quarter or current quarter.
- If you choose a prior quarter, you'll be responsible for filing returns with the agency on your own in the interim.
- “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 that your company receives any important communications from the EDD.
- “First quarter your wages exceeded $100.”
- Submit your completed online registration application to finish this step.
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To expedite getting your account number, provide all requested documentation to the agency up front.
- Registration for non-profit employers can take a little longer if the organization does not provide their non-profile paperwork with their registration (i.e. your 501(c) determination letter from the IRS).
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To expedite getting your account number, provide all requested documentation to the agency up front.
- Once your request is sent:
- If you registered online and there's no information missing from your registration, you'll get an account number immediately.
- If there's an issue with the information that was provided, the turnaround time to get an account number is typically three days, provided the employer provides a response to any requests timely.
To view the status of your request/registration, log in to e-Services for Business. If you have any questions, contact the agency directly.
If you submitted paperwork in person (rather than online), registration can take up to 7 days.
Enter the tax account information in Gusto
Once a valid California work address has been added in Gusto for one or more employee(s), you can add your tax account information:
- Click the Taxes & compliance section and select Tax setup.
- Scroll to the "California Tax Setup" headline and select Manage taxes.
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Enter your EDD account number and agency-assigned unemployment rate.
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Your EDD number will be an eight-digit number in the format 123-4567-8.
- If you need to update your account number after one has been entered, contact us from the Help section of your account—there may be tax implications if taxes have already been paid or filed to an incorrect account number.
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Do not include the "ETT" rate in the rate you enter in Gusto.
- If you don't 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.
- If CA EDD has indicated that your business is Personal Income Tax only (PIT-only), and they've given you an EIN beginning with 8, enter your unemployment tax rate as 0%.
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Your EDD number will be an eight-digit number in the format 123-4567-8.
If you've already registered in the state, you'll need to enter your tax account details in Gusto in order to pay employees.
You'll need to be registered with the below agency in order for Gusto to file and pay taxes on your behalf:
- CA Employment Development Department (EDD) — Personal Income Tax (PIT), Unemployment Insurance (UI), State Disability Insurance (SDI), and Employment Training Tax (ETT)
If you still need to register, click the Register a company with the state on your own dropdown above in this article.
Once you've registered with the California EDD, your EDD payroll tax account number and unemployment rate can be found in multiple places:
- On your New Employer Account Registration Info letter where it was originally provided
- In the upper right-hand corner of any additional agency correspondence (listed as Account ID)
- In your online e-Services for Business account
Your unemployment (UI) rate, and employment training tax (ETT) rates can be found and unemployment rate:
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In your online e-Services for Business account
- Under the "I Want To" section, click Get My UI Rate
- On your UI Rate and Reserve Account letter from the agency
If you're unable to find your account number or tax rates, contact the agency directly at (888) 745-3886.
Personal Income Tax only (PIT-only) companies
If CA EDD has indicated that your business is PIT-only, and they've given you an EIN beginning with 8, enter your unemployment tax rate as 0%.
Once a valid California work address has been added in Gusto for one or more employee(s), you can add your tax account information:
- Click the Taxes & compliance section and select Tax setup.
- Scroll to the "California Tax Setup" headline and select Manage taxes.
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Enter your EDD account number and agency-assigned unemployment rate.
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Your EDD number will be an eight-digit number in the format 123-4567-8.
- If you need to update your account number after one has been entered, contact us from the Help section of your account—there may be tax implications if taxes have already been paid or filed to an incorrect account number.
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Do not include the "ETT" rate in the rate you enter in Gusto.
- If you have not yet received your agency-assigned rate, you can use the current year's “New employer rate” from the state-specific table in this article.
- Once you have your agency-assigned rate, follow these steps to update the rate in Gusto—only needed if the rate is different from the rate shown in Gusto.
- If you have not yet received your agency-assigned rate, you can use the current year's “New employer rate” from the state-specific table in this article.
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Your EDD number will be an eight-digit number in the format 123-4567-8.
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.
The city of San Francisco has additional requirements for employers.
Gross Receipts Tax
- Gusto does not file or pay this tax because we don't have the information about your business that we would need to do so.
Overpaid Executive Tax
The Overpaid Executive Tax (also referred to as the Overpaid Executive Gross Receipts Tax) was approved by San Francisco voters on November 3, 2020 and became effective on January 1, 2022.
- Gusto does not file or pay this tax because we don't have the information about your business that we would need to do so.
What to know about the tax:
- It imposes an additional gross receipts tax of 0.1% to 0.6% on taxable gross receipts from businesses in which the highest-paid managerial employee earns more than 100 times the median compensation of employees based in San Francisco.
- Businesses that pay the Administrative Office Tax will pay an additional 0.4% to 2.4% on their payroll expense in San Francisco in lieu of the additional gross receipts tax.
- The Overpaid Executive Tax is filed as part of the "Annual Business Tax Return".
For more information, check out this website.
San Francisco Health Care Security Ordinance—The Fair Chance Ordinance
Employers covered by the Health Care Security Ordinance are required to submit the Employer Annual Reporting Form by April 30th each year or face penalties of up to $500 per quarter.
- Gusto does not file this form—you'll need to complete it on your own.
The California Consumer Privacy Act of 2018 (the “CCPA”) was passed by the California State Legislature and signed into law by Jerry Brown, Governor of California, in June 2018.
The CCPA is a comprehensive consumer privacy law that grants consumers new rights regarding their personal information and creates data protection obligations for certain companies doing business in California.
The CCPA was effective on January 1, 2020. If your company has one or more of the following characteristics, it’ll be subject to the CCPA’s requirements:
- It has annual gross revenues in excess of $25,000,000.
- It annually buys, sells, or shares the personal information of 50,000 or more California consumers, households, or devices.
- It derives 50 percent or more of its annual revenue from selling California consumers’ personal information.
If any of #1-3 above applies to your business, you’ll need to do the following to comply with the CCPA once it goes into effect:
- Respond to consumer requests to disclose the personal information you’ve collected about them;
- Delete certain types of personal information if and when requested;
- Allow consumers to opt out of the “sale” (or sharing) of their personal information;
- Provide notices and receive consents from consumers for certain activities;
- Contractually limit data sharing by third parties, maintain an updated privacy policy, and more...
If you have questions about how the new law will affect your company, reach out to a lawyer who can provide guidance specifically tailored to your situation.
We've updated our privacy policy to make it CCPA-compliant. If you have CCPA-related requests for Gusto, submit them online here.
- CA Report of New Hires (DE34)*
- Payroll Tax Deposit Coupon (DE88)*
- Quarterly Contribution Return and Report of Wages (DE 9)
- Combined Payroll Tax Payment Coupon (DE 9C)
Where to find the forms available in your account
Head to the Taxes & compliance section and select Tax documents.
Use the tabs on the page to toggle between federal, state, W-2, and 1099 forms.
Asterisk info—only if applicable
Filings marked with an asterisk (*) will not appear in your Tax documents tab—these are coupons, payment vouchers, or other forms that are filed electronically.
You can confirm tax payments were made by running an agency payments report.