California registration and tax info

What you need to do

• Add a new work address in Gusto for a different state, and;
• Hire an employee and assign them to that address.

Cost and timeline

Prices vary by state. You can see the cost, process, and how long it takes in step four below.

What the process looks like

1. You give us some basic business information.
2. Gusto and CorpNet will check your info.
3. Your registration is usually submitted within 3–5 business days.
4. Watch for mail with your tax account numbers and rates from the state. The state usually sends your tax account numbers and rates directly to you.
   
   • Heads up: If CorpNet doesn’t enter some information into Gusto, they can show you how to do it yourself.

Third-Party Agent (TPA) authorization reminder

Some state agencies need Gusto to have TPA access to file and pay your taxes. Usually, CorpNet doesn’t 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 isn't needed right now.

Prices vary by state. You can see the cost, process, and how long it takes in step four below.

1. Sign in to Gusto as an admin.
2. Go to Taxes & compliance and click Tax setup.
3. Under “[State name] Tax Setup”, click Have us register for you.
   • The state will only show up if you’ve added a company work address there and assigned an employee to it.
4. Look at the price, process, and how long it will take.
   
   • We will not charge you until you send in your order.
5. Click Continue.
6. Answer a few questions to see if you're eligible.
   • We can only register for you if you do not already have a state account.
7. Click Save & continue.
8. Enter some company information (we'll fill in what we already know).
9. Click Save & continue.
10. Tell us who the responsible party is. This is the person in charge of the company’s tax matters and good standing. 
    • If you're a nonprofit and need help, check our FAQs below.
11. Click Save & continue.
12. Enter some state-specific operational information.
13. Click Save and continue.
14. Review all info carefully. Mistakes can delay things. 
    • Heads up: State and local agencies might add fees or take longer than expected. CorpNet will notify you if that happens.
15. Check the box to confirm all your info is correct and agree to the Terms of Service.
16. Click Send registration order.
    • We’ll email you with order updates and add the cost to your next monthly bill.

Some reminders

• You need to give Gusto third-party access (TPA) to your tax accounts. CorpNet doesn’t do this for you.
  • 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 isn't needed right now.
• Watch your mail for registration info. The state will send you your tax account numbers and rates.
  • CorpNet can help you enter tax info into Gusto, but they won’t do it for you.

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 done, use the link in the state registration email from Gusto to check your order's status.

You can also check the status in your Gusto account:

1. Click Taxes & compliance and select Tax setup.
2. Scroll to the state's section.
3. Click Check the status of your registration.

If your order is still in progress, you can cancel from your Gusto account:

1. Click Taxes & compliance and select Tax setup.
2. Scroll to the state's section.
3. Click Check the status of your registration.
4. On the right-side of the page, under “Changed your mind?”, click Cancel your order.
5. Let us know why you're canceling.
6. Click Cancel your order.

If you were already charged, you'll get a refund in a few business days.

If you canceled your order but would like to re-open it, contact CorpNet directly at (888) 449-2638. Or email them at [email protected].

Q: Can I run payroll before my registration is done?

A: Yes, you can usually run payroll before all state tax info is added in Gusto. You may be asked to enter tax rates and tax deposit frequencies, but can use temporary info.

Important reminders

• We cannot submit tax payments or filings until all tax account numbers are added.
• If you run payroll before finishing registration, you might get notices about late tax payments or filings. Any penalties are your responsibility.
• If you’re only registering for unemployment tax and don’t have your rate yet, use the new employer rate for your state in Gusto until you get the correct one. Update the rate once you get it.

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, CorpNet cannot help with registration. You'll need to work with a tax advisor and state agencies directly.

Q: Where can I find my tax information?

A: You can find your tax info in several places: 

• In Gusto: Go to Taxes & compliance and click Tax setup, then scroll to state tax setup.
• In CorpNet: Create an account and sign in to see your info.
• In your state’s online portal: Find your account details there.
• By mail: Some agencies send tax info by mail. If that happens, CorpNet will let you know, and you'll need to enter this info in Gusto.

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 tax yet?

A: If you want CorpNet to start setting up 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 to meet the liability threshold.
  • Check the state’s liability info in the Register on your own section (go to the SUI dropdown). If there’s no info, contact the state agency directly.

Q: Can CorpNet help if the responsible party is international without an ITIN or SSN?

A: CorpNet might be able to help. Contact them at [email protected] or call 1(888) 449-2638.

Q: Why can’t I 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 CorpNet 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 CorpNet for help at [email protected] or call 1(888) 449-2638.

Q: Does CorpNet 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, CorpNet doesn’t 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 isn't needed right now.

Q: Does CorpNet help close state tax accounts?

A: No, you'll need to close the tax account yourself.

• CA Employment Development Department (EDD) – income tax withholding and unemployment tax

Register with the Employment Development Department (EDD)

Check out this video tutorial on how to register for an employer payroll tax account number—follow the steps below as you watch. 

Step one: Create a username and password

1. Start by heading to the EDD's e-services for businesses site. 
2. To get a username and password, click Enroll on the right-side of the page.
3. Enter your personal information and click Continue. 
4. Choose your security questions, answer them, then select Continue.
5. Review the “Enrollment Summary” and print a copy for your records, then select Submit.
6. To complete the enrollment process, click the verification link in the email the CA EDD sent you.

Step two: Register for an Employer Payroll Tax Account Number

1. Sign in to your E-services for Businesses profile. Use your username and password created above.
2. Select New Employer.
3. Choose Register for Employer Payroll Tax Account Number.
4. 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 can select the prior quarter, or the current quarter.
       • If you select a prior quarter, you'll have 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 any important communications from the EDD.
5. Submit your completed online registration application to finish this step.
   • To get your account number quickly, give the agency all requested documents.
     
     • Registration for non-profit employers can take a little longer if the organization does not provide their non-profile paperwork with their registration (e.g., your 501(c) determination letter from the IRS).
6. Once your registration request is sent, you'll typically receive your account number in the mail 10–15 business days later. 

To view the status of your request/registration, log 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.

Enter the tax account information in Gusto

Once a valid California work address has been added in Gusto for one or more employees, you can add your tax account information:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the “California Tax Setup” headline and select Manage taxes.
3. Enter your EDD account number and agency-assigned unemployment rate.
   • Your EDD number will be an eight-digit number in the format 123-4567-8.
   • Do not include the "ETT" rate in the rate you enter in Gusto.
     • 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.
     • If CA EDD has let you know 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%.
   • 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.

After you register with the California EDD, you can find your EDD payroll tax account number and unemployment rate in a few places:

• On your “New Employer Account Registration Info” letter, or;
  
• In the upper right-hand corner of any additional agency correspondence (listed as “Account ID”), or;
  
• In your online e-Services for Business account

Your unemployment (UI) rate, and employment training tax (ETT) rates can be found:

• 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 cannot find your account number or tax rates, contact the agency directly at (888) 745-3886.

Personal Income Tax only (PIT-only) companies

If the CA EDD has let you know that your business is PIT-only, and they've given you an EIN beginning with “8", enter your unemployment tax rate as 0%.

Once you add a valid California work address to Gusto for at least one employee, you can add your tax account info:

1. Click the Taxes & compliance section and select Tax setup.
2. Scroll to the “California Tax Setup” headline and select Manage taxes.
3. Enter your EDD account number and agency-assigned unemployment rate.
   • Your EDD number will be an eight-digit number in the format 123-4567-8.
   • Do not include the “ETT” rate in the rate you enter in Gusto.
     • 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.
   • 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.