Illinois registration and tax info

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:

1. You answer questions about your business, including:

   • Basic company info

   • Contact details

   • Addresses

   • Owner or officer info

   • State-specific details

2. Middesk reviews your information.

3. Middesk usually submits your registration within two business days.

4. 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.

5. After your order is marked as complete, we add the charge to your next Gusto monthly invoice.

After registration is submitted

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.

Running payroll before registration is complete

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.

If you need help with any of the registration questions, check Middesk’s Help Center.

In your web browser:

1. Sign in to Gusto.

2. Go to Taxes & Compliance → Tax setup.

3. Find [State name] Tax Setup.

4. Click Learn more under “Let us help you register.”

5. Review the price, process, and timeline. We do not charge you until after your order is complete.

6. Click Get started on Middesk.

7. Review everything carefully before submitting. Mistakes can delay registration.

In the Gusto mobile app:

1. Open the Gusto mobile app and sign in.

2. In the bottom-right corner, tap More.

3. Select Taxes & compliance.

4. Scroll down to Quick links and choose Setup tax accounts.

5. Scroll down to [State name] tax setup. Tap Learn more.

6. Review the process, timeline, and pricing. We do not charge you until after your order is complete.

7. Tap Get started on Middesk.

8. Share your business information and review everything carefully before submitting. Mistakes can delay registration.

To check your Middesk registration status in Gusto:

1. Go to Taxes & Compliance → Tax setup.

2. 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:

1. Go to Taxes & Compliance, select Tax Setup, and scroll to the applicable state.

2. In the Finish your [state] registration order banner, select Cancel order.

Eligibility and requirements

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.

Unemployment tax

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.

After you submit registration

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.

Closing accounts

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.

Register for both income tax withholding and unemployment tax through the Illinois Department of Revenue (DOR) website.

To register:

1. Go to the Illinois Department of Revenue (DOR) website.

2. Scroll to the Register tile and click Register a New Business (Form REG-1).

3. Enter your basic business information, then click Next. This includes:

   • Organization type

   • Federal Employer Identification Number (FEIN)

   • Legal name

   • DBA (doing business as) name, if applicable

4. Complete the registration.

Learn what to expect for each tax type in the sections below.

Once you complete registration, take these steps:

• Give Gusto third-party access (TPA) so we can help manage your taxes with the agency.

• Enter your tax account information in Gusto once you add a valid Illinois work address for one or more employees.

After you register, you'll get your Taxpayer ID. This is a combination of your Federal Employer Identification Number (FEIN) and a Sequence Number. You'll need to enter your company-assigned Sequence Number in Gusto.

The Sequence Number is usually "-000", but can sometimes be "-001."

• Most new employers in Illinois will have the "-000" Sequence Number.

If you do not know your Sequence Number, contact the IL DOR at (800) 732-8866.

Most companies become liable for state unemployment insurance tax once they meet one of the following:

• Paid $1,500 in wages during a calendar quarter

• Had at least one Illinois employee working for any part of the week, for 20 or more different weeks during a calendar year

If you need to run payroll but do not yet meet the requirements, you can enter the new employer rate for Illinois in Gusto temporarily. Update the rate once you receive it.

If you're considered liable, you'll instantly receive:

• Unemployment Account Number: The format is XXXXXXX-X. Gusto only needs the first seven digits of this account number. Do not include the eighth digit when entering the number in Gusto. The last digit is called the "check digit," and the IDES often leaves it off correspondence.

• Unemployment tax rate: Rates vary by industry and include an additional "Fund Builder Rate" that you need to enter in Gusto.

Monthly wage reporting requirement

The Illinois Department of Employment Security (IDES) requires employers with more than 25 Illinois employees to file monthly wage reports. Gusto files this monthly report on behalf of all customers, regardless of the number of employees you have.

Enter your withholding Taxpayer ID and Sequence Number. Your Taxpayer ID is a combination of your Federal Employer Identification Number (FEIN) and a Sequence Number.

The Sequence Number is usually "-000", but can sometimes be "-001."

• Most new employers in Illinois will have the "-000" Sequence Number.

Where to find your Taxpayer ID:

• Your Illinois Withholding Income Tax Return (IL-941)

• Your MyTax Illinois account

• If you cannot find your Sequence Number, contact the IL DOR at (800) 732-8866.

Enter your Unemployment Account Number. Gusto only needs the first seven digits of the number. Do not include the eighth digit if present.

• If the account number is less than seven digits, add leading zeros to create a seven-digit number.

• New employers will always have seven-digit numbers, typically starting with a "5."

Where to find your Unemployment Account Number:

• Your MyTax Illinois account

• Your "Notice of Contribution Rate" from the Illinois Department of Employment Security (IDES), which you receive each year, usually in December

• If you cannot find your account number, contact the IDES at (800) 247-4984.

Enter your unemployment (experience) tax rate and include the "Fund Builder Rate" as the total tax rate in Gusto.

Where to find your unemployment rate:

• Your MyTax Illinois account

• Your "Notice of Contribution Rate" from the IDES

• If you cannot find your rate, contact the IDES at (800) 247-4984.

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.

You need to give Gusto access to your MyTax Illinois account for us to file and pay your Illinois withholding taxes.

To authorize Gusto with the IL DOR:

1. Log in to your MyTax Illinois account.

2. Under your name in the top right, click Manage My Profile.

3. Go to the More... tab.

4. In the "Access" section, select Manage Third Party Access. From here, you can indicate that you'd like to allow third-party access. You'll also see which third parties currently have access to your account.

5. Under "Third Party Access," make sure the following settings are correct:

   • Allow: Yes

   • Default access: Third Party

   • Default account access: Full Access

To change these settings, click the blue link to toggle to the designations above.

Once you save these settings, we'll have the necessary access, unless notified otherwise.