Payroll blocked? Check out our payroll blocked troubleshooting tips article.
Setting up payroll in Illinois for the first time
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.
Use the dropdowns below to learn more. Use CMD + F (or CTRL + F) to search for words in the article.
Gusto works with Middesk to help you register with tax agencies in new states.
For now, this includes: Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
Get help registering for state taxes
We can help you register for state tax accounts after you:
Cost, timeline, and who can register
The cost, steps, and turnaround time depend on the state. Gusto will show you these details when you start the registration process.
Middesk cannot help if your company is:
What the process looks like
Third-Party Access (TPA) and Power of Attorney (POA)reminder
Some state agencies need Gusto to have TPA or a POA on file to file and pay your taxes. Usually, Middesk does not set this up, so you’ll have to do it yourself after registration.
Check the state registration articles to see if TPA or POA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA is not needed right now.
If setting up TPA requires online agency portal access:The cost, steps, and turnaround time depend on the state. Gusto will show you these details when you start the registration process.
Need help with registration questions?
If you’re not sure how to answer one of the registration questions, check Middesk’s Help Center or email them at [email protected].
How to get started with state tax registration in Gusto:
Important: You may need to give Gusto access
Some states require you to give Gusto third-party access (TPA) or a Power of Attorney (POA) to your tax accounts. Middesk does not do this for you.
Need to make a change?
If you already submitted your info but need to fix something, email [email protected] to update it.
When your order is complete, you’ll get emails from Gusto and Middesk. They’ll detail the next steps, which include:
Before your order is done, you can check the order status in your Gusto account:
For most states where tax registration info is sent by physical mail, here's what to expect:
Q: Can I run payroll before my registration is done?
A: Yes. You may be asked to enter tax rates and tax deposit frequencies, but you can use temporary info.
Important reminders
Q: I need to change some of the registration information that was submitted. What do I do?
A: Email Middesk at [email protected].
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, Middesk cannot help with registration. You'll need to work with a tax advisor and state agencies directly.
Q: What if I'm not liable for unemployment tax yet?
A: If you want Middesk to start setting up an unemployment account number before you're liable, you can:
Q: Can Middesk help if the responsible party is international without an ITIN or SSN?
A: No. Middesk cannot help in this scenario, you'll need to register on your own.
Q: Why am I unable to enter 0% ownership for the responsible party or add a commercial owner?
A: Some states have a 1% minimum for the responsible party's 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 Middesk 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 Middesk for help at [email protected].
Q: When will my tax account information be available?
A: Each state and agency takes a different amount of time to process a registration. To estimate when your state tax account info will be available, check the Post Submission Questions in Middesk's help article.
Q: Where can I find my tax information?
A: You can find your tax info in several places:
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: Does Middesk help with giving Gusto third-party access (TPA) or Power of Attorney (POA) for tax payments?
A: Some state agencies need Gusto to have TPA or POA access to file and pay your taxes. Usually, Middesk does not set this up, so you’ll have to do it yourself after registration.
Check the state registration articles to see if TPA or POA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA is not needed right now.
If setting up TPA or POA requires online agency portal access:
Q: Does Middesk help close state tax accounts?
A: No, you'll need to close the tax account yourself.
Q: Can I cancel my Middesk order?
A: At this time, we do not support order cancellations or refunds.
Q: What is Middesk's phone number?
A: To get support from Middesk, you must email them at [email protected]. They can help with registration-specific questions, or changing info that's already been submitted. For all other questions, you can message Gusto.
Click the dropdowns below to learn how to register with state agencies—don't forget to give Gusto the third-party authorization (TPA) we'll need to file and pay certain taxes on your behalf.
Register for both income tax withholding and unemployment tax through the Illinois Department of Revenue (DOR) website.
Learn what to expect for each tax type below, and where to enter your tax information in Gusto.
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.”
If you do not know your Sequence Number, call the IL DOR at (800) 732-8866.
Most companies become liable for state unemployment insurance tax once the company has:
If you need to run payroll and do not yet meet the requirements above, Gusto allows it. Add the Illinois “New employer rate” in Gusto in the meantime—update the rate once you receive it.
If considered liable, you'll instantly be issued an:
Monthly wage reporting requirement—Illinois Department of Employment Security (DES)
The IL DES requires that employers with more than 25 Illinois-employees file monthly wage reports—Gusto files this monthly report on behalf of all of our customers (regardless of the number of employees you have).
Once a valid Illinois work address has been added in Gusto for one or more employee(s), you can add your tax account information:
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.
If you've already registered in the state, you'll need to enter your tax account details in Gusto.
You'll need to be registered with one or more of the below agencies in order for Gusto to file and pay taxes on your behalf:
If you still need to register, click the applicable dropdown above in this article.
If you've run payroll in Illinois previously, you can find your Taxpayer ID:
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.”
Don't forget to give Gusto the third-party authorization (TPA) we'll need to file and pay certain taxes on your behalf.
Employers receive their account number and rates after completing registration, and can view that information by:
Entering your unemployment account number
Gusto only requires the first seven (7) digits of the number, do not include the eighth digit (if present).
Entering your unemployment (experience) tax rate
Enter both your experience rate and the "Fund Builder Rate" as the total tax rate in Gusto.
Once a valid Illinois address has been added in Gusto for one or more employee(s), you can add your tax account information:
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.
For Gusto to file and pay certain taxes, we'll need third-party authorization for the Illinois Department of Revenue (DOR).
You'll need to give Gusto access to your MyTax Illinois account for us to file and pay your Illinois withholding taxes.
To change these settings, click the blue link to toggle to the designations above.
Once these settings are saved, we'll have the access we need (unless notified otherwise).
You can view forms in Taxes & Compliance > Tax documents. Switch between the tabs to find federal, state, W-2s, and 1099s.
To see what Gusto has paid on your behalf, run the Agency Payments report.
Learn how to close or reopen tax accounts here.