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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.
Watch a quick video to learn how registering in a new state works
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.
Gusto works with Middesk to register your business for state tax accounts when you hire employees or start working in a new state. We set up state income tax withholding and state unemployment insurance so we can run payroll and file taxes on your behalf.
We can start your registration after all of these are true:
You added a company work address in the new state.
You assigned that address to a new or existing employee.
You checked your Gusto Home page for a registration to-do.
If required, you registered with preliminary state agencies (like the Secretary of State or Department of Licensing and Regulatory Affairs) first and confirmed it's done.
States that require SOS registration before tax setup: Michigan, Missouri, New Jersey, New Mexico, and Vermont.
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:
You answer questions about your business, including:
Basic company info
Contact details
Addresses
Owner or officer info
State-specific details
Middesk reviews your information.
Middesk usually submits your registration within two business days.
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.
After your order is marked as complete, we add the charge to your next Gusto monthly invoice.
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.
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.
Note: You can cancel orders before they are sent to Middesk. Once an order is submitted to Middesk, it cannot be canceled or refunded.
If you need help with any of the registration questions, check Middesk’s Help Center.
In your web browser:
Go to Taxes & Compliance → Tax setup.
Find [State name] Tax Setup.
Click Learn more under “Let us help you register.”
Review the price, process, and timeline. We do not charge you until after your order is complete.
Click Get started on Middesk.
Review everything carefully before submitting. Mistakes can delay registration.
In the Gusto mobile app:
Open the Gusto mobile app and sign in.
In the bottom-right corner, tap More.
Select Taxes & compliance.
Scroll down to Quick links and choose Setup tax accounts.
Scroll down to [State name] tax setup. Tap Learn more.
Review the process, timeline, and pricing. We do not charge you until after your order is complete.
Tap Get started on Middesk.
Share your business information and review everything carefully before submitting. Mistakes can delay registration.
To check your Middesk registration status in Gusto:
Go to Taxes & Compliance → Tax setup.
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:
Go to Taxes & Compliance, select Tax Setup, and scroll to the applicable state.
In the Finish your [state] registration order banner, select Cancel order.
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.
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.
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.
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.
Expand the sections below to learn how to register with Minnesota tax agencies. Don't forget to give Gusto third-party access (TPA) so we can file and pay your taxes for you.
You'll work with the following Minnesota agencies when registering for payroll taxes:
Minnesota Department of Revenue (DOR): Handles income tax withholding.
Minnesota Unemployment Insurance Program (UI): Handles unemployment tax and Paid Leave.
You need to register for withholding income tax with the Minnesota Department of Revenue (DOR). You should get your account number right after you register.
Go to the Minnesota Department of Revenue website.
Scroll to Business Registration and click Get a Minnesota Tax ID Number.
Learn more about MN Tax ID requirements.
Before you continue, make sure you have:
Your Federal Employer ID Number (FEIN)
Your business name and address
Your business's NAICS code, which is an industry classification code
The names and Social Security numbers of business officers
A contact name and email
Scroll down and click Next.
Fill out all the required information to finish registering.
In Minnesota, most businesses must start paying unemployment tax after paying at least one Minnesota employee $1.00 or more.
Your business type (general, nonprofit, and others) can affect when you need to start paying. Contact the unemployment agency to confirm when your company is responsible for paying this tax.
Owners or officers with 25% or more of the company should work with the agency to see if they're exempt from unemployment insurance. Make sure the agency knows who these owners are. If they're exempt, you can set up an exemption for them in Gusto.
If you need to run payroll but don't yet meet the requirements, you can enter the new employer rate for Minnesota in Gusto temporarily. Update the rate once you get it. You can also check Minnesota's website for new employer rates by business type.
Minnesota has two account types:
Joint Unemployment/Paid Leave accounts: For employees who need both unemployment insurance and Paid Leave.
Paid-Leave-Only accounts: For employees who only need Paid Leave because they're exempt from unemployment.
Most businesses will have one account, but some may have two Employer Account Numbers (EANs). This happens when some employees need both Unemployment Insurance and Paid Leave, while others only need Paid Leave.
Go to the Minnesota Unemployment Insurance Program website.
Click Employers & Agents.
Scroll to the I Need To... section, and under Register for an Account, click Employers.
Scroll to the New employer account section and click Register.
For step-by-step help, watch the agency's video on how to register.
Make sure you have all the info ready, then click Next and fill out everything they ask for.
On the Register for an Unemployment Insurance (UI) and Paid Leave account page, select the option that fits your situation best:
Option 1: You need a joint SUI/PFML account, and it's your first time registering.
Option 2: You need a Paid-Leave-only account, and it's your first time registering.
Option 3: You already have a joint SUI/PFML account, but need to add a Paid-Leave-only account. This is most common if you have some employees liable for both taxes, and some employees only liable for PFML. If you have an older SUI account, it was converted into a joint SUI/PFML account automatically.
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 Minnesota work address for one or more employees.
If you've already registered in Minnesota, you need to enter your tax account details in Gusto. You need to be registered with the following agencies for Gusto to file and pay taxes on your behalf:
Minnesota Department of Revenue (DOR): Handles income tax withholding.
Minnesota Unemployment Insurance Program (UI): Handles unemployment tax and Paid Leave.
If you still need to register, see the Register for MN income, unemployment, and Paid Leave taxes on your own section earlier in this article.
Once you add a valid Minnesota work address in Gusto for one or more employees, you can enter your state tax account information.
To add your Minnesota tax account information:
Go to Taxes & compliance, then select Tax setup.
Find Minnesota 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.
Next to Tax ID Number, click Edit to enter your Minnesota Withholding Tax ID. This is your Minnesota Tax ID Number issued by the Minnesota Department of Revenue (DOR).
Notices from the Minnesota Department of Revenue
If you cannot find your account number, contact the DOR at (651) 282-9999.
Minnesota has two account types: Joint Unemployment/Paid Leave accounts and Paid-Leave-Only accounts. Most businesses have one account, but some may have two Employer Account Numbers (EANs).
If you have a joint SUI/PFML account: Next to Employer Account Number, click Edit and enter your employer account number.
If you need to add a second account number for a Paid-Leave-Only account, set up an employee exemption for the applicable tax. The option to enter the PFML account number will then appear.
The account number cannot be the same for both Employer Account Number and PFML Account Number.
If you only have a Paid-Leave-Only account: Next to PFML Account Number, click Edit and enter your employer account number.
Your Determination of Tax Rate letter from the state
Your EAN should start with a "0" and have 7 digits. If you have an older number with 7 digits, enter it in Gusto.
If your business has a Paid-Leave-Only account number, you'll find it on the registration letter from the state.
If you cannot find your account number, contact the agency at (651) 296-6141 or get their contact info here.
Some businesses may have two account numbers: one for Unemployment Insurance, and one for Paid Leave only (for employees who are exempt from unemployment).
To enter a second account number for Paid Leave only:
A PFML Account Number field will appear in the state tax setup.
Make sure the two account numbers (EAN and PFML) are not the same.
Next to Unemployment Insurance Tax Rate, click Edit and enter your unemployment rate. Do not include the following rates (they're already accounted for):
Workforce Assessment Rate
Federal Loan Interest Assessment
Additional Assessment
Log in to your Minnesota Unemployment Insurance Account.
Click Account Maintenance.
Click View Tax Rate Notice.
If you cannot find your rate, contact the agency at (651) 296-6141.
If you do not have your assigned rate yet, enter the new employer rate for Minnesota in Gusto temporarily. Update the rate once you get it.
Owners or officers with 25% or more of the company should work with the agency to see if they're exempt from unemployment insurance. Make sure the agency knows who these owners are. If they're exempt, you can set up an exemption for them in Gusto.
To let Gusto file and pay your taxes, you need to give Gusto third-party access to these Minnesota agencies:
Minnesota Department of Revenue (DOR): Withholding (income) tax
Minnesota Unemployment Insurance (UI): Unemployment tax and Paid Leave
If we need to file an amended return, you'll need to give us additional access.
Gusto needs to be authorized as your third-party agent (TPA) to pay and file your withholding taxes. We'll send a request for TPA, and you'll need to approve it before we can file your taxes.
We'll request Third-Party Access to your DOR account within 25 business days of a Minnesota work address being added in Gusto.
If you do not get our request after 25 business days, message us from your account to let us know.
When your Home page in Gusto has a Things to do item titled Finish Minnesota withholding registration, complete the steps below.
Click Manage My Profile.
If you have an alert for a new message, it could be Gusto's request. Click View Messages and view the Third-Party Request.
Find I Want To and click Set up access with another business.
Click Approve or Deny 3rd Party Requests.
Choose Yes for Access Allowed.
Select All for Access Type.
Click Next.
Review all info on the Request Summary Page and click Submit.
After you've given Gusto access with the agency, sign in to your admin profile in Gusto.
From your Home page, under Things to do, find and click Finish Minnesota withholding registration, then click Let's do it.
On the Minnesota tax setup page, find Revenue Registration and click Edit.
Select Yes, I have approved Gusto, then click Save.
If we have issues getting the authorization we need, we'll let you know.
You have not registered a withholding account with the DOR. While your general account number and withholding account number are the same, the withholding tax type requires a separate setup.
Old third-party agents are still on your account. Call the DOR at (651) 282-9999 and have them remove the old agent's access and remove your company from your previous agent's client list.
Gusto's start and end dates for third-party access are incorrect. The start date should be the first day of the quarter when Gusto starts filing for you. For example, if your first payday with Gusto was on February 18, the start date should be January 1, since that's the beginning of the first quarter.
Your FEIN or Withholding Tax Account ID in Gusto does not match what the agency has on file. Verify your information matches in both places.
If you need help, contact the DOR at (651) 282-9999.
For Gusto to file and pay your MN Unemployment and Paid Leave taxes, you need to authorize Gusto as your third-party agent. You'll need your permanent user ID to do this, which comes in the mail after registration is completed. Learn more about third-party access on the agency site.
To start the authorization:
Log in to your account with the Minnesota Unemployment Insurance Program.
Click Account Maintenance.
Click Agent Authorization.
If you do not see this option, reference the troubleshooting instructions below. You may not have received your permanent user ID in the mail yet, and this is required.
Click New.
Enter Gusto's Agent ID: AG014761.
For the Effective Begin Date, enter today's date.
In the Available Roles section, select the following three roles for Gusto to perform:
Account Maintenance, Update and Submit
Tax Payment, Update and Submit
Wage Detail Update and Submit
Do not select Gusto for any of the following roles:
Benefit Account, Update and Submit
Benefits Paid Charges, Update and Submit
Any View Only Roles
Click Save.
In Assigned Roles, find Account Maintenance Update and Submit. Under Modify, click Assign Employer Reporting Units for this role.
In Select Employer Reporting Units, select Check the box if the assigned role will be for all Employer reporting units.
Click Add.
Click Save.
Click Previous.
Repeat steps 10 through 13 for:
Tax Payment Update and Submit
Wage Detail Update and Submit
When finished, click Update to complete the process.
If you're having trouble granting us the access we need, use the troubleshooting steps below to help.
Once TPA has been assigned for Minnesota UI, sign in to your Gusto account to let us know:
Go to Taxes & compliance, then select Tax setup.
Find Minnesota Tax Setup and click Manage Taxes.
Next to UI Registration, click the edit icon.
Select Yes, I have authorized Gusto.
Click Save.
Your information in Gusto does not match what's on file with the agency. Verify that your FEIN and Employer Account Number match in both places. Go to Taxes & compliance in Gusto to see what's on file.
You have not assigned Gusto the necessary roles. See step 7 above for the required roles.
You do not see "Agent Authorization" in your account. You may still need a permanent user ID to complete TPA authorization.
Employers should receive the permanent ID correspondence within 7 days of registration, though this can change depending on mail delivery delays.
If you have not received your permanent user ID after 7–10 days from when you initially logged into the online portal, contact the agency at [email protected] or call (651) 296-6141, option 4.
If you only have access to the temporary password issued during the initial setup, log in using that password. Minnesota will mail a permanent user ID the next business day.
If you're still having issues, contact the agency at (651) 296-6141.
This agency requires that Gusto have third-party access to your online MN UI account to submit an amendment on your behalf. Amendments often call for a different filing method than the original returns.
If you have trouble, try the agency's instructions.
Log in to the unemployment insurance program online website.
Enter your User ID and Password, then click Login.
If you do not know your credentials, contact a Customer Service Representative at (651) 296-6141, option 4.
On the Employer Home Page, click Account Maintenance.
Click Agent Authorization.
Click Search to view agents who have already been authorized to access your account.
Click New to authorize a new agent.
On the Assign Agent page, enter Gusto's Agent ID: AG014761.
Click Next.
Under Available Roles, select Wage Detail Update and Submit.
This is the minimum account access required for us to submit amendments on your behalf.
Click Save.
For each role selected, click Assign Employer Units and select the unit(s) for that role.
Click Save.
Unemployment insurance (UI) tax returns are also submitted to the Paid Leave Department for wage reporting.
If you were already registered for unemployment taxes, your account was automatically updated to a Joint Unemployment/Paid Leave account.
If you need a Paid-Leave-Only account, you must register that account with the agency and update your Gusto account with that Employer Account Number (EAN).
Learn more:
Premium rates are set to ensure Paid Leave can cover payments and serve Minnesotans who need it.
The 2026 premium rate is 0.88%, covering Medical Leave (0.61%) and Family Leave (0.27%). Wages up to $185,000 are subject to premiums. This cap matches the wage base used by Social Security (the OASDI limit).
Employers can deduct up to 0.44% of employees' wages to cover their portion of the premium. You can also choose to cover more of the premium for some or all of your employees.
After the first year, the premium rate will be set annually by July 31 for the following year, based on the program's performance and best budgeting practices. The rate is informed by an independent actuarial study and cannot exceed 1.1% as set in Minnesota's Paid Leave law.
Note: Small employers pay a reduced rate of 0.66% for 2026. To qualify, you must employ 30 or fewer workers and have an average employee wage less than about $107,000 (150% of the statewide average).
Some small employers can pay a lower Minnesota Paid Leave rate. You may qualify for the small employer rate (0.66%) if both are true:
You have 30 or fewer employees, and
Your average employee wage is less than 150% of the statewide average wage
You can check whether you qualify before updating your setup.
Default rate in Gusto: By default, Gusto sets all companies to the standard rate (0.88%). If your business qualifies for the small employer rate, you can change this in your Gusto account.
No matter which rate you use:
Employees pay 0.44%
Employers pay the rest
Rate examples
Standard rate (0.88%)
Employee pays 0.44%
Employer pays 0.44%
Small employer rate (0.66%)
Employee pays 0.44%
Employer pays 0.22%
If you want to pay part of your employees’ share, you can. Use the “Cover a percentage of your employees’ Paid Leave deductions” option in Gusto to set this up.
To enter your paid leave rate in Gusto:
On your homepage, find the task titled Review Minnesota Paid Leave details and click Let's do it.
Or, go to Taxes & compliance, then select Tax setup.
Scroll to Minnesota Tax Setup.
Next to Paid Leave rate, click Edit.
Select Small employer, enter the effective date, then click Save.
Note: You can only qualify for the small employer rate for an entire calendar year. You will only be able to select January 1 as the effective date, and the chosen setting will be locked in for the remainder of the year.
Employees contribute a portion of their pay to the Minnesota Paid Leave program, but you can elect to cover some or all of that amount in addition to the standard employer contribution. This will be treated as taxable wages to your employees. Learn more.
To cover your employees’ MN Paid Leave premiums:
Go to Taxes & compliance, then select Tax setup.
Scroll to Minnesota Tax Setup.
Next to Paid Leave employee portion paid by employer, click Edit.
Enter what percent of employee premiums you would like to cover. You can enter 0–100%.
If you enter 0% (the default), your employees will contribute 0.44% of wages to MN Paid Leave.
If you enter 50%, your employees will contribute 0.22% of wages, and you will pay the employer portion plus 0.22% to cover half of employee premiums.
If you enter 100%, your employees will not have MN Paid Leave taxes withheld, and you will pay the employer portion plus 0.44% to cover all employee premiums.
Enter the effective date, then click Save.
Note: You can change this setting each quarter, but you cannot change settings if you've already run a payroll in that quarter. Once you run a payroll, you can only change this setting for future quarters. This prevents retroactive withholding of employee wages, which is not permitted in many states.
We currently only support reporting for Minnesota's state Paid Leave plan. If your business applied for and received approval for a private plan substitution, you'll need to take a few extra steps.
To prevent us from collecting premiums or filing returns for MN Paid Leave on your behalf, set up a company-level exemption. Follow the steps in our Set up and manage tax exemptions article. When prompted, select My company is exempt from paying this tax and choose MN Paid Leave as the tax type.
Once the exemption is active, we will not debit premiums or submit Paid Leave tax returns for your business. You are responsible for all reporting and payments required by the state agency.
If you decide to end your private plan and enroll in the state plan, you'll need to remove the MN PFML exemption in Gusto. Once removed, we'll start paying and filing MN Paid Leave on your behalf.
By December 1, 2025, Minnesota employers must:
Display a poster about paid leave where workers can easily see it. The poster must be in English and in any other language spoken by five or more workers or contractors.
Tell each worker about paid leave in their own language within 30 days of being hired or 30 days before their paycheck starts having money taken out for paid leave.
Minnesota Paid Leave will provide the poster and a sample letter. These will be available in many languages on their website soon.
If you registered for Paid-Leave-Only, add your EAN to your Gusto account, so wage reporting is accurate.
Continue to provide new hire notices for all employees going forward.
If you're hiring a new employee or if an employee's personal or financial info has changed, they must fill out these forms before their first paycheck:
Federal Form W-4
Minnesota State Form W-4MN (the state's version of the W-4)
Employees can fill out and sign their federal W-4 form in Gusto by following these instructions.
Download Form W-4MN from the Minnesota agency website.
Have the employee complete and sign the form.
Keep a copy for your records. Do not send it to Gusto.
Employees can enter their state tax elections in Gusto:
Click My profile.
Go to Taxes.
Click Edit next to the Minnesota tax info.
If you need to update the employee's state tax info as an admin:
Go to the People section and click their name.
Go to Taxes.
Click Edit next to the Minnesota tax info.
If the form is not submitted before their first paycheck, you must withhold taxes as if they are single with no allowances.
You do not need to verify the number of allowances the employee claims.
Accept and honor each W-4 and W-4MN unless Gusto tells you otherwise.
If an employee gives you a new federal W-4, they must also give you a new W-4MN.
MN MDES-1* (Minnesota Quarterly Contributions)
MN MDES-1* (Minnesota Quarterly Contributions for Paid Leave Only Accounts)
MN Quarterly Withholding Worksheet for quarterly filers*
MN Quarterly Withholding Worksheet for annual filers*
MN Income Tax Withheld Coupon*
State W-2 (Wage and Tax Statement)
MN New Hire Report
You can view forms in Taxes & Compliance, then Tax documents. Switch between the tabs to find federal, state, W-2s, and 1099s.
Some forms show an asterisk (*). Forms like payment vouchers or coupons that were filed electronically may not show in your Gusto account. Sign in to the agency's portal to view filings and payments.
To see what Gusto has paid for you, run the Agency Payments report.
Revenue Agency: Minnesota Department of Revenue (DOR)
Phone: (651) 282-9999
Toll-free: (800) 657-3594
Workforce or Labor Agency: Minnesota Department of Employment and Economic Development (DEED)
Phone: (651) 296-6141 (Press 4 to reach a representative)
Phone: (651) 556-7777 or (844) 556-0444
Email: [email protected]
Need to close or reopen a tax account? See our article on closing and reopening a state or local tax account.