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Setting up payroll in Minnesota 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. Do not forget to give Gusto third-party access (TPA) so we can file and pay your taxes for you.
You need to register for withholding (income) tax with the Minnesota Department of Revenue (DOR). You should get your account number right after registering.
After a work address in Minnesota is assigned to one or more employees, 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.
In Minnesota, most businesses must start paying unemployment tax after paying one Minnesota-employee at least $1.00.
If you need to run payroll but do not yet meet the requirements, Gusto lets you enter the new employer rate for Minnesota 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 (starting the third quarter of 2024):
Most businesses will have one account, but some businesses 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 (because they're exempt from unemployment).
After a work address in Minnesota is assigned to one or more employees, 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 agencies below for Gusto to file and pay taxes for you:
If you haven’t registered yet, follow the steps above in this article.
If you’ve run payroll in Minnesota before, you can find your MN Withholding Tax ID by:
Remember to give Gusto third-party access (TPA) so we can file and pay these taxes for you.
If you’ve run payroll in Minnesota before, you can find your EAN by:
Your EAN should start with a "0" and have 7 digits. If you have an older number with 7 digits, just enter it into Gusto.
Paid Leave Only account number
If your business has a Paid Leave Only account number, you’ll find it on the registration letter from the state.
Some businesses may have two account numbers:
If you need to enter a second account number for Paid Leave only:
Have questions about the different account types? Get answers from the agency or get their contact info here.
Remember to give Gusto third-party access (TPA) so we can file and pay these taxes for you.
To find your UI rate:
When entering your UI rate in Gusto, do not include these rates (they’re already included):
If you cannot find your rate, call the agency at (651) 296-6141.
If you do not have your rate yet, enter the new employer rate for Minnesota 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.
After a work address in Minnesota is assigned to one or more employees, 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.
Starting Q3 2024, unemployment insurance (UI) tax returns also go to the Paid Leave Department for wage reporting. Employers who submitted their Q3 2024 unemployment wages in October through the usual UI process met this requirement.
Learn more:
April 2025 update
By December 1, 2025, Minnesota employers must:
Feb 2025 update
On Feb 20, 2025, Minnesota introduced Bill HF 11 to delay the Paid Leave Law until 2027. If passed:
This change needs legislative approval, and Gusto is tracking updates. For the latest info, go to the agency's Paid Leave resource and sign up for Minnesota’s Paid Leave email list.
To let Gusto file and pay your taxes, you need to give Gusto third-party access to these Minnesota agencies:
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.
If we have issues with getting the authorization we need, we'll let you know.
Troubleshooting TPA issues
Contact the DOR at (651) 282-9999 if you need help.
In order for Gusto to file and pay your MN Unemployment and Paid Leave taxes, you'll 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. You can find more information about third party access on the agency site.
To start the authorization:
Once TPA has been assigned for Minnesota UI, sign in to your Gusto account to let us know that you've completed the TPA authorization:
Troubleshooting MN UI TPA registration issues—payments and filings
If you're having trouble granting us the access we need, use the troubleshooting steps below to help.
If you're still have issues granting Gusto the access we need, give the agency a call at (651) 296-6141.
This agency requires that Gusto have third party access to your online MN e-Services account to submit an amendment on your behalf. Amendments often call for a different filing method than original returns.
If you get stuck for any reason, try the agency's instructions.
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:
Employees can fill out and sign their federal W-4 form in Gusto by following these instructions.
If the form isn’t submitted before their first paycheck, you must withhold taxes as if they are single with no allowances.
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.
Need to close or reopen a tax account? Head to our article on closing and reopening a state or local tax account.