New York 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 does not 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 does not 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 is not 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.
2. Click the Taxes & Compliance section and select 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'll 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 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 does not 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 is not 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 will not 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. Sign in to Gusto.
2. Click the Taxes & Compliance section and select Tax setup.
3. Scroll to the state's section.
4. Click Check the status of your registration.

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

1. Sign in to Gusto.
2. Click the Taxes & Compliance section and select Tax setup.
3. Scroll to the state's section.
4. Click Check the status of your registration.
5. On the right-side of the page, under “Changed your mind?”, click Cancel your order.
6. Let us know why you're canceling.
7. 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 do not 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: Click the Taxes & compliance section and select 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 1(888) 449-2638.

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 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 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 does not 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 is not needed right now.

Q: Does CorpNet help close state tax accounts?

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

• New York Department of Taxation and Finance – income tax withholding
• New York Department of Labor – unemployment tax 

Register for withholding income tax and unemployment tax

You should get your account numbers and unemployment rate(s) 7–10 business days after registering online.

1. Go to the New York Department of Labor website to register for both income withholding and unemployment tax.
   • Non-profits: Complete a NYS-100N form instead.
2. When asked if you want unemployment-related mail sent to your payroll provider, select No. This happens in the "Agent C/O Address" section.

After registering with the New York Department of Labor, you'll also be registered with the New York Department of Taxation and Finance.

Enter the tax account information in Gusto

After a work address in New York is assigned to one or more employees, you can add your tax account information:

1. Go to Taxes & compliance section and click Tax setup.
2. Scroll to the "New York Tax Setup" headline and select Manage taxes.
3. Enter your New York State Identification Number (Your FEIN + two digits, aka the “NYS suffix”).
   • If your number ends in "00," enter "00."
   • If your number has a single-digit suffix (like "2"), enter "02."
     • This usually happens if you have multiple businesses.
4. Enter your Employer Registration Number (for unemployment, assigned by the DOL). This might be called an employer-# on the New York Business Express site, 
   • If it’s 7 digits, format it like this: ##-#####.
   • If it’s 8 digits, format it like this: ##-##### #.
5. Enter your UI Rate.
   • Do not enter the "Re-employment services fund" or "Total rate."
     • Gusto will automatically add the re-employment services fund rate to the UI rate you enter in Gusto. Combined, they are the “Total rate”.
   • If you do not have your rate yet, enter the new employer rate for New York in Gusto for now. Update the rate once you get it.
6. Enter your 6-digit PrompTax access code (if applicable). We need this to pay and file your taxes.
   • You’ll get the six-digit access code after registering for PrompTax.
     • PrompTax is usually required if you withheld $100,000 or more in taxes last year. The New York Department of Taxation and Finance will let you know if you need to register for PrompTax to pay electronically. 
   • Do not confuse the 5-digit PIN you receive with the 6-digit PrompTax code.
   • If unsure about your code, contact the NY PrompTax Customer Service Center at (518) 457-2332.
   • If you're already registered for the PrompTax e-payment system, choose:
     • ACH Credit as your payment option, and;
     • ZenPayroll, Inc. as your payroll provider.

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.

Local taxes are paid to the state of New York.

• New York City: Local taxes are based on where employees live.
• Yonkers: Local taxes are based on where employees live and work.

Learn more about the local taxes and programs you may encounter below.

Metropolitan Commuter Transportation Mobility Tax (MCTMT)

The MCTMT tax is based on the wages of employees working in the metropolitan commuter transportation district (MCTD) of New York City.

• Gusto uses employees' work addresses to determine if this tax applies—if so, we'll withhold it automatically.
• If the tax is being withheld for someone who should not pay it, mark them as exempt.

Counties included in MCTMT

• Bronx
• Dutchess
• Kings (Brooklyn)
• Nassau
• New York (Manhattan)
• Orange
• Putnam
• Queens
• Richmond (Staten Island)
• Rockland
• Suffolk
• Westchester

Let us know if you’ve paid MCTMT before

When setting up your first employee in New York, you'll be asked if you've paid MCTMT before.

• If you have: Mark Yes and enter the tax rate.
  • Gusto will withhold this tax using the rate entered for each applicable employee on every payroll.
  • You can get your rate from your previous provider, or use this agency resource to help.
• If this is your first time: Mark No.
  • We will not apply the tax for the first quarter (because we do not know your rate), but we’ll figure out your rate based on your payroll, and apply it on future payrolls if needed.
    • If your payroll costs go over the limit in the first quarter, and you need to pay MCTMT, we’ll collect this by running a tax reconciliation payroll at the end of the quarter.

Payments and reporting

We'll report the wages subject to this tax on the Employer's Quarterly Metropolitan Transit Tax Form (MTA-305). You can find this form in your Documents tab in your account.

You can see any MCTMT payments made by running an Agency Payments report in Gusto.

START-UP New York tax program

START-UP NY lets new and expanding businesses operate tax-free for 10 years near certain universities in New York. Learn more about the program. 

Gusto does not formally support this program, but it can affect MCTMT payments and filings. If you apply for START-UP NY, or if an employee qualifies for it, contact us to make sure your account is set up correctly.

New York Identification Number (NY Identification No)

This is your Federal Employer Identification Number (FEIN) followd by a one, or two-digit location code (called the "NYS suffix").

• If your number ends in "00," enter "00" at the end of your FEIN.
• If your number has a single-digit suffix (like "2"), enter "02."
  • This usually happens if you have multiple businesses.

Employer Registration Number

You can find your "Employer Registration Number" on notices sent to you from the Department of Labor (DOL), like Form NYS-45. On the New York Business Express site, this might be called an employer-#.

• If it’s 7 digits, format it like this: ##-#####.
• If it’s 8 digits, format it like this: ##-##### #.

Unemployment tax rate (contribution rate)

You can find your unemployment contribution rate on the "Notice of Unemployment Insurance Rate" (Form IA 97) the NY Department of Labor sends you each year.

Only enter your “UI rate”, do not enter the "Re-employment services fund" or "Total rate."

• We'll automatically add the re-employment services fund rate to the UI rate you enter in Gusto. Combined, they are the “Total rate”.

If you do not know your rate, call the agency at (888) 899-8810. If you do not have your rate yet, enter the new employer rate for New York in Gusto for now. Update the rate once you get it.

PrompTax six-digit code

PrompTax is usually required if you withheld $100,000 or more in taxes last year. The New York Department of Taxation and Finance will let you know if you need to register for PrompTax to pay electronically.

You’ll get the six-digit code after registering for PrompTax. Gusto needs this code to pay and file your taxes.

• Do not confuse the 5-digit PIN you receive when you first register with the 6-digit PrompTax code.
• If you do not know your code, contact the NY PrompTax Customer Service Center at (518) 457-2332.
• If you're already registered for the PrompTax e-payment system, choose:
  • ACH Credit as your payment option, and;
  • ZenPayroll, Inc. as your payroll provider.

Local taxes are paid to the state of New York.

• New York City: Local taxes are based on where employees live.
• Yonkers: Local taxes are based on where employees live and work.

Learn more about the local taxes and programs you may encounter below.

Metropolitan Commuter Transportation Mobility Tax (MCTMT)

The MCTMT tax is based on the wages of employees working in the metropolitan commuter transportation district (MCTD) of New York City.

• Gusto uses employees' work addresses to determine if this tax applies—if so, we'll withhold it automatically.
• If the tax is being withheld for someone who should not pay it, mark them as exempt.

Counties included in MCTMT

• Bronx
• Dutchess
• Kings (Brooklyn)
• Nassau
• New York (Manhattan)
• Orange
• Putnam
• Queens
• Richmond (Staten Island)
• Rockland
• Suffolk
• Westchester

Let us know if you’ve paid MCTMT before

When setting up your first employee in New York, you'll be asked if you've paid MCTMT before.

• If you have: Mark Yes and enter the tax rate.
  • Gusto will withhold this tax using the rate entered for each applicable employee on every payroll.
  • You can get your rate from your previous provider, or use this agency resource to help.
• If this is your first time: Mark No.
  • We will not apply the tax for the first quarter (because we do not know your rate), but we’ll figure out your rate based on your payroll, and apply it on future payrolls if needed.
    • If your payroll costs go over the limit in the first quarter, and you need to pay MCTMT, we’ll collect this by running a tax reconciliation payroll at the end of the quarter.

Payments and reporting

We'll report the wages subject to this tax on the Employer's Quarterly Metropolitan Transit Tax Form (MTA-305). You can find this form in your Documents tab in your account.

You can see any MCTMT payments made by running an Agency Payments report in Gusto.

START-UP New York tax program

START-UP NY lets new and expanding businesses operate tax-free for 10 years near certain universities in New York. Learn more about the program. 

Gusto does not formally support this program, but it can affect MCTMT payments and filings. If you apply for START-UP NY, or if an employee qualifies for it, contact us to make sure your account is set up correctly.

After a work address in New York is assigned to one or more employees, you can add your tax account information:

1. Go to Taxes & compliance section and click Tax setup.
2. Scroll to the "New York Tax Setup" headline and select Manage taxes.
3. Enter your New York State Identification Number (Your FEIN + two digits, aka the “NYS suffix”).
   • If your number ends in "00," enter "00."
   • If your number has a single-digit suffix (like "2"), enter "02."
     • This usually happens if you have multiple businesses.
4. Enter your Employer Registration Number (for unemployment, assigned by the DOL). This might be called an employer-# on the New York Business Express site, 
   • If it’s 7 digits, format it like this: ##-#####.
   • If it’s 8 digits, format it like this: ##-##### #.
5. Enter your UI Rate.
   • Do not enter the "Re-employment services fund" or "Total rate."
     • Gusto will automatically add the re-employment services fund rate to the UI rate you enter in Gusto. Combined, they are the “Total rate”.
   • If you do not have your rate yet, enter the new employer rate for New York in Gusto for now. Update the rate once you get it.
6. Enter your 6-digit PrompTax access code (if applicable). We need this to pay and file your taxes.
   • You’ll get the six-digit access code after registering for PrompTax.
     • PrompTax is usually required if you withheld $100,000 or more in taxes last year. The New York Department of Taxation and Finance will let you know if you need to register for PrompTax to pay electronically. 
   • Do not confuse the 5-digit PIN you receive with the 6-digit PrompTax code.
   • If unsure about your code, contact the NY PrompTax Customer Service Center at (518) 457-2332.
   • If you're already registered for the PrompTax e-payment system, choose:
     • ACH Credit as your payment option, and;
     • ZenPayroll, Inc. as your payroll provider.

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.