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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 for income, unemployment, and local tax in NY.
You'll work with the following New York agencies when registering for payroll taxes:
New York Department of Taxation and Finance: Handles income tax withholding.
New York Department of Labor: Handles unemployment tax.
You'll receive your account numbers and unemployment rates seven to ten business days after registering online.
To register for withholding income tax and unemployment tax:
To register for both income withholding and unemployment tax, go to the New York Department of Labor website.
If you're a non-profit, complete a NYS-100N form instead.
In the Agent C/O Address section, select No when asked if you want unemployment-related mail sent to your payroll provider.
If you withheld $100,000 or more in taxes last year, register for PrompTax. See the “Enter your tax account information later” section of this article for details on finding and entering your access code.
After you register with the New York Department of Labor, you'll also be registered with the New York Department of Taxation and Finance.
Once you complete the registration, enter your tax account information in Gusto.
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.
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.
Your PrompTax access code must be entered in Gusto so that we can pay and file this tax for you.
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
Your PrompTax access code must be entered in Gusto so that we can pay and file this tax for you.
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 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 requires employers to provide disability insurance, family leave insurance, and workers' compensation coverage for employees.
In New York, employers need to provide disability insurance to cover employees if they get hurt or sick off the job. You can get this insurance through the New York State Insurance Fund (NYSIF).
You can also buy disability insurance through a company such as NEXT Insurance, but you'll need to pay them directly, and it's not automatically integrated with Gusto. You'll have to pay the insurance premiums once a year directly to your carrier.
Deduction and premium payment reminders
New York allows you to deduct a small amount from your employees' paychecks to help pay for this insurance. If you choose this option, Gusto will deduct the money from their paychecks and leave it in your company's bank account so you can pay the insurance provider.
Gusto will only deduct SDI money on regular payrolls, but not on off-cycle or bonus payrolls.
You'll need to handle the insurance payments and any required filings outside of Gusto.
Note: The SDI money Gusto deducts from employees' paychecks is left in the company bank account.
Set up SDI deductions in Gusto
To set up State Disability Insurance deductions:
Go to Taxes & compliance, then Tax setup.
Under New York Tax Setup, select Manage taxes.
Next to State disability insurance (SDI): Who will cover the cost—your company or your employees?, select Edit.
Choose if the company or the employee will pay for SDI:
The company will pay for SDI: No SDI amount will be deducted from your employees' paychecks. The company is responsible for covering the employee's portion of the insurance premium.
My employees will pay for SDI: We'll deduct $0.60 per week from your employees' paychecks to cover the cost. You need to pay the insurance outside of Gusto. The SDI amounts deducted from employee paychecks stay in the company bank account.
New York also requires employers to provide Family Leave Insurance (SFLI) for employees who need to take time off for certain family reasons. Contact your SDI carrier to learn how to add Paid Family Leave coverage.
Deduction and premium payment reminders
You can deduct money from your employees' paychecks to help pay for this insurance, up to a yearly limit. If you choose to do this, Gusto will deduct the money from their paychecks and leave it in your company's bank account so you can pay the insurance provider directly.
Gusto will only deduct SFLI money on regular payrolls, but not on off-cycle or bonus payrolls.
You'll need to handle the insurance payments and any required filings outside of Gusto.
Note: The SFLI money Gusto deducts from employees' paychecks is left in the company bank account.
The yearly limit for SFLI deductions can change.
Set up family leave deductions in Gusto
To set up family leave deductions:
Go to Taxes & compliance, then Tax setup.
Under New York Tax Setup, select Manage taxes.
Next to Paid family leave (PFL) insurance: Who will cover the cost—your company or your employees?, select Edit.
Choose if the company or the employee will pay for PFL:
The company will pay for PFL insurance: No PFL amount will be deducted from your employees' paychecks. The company is responsible for covering the employee's portion of the insurance premium.
My employees will pay for PFL insurance: We'll deduct the amount from your employees' paychecks to cover the cost. You need to pay the insurance premiums outside of Gusto. The PFL amounts deducted from employee paychecks stay in the company bank account.
In New York, most employers with one or more employees need to have workers' compensation insurance. You can get this insurance through:
A licensed private insurance agent or broker, like NEXT Insurance, which works directly with Gusto.
If you've already registered in the state, you need to enter your tax account details in Gusto. You need to be registered with one or more of the agencies below for us to file and pay taxes on your behalf:
New York Department of Taxation and Finance: Handles income tax withholding.
New York Department of Labor: Handles unemployment tax.
Local New York tax agencies: Handle various local taxes.
If you still need to register, refer to the applicable section earlier in this article.
Once you add a valid New York work address in Gusto for one or more employees, you can enter your state tax account information.
To add your New York tax account information:
Go to Taxes & compliance, then Tax setup.
Under New York Tax Setup, 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 any historical tax issues related to tax account number updates.
Enter your New York State Identification Number. This is your FEIN plus two digits, also known as the NYS suffix.
Where to find your New York State Identification Number:
This is your Federal Employer Identification Number (FEIN) followed 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 business locations.
Next, if you have a PrompTax access code, you need to enter it in Gusto so we can pay and file this tax for you
Where to find your PrompTax access code:
PrompTax is usually required if you withheld $100,000 or more in taxes last year. You'll receive the six-digit access code after registering for PrompTax. 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 five-digit PIN you receive when you first register with the six-digit PrompTax access code.
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 do not know your code, contact the New York PrompTax Customer Service Center at (518) 457-2332.
Enter your Employer Registration Number for unemployment, assigned by the Department of Labor. This might be called a Business number on the New York Business Express site.
Where to find your 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 a Business number.
If it's seven digits, format it like this: ##-#####
If it's eight digits, format it like this: ##-##### #
Next, enter your UI Rate.
Where to find your unemployment tax rate:
You can find your unemployment contribution rate on the Notice of Unemployment Insurance Rate (Form IA 97) that the New York Department of Labor sends you each year.
Only 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. 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 receive it.
If you do not know your rate, call the agency at (888) 899-8810.
NYS-1* (Return of Tax Withheld Payment Coupon)
NYS-45 (Quarterly Combined Withholding, Wage Reporting, and Unemployment Insurance Return)
MTA-305 (Employer's Quarterly Metropolitan Transit Tax Form)
State W2 (Wage and Tax statement)
NY 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: New York State Department of Taxation and Finance (DTF)
Phone: (518) 485-6654
Workforce or Labor Agency: New York State Department of Labor (DOL)
Phone: (888) 899-8810
We follow the rules from the New York Department of Taxation and Finance for reporting wages on employee Form W-2s.
Because of their guidelines, New York employees often see the same wage amount in Box 1 (federal wages, tips, other compensation) and Box 16 (state wages, tips, etc). This is correct, even if some wages were earned in other states.
You can find more details about how to report wages by worker type for New York State, New York City, and Yonkers on the agency's website.
Learn how to close or reopen tax accounts.