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Setting up payroll in Pennsylvania for the first time
Before you can pay employees in a new state, you must register with the stateâs 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, Minnesota, Mississippi, Missouri, Nebraska, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, South Carolina, South Dakota, Texas, Utah, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
How to get tax registration help
Once everything below is complete, we can help you register for tax agencies in a new state:
Cost, timeline, and eligibility considerations
Prices vary by state. During the first few steps in Gusto, you can see the cost, process, and estimated turnaround time.
For now, Middesk cannot help these types of companies register:
What the process looks like
Third-Party Agent (TPA) authorization reminder
Some state agencies need Gusto to have TPA access to file and pay your taxes. Usually, Middesk does not set this up, so youâll 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 âAuthorize Gustoâ section, then TPA is not needed right now.
If setting up TPA requires online agency portal access:Prices vary by state. During the first few steps in Gusto, you can see the cost, process, and estimated turnaround time.
If you have questions about answering any of the questions, try Middeskâs Help Center or contact Middesk at [email protected].
When Middesk gets your tax account information back after registering, they'll enter it in Gusto for you.
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.
Important reminder
When your order is complete, youâll get emails from Gusto and Middesk. Theyâll 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.Â
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.
Youâll 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 youâre 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:Â
Gustoâs 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) for tax payments?
A: Some state agencies need Gusto to have TPA access to file and pay your taxes. Usually, Middesk does not set this up, so youâll 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 âAuthorize Gustoâ section, then TPA is not needed right now.
If setting up TPA 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 cannot support order cancellations or refunds.
Click the dropdowns below to learn how to register with state and local agencies and how to give Gusto the third-party access (TPA) we may need to help resolve tax issues.Â
It could take a few weeks to get your account numbers and company-specific unemployment rateâkeep this timeframe in mind when planning your first payroll for this state.
If you're not immediately issued a company-specific unemployment tax rate, you can enter the new employer rate for Pennsylvania in Gusto in the meantimeâupdate the rate once you receive it.Â
Don't forget to give Gusto the third-party access (TPA) we may need to help resolve tax issues.Â
Once a valid Pennsylvania work address has been added in Gusto for one or more employee(s), you can add your tax account information:
If you live in the Parkland School District and will be paying a local services tax (LST) to this agency, you'll need to register your business. Townships in this county include North and South Whitehall and Upper Macungie.
The Parkland School District has appointed Berkheimer Tax Innovations as the Local Services Tax Administrator.
Gusto automatically withholds LST taxes on regular payrolls. The amount withheld is prorated based on the companyâs pay schedule. LST taxes will not be withheld on off-cycle, bonus, or non-Gusto payrolls.
If you do not yet have a tax account number or will be paying an employee in Philadelphia for the first time, you'll need to register with the City of Philadelphia tax center online. You should receive your number instantly after registering online.
Enter the 10-digit tax account number in the Taxes & compliance section of Gustoâdo not enter the 11-digit number that starts with '00-#########.'
Register your business with the City of Pittsburgh if:
How to register
If you have questions about registration, contact the agency at (412) 255-2543.
The Department of Finance will send you the following 5-10 business days after registering:
Once you receive your Pittsburgh City ID, enter it in the Taxes & Compliance section of Gusto. If you need to confirm the City ID, contact the agency at (412) 255-2525âfrom the phone tree, select 2, and then 2 again.
Earned Income Tax with Jordan Tax Service
You also need to register for the Earned Income Tax with Jordan Tax Service.
Once you get your account number (also referred to as your "EIN" or "Registration ID"), you'll need to enter it in the Taxes & compliance section of Gusto.
Every person or business having an office, factory, workshop, branch, warehouse, or other place of businessâincluding banks, schools, hospitals, nonprofits, and trade associationsâwho work in all, or part of the city, and has not previously registered, is required to register to pay this tax.Â
Scranton Payroll Preparation Tax details:
Gusto withholds the tax and pays the contributions on behalf of your company. Hereâs what to do next:
Step one: Register for the Scranton Payroll Preparation Tax (PPT) with the Berkheimer tax agency (HAB)
Register your business with Scrantonâs tax collectorâBerkheimer tax innovations (HAB).
If you have questions, contact the agency directly at (610) 599-3140.
Step two: Confirm youâve registered for the Payroll Preparation Tax (HAB-PPT) in GustoÂ
If you already paid this tax outside of Gusto, contact us from the Help section of your account.
Otherwise, confirm youâve registered for the âHAB-PPTâ in Gusto by following the steps below:
Should you receive any tax notices about the Scranton Payroll Preparation Tax, report and upload the tax notice in Gusto.
To determine where you need to pay taxes and register as a new employer:
The website will return the relevant/applicable taxes and tax collectors in yellow boxes. This includes the phone number, fax number and collector website so that you can contact them about registering with their office.
Once a valid local address has been added in Gusto for one or more employee(s), you can add your tax account information:
If you've already registered in the state, you'll need to enter your tax account details in Gusto to pay employees.Â
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 your business has run payroll in PA previously, you can find your eight-digit "Withholding Account ID" (also known as the Licensing Number) by:
Reminder: Your eight-digit withholding account number is different from your employer identification number (EIN) or Revenue ID Number.Â
Don't forget to give Gusto the third-party access (TPA) we may need to help resolve tax issues.
If your business has run payroll in PA previously, you can find your UC Employer Account ID number and tax rate by:
If you do not have your assigned rate yet, enter the new employer rate for Pennsylvania in Gusto in the meantimeâupdate the rate once you receive it.
Don't forget to give Gusto the third-party access (TPA) we may need to help resolve tax issues.Â
You can look up your account number by signing in to the Philadelphia Tax Center.
Enter the 10-digit Philadelphia tax account number in Gusto, not the 11-digit number that starts with '00-#########.'
Once a valid Pennsylvania work address has been added in Gusto for one or more employee(s), you can add your tax account information:
Third party authorization is recommended for the below agencies:
This agency needs Gusto to have access to your online myPATH account to help fix tax problems and file amendments.
Weâll try to get access using the business info we already have.
If we cannot:
If your tax account has a Primary Administrator
If someone is listed as the âPrimary Administratorâ of the tax account, they may need to approve Gustoâs access. Theyâll get an email with steps.
Hereâs what theyâll need to do:
This is recommended so we can access your account to discuss account details and help resolve tax issues.
It only takes a few minutes and is 100% onlineâif you run into any issues, follow this agency tutorial.Â
If you have questions or need assistance, call the UC Employer Contact Center at (866) 403-6163 between the hours of 5am and 1:30pm PT. You can also try this agency guide for help troubleshooting issues.
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.
On February 1st, 2024, the Pennsylvania Department of Revenue announced a new tax credit for Dependent Care Flexible Spending Account (DCFSA) contributions. Itâs retroactively effective Jan 1, 2023.Â
Hereâs how Pennsylvania taxes are affected:Â Â
The maximum tax credit is $154.
Q: How much will my PA liability be lowered by?
A: The IRS sets the yearly DCFSA maximum contribution (employer/employee) amount listed in box 10 as $5,000. If $5,000 is the total listed in box 10 of Form W-2, this adjustment in wages should lower your PA tax liability by a maximum of $154. Of course, individual contributions can differ, so this amount may be lower.
Q: What about my 2024 DCFSA contributions?
A: For 2024, any contributions made to a DCFSA will automatically be adjusted toward taxable wages in accordance with the new regulations.
Q: Why are we learning about this so late?
A: The Pennsylvania Department of Revenue executed this change on 12/14/23, and released information to the public on 2/1/24, after the 1/31/24 deadline for issuing the federal Form W-4. There were several unanswered questions in the 2/1/24 release that needed to be addressed before programming changes were made.
Q: I've already filed my taxes. What should I do?
A: The maximum tax credit for DCFSA is $154. This amount can be lower based on differences in employer and employee contribution amounts. If you need to change your initial personal filings, consult your tax professional.Â
Learn more on the Pennsylvania Department of Revenue website.
Below is a template employers can provide to their employees who are impacted by the change in dependent care benefit. This notice is used only if an employee has decided to amend their personal tax return.
To: EmployeesÂ
Re: 2023 Dependent Care Flexible Spending Account (DCFSA)
We've been notified by our payroll service provider, Gusto, that your Dependent Care Flexible Spending Account (DCFSA) benefit is no longer subject to Pennsylvania personal withholding tax for both employer and/or employee contributions. The Pennsylvania Department of Revenue enacted this change on 12/14/23, and released information publicly on 2/1/24 after Form W-2s were finalized. This change is effective retroactively to 1/1/23.Â
As a result, if you choose to make an adjustment to your personal tax return, this communication serves as a confirmation, verifying why the amount on the Form W-2 (box 16) does not match the adjustment amount you report on line 1a of your PA personal tax return.Â
To take advantage of the tax credit up to a maximum of $154, you'll need to modify your PA personal tax return line 1a amount. Line 1a differs from what's reported on your Form W-2 (box 16) because of a manual adjustment/calculation in PA wages. The wage displayed on line 1a of your personal return must be adjusted by taking the amount on Form W-2 (box 16) and reducing it by the amount listed on Form W-2 (box 10).
Click here for the agencyâs guidance recommending the adjustment amount.Â
Please keep a copy of this communication for your records with your 2023 PA tax return if you're filing your returns electronically.
Sincerely,
The Gusto Team
On behalf of Employer
Learn how to close or reopen tax accounts here.
Note: If your Employer Account ID number is longer than seven digits, only enter the first seven digits.