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To pay employees in a new state, where you’ve never operated or paid people, you must register with the state tax agencies there. This lets you pay and file the taxes you and your employees are liable for.
Watch this quick tutorial to learn more.
Registering for taxes may not be the only to-do when starting or running a business in a new state. Go to our blog for complete guides on starting and running a business in each state.
Gusto works with CorpNet to help you register your business in new states.
What you need to do
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
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. Work with CorpNet directly to see if they’ve set up TPA for any specific agency.
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.
Some reminders
When your order is complete, you’ll receive emails from both Gusto and CorpNet. They’ll detail the next steps, which include:
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:
If your order is still in progress, you can cancel from your Gusto account:
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
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:
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:
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: In most cases, you need to give Gusto third-party access (TPA) to your tax accounts.
Q: Does CorpNet help close state tax accounts?
A: No, you'll need to close the tax account yourself.
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.
It could take a few weeks to get your account numbers and company-specific unemployment rate—keep 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 meantime—update 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.
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.
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 Gusto—do 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) 255-2525—from 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 business—including banks, schools, hospitals, nonprofits, and trade associations—who work in all, or part of the city, and has not previously registered, is required to register to pay this tax.
Scranton Payroll Preparation Tax details:
Gusto withholds the tax and pays the contributions on behalf of your company. Here’s what to do next:
Step one: Register for the Scranton Payroll Preparation Tax (PPT) with the Berkheimer tax agency (HAB)
Register your business with Scranton’s tax collector—Berkheimer tax innovations (HAB).
If you have questions, contact the agency directly at (610) 599-3140.
Step two: Confirm you’ve registered for the Payroll Preparation Tax (HAB-PPT) in Gusto
If you already paid this tax outside of Gusto, contact us from the Help section of your account.
Otherwise, confirm you’ve registered for the “HAB-PPT” 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.
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.
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 meantime—update 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.
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:
Amendments often call for a different filing method than original returns—this agency requires Gusto to have third-party access to your online myPATH account to submit an amendment on your behalf or help resolve tax issues.
We'll try to get the access we need with the company information we already have. If we cannot get access, we'll request that the agency mail a myPATH Access Letter to your business address. Once you receive it, email the “Letter ID” to us from the Help section of your account.
Tax accounts with “Primary Administrators”
If the agency has a “Primary Administrator” associated with the tax account, the owner may need to approve Gusto's access.
Primary Administrators of the tax account will receive an email with instructions on how to give Gusto access:
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% online—if you run into any issues, follow this agency tutorial.
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.
How to find forms in your account
Asterisk info (if applicable)
If a form has a star (*) next to it, it will not show up in your tax documents in Gusto. These forms are usually payment vouchers or other forms (ex. coupons) filed electronically.
You can check if tax payments were made by running an "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. It’s retroactively effective Jan 1, 2023.
Here’s how Pennsylvania taxes are affected:
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.
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: Employees
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.
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.
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 agency’s guidance recommending the adjustment amount.
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
Note: If your Employer Account ID number is longer than seven digits, only enter the first seven digits.