Texas registration and tax info

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:

1. You answer questions about your business, including:

   • Basic company info

   • Contact details

   • Addresses

   • Owner or officer info

   • State-specific details

2. Middesk reviews your information.

3. Middesk usually submits your registration within two business days.

4. 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.

5. After your order is marked as complete, we add the charge to your next Gusto monthly invoice.

After registration is submitted

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.

Running payroll before registration is complete

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.

If you need help with any of the registration questions, check Middesk’s Help Center.

In your web browser:

1. Sign in to Gusto.

2. Go to Taxes & Compliance → Tax setup.

3. Find [State name] Tax Setup.

4. Click Learn more under “Let us help you register.”

5. Review the price, process, and timeline. We do not charge you until after your order is complete.

6. Click Get started on Middesk.

7. Review everything carefully before submitting. Mistakes can delay registration.

In the Gusto mobile app:

1. Open the Gusto mobile app and sign in.

2. In the bottom-right corner, tap More.

3. Select Taxes & compliance.

4. Scroll down to Quick links and choose Setup tax accounts.

5. Scroll down to [State name] tax setup. Tap Learn more.

6. Review the process, timeline, and pricing. We do not charge you until after your order is complete.

7. Tap Get started on Middesk.

8. Share your business information and review everything carefully before submitting. Mistakes can delay registration.

To check your Middesk registration status in Gusto:

1. Go to Taxes & Compliance → Tax setup.

2. 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:

1. Go to Taxes & Compliance, select Tax Setup, and scroll to the applicable state.

2. In the Finish your [state] registration order banner, select Cancel order.

Eligibility and requirements

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.

Unemployment tax

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.

After you submit registration

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.

Closing accounts

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.

Most companies in Texas must start paying unemployment insurance tax once they meet one of the following:

• Paid $1,500 in wages during a calendar quarter

• Had at least one Texas employee working for any part of the week, for 20 or more different weeks during a calendar year

You're required to register with the Texas Workforce Commission (TWC) within 10 days of becoming liable. Before registering, review the agency resource on who can or cannot register online for detailed guidance.

Your business type (general, nonprofit, and others) can impact when your company is responsible for paying this tax. We recommend contacting the agency to confirm when your company will be liable.

Run payroll in Gusto before you're required to pay unemployment tax

If you need to run payroll but do not yet meet the requirements, Gusto lets you enter the new employer rate for Texas temporarily. Update the rate once you get it.

Register for unemployment tax with the Texas Workforce Commission (TWC)

Before you start, have these ready:

• Federal Employer Identification Number (FEIN)

• ID from the Secretary of State

• Business contact's email

• Mailing address for the business (in the US)

• Trade name and addresses for all Texas business locations

• Owners', partners', or officers' Social Security numbers and addresses. If the business was bought from another owner, you'll need their name and address.

• Payroll info, including when employees were first hired and how much was paid quarterly (for all locations)

• Description of the business's activities or products

Register online through the TWC website. Registration takes about 20 minutes. You'll get a TWC tax account number instantly if you need to pay taxes, and a letter called "Employer Liability Notice" within two weeks. If you need help registering, call the TWC at (800) 628-5115.

Once you register, you can file reports and pay taxes right away. We'll handle quarterly reports if wages are paid in Gusto.

Once you complete registration, take these steps:

• Give Gusto third-party access (TPA) so we can help manage your taxes with the agency.

• Enter your tax account information in Gusto once you add a valid Texas work address for one or more employees.

Next to TWC Tax Account Number, click Edit to enter your unemployment account number. The format is ##-######-#.

• The first two numbers are usually between 0 and 21. Nonprofits start with 99.

Where to find your TWC account number:

• Letters or notices from the TWC, including your Employer Liability Notice

• Your Unemployment Tax Services (UTS) account

• If you cannot find your account number, contact the TWC at (800) 628-5115 or [email protected].

Do not enter the following numbers as your TWC account number:

• Federal Employer Identification Number from the IRS

• Other states' unemployment tax numbers

• Texas Secretary of State ID or other state charter or filing numbers

• Comptroller of Public Account tax ID, like franchise tax or sales and use tax

• Your prior Professional Employer Organization's (PEO's) TWC account number

If you've used a PEO, you may need to reopen your TWC account or register for a new one depending on how long you were with the PEO:

• Less than three years with the PEO: Reopen the closed TWC account to get the account number.

• More than three years with the PEO, or never registered: Register for a new TWC UI tax account number.

If you were given an "errored" or duplicate UI Tax Account Number, the TWC will send a letter with the correct account number. Use this to update your Gusto account.

If you set up an account before meeting the initial tax requirements (found in the "State unemployment insurance tax (SUI) registration" section earlier in this article), the TWC may give you a "non-liable UI Tax Account Number." Do not enter this in Gusto. The TWC will send a notification telling you to register when you've paid enough wages. Enter the new account number you get when you register in Gusto.

Next to Unemployment Insurance Tax Rate, click Edit to enter your unemployment rate. Include all five component rates:

• General Tax Rate (GTR)

• Replenishment Tax Rate (RTR)

• Obligation Assessment Rate (OA)

• Deficit Tax Rate (DTR)

• Employment and Training Investment Assessment (ETIA)

Where to find your unemployment rate:

• Your Unemployment Tax Services (UTS) account: To view your tax rate, select the Account Info tab, then select Tax Rate Summary in the "Quick Links" menu. To get a copy of your tax rate notice, select the eCorres tab, then select View PDF in the "Action" column for the rate notice you want to view.

• Letters or notices from the TWC

• If you cannot find your rate, contact the TWC at (800) 628-5115 or [email protected].

If you do not have your rate yet, enter the new employer rate for Texas in Gusto temporarily. Update the rate once you get it.

To give Gusto access to your TWC account:

1. Sign in as the account administrator to your TWC Unemployment Tax Services account.

   • Only the primary account administrator on file with the TWC can complete these steps.

2. Go to the User Admin tab. You must be the account administrator to access this.

3. In the Quick Links menu, choose Applicant List.

4. In the Action column, click Review.

5. On the Review Applicant page, you'll see Gusto's info. Select Approve.

   • User ID: Gusto Inc.

   • Email: [email protected]

6. In the Tax Services Permissions section, check these boxes:

   • Manage Wage Reports

   • Make Payment

   • View Payment

7. Click Submit.

8. Sign in to Gusto and complete the to-do on your Home page to let us know you've done this.

Authorizing Gusto as your payroll representative allows us to handle your taxes directly with the TWC.

To authorize Gusto:

1. Sign in to your TWC Unemployment Tax Services account.

2. Go to the Account Info tab.

3. In the Quick Links menu, choose Third Party Authorization.

4. Review your account details and make changes if needed.

5. Read the Electronic Record and Signature Disclosure Agreement, then click Continue.

6. Use DocuSign to sign Form C-42. Fill out the Grantee section with:

   • Grantee TWC Account Number: Leave this blank.

   • Grantee Name: Gusto, Inc.

   • Street: 1201 16th St, Suite 350

   • City: Denver

   • State: Colorado

   • Zip: 80202

7. Click Grant Written Authorization, then click Finish. 

When we register your company for Texas payroll, we submit a Third-Party Administrator (TPA) authorization to the TWC electronically through the TWC's employer systems. This authorizes us to file and pay your Texas unemployment insurance (SUI) taxes on your behalf.

Processing typically takes 2–4 weeks after we submit your registration. Until TPA is active, the TWC may not show us as your authorized filer.

If the TWC does not show your TPA request

1. Sign in to the TWC Unemployment Tax Services portal and check your Power of Attorney / TPA status.

2. Allow 4 weeks from your Gusto registration date before escalating.

If it is still not reflected after 4 weeks, contact Gusto support from the ( ? ) in your account. We can resubmit or escalate it directly to the TWC. You can also call the TWC Employer Services line at (800) 628-5115 to confirm your TPA status.