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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 Middesk to help you register your business in new states.
For now, this includes: Alaska, Arkansas, California, Colorado, Connecticut, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Louisiana, Maine, Minnesota, Mississippi, Nebraska, New York, North Carolina, North Dakota, Ohio, Oregon, Pennsylvania, South Carolina, South Dakota, Texas, Utah, Virginia, Wisconsin, and Wyoming.
What you need to do
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 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.
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 Middesk’s 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 different amounts 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, you’ll get emails from Gusto and Middesk. They’ll detail the next steps, which include:
Before your order is done, you can check the order status in your Gusto account:
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 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.
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 Middesk 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 Middesk for help at [email protected].
Q: When will my tax account information be available?
A: Each state and agency takes different amounts 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:
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: 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 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.
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 the state agency. Do not forget to give Gusto the third-party access (TPA) we recommend.
Most companies in Texas must start paying unemployment insurance tax once they have:
Your business type (general, non-profit, etc) can impact when the company is responsible for paying this tax. We recommend contacting the agency to confirm when the company will be liable.
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.
Before registering, have these ready:
Register online through the TWC website, which 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 agency at (800) 628-5115.
Once registered, reports and taxes can be filed and paid right away. We'll handle quarterly reports if wages are paid in Gusto.
Remember to give Gusto third-party access (TPA) to help manage taxes with the agency.
After a work address in Texas is assigned to one or more employees, you can add your tax account information:
Learn how to update your rate if you need to change it later.
Do not enter the following numbers as your TWC 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 at the top of this section), 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.
If you've already registered in the state, you'll need to enter your tax account details in Gusto.
You'll need to be registered with the Texas Workforce Commission (TWC) for Gusto to file and pay unemployment taxes for you.
If you still need to register, click the applicable dropdown above in this article.
You can find your unemployment account number and rate by:
If you have questions, call (800) 628-5115. If you do not have your rate yet, enter the new employer rate for Texas temporarily. Update the rate once you get it.
The TWC account number format is: ##-######-#.
When you enter your unemployment rate in Gusto, include all five component rates:
Remember to give Gusto third-party access (TPA) to help manage taxes with the agency.
After a work address in Texas is assigned to one or more employees, you can add your tax account information:
Learn how to update your rate if you need to change it later.
Do not enter the following numbers as your TWC 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 at the top of this section), 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.
Giving Gusto access helps us keep your Texas tax information up-to-date so we can make accurate payments and help you avoid tax notices, penalties, or interest.
Giving Gusto access helps us keep your Texas tax information up-to-date so we can make accurate payments and help you avoid tax notices, penalties, or interest.
Important: To do this, you need to have an account administrator on file with the TWC.
This allows Gusto to handle your taxes directly with the TWC.
Important: To authorize Gusto, you need to have an account administrator on file with the TWC.
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.
Learn how to close or reopen tax accounts here.