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Most companies in Texas must wait to register for unemployment insurance tax until after they have hit the liability threshold:
Paid $1,500 in wages during a calendar quarter, or;
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.
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.
For Paid Family and Medical Leave (PFML) and local tax agencies, we surface a separate registration page in Gusto where you can either register on your own or use Middesk’s referral to have Middesk handle it. See the Register for PFML and local taxes section below.
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)
In California, Rhode Island, Washington, D.C., and Massachusetts, this registration also includes Paid Family and Medical Leave (PFML). No additional registration is needed.
Not included
Middesk does not register your business for:
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 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.
During registration, you may see an unfamiliar Houston, Texas address (8080 Westpark Dr, with a suite number that can vary) on your state agency account or mail. This is expected. We use it so Middesk can collect your tax account details, and it updates to your business address once registration is complete.
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.
Some states also require registration with Paid Family and Medical Leave (PFML) agencies and local tax agencies. Middesk’s standard order (state income tax withholding and state unemployment) does not include these—we surface them on a separate Registration page in your account.
After you submit your Middesk order, if PFML or local registrations remain in your state, an Order in progress screen appears with a Register for PFML and local taxes button.
A Register for your remaining taxes and share account details in [state] to-do appears on your Gusto Home page while any PFML or local registrations remain outstanding.
You can also open the Registration page directly. Go to Taxes & Compliance → Tax setup and follow the PFML and local tax link for your state.
You’ve already ordered registrations for state unemployment insurance and state income tax. You still need to register for the specific PFML and local agencies your state requires.
You have two options for completing them:
Register on your own through the relevant agency websites. The page links to the state-specific Gusto help center article with step-by-step instructions under Learn how.
Use Middesk’s referral. Middesk completes the registrations for a discounted per-agency rate. The total shown on the page is based on how many agencies you still need to register for. When Middesk finishes each agency, we update your tax details in Gusto automatically.
Click Get started on Middesk using our referral. You are redirected to Middesk’s site to complete the registration and pay Middesk directly. This charge does not appear on your Gusto monthly invoice.
Once Middesk marks a registration complete, we update your tax details in Gusto for you.
The PFML and local Registration page is rolling out and is not available in every state yet. If your state is not supported, follow the state-specific registration article to register on your own.
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: Does this apply to me if I’m in California, Rhode Island, Washington, D.C., or Massachusetts?
A: No. Middesk already includes Paid Family and Medical Leave (PFML) with your state income tax withholding and SUI registration in California, Rhode Island, Washington, D.C., and Massachusetts. You do not need to use this Registration page for PFML in those states.
Q: I registered in Massachusetts before now. Do I need to do anything about PFML?
A: Middesk recently started including PFML by default in Massachusetts registrations. If you registered before this change, check your Tax setup page to confirm your PFML account details are there. If they are missing, email [email protected].
Q: How much does the Middesk referral cost, and how am I billed?
A: The Registration page shows a total based on a per-agency discounted rate multiplied by the number of agencies you still need to register for. You pay Middesk directly on Middesk’s site. This charge does not appear on your Gusto monthly invoice.
Q: Can I see the status of my PFML and local registration in Gusto?
A: Not for this service. Middesk manages the registration and status on their side. Gusto shows your account numbers as soon as Middesk sends them.
Q: Is the PFML and local Registration page available in my state?
A: It is rolling out and is not available in every state yet. If your state is not supported, follow the state-specific registration article for how to register on your own.
Q: I already registered for PFML and local taxes on my own. What do I do?
A: Enter your tax account numbers on the Tax setup page in Gusto. The Register for your remaining taxes to-do resolves automatically as the missing details are filled in.
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 with the Texas Workforce Commission (TWC). Make sure to give Gusto third-party access (TPA) after you register.
You'll work with the following Texas agency when registering for payroll taxes:
Texas Workforce Commission (TWC): Handles unemployment tax. Texas does not have a state income tax.
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.
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 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.
Important: If you owe taxes from before using Gusto, file and pay those taxes during registration.
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.
If you've already registered in Texas, you need to enter your tax account details in Gusto. You need to be registered with the following agency for Gusto to file and pay taxes on your behalf:
Texas Workforce Commission (TWC): Handles unemployment tax. Texas does not have a state income tax.
If you still need to register, see the "Register for Texas unemployment tax on your own" section earlier in this article.
Once you add a valid Texas work address in Gusto for one or more employees, you can enter your state tax account information.
To add your Texas tax account information:
Go to Taxes & compliance, then select Tax setup.
Find "Texas Tax Setup" and click 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 historical tax issues related to tax account number updates.
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.
Letters or notices from the TWC, including your Employer Liability Notice
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.
Gusto has an agreement with the Texas Workforce Commission (TWC) that authorizes us to update and maintain your Texas account information. This helps you avoid tax issues, notices, and penalties.
You can authorize us by signing one form in Gusto. Sign by August 31, 2026.
To sign your Texas Power of Attorney and Written Release:
On your Home page, click the to-do to Sign your Texas Power of Attorney and Written Release. If you already dismissed the to-do, go to Documents, then the Company tab, to open the form.
Review the form. It authorizes Gusto to manage your Texas unemployment tax account with the TWC.
Sign the form electronically.
Once you sign, you are done. Gusto is authorized with the TWC, and you do not need to contact the agency.
The form is available in Gusto through August 31, 2026. Signing takes a few minutes and is the easiest way to authorize us.
If you do not sign by August 31, you can authorize us through the TWC instead. The TWC is launching a new online process for this on December 1, 2026. We will add the steps to this article once they're available.
Between September 1 and November 30, 2026, there is no way to authorize us. If you miss the August 31 deadline, you will need to wait until December 1.
Signing is optional. Your payroll runs the same whether you sign or not. Signing lets us keep your Texas account information up to date, which helps prevent tax notices and penalties.
You only sign once. The authorization stays in place, so we will not ask you to sign again.
Dismissing the to-do does not remove the form. You can still open it in Documents, then the Company tab, through August 31, 2026.
Use this list to find Texas's tax forms and where to view each one.
C-3 (Employer's Quarterly Report)
New Hire Report
To view these forms, go to Taxes & compliance, then Tax documents, and select the State tab.
To see what we've paid for you, run the Agency payments report.
Use this list to reach Texas's payroll tax agencies by phone or website. Texas has no state income tax withholding, so this covers unemployment insurance and child support.
Phone numbers and links can change. If one does not work, search the agency's official website for the latest contact info.
Unemployment insurance — Texas Workforce Commission (TWC): (800) 628-5115
Child support — Office of the Attorney General of Texas — Child Support Remittance: (800) 252-8014
Learn how to close or reopen tax accounts.