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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.
Let Gusto Business Compliance register your business in this state and keep you compliant after that. We'll register you with the state, act as your registered agent, file your annual reports, watch your government mail, and give you a concierge team. Learn more about Gusto Business Compliance.
Prefer not to use Business Compliance? We can still help you register in this state through our partner Middesk, with no monthly subscription. Order a one-time state tax registration.
Expand the sections below to see if you qualify, what's covered, how to sign up, and what happens next.
You can add Business Compliance if all of these are true:
You run payroll with Gusto. Business Compliance is not sold on its own.
You're on the Solo, Simple, Plus, or Premium plan. It's included with Premium at no extra cost.
Your business is a corporation or an LLC. Corporations include S corporations and nonprofit corporations. An LLC qualifies however it's taxed.
New sign-ups are not available for professional entities, including professional corporations and professional limited liability companies (PLLCs). If you already have a Business Compliance subscription as a professional entity, your coverage continues as it is.
Business Compliance is not available yet for sole proprietors, general partnerships, limited partnerships, or limited liability partnerships (LLPs). It's also not available for cannabis-related businesses, on any plan.
Not sure if you qualify? Chat with us before you sign up.
Business Compliance works state by state. Each state you add includes:
Registered agent — we accept legal and government mail for your business in that state.
Change of registered agent — we file the change so your mail comes to us.
Foreign qualification — we register your business with the Secretary of State so you can legally work there.
State tax registration — we register you with the state's tax agencies when you hire or start working there, including local tax agencies and Paid Family and Medical Leave (PFML) agencies wherever Gusto is able to register with them.
Annual report filing — we file the yearly report that keeps your business in good standing.
Government mail monitoring — we scan mail from state agencies into Gusto. Each notice comes with a plain-language summary of what it means and what to do next.
Proactive alerts — we tell you about deadlines before they're due.
You also get a compliance concierge team, no matter how many states you cover.
Cost: $85 per state, per month, billed monthly. Adding a state commits you to 12 months of coverage in that state. It's included with Premium at no extra cost. State filing fees are charged at cost, vary by state and business type, and show on your invoice.
Local tax and PFML coverage follows what Gusto's state tax registration supports, and not every agency can be registered through Gusto. Delaware and Maine do not allow a third party to register for Paid Family and Medical Leave, so you'll register with those agencies yourself. If we cannot register one of your agencies, we'll show it on your registration page under what you'll complete on your own. See Let Gusto help you with state tax registration.
Sign in to Gusto.
Go to Taxes & Compliance.
Select Business compliance.
Answer the questions about your business and the states where you work.
Review the price and what's included, then confirm.
After your first state is set up, you'll see its registrations and anything left to do.
When you add an employee or work location in a new state, that state shows up under Your states as Setup in progress, with your next step. Steps often include telling us more about your business there and moving your registered agent to us.
Select Start on a task to finish it, or View state details to see everything for that state. When every step is done, the state changes to Active.
To be your registered agent in a state, we file a change of registered agent with that state.
When a state needs this, you'll see a task on that state's card under Your states. Select Start to begin.
Keep your current registered agent until we confirm the transfer is done. A gap in coverage can put your business out of good standing in that state.
Once a state is active, we take over the ongoing work. We review your government mail, track your deadlines, and give you a concierge team to ask about any of it.
Your Business compliance page also shows your Compliance documents and Tax account details for each state.
Because we're your registered agent, legal mail for your business comes to us.
Other mail from state agencies is scanned into Agency notices on your Business compliance page. Each notice shows the state it came from, when it arrived, and a plain-language summary of what it means and what to do next. Select Unread or State to filter the list.
Still not sure what a notice means? Select Ask concierge about this mail on that notice. Your concierge team will follow up and explain what, if anything, you need to do.
If a notice is about your state payroll taxes, your concierge team brings in our tax resolution team. Learn more in How to handle a tax notice from an agency.
When you sign up, you get a compliance concierge team. They'll:
Learn about your business and the states where you work.
Check in regularly to make sure your filings are on track.
Explain any government mail you're unsure about.
Answer questions about your account.
To reach them, select Talk to a compliance concierge on your Business compliance page, or email [email protected].
We track filing and renewal deadlines for the states you cover. This includes annual reports, franchise tax filings, and business license renewals.
You'll get a notice in Gusto and by email before each deadline.
We file what we can for you. If a filing needs your approval, we'll send it to you with time to review.
Go to Taxes & Compliance → Business compliance → Manage subscription.
To stop coverage in one state, select Remove next to that state.
To cancel Business Compliance, select Leave Business Compliance.
Each state you add runs for a 12-month term, and you're billed monthly over that term. If you want to remove a state or leave Business Compliance before that term is up, email your compliance concierge team at [email protected] first. They'll tell you what happens to the rest of the term.
If Business Compliance is included with your Premium plan, you'll see a note on this page.
Before you remove a state: We'll stop being your registered agent there. Most states require one, so appoint a new agent to stay in good standing. We'll also stop tracking that state's mail and deadlines.
These services are charged separately from your subscription, on your regular Gusto invoice. Order them from your Business compliance page when you need them:
Certificate of good standing — $99 per certificate. Official proof that your business can operate and is in good standing. You may need one for a loan, a contract, or investors.
State account closure — $549 per order. We close your state tax accounts when you stop working in a state.
State filing fees are charged on top of these prices, at cost. They vary by state and by business type, so you'll see your total before you confirm the order. The filing fee appears as its own charge, separate from the service itself.
Legal and tax advice. We do not give legal or tax advice. For advice about your business, talk to a lawyer or an accountant.
Payroll taxes. Gusto payroll already handles the taxes tied to paying your team. Business Compliance covers what your business owes as a business.
Forming a new business. We register an existing business in a new state. We do not form new businesses.
Sales tax. We do not register you for sales tax or file sales tax returns.
Professional and industry licenses. We do not get or renew licenses for your profession or industry, or handle their reporting.
Reinstatements and reopened accounts. We do not reinstate a business with the Secretary of State or reopen closed payroll tax accounts.
General mail. We monitor payroll and compliance notices from government agencies, not your other mail.
Q: Why does my business need to register in a state?
A: Once you have an employee, a location, or other business in a state, that state's rules apply to you. This includes registration, filings, taxes, and renewals. It's separate from registering to run payroll there.
Q: How is this different from the payroll taxes Gusto already handles?
A: Gusto payroll handles the taxes tied to paying your team. Business Compliance covers what your business owes as a business, like Secretary of State registration, annual reports, and registered agent service.
Q: I'm already registered in my state. Do I still need this?
A: Registering is just the first step. Staying in good standing is ongoing. We keep you there by acting as your registered agent, watching your mail, filing your annual reports, and alerting you before deadlines.
Q: How much does Business Compliance cost?
A: $85 per state, per month, billed monthly. When you add a state, you are committing to 12 months of coverage in that state. It's included with Premium at no extra cost. State filing fees are charged at cost, and they vary by state and business type. One-time services are charged separately from your subscription. You'll see the price before you confirm.
Q: How do Business Compliance charges show up on my bill?
A: They appear on your regular Gusto invoice, not a separate bill. Your subscription, each one-time service you order, and state filing fees show up as their own charges, with the state named, so you can see what each one is for.
Q: I already paid for a one-time registration. What happens if I add Business Compliance?
A: Email your compliance concierge team at [email protected]. They'll review your account and share your options.
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.