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Setting up payroll in Washington for the first time
Before you can pay employees in a new state, you must register with the state’s tax agencies. This lets you file and pay the right taxes.
Use the dropdowns below to learn more. Use CMD + F (or CTRL + F) to search for words in the article.
Gusto works with Middesk to help you register with tax agencies in new states.
For now, this includes: Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, and Wyoming.
Get help registering for state taxes
We can help you register for state tax accounts after you:
Cost, timeline, and who can register
The cost, steps, and turnaround time depend on the state. Gusto will show you these details when you start the registration process.
Middesk cannot help if your company is:
What the process looks like
Third-Party Access (TPA) and Power of Attorney (POA)reminder
Some state agencies need Gusto to have TPA or a POA on file 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 or POA 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:The cost, steps, and turnaround time depend on the state. Gusto will show you these details when you start the registration process.
Need help with registration questions?
If you’re not sure how to answer one of the registration questions, check Middesk’s Help Center or email them at [email protected].
How to get started with state tax registration in Gusto:
Important: You may need to give Gusto access
Some states require you to give Gusto third-party access (TPA) or a Power of Attorney (POA) to your tax accounts. Middesk does not do this for you.
Need to make a change?
If you already submitted your info but need to fix something, email [email protected] to update it.
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:
For most states where tax registration info is sent by physical mail, here's what to expect:
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 you 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's 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 a different amount 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) or Power of Attorney (POA) for tax payments?
A: Some state agencies need Gusto to have TPA or POA 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 or POA 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 or POA 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 do not support order cancellations or refunds.
Q: What is Middesk's phone number?
A: To get support from Middesk, you must email them at [email protected]. They can help with registration-specific questions, or changing info that's already been submitted. For all other questions, you can message Gusto.
Click the dropdowns below to learn how to register with the state and how to give Gusto the third-party access (TPA) we'll need to file and pay certain taxes on your behalf.
There are two options for registration—online (recommended), and by mail. In both cases, you'll get your account information after the agency finishes processing your application. This can take up to 12 weeks based on agency volume.
The letter and packet will be sent to you once the agency finishes processing your application. This can take up to 12 weeks based on agency volume.
As a reminder, you'll also need to enter Standard Occupational Classification (SOC) codes for your employees in Washington.
Once you add a valid Washington work address in Gusto for one or more employees, add your tax account details:
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 any historical tax issues related to tax account number updates.
Workers' Compensation insurance protects your business. It covers injuries and illness that could occur due to the work your employees do while on the job.
Washington requires employers to get coverage through a state fund. So, Gusto will pay this insurance premium to the state for you.
Once you've filed your business license (see instructions in the dropdown above), you can find the workers' comp rates assigned to you online.
Heads up: Gusto does not support class codes that use square footage as part of the tax calculation (e.g., the drywall industry).
If an employee has multiple risk class codes, you'll need to assign them a job for each code. Then, you'll edit the code for each job.
For more information about required coverage and exemptions, visit this website or call (360) 902-4817.
When you filed the business license application, you should have received a letter from your new Workers' Comp account manager. You also should have gotten a packet of information. It will include your unemployment rate (based on your industry).
If you're unsure about your rate, call the agency at (855) 829-9243, option 3.
If you need to run payroll and do not yet have your company's unemployment rate, just add the "New employer SUI tax rate" for Washington for now. Update the rate once you get it.
Once a valid Washington work address has been added in Gusto for one or more employee(s), add your tax account information:
As a reminder, you'll also need to enter Standard Occupational Classification (SOC) codes for your employees in Washington.
Rules update to expand worker protections for 2026: Washington is changing its Paid Family and Medical Leave (PFML) rules starting Jan 1, 2026. House Bill 1213 changes how employer size is counted—using the average number of employees over four quarters. It also adds job protection rules for smaller businesses. In 2026, companies with 25 or more employees must follow the new job protection rules. By 2028, it will apply to companies with 8 or more employees.
After you've received your UBI account number from the state, you'll need to register for Paid Family and Medical Leave. To do this, add Paid Leave to your SAW (Secure Access Washington) portal.
Once you've created a SAW account, add your account to the Paid Family and Medical Leave system:
Gusto withholds and pays the employee-premiums for this tax. Employers have the option to cover some or all of their employees’ PFML deductions—learn how below.
Employers with less than 50 employees
These companies are exempt from paying the employer premium, however, the employee premium is still required.
These companies can choose to pay the employer premiums to be eligible for WA ESD’s small business grants, but this is not supported in Gusto. For more information on this, head to the WA PFML website.
Employers with over 50 employees
Employers with 50 or more employees are required to pay the employer premium. Gusto can pay the employer-premium on your behalf, so long as you've let us know you're subject to the tax in your Gusto account. If you don’t take any action, we won’t pay employer contributions on your behalf.
How Is business size determined?
Washington’s Paid Leave determines your business size annually on September 30. They do so by averaging the number of employees on your Q3 and Q4 reports from two years ago, and your Q1 and Q2 reports from last year.
If your business size changes, the agency will mail the business a letter in early October to let you know.
First, a few reminders:
Set the percentage of employee-deductions for PFML you'd like to cover:
Premium calculations and other PFML resources
The total premium amount due each tax year can vary (up to the Social Security wage base) and is made up of both employee and company contributions. For updated rate information, see the Premium Calculator.
Use the resource(s) below to find additional information about WA PFML:
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.
Existing businesses can search their UBI account number on the Department of Revenue website.
UBI numbers typically start with a 6.
If you've run payroll in Washington in the past, you can find your ESD account numbers on the Quarterly Tax and Wage Detail Reports (form 5208 A).
You can also find both your ESD and UBI numbers on your "annual tax rate" notice from the Employment Security Department.
If you don't know your account numbers, call the ESD at (360) 890-3500.
You can find your unemployment account number and rate by:
Do not include the EAF rate when entering your rate in Gusto. Include all other lines (such as social cost) from the SUI rate notice.
As a reminder, you'll also need to enter Standard Occupational Classification (SOC) codes for your employees in Washington.
You can find your account number by logging into your WA L&I account.
Once you've entered your Washington L&I account number in Gusto, we'll generate a third-party authorization (TPA) form you'll need to sign.
Without the required third party authorization (TPA), we're unable to file your tax returns to WA L&I. This means, if you're coming to Gusto from another payroll provider, you'll need to transfer third party authorization (TPA) to Gusto. To do so:
Employers are assigned a Participation Activation Code (PAC) for their Workers’ Comp Insurance—you can find the PAC on your Workers’ Comp "new account letter" and "annual rate notice."
The PAC number is a 3 to 8-digit number. If you don't know your number, contact the Washington L&I agency at (360) 902-4817.
Heads up: Gusto does not support class codes that use square footage as part of the tax calculation (ie. the dry wall industry).
Enter risk class codes and rate information in GustoIf an employee has multiple risk class codes, you'll need to assign them a job for each role/risk class code, and then edit the risk class code for each role using the instructions below.
Gusto withholds and pays the employee-premiums for this tax.
Employers with less than 50 employees
These companies are exempt from paying the employer premium, however, the employee premium is still required.
If you're looking to help partially or fully pay the employee-specific premiums, Gusto does not currently support this. You can issue non-taxable reimbursements at the end of quarter to repay all or a part of the amount(s) deducted from employees.
Employers with over 50 employees
Employers with 50 or more employees are required to pay the employer premium—Gusto can pay the employer-premium on your behalf, so long as you've let us know you're subject to the tax in your Gusto account. If you don’t take any action, we won’t pay employer contributions on your behalf.
How Is business size determined?
Washington’s Paid Leave determines your business size annually on September 30—they do so by averaging the number of employees on your Q3 and Q4 reports from two years prior, and Q1 and Q2 reports of the prior year.
If your business size changes, the agency will mail the business a letter in early October to let you know.
First, a few reminders:
Set the percentage of employee-deductions for PFML you'd like to cover:
Premium calculations and other PFML resources
The total premium amount due each tax year can vary (up to the Social Security wage base) and is made up of both employee and company contributions. For updated rate information, see the Premium Calculator.
Use the resource(s) below to find additional information about WA PFML:
Once a valid Washington address has been added in Gusto for one or more employee(s), you can add your tax account information:
Gusto collects WA CARES premiums from employees, just like we do for Paid Family Leave (PFML).
The WA CARES fund helps people in Washington get long-term care when they need it. Here’s how it works:
If you’re already registered for Paid Family Medical Leave (PFML) in Washington and have a “UBI” number, you don’t need to register again. The Washington Employment Security Department (ESD) is working on updating their PFML platform to include WA CARES.
Requirements
Employers do not contribute, employees pay 100% of the premiums, through a payroll deduction. At this time, there is no wage base limit for the premiums.
Gusto will collect the employee-premiums for employees whose work is localized in WA and report employees’ wages and hours. We'll typically collect WA CARES premiums and file reports for the same employees who pay PFML premiums.
Eligible employees can apply for an exemption, and if approved, they must present the ESD’s exemption approval letter to all current (and future) employers.
All full-time and part-time employees are eligible to participate in the program, unless they’ve received an approved exemption letter.
In addition to living out of state, a few other conditions make somebody working in WA eligible for exemption from WA CARES.
WA CARES is long-term care, which consists of help with daily activities like bathing, eating, dressing, taking medications, and assistance in the bathroom. Long-term care is not the same as medical care and isn’t covered by health insurance or PFML.
If you're a corporation in Washington, you have to report all corporate officers who do not have unemployment insurance (are exempt) and are not set up as employees on payroll. This means their wages are not included in the unemployment insurance quarterly reports.
At the end of each quarter, Gusto will ask you to complete a to-do item on your Home page so we can comply with this requirement. Below are the two questions you'll see:
Corporate officers are all officers, including those not listed in Gusto, who are exempt from Washington state unemployment tax and are not already being reported on the quarterly Washington UI Tax and Wage Report.
Officer earnings are the combined wages or earnings for all non-covered corporate officers.
Visit the Washington State Employment Security Department website (ESD) to learn more about how to define a corporate officer and the law on unemployment-insurance coverage for corporate officers. You can also contact the ESD at (855) 829-9243.
If the number of officers or officer earnings have previously been misreported on any quarterly reports, you can amend this portion of the filing by following the directions below.
You can follow up with your request by contacting the Employment Security Department's accounting unit directly at [email protected].
Learn more about the Seattle Payroll Expense Tax and Additional Payroll Expense Tax below.
Gusto does not support either of these taxes right now, but we’ll keep an eye on how it affects our customers and may review our decision in the future.
Beginning Jan 1, 2021 through Dec 31, 2040, employers doing business in the city of Seattle may be subject to a payroll expense tax—learn more below.
Gusto does not support this tax but we’ll continue to monitor the impact to our customers and reassess the decision in the years to come.
There's an exemption if the prior year's compensation paid to Seattle employees was under an annual dollar amount. Learn more in the dropdown below about what should be included in compensation calculations.
If you’re subject to the tax (based on your prior year's compensation data), the next step is to use the current year's compensation paid in Seattle to determine the payroll expense tax due for the new calendar year.
For this tax, compensation has the same meaning as it does for the WA Family and Medical Leave program.
The total payroll expense for employees in Seattle paid at or above the annual compensation limit, starting with the first dollar paid, must be included in the amount subject to the payroll expense tax.
Compensation calculations include:
Compensation does not include:
You can build a custom report in Gusto using the instructions found in this article to help with finding annual compensation totals.
View the current tax rate in this chart.
If you have questions about this process, contact the agency directly at (877) 693-4435 or by email at [email protected].
Fling returns as a preparer on behalf of another business?
Create a Preparer Account in FileLocal to file returns on behalf of your client—the client will need to grant you permission to file their returns in FileLocal.
Check out the Seattle Department of Finance and Administrative Services Payroll Expense tax updates.
Seattle residents voted to approve Proposition 1A, adding a 5% payroll expense tax on annual compensation over $1 million paid to an individual employee.
Gusto does not support this tax right now, but we’ll keep an eye on how it affects our customers and may review our decision in the future.
As a reminder, Gusto does not support this tax right now, but we’ll keep an eye on how it affects our customers and may review our decision in the future.
If you have any employees with compensation over $1 million, follow the steps in the "Seattle Payroll Expense Tax" section above in this article to learn how to file and pay the tax.
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.