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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.
🎥 Watch a quick video to learn how registering in a new state works
đź“– See our blog for full state business guides
🤝 Let Gusto register for you
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.
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)
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:
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. 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.
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.
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: 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 state agencies.
You'll work with the following Washington agencies when registering for payroll taxes. Registration must proceed in order because each agency builds on the previous registration:
Washington Department of Revenue (DOR): Handles business license registration. You'll register with this agency first. Other agency accounts will be created once this agency passes your business license information to them.
Washington State Department of Labor and Industries (L&I): Handles workers' compensation.
Washington Employment Security Department (ESD): Handles unemployment tax, Paid Family and Medical Leave (PFML), and WA Cares long-term care fund.
There are two options for registration: online (recommended) or 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 steps required to register as a business differ depending on your business structure:
Sole proprietorships and general partnerships
File a Business License Application with the Business Licensing Service.
Corporations, limited partnerships, LLCs and LLPs
Create a business structure with the Office of the Secretary of State. Click Corporations and Charities Filing System (CCFS) to register.
Once the business structure is complete, file a Business License Application with the Business Licensing Service.
Businesses that are already licensed, but that are hiring employees for the first time
Refile a business license application with the Business Licensing Service.
The Department of Revenue will process your application and:
Notify WA Labor & Industry (L&I) to open a workers' compensation account.
Notify the Employment Security Department (ESD) to open an unemployment insurance account.
You'll receive a letter from your new Workers' Comp account manager, and a packet of information which you'll need to keep that includes:
Your Unified Business Identification (UBI)
Your ES (Employment Security) Reference Number
Your Workers' Comp Account ID
Your Participant Activation Code (PAC) for WA L&I
Note: The Department of Revenue no longer issues PAC codes. The PAC code Gusto requires will be issued by Washington L&I.
Your State Unemployment Insurance (SUI) and Employment Administration Fund rate (EAF)
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.
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. Gusto will pay this insurance premium to the state for you.
Once you've filed your business license, you can find the workers' comp rates assigned to you online.
Note: Risk class codes are different than Standard Occupational Classification (SOC) codes. SOC codes are also required for Washington employees. For more information, see Standard Occupational Classification (SOC) codes.
To get your company's risk class code rates, start by going to the Washington State Department of Labor & Industries website.
Use the dropdown to search by your company name, Workers' Comp account number, or WA UBI number and enter the information.
Choose your company name from the list of results.
Click Workers' Comp Rates.
Find your agency-assigned:
Risk Classification, and
Composite Rate (Hourly Rate), and
Employee Deduction (Employee Withholding)
Note: Gusto does not support class codes that use square footage as part of the tax calculation. For example, this includes 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.
Go to People.
Click an employee's name.
From the Pay tab, find the Compensation section.
Find Risk Class Code and click edit next to that section.
Enter (or edit) the risk class code by clicking the drop-down arrow next to the code.
Use the search to find the correct code and apply it.
Click Save.
To add or update a Washington Workers' Compensation Risk Class Code rate in Gusto:
Go to Taxes & compliance.
Select Tax setup.
Scroll to Washington Tax Setup and click Manage taxes.
Find the correct Workers' Comp Risk Class and click Edit.
Scroll down and choose Add a new setting or Make a correction.
Enter the updated rate information.
Click Save.
Important: If you added an incorrect risk class code — even if it was only saved for a minute — contact Gusto through the (?) in your account so we can process the correction. We cannot automatically reverse a code once it has been saved, regardless of how long it was active. Leaving an incorrect code in place can affect your payroll calculations and filings.
If you're using the Washington Workers' Compensation Rate Notice, enter the rates as follows:
Hourly Rate: Enter the Total Hourly Rate (Employer Contribution + Employee Withholding).
Employee Withholding: Enter the Hourly Employee Withholding amount.
Once both amounts are entered, click Save.
Sole proprietors, partners and some LLCs without employees (owners only)
Private carrier coverage is not permitted
Employees based in Idaho, Montana, Nevada, North Dakota, Oregon, South Dakota, Utah, or Wyoming
Washington has deals with these states about when and how they accept their workers' compensation coverage
Some corporate officers are exempt from mandatory coverage.
Some for-hire vehicle/drivers.
Some maritime workers.
Some contractors.
Most volunteers.
Some trucking contractors.
For more information about required coverage and exemptions, see the Washington State Department of Labor & Industries workers' compensation requirements 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.
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.
If you do not have a SAW account, follow this video tutorial to get one set up.
Washington PFML offers partial wage replacement while on leave. This leave is for recovering from an illness or injury, bonding with a new child, certain military events, or caring for a sick or injured family member.
Once you've created a SAW account, add your account to the Paid Family and Medical Leave system:
Click on the Add a New Service button.
Select I would like to browse a list of services.
On the list of organizations, select Employment Security Department.
Locate Paid Family and Medical Leave and add it to your services. Click the Apply link to add it.
On the confirmation screen that lets you know the service has been added to your list, click OK.
Go back to the SAW homepage. Under your services, click Paid Family and Medical Leave to create your account.
Select Continue to be brought to the Paid Family and Medical Leave portal.
You will be prompted to create an account.
Find Employer Accounts, then click Create an Account.
Enter your 9-digit UBI (Unified Business Number) number.
If you're not sure of this number, you can reach out to the Department of Revenue. You'll likely receive an error that the UBI is not found. If that's the case, you can press Create Employer.
This will bring you to a form where you'll need to fill out the required information about your business.
After you enter your address and click Next, you'll need to upload supporting documentation. This can be either:
The Master Business Application (from the Department of Revenue) or
The business's Articles of Incorporation (from the Washington Secretary of State)
Washington's compliance team will review your request and will add the UBI number to their system.
If more information is needed, the agency will contact you. They will use the contact info you provided on the application.
Gusto withholds and pays the employee-premiums for PFML. However, employers have the option to cover some or all of their employees' PFML deductions instead of employees paying them.
Employer premium requirements depend on your company size.
Employers with fewer than 50 employees
These companies are exempt from paying the employer premium, however, the employee premium is still required.
Employers have the option to cover some or all of their employees' PFML deductions.
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 about small business grants, see the WA PFML website.
Employers with 50 or more 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 do not take any action, we will not pay employer contributions on your behalf.
Important: If you're subject to the employer premium, you must update your Gusto account each year by March 31.
How is business size determined?
Washington's Paid Leave determines your business size annually on September 30 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.
For example: Your 2025 business size will be the average of employee counts from your Q3 and Q4 2023 reports, as well as Q1 and Q2 of your 2024 reports.
If your business size changes, the agency will mail the business a letter in early October to let you know.
Let Gusto know whether you're subject to PFML
Click the Taxes & compliance section and select Tax setup.
Scroll to Washington Tax Setup, and click Manage Taxes.
Click the blue edit pen and let us know you're required to pay the employer portion of WA Paid Family and Medical Leave.
If the agency calculated that you have 50 or more employees:
You'll be responsible for paying the full premium rate, including the employer share of premiums, on wages paid Jan 1–Dec 31 of the new calendar year.
If the agency calculated that you have fewer than 50 employees:
Beginning Jan 1 of the new calendar year, you will not be responsible for paying the employer share of premiums.
You may still choose to contribute the full premium rate to the program by opting in on an annual basis. The enrollment period is open until March 1.
First, a few reminders:
These settings will be applied for all employees in the state.
The settings go into effect the quarter following the one in which edits were made.
Example: If you make an edit in July (during Q3), the company will start covering employee-deductions starting October 1 (beginning of Q4).
In the meantime, you can issue non-taxable reimbursements at the end of the quarter to repay all or a part of the amount(s) deducted from employees.
These settings only apply for PFML deductions in WA.
Set the percentage of employee-deductions for PFML you'd like to cover:
Click the Taxes & compliance section and select Tax setup.
Under Washington Tax Setup, click Manage Taxes.
Under State Tax Settings, next to PFML employee portion, click the blue edit.
Enter the percentage you'd like to cover.
Click Save.
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:
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:
Contributions: Workers in Washington will pay a small part (percentage) of their earnings.
Only employees contribute, employers do not.
Benefits: Starting in July 2026, anyone eligible can get care costing up to $36,500 (this amount will go up with inflation) over their lifetime.
Eligibility: To get the benefit, you need to meet the contribution rules and need help with daily activities.
Self-employed: If you're self-employed, you can choose to join and get the affordable WA Cares fund benefits.
If you're already registered for Paid Family Medical Leave (PFML) in Washington and have a UBI number, you do not need to register again. The Washington Employment Security Department (ESD) is working on updating their PFML platform to include WA Cares.
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 will 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.
If an employee provides you with an exemption letter, set up the exemption in Gusto.
Employees with approved exemptions are permanently ineligible to participate in the program.
If your company already supplies long-term care insurance for your employees, you still cannot apply for an exemption on behalf of employees.
Employees get to choose if they want an exemption from WA Cares coverage, or if they want to use WA Cares to supplement the benefits you're already offering.
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 is not covered by health insurance or PFML.
Once you complete registration with all state agencies, take these steps:
If your business is a corporation, report any corporate officers.
If you've already registered in Washington, you need to enter your tax account details in Gusto. You need to be registered with one or more of the following agencies for Gusto to file and pay taxes on your behalf:
Washington Department of Revenue (DOR): Handles business license registration.
Washington State Department of Labor and Industries (L&I): Handles workers' compensation.
Washington Employment Security Department (ESD): Handles unemployment tax, Paid Family and Medical Leave (PFML), and WA Cares long-term care fund.
If you still need to register, see the Register for WA business license, workers' compensation, unemployment tax, Paid Family and Medical Leave (PFML), and WA Cares on your own section earlier in this article.
Once you add a valid Washington work address in Gusto for one or more employees, you can enter your state tax account information.
Go to Taxes & compliance, then select Tax setup.
Find Washington Tax Setup and select Manage taxes.
Enter your:
ES Reference number
Unified Business ID
Workers' Comp Account ID
Once you've entered your Washington L&I account number in Gusto, we'll create a third-party authorization (TPA) form you'll need to sign.
Participation activation code
SUI tax rate. 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.
You'll also need to enter Standard Occupational Classification (SOC) codes for your employees in Washington.
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 any historical tax issues related to tax account number updates.
Existing businesses can search their UBI account number on the Washington Department of Revenue website.
Click Look up a business under the I want to... section.
Enter your company name and click Search.
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 do not know your account numbers, call the ESD at (360) 890-3500.
You can find your unemployment account number and rate by:
Checking the notice you receive from the Washington Employment Security Department each year, or
Calling the agency at (855) 829-9243.
Note: 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.
This agency is separate from WA Employment Security.
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 are 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:
Go to Documents
Under Company, click Authorizations.
E-sign the applicable WA authorization form.
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 do not know your number, contact the Washington L&I agency at (360) 902-4817.
To get your company's assigned risk class code rates, start by visiting the Washington State Department of Labor & Industries website.
Use the dropdown to search by your company name, Workers' Comp account number, or WA UBI number and enter the information.
Choose your company name from the list of results.
Click Workers' Comp Rates.
Find your agency-assigned Risk Classification, Composite Rate (Hourly Rate) and Employee Deduction (Employee Withholding).
Note: Gusto does not support class codes that use square footage as part of the tax calculation. For example, this includes the drywall industry.
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:
Number of corporate officers: #
Officer earnings and stock options: $
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 corporate officers FAQ 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.
Email [email protected] with the following information:
The quarterly filing that needs correcting. For example, Q1 2017.
The correct number of officers
The correct amount of officer earnings and stock options for that quarter
Request that only the corporate officer section of the filing be amended.
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.
Note: Gusto does not support either of these taxes right now, but we will 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.
Note: Gusto does not support this tax but we will continue to monitor the impact to our customers and reassess the decision in the years to come.
This is an employer-paid tax on the "payroll expense" of the business, meaning the compensation paid to employees in Seattle.
Learn more below about how compensation totals are determined.
The payroll expense tax is a tax that businesses have to pay, not the employees. This means the employer pays the tax, and it is not taken out of employees' paychecks. The law specifically states employers cannot withhold the tax from their employees.
To see if you're required to pay this tax, go to Seattle's City Finance website.
There's an exemption if the prior year's compensation paid to Seattle employees was under an annual dollar amount. Learn more in the section below about what should be included in compensation calculations.
For example: If you want to know if a company is subject to the tax in 2025, you'll need to pull and calculate the 2024 compensation paid to Seattle employees to determine if the company has met the payroll expense threshold.
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:
The standard gross compensation paid to the Seattle employee
All payments for personal services
Commissions and bonuses
The cash value of all earnings paid in any medium other than cash
Employee contributions to deferred compensation plans. For example, 401(k), 403(b), or other deferred compensation plans in which a portion of an employee's salary or wages are set aside to be paid at a later date.
Compensation does not include:
Tips
Supplemental benefit payments made by an employer to an employee in addition to any paid family or medical leave benefits received by the employee
Employee exercised stock options. This includes incentive stock options (ISOs) or non-qualified stock options (NQSOs).
Payments provided to cover a past or future cost incurred by the employee as a result of the employee's expected job functions
Employer contributions into retirement or disability plans
Payments to an owner of a pass-through entity that are not earned for services rendered or work performed. This means return of capital, investment income, or other passive activities.
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.
Apr 30
For the quarter ending March 31
Jul 31
For the quarter ending June 30
Oct 31
For the quarter ending Sep 30
Jan 31
For the quarter ending Dec 31
Register for a Seattle business license tax certificate if you have not already done so.
Anyone doing business in Seattle must have the above certificate. Additional information about the Seattle business license tax can be found on the Seattle City Finance website's business license cost page.
If you want to register and file manually, Payroll Expense Tax forms will be available to download from the website.
Manual forms can be completed and mailed to the address provided on the back of the form. Returns are not deemed filed until both tax filing and payment are received.
Sign in to the city of Seattle's online tax portal FileLocal.
Make sure you have your customer number that was assigned to the business when you registered. You can find this on the business license tax certificate.
Use your customer number to file and pay online.
If you're filing manually, include the customer number as well as legal name and address on the filed form.
If you have questions about this process, contact the agency directly at (877) 693-4435 or by email at [email protected].
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.
Note: Gusto does not support this tax right now, but we will keep an eye on how it affects our customers and may review our decision in the future.
This tax applies only to Seattle businesses and excludes independent contractors.
The tax, effective Jan 1, 2025, will fund housing development and maintenance in the city.
This tax is separate from the existing Seattle payroll expense tax enacted in 2021.
Note: As a reminder, Gusto does not support this tax right now, but we will 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 earlier in this article to learn how to file and pay the tax.
Employer's Quarterly Tax and Wage Detail Report
Labor & Industries Employer's Quarterly Report
Employer's Paid Family & Medical Leave Quarterly Wages and Hour Report
New Hire Report
You can view forms in Taxes & Compliance, then Tax documents. Switch between the tabs to find federal, state, W-2s, and 1099s.
Some forms show an asterisk (*). Forms like payment vouchers or coupons that were filed electronically may not show in your Gusto account. Sign in to the agency's portal to view filings and payments.
To see what Gusto has paid for you, run the Agency Payments report.
Workforce or Labor Agency: Washington Employment Security Department (ESD)
Phone: (855) 829-9243
Labor and Industries (Workers’ Compensation)
Phone: (360) 902-5800
Phone: (833) 717-2273
Learn how to close or reopen tax accounts.