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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
📖 See our blog for full state business guides
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 and local agencies.
You'll work with the following Alabama agencies when registering for payroll taxes:
Alabama Department of Revenue: Handles income tax withholding.
Alabama Department of Labor (DOL): Handles unemployment tax.
Local Alabama tax agencies: Handle various local taxes.
Employers must open a general employer tax account with the state before you can get a withholding-specific tax account number.
To open a general tax account:
Go to the My Alabama Taxes (MAT) website.
Find the Businesses tile.
Click Register a business/Obtain a New Tax Account Number.
Complete all remaining steps. If you have questions, contact the agency directly.
Once you have a general tax account, you can register for a withholding tax account number. It takes 3–5 days to receive your withholding account number after completing registration.
To register for a withholding account:
Go to the My Alabama Taxes help page for the agency's instructions on how to register for specific tax types.
If you chose to register by mail, you'll receive your account number in several weeks. You can call after 5 business days to receive it sooner.
Go to the main My Alabama Taxes (MAT) website.
Find the Businesses tile and click Register a business/Obtain a new tax account number.
Read the Before you begin information.
Scroll down to enter your company ID information, or select that you're an existing taxpayer and sign in to your account.
Complete all remaining prompts and make sure to open a withholding account.
If you have questions, contact the withholding tax department at (334) 242-1170, option 5.
Your company becomes liable for state unemployment insurance tax once the company has:
Paid $1,500 in wages during a calendar quarter, or
Had at least one Alabama employee working for any part of the week for 20 or more different weeks during a calendar year
If you need to run payroll but do not yet meet the above requirements, you can still do so. Enter the new employer rate for Alabama in Gusto for now, and update the rate once you receive it.
Register online with the Alabama Department of Labor to get your unemployment tax account number and rate. You'll need the following information to get started:
Federal Employer ID Number (FEIN)
Date Alabama operations began
Date of Federal Unemployment Tax Act (FUTA) liability
Quarterly wages paid in Alabama
Number of employees in each week of the quarter
Name, title, and SSN of owner, partner, or corporate officer
Once you register, you'll receive your unemployment account number instantly online. You'll also receive your company-specific unemployment tax rate.
If you owe taxes in one of the following locations, you'll need to register with Alabama Avenu Insights and Revenue Discovery Systems (RDS).
Note: The agency is changing its name from Avenu Insights and Revenue Discovery Systems to Neumo.
Attalla
Beaverton
Fort Deposit
Guin
Haleyville
Hamilton
Leeds
Macon (county)
Midfield
Mosses
Notasulga
Shorter
Southside
Sulligent
Tarrant
Tuskegee
To register:
Go to the Alabama Avenu Insights and Revenue Discovery Systems (RDS) website.
Request an Authority Account Number. Gusto needs this number to file on your behalf.
If you have questions, call Avenu and RDS at (800) 556-7274.
If your business is located in Auburn, you need to get an Auburn tax account number.
Download a Business Registration Form and fill it out.
Submit the application by mail.
If you have questions, call the City of Auburn at (334) 501-7226.
All employees who work in Birmingham are subject to the Birmingham Occupational Tax.
If your business is located in Birmingham, you need to get a Birmingham Occupational Tax account number.
Go to the City of Birmingham Tax and License website.
Request an Occupational Tax Account Number. Gusto needs this number to file on your behalf.
If you have questions, call the City of Birmingham Tax and License Administration at (205) 254-2198 or email [email protected].
Note: A company's taxes are usually paid monthly, unless the company has a lower annual liability and has requested a less-frequent schedule. To confirm your tax deposit schedule, call the City of Birmingham Tax and License Administration at (205) 254-2198.
If your business is located in Gadsden, you need to get a Gadsden Customer Number.
Go to the City of Gadsden Revenue Department website.
Download a Business License Application and fill it out.
Submit the application by mail to receive your Gadsden tax account number.
If you have questions, call the City of Gadsden Revenue Department at (256) 549-4562.
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 Alabama work address for one or more employees.
If you've already registered in Alabama, 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:
Alabama Department of Revenue: Handles income tax withholding.
Alabama Department of Labor (DOL): Handles unemployment tax.
Local Alabama tax agencies: Handle various local taxes.
If you still need to register, see the Register for AL income, unemployment, and local tax on your own section earlier in this article.
Once you add a valid Alabama work address in Gusto for one or more employees, you can enter your state tax account information.
To add your Alabama tax account information:
Go to Taxes & compliance, then select Tax setup.
Find Alabama Tax Setup and select Manage taxes.
Follow the instructions below for each tax type.
Important: If you edit a tax account number after payments or filings have 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.
Next to Withholding Account Number, click Edit to enter your withholding account number. This number is usually nine digits following a letter (for example, R123456789).
Withholding tax coupons or Form A-1 (Return of Income Tax Withheld) from the Alabama Department of Revenue
If you cannot find your account number, contact the agency at (334) 242-1584.
Next to Unemployment Account Number, click Edit to enter your unemployment account number.
Your eGov account
Form UC-216F (Tax Rate Notice) or Form UC-CR4 (Quarterly Contribution and Wage Report) from the Alabama Department of Labor
If you cannot find your account number, email [email protected] or call (334) 954-4730.
Next to Unemployment Tax Rate, click Edit to enter your unemployment rate.
Important: Enter the rate from Box 6 of the Tax Rate Notice from the Alabama Department of Labor. Do not include the Employment Security Enhancement Assessment (ESA) rate.
The ESA rate appears in Box 7 of the Tax Rate Notice. For new employers, the ESA rate is 0%. For employers who have been in business for a few years, the rate is usually 0.06%.
Your Tax Rate Notice (Form UC-216F) from the Alabama Department of Labor
Your eGov account
If you cannot find your rate, email [email protected] or call (334) 954-4741.
If you do not have your assigned rate yet, enter the new employer rate for Alabama in Gusto in the meantime. Update the rate once you receive it.
Next to the applicable local tax field, click Edit to enter your local tax account number.
For details on which account number you need for your location, see the Local tax registration section earlier in this article.
Third-party authorization (TPA) is needed for the agency below. This lets Gusto file and pay taxes for you.
The Alabama Department of Labor (DOL) requires you to submit a notarized Power of Attorney (POA) form before Gusto can file and pay your Alabama unemployment taxes.
To notarize the pre-filled POA form in Gusto:
Go to Documents.
Under Company, click Authorization.
Select the blue Edit pen next to Submit DOL POA Form.
Click the pre-filled Power of Attorney (POA) form.
Print the form.
Complete the pre-filled form:
Mark only the Tax (Limited) box.
In the field that starts with "the said," enter your signatory's printed name.
In the signature date fields, enter the day, then the month, then the year.
Have your authorized signatory sign on the Duly Qualified Officer line in the presence of a notary.
Your signatory must include a valid title on the Title line. Valid titles: Owner, Officer, Partner, President, or Vice President.
The notary should place their seal in the designated space and sign on the Notary Public line.
After notarizing the POA, submit the form to both locations:
Fax the form to the Alabama DOL at (334) 956-7496.
Mail the form to Gusto at the address below: ATTN: Tax Ops - Audit Team Gusto 1201 16th Street, Suite 350 Denver, CO 80202
Once you have faxed the form to the agency and mailed it to Gusto, sign in to Gusto and select Yes, I submitted the notarized form.
If you have questions about completing the form, call the agency at (334) 954-4741 or (800) 548-2546.
Visit our full article on the AL Overtime Pay Exemption for withholding tax to learn more.
AL A-1 (Alabama Quarterly W/H Return)
AL A-3 (Alabama Annual W/H Reconciliation)
AL A-6 (Alabama Department of Revenue Monthly Return)
AL UC-CR4 (Alabama Quarterly Contribution)
State W-2 (Wage and Tax Statement)
AL New Hire Report
Various local returns
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.
Revenue Agency: Alabama Department of Revenue (DOR)
Phone: (334) 242-1300
Workforce or Labor Agency: Alabama Department of Labor (DOL)
Phone: (334) 954-4741
City of Bessemer (Occupational Tax):
Phone: (205) 424-4060.
Learn how to close or reopen tax accounts.