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Before you can pay employees in a new state, you must register with the stateβs tax agencies. This lets you file and pay the right taxes.
π₯ Watch a quick video to learn how registering in a new state works
π 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.
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 β we accept legal and government mail for your business in that state.
Change of registered agent β we file the change so your mail comes to us.
Foreign qualification β we register your business with the Secretary of State so you can legally work there.
State tax registration β 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 β we file the yearly report that keeps your business in good standing.
Government mail monitoring β 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 β 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 β Business compliance β 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 β $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 β $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 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 3β5 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.
If your business is operating within Rainbow City, you need to get a business license.
Go to the Rainbow City website.
Click Apply for a NEW License.
Fill out the online application, sign, and submit.
Once the application is approved, the agency should provide a Taxpayer/Customer Number. Gusto requires that number to file Rainbow Occupational Income Tax returns on your behalf.
If you have any questions, call Rainbow City Business Licensing at (256) 413-1214.
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.
Use this list to find Alabama's tax forms and where to view each one.
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
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 Alabama's payroll tax agencies by phone or website. It covers income tax withholding, unemployment insurance, and local occupational taxes.
Phone numbers and links can change. If one does not work, search the agencyβs official website for the latest contact info.
Income tax withholding β Alabama Department of Revenue (DOR): (334) 242-1300
Unemployment insurance β Alabama Department of Labor (DOL): (334) 954-4741
Local occupational tax β City of Bessemer: (205) 424-4060
Local occupational tax β City of Gadsden: (256) 549-4559
Learn how to close or reopen tax accounts.