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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 agencies.
You'll work with the following Arkansas agencies when registering for payroll taxes:
Arkansas Department of Finance and Administration (DFA): Handles income tax withholding.
Arkansas Division of Workforce Services (ADWS): Handles unemployment tax.
Register with the Arkansas Department of Finance and Administration (DFA) to receive your DFA Account ID and your filing schedule.
You should receive your DFA Account ID and filing schedule by mail in 1–2 weeks. Keep this time frame in mind when planning your first Arkansas payroll.
Go to the Arkansas Department of Finance and Administration Arkansas Taxpayer Access Point (ATAP).
Scroll to the Businesses section and click Register a Business.
Learn about what you'll need to register before you get started.
Click Next and complete all remaining prompts.
If you have questions about completing registration, call the agency at (501) 682-7290.
If you're having trouble with authorization, see the Troubleshoot Department of Finance and Administration authorization issues section.
Most companies become liable for Arkansas unemployment insurance tax once the company has at least one Arkansas employee working 10 or more days during a calendar year.
Liability thresholds can vary by business type (general, nonprofit, and similar). Contact the agency directly to confirm when your specific business will be liable.
If you need to run payroll and do not yet meet the above requirements, enter the new employer rate for your state in the meantime. Update the rate once you receive it.
During registration, you'll want to make sure the Arkansas Division of Workforce Services knows when you plan to become liable. Gusto will eventually need your unemployment account number (required to file and pay taxes on your behalf) and your company-specific unemployment tax rate (assigned by the agency).
Registration takes about 5 minutes to complete, and you'll receive a confirmation email when you're done.
Check out the employer handbook if you run into any issues.
Once registered, you'll receive your agency-assigned new employer rate from the Arkansas Division of Workforce Services.
Once you complete registration and add a valid Arkansas work address for one or more employees, enter your tax account information in Gusto.
If you have employees in Texarkana, see the Texarkana employee withholding tax exemption section.
If you've already registered in Arkansas, 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:
Arkansas Department of Finance and Administration (DFA): Handles income tax withholding.
Arkansas Division of Workforce Services (ADWS): Handles unemployment tax.
If you still need to register, see the Register for AR income tax withholding and unemployment tax on your own section earlier in this article.
If you have employees in Texarkana, see the Texarkana employee withholding tax exemption section.
If you're having trouble with authorization, see the Troubleshoot Department of Finance and Administration authorization issues section.
Once you add a valid Arkansas work address in Gusto for one or more employees, you can enter your state tax account information.
To add your Arkansas tax account information:
Go to Taxes & compliance, then select Tax setup.
Find Arkansas 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 DFA Account ID, click Edit to enter your withholding account number.
You can find your DFA Account ID (also called a Withholding Account ID) by reviewing Payment Vouchers received from the Arkansas Department of Finance and Administration.
If you cannot find your account number, call the agency at (501) 682-7290.
A "tax account ID" is different from the "DFA Account ID". Gusto needs you to enter the "DFA Account ID".
Next to Filing Frequency, click Edit to enter your filing frequency.
Your filing frequency will be provided when you register with the Arkansas Department of Finance and Administration.
If you are not sure what your frequency is, select Monthly.
If you cannot find your filing frequency, call the agency at (501) 682-7290.
Next to Unemployment Account Number, click Edit to enter your unemployment account number.
You can find your Unemployment Tax ID (also called a DWS ID) on Arkansas Division of Workforce Services notices, such as the Rate Notice on the Quarterly Contribution and Wage Report (Form DWS-ARK-209B).
If you cannot find your account number, call the agency at (501) 682-3798.
Next to Unemployment Tax Rate, click Edit to enter your unemployment tax rate.
The AR Experience Rate appears on the Rate Notice that you receive from the Arkansas Division of Workforce Services each year, and typically takes effect on January 1.
If you cannot find your rate, call the agency at (501) 682-3798.
If you do not have your assigned rate yet, enter the new employer rate for your state in the meantime. Update the rate once you receive it.
If you have employees who live in Texarkana, Arkansas, or Texarkana, Texas, and work in Texarkana, Arkansas, they qualify for an exemption from Arkansas withholding tax.
If either of these scenarios applies to your business, follow these steps:
Have each eligible employee sign Form AR4EC(TX).
Set up the employee exemption in Gusto.
Keep the signed form in your company's records. You do not need to send this form to the DFA, but it must be available if requested.
Some agencies require special authorization for Gusto to pay or file your taxes. If Gusto is having trouble getting access to your account, confirm that the company details entered in Gusto match exactly what the agency has on file. You can do this by calling the agency at (501) 683-2827 or (877) 280-2827.
Here's what should match:
Official company name and address
FEIN (Federal Employer Identification Number)
Withholding ID number (make sure you've added the Withholding tax type to your account)
Zip Code (this is usually a zip code for a business location in Arkansas; the zip code you have in Gusto for your Arkansas business location(s) should match what you entered on your registration form)
Last amount paid to the Department of Finance and Administration
For brand-new businesses: This may be the $50 Sales Tax Permit Fee. If there was no permit fee and the business is new to Arkansas, enter $0.
For existing businesses that were paying taxes outside of Gusto: Gusto will need the last withholding tax deposit made to Arkansas.
AR 3MAR (Arkansas Annual W/H Reconciliation)
AR 941M* (State of Arkansas Monthly W/H Report)
AR DWS-ARK-209B (Arkansas Quarterly Contribution Report)
State W-2 (Wage and Tax Statement)
AR 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.
Revenue Agency: Arkansas Department of Finance & Administration (DFA)
Phone: (501) 682-7290
Workforce or Labor Agency: Arkansas Department of Workforce Services (DWS)
Phone: (501) 682-2121
Learn how to close or reopen tax accounts.