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.
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 — we accept legal and government mail for your business in that state.
Change of registered agent — we file the change so your mail comes to us.
Foreign qualification — we register your business with the Secretary of State so you can legally work there.
State tax registration — 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 — we file the yearly report that keeps your business in good standing.
Government mail monitoring — 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 — 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 annually. 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 → Business compliance → 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, billed annually. 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 — $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 — $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 annually. 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 agencies.
You'll work with the following Virginia agencies when registering for payroll taxes:
Virginia Department of Taxation (TAX): Handles income tax withholding.
Virginia Employment Commission (VEC): Handles unemployment tax.
When you register online, you'll instantly get:
VA Tax Account Number (for income tax withholding)
Income tax withholding deposit schedule (filing frequency)
VEC Account Number (for unemployment tax)
To register online:
Under Register a New Business, click New business? Register your business here.
When you register online, you can sign up your business with Virginia Tax and the Virginia Employment Commission (VEC) at the same time. Check the Registration FAQs for more details.
Complete the prompts.
If you need help registering or have unemployment rate questions, call the VEC at (866) 832-2363.
Most companies in Virginia must start paying unemployment insurance tax once they have:
Paid $1,500 in wages during a calendar quarter, or
Had at least one Virginia employee working for any part of the week for 20 or more different weeks during a calendar year
For nonprofits, liability begins when employing at least four workers for 20 weeks in either the current or previous year.
If you need to run payroll but do not yet meet these requirements, enter the new employer rate for Virginia in Gusto for now, and update the rate once you receive it.
Once you complete registration, take these steps:
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 Virginia work address for one or more employees.
If you've already registered in Virginia, 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:
Virginia Department of Taxation (TAX): Handles income tax withholding.
Virginia Employment Commission (VEC): Handles unemployment tax.
If you still need to register, see the Register for VA income and unemployment tax on your own section earlier in this article.
Once you add a valid Virginia work address in Gusto for one or more employees, you can enter your state tax account information.
To add your Virginia tax account information:
Go to Taxes & compliance, then select Tax setup.
Find Virginia 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 already been made, there may be tax implications. Learn how to pull reports in Gusto that can help you correct historical tax issues related to tax account number updates.
Next to VA Tax Account Number, click Edit to enter your withholding tax account number. This number starts with "30-".
Note: If your account number starts with something else, it's usually for a different type of tax. The Virginia Department of Taxation handles many taxes (some unrelated to payroll), and you may be registered for another tax type.
Letters from the Virginia Department of Taxation
If you cannot find your account number, contact the agency at (804) 367-8037.
Next to Filing Frequency, click Edit to enter your withholding tax deposit schedule.
The VA Department of Taxation assigns your tax deposit schedule and redetermines it annually. It is important to enter your deposit schedule in Gusto accurately to prevent late payments.
If your withholding liability is less than $300 per quarter, your tax payments are due quarterly.
If your withholding liability is between $300 and $2,999 per quarter, your tax payments are due monthly.
If your withholding liability is $3000 or more, your tax payments are due semi-weekly.
More information on VA deposit schedules can be found here.
Note: If your VA withholding tax notice says you need to file quarterly, but you deposit taxes semi-weekly, choose the semi-weekly option for filing frequency in Gusto. Our system understands that if you deposit taxes semi-weekly, you still need to file the VA-16 Quarterly Reconciliation form.
Your registration confirmation or notices from the Virginia Department of Taxation
If you cannot find your filing frequency, contact the agency at (804) 367-8037.
Next to VEC Account Number, click Edit to enter your unemployment account number. This number is 10 digits long and starts with 000, 001, or 002.
Letters from the Virginia Employment Commission (VEC)
If you cannot find your account number, contact the agency at (804) 786-7159.
Next to Tax Rate, click Edit to enter your unemployment rate. The rate you enter should include:
Base tax rate
Pool cost charge (if applicable, rates vary by year)
Fund building charge (if applicable, charge varies by year)
The Tax Rate box of the State Unemployment Insurance (SUI) letter from the VEC
If you cannot find your rate, contact the agency at (804) 786-7159.
If you do not have your assigned rate yet, enter the new employer rate for Virginia in Gusto in the meantime. Update the rate once you receive it.
Learn how to authorize Gusto as your third-party agent (TPA) for the agency below.
While TPA is not required for Gusto to make payments and filings for you, once you give Gusto access, we can monitor your Virginia tax account and update it automatically when we find out about changes.
If you get stuck, the VEC can help you set up your portal and assign Gusto as your tax preparer. To get help from the VEC, call (866) 832-2363.
Important: Only the primary user of your tax account can grant Gusto access.
Go to the VEC Employer Self Service (ESS) portal and click Sign in with ID.me.
Sign in with your ID.me account. If you do not have one, create one.
On the User Profile page, select Employer as your user type.
On the ESS Dashboard, click Link Account.
Enter your VEC account number, FEIN (Federal Employer Identification Number), and the total wages reported on your most recently filed tax report. Enter the wage amount with no dollar sign, commas, or extra spaces.
Click Submit.
After VEC verifies your information, your account appears under Your Accounts on the ESS Dashboard.
After you've linked your VEC account to the Employer Self Service (ESS) portal:
Go to the VEC Employer Self Service (ESS) portal and sign in with ID.me.
On the Employer Self Service Dashboard, under Your Accounts, find your account and click Manage Users.
Click Invite New User.
Enter [email protected] as the invitee's email address. Enter it exactly as shown—it must match the email address on Gusto's ID.me account, or the invitation will not reach us.
Under Role, select Full Access.
Click Invite User to send the invitation.
After you send the invitation
Invitations expire after 30 days, or sooner if you enter the account number incorrectly three times.
After we accept the invitation, Gusto becomes your approved TPA.
To view, resend, or delete the invitation, return to the Manage Users screen.
Use this list to find Virginia's tax forms and where to view each one.
VA-16 (Employer's Payments Quarterly Reconciliation and Return of Income Tax Withheld)
VEC-FC-20 (Employer's Quarterly Tax Report)
VEC-FC-21 (Employer's Quarterly Payroll Report)
VA-W (W-2/1099 Transmittal)
State W-2 (Wage and Tax Statement)
New Hire Report
To view these forms, go to Taxes & compliance, then Tax documents, and select the State tab.
VA-5 (Employer's Return of Virginia Income Tax Withheld, Electronic Only)
VA-6 (Employer's Annual or Final Summary of Income Tax Withheld)
VA-15 (Employer's Voucher for Payment of Income Tax Withheld, Semiweekly)
To view these filings, sign in to the Virginia agency portal.
To see what we've paid for you, run the Agency payments report.
Note: The Virginia Department of Taxation requires Form VA-6 by January 31 of the next year, or within 30 days after your company's last paycheck. We file this form only at the end of the year. If your company stops paying wages before then, you will need to file the VA-6 yourself. If you do not file it, we will still submit it on January 31, but the agency may charge a $10 late fee that your company has to pay.
Use this list to reach Virginia's payroll tax agencies by phone or website. It covers income tax withholding and unemployment insurance.
Phone numbers and links can change. If one does not work, search the agency's official website for the latest contact info.
Income tax withholding — Virginia Department of Taxation (DOT): (804) 367-8037
Unemployment insurance — Virginia Employment Commission (VEC): (866) 832-2363
If RetirePath Virginia tells you to enroll, you can make things easier by connecting your company's auto-IRA with Gusto to automate payroll deductions and manage your plan.
Learn how to close or reopen tax accounts.