Summary
Content
Setting up payroll in California for the first time
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
- 🤝 Let Gusto register for you
Use the dropdowns below to learn more. Use CMD + F (or CTRL + F) to search for words in the article.
Gusto works with Middesk to help you register with tax agencies in new states.
Get help registering for state taxes
We can help you register for state tax accounts after you:
- Add a work address in the new state in Gusto.
- Assign that work address to a new or existing employee.
- Check your Home page for a to-do. If the state requires it, register with the Secretary of State (SOS) and tell us when it's done.
- States where you need to register with the SOS first: Missouri, New Jersey, New Mexico, and Vermont.
 
Cost, timeline, and who can register
The cost, steps, and turnaround time depend on the state. Gusto will show you these details when you start the registration process.
Middesk cannot help if your company is:
- A non-profit that’s not a 501(c)(3)
- A business that left a PEO (Professional Employer Organization)
- A business that bought another business already registered
- A business that changed its legal entity type (like from LLC to Corp)
- A Limited Partnership (LP) or Limited Liability Partnership (LLP)
What the process looks like
- You give us some basic business information.
- Middesk will check your info.
- Your registration is usually submitted within two business days.
- State registration with Middesk includes:
- State income tax (withholding)
- State unemployment insurance
 
- What's not included:
- Local agency registration
- Third-Party Agent (TPA) access or Power of Attorney (POA) authorization.
- If setting up TPA requires online agency portal access:
- If Middesk has to create an agency account to register your business, you can find the agency portal login details on the Taxes & Compliance > Tax setup page in Gusto once registration is complete.
- If Middesk does not need to create an account, but the agency requires TPA to be set up through their portal, you need to set up the agency portal accounts on your own.
 
 
- If setting up TPA requires online agency portal access:
 
- After we submit your registration, you may need to answer a verification call from the agency to confirm that the registration request is legitimate.
 
- State registration with Middesk includes:
- When Middesk gets your tax account information back after registering, they'll enter it in Gusto for you. 
- Exceptions: If your business is in Nevada or Rhode Island, the tax info will be mailed to your company. Once you get the letter, check your email for instructions on how to send the info back to Middesk.
 
Third-Party Access (TPA) and Power of Attorney (POA) reminder
Some state agencies need Gusto to have TPA or a POA on file to file and pay your taxes. Usually, Middesk does not set this up, so you’ll have to do it yourself after registration.
- If you're on the state tax registration article, look for a dropdown about TPA or POA in this article.
- If you're not on the state-specific registration article, check the state registration articles to see if TPA or POA is needed and how to set it up.
If there's no TPA or POA section, it's not needed right now.
If setting up TPA requires online agency portal access
- If Middesk has to create an agency account to register your business, you can find the agency portal login details on the Taxes & Compliance > Tax setup page in Gusto once registration is complete.
- If Middesk does not need to create an account, but the agency requires TPA to be set up through their portal, you need to set up the agency portal accounts on your own.
The cost, steps, and turnaround time depend on the state. Gusto will show you these details when you start the registration process.
Need help with registration questions?
If you’re not sure how to answer one of the registration questions, check Middesk’s Help Center or email them at taxregistrations@middesk.com.
How to get started with state tax registration in Gusto:
- Sign in to Gusto.
- Go to Taxes & Compliance and select Tax setup.
- Under “[State name] Tax Setup”, find the "Let us help you register" banner and click Learn more.
- The state will only show up if you’ve added a company work address there and assigned an employee to it.
 
- Review the price, process, and how long it'll take. We will not charge you until you send in your order.
- State registration with Middesk includes:
- State income tax (withholding)
- State unemployment insurance
 
- What's not included:
- Local agency registration
- Third-Party Agent (TPA) access or Power of Attorney (POA) authorization.
- If setting up TPA or POA requires online agency portal access:
- If Middesk has to create an agency account to register your business, you can find the agency portal login details on the Taxes & Compliance > Tax setup page in Gusto once registration is complete.
- If Middesk does not need to create an account, but the agency requires TPA to be set up through their portal, you need to set up the agency portal accounts on your own.
 
 
- If setting up TPA or POA requires online agency portal access:
 
 
- State registration with Middesk includes:
- Click Get started on Middesk.
- Reminder: We can only register for you if you do not already have a state account.
 
- Answer some questions about your business, like:
- Basic info
- Contact info
- Company details
- Address details
- Officer/owner info
- State-specific details
 
- After you've entered the information, review all the info carefully on the “Review Information” page. Mistakes can delay things.
- Heads up: State agencies might add fees or take longer than expected. Middesk will notify you if that happens.
 
- If everything looks good, click Continue to Gusto.
- Before you submit the order, review the cost breakdown and total amount again.
- Middesk will start to process your order after you submit it. They'll email you with order updates, and we'll add the cost to your monthly bill after the order is completed.
- At this time, we cannot support order cancellations or refunds.
 
- Click Submit.
- Heads up: After we submit your registration, you may need to respond to a verification call or email from the agency to confirm that the registration request is legitimate. If you do not complete this within 3–5 business days, the order will be canceled and refunded.
 
- When Middesk gets your tax account information back after registering, they'll enter it in Gusto for you.
- Exceptions: If your business is in Nevada or Rhode Island, the tax info will be mailed to your company. Once you get the letter, check your email for instructions on how to send the info back to Middesk.
 
- Each state and agency takes a different amount of time to process a registration. To estimate when your state tax account info will be available, check the Post Submission Questions in Middesk's help article.
Third-Party Access (TPA) and Power of Attorney (POA) reminder
Some state agencies need Gusto to have TPA or a POA on file to file and pay your taxes. Usually, Middesk does not set this up, so you’ll have to do it yourself after registration.
- If you're on the state tax registration article, Look for a dropdown about TPA or POA in this article.
- If you're not on the state-specific registration article, check the state registration articles to see if TPA or POA is needed and how to set it up.
If there's no TPA or POA section, it's not needed right now.
If setting up TPA requires online agency portal access
- If Middesk has to create an agency account to register your business, you can find the agency portal login details on the Taxes & Compliance > Tax setup page in Gusto once registration is complete.
- If Middesk does not need to create an account, but the agency requires TPA to be set up through their portal, you need to set up the agency portal accounts on your own.
Need to make a change?
If you already submitted your info but need to fix something, email taxregistrations@middesk.com to update it.
When your order is complete, you’ll get emails from Gusto and Middesk. They’ll detail the next steps, which include:
- Reviewing registration details
- Any other state-specific instructions
Before your order is done, you can check the order status in your Gusto account:
- Sign in to Gusto.
- Go to Taxes & Compliance and select Tax setup.
- Find the state headline, and just below it, view the order status. It could be:
- Tax registration in progress (not yet submitted to the state)
- We need more information
- The state is working on your order
- You have existing tax accounts
- If we find you've already registered for taxes in the state, Middesk will cancel and refund the registration order. Work with the agency to find your tax account details and enter them in Gusto.
 
- Your registration has been completed
- Your order is on hold 
- This usually means you have not met the state’s requirements yet (this often happens with unemployment agencies).
- Your order is paused until the date you entered during sign-up—this is your eligibility date (like the date of your first payroll in the state). Once that date arrives, your order will move forward.
- If you entered the wrong date, email taxregistrations@middesk.com.
 
 
- We could not complete your tax registration.
 
- If there is action required, check your email for next steps.
For most states where tax registration info is sent by physical mail, here's what to expect:
- Middesk receives agency mail during registration to collect tax details. Your tax account info is later sent to Gusto.
- Exceptions: If your business is in Nevada or Rhode Island, the tax info will be mailed to your company. Once you get the letter, check your email for instructions on how to send the info back to Middesk.
 
- Gusto provides a digital mailbox where agency mail that was sent during registration can be viewed.
- After registration is complete, the agency updates its mailing address to your business address for future mail.
- Important: In some cases, you'll need to take action to help update the address. We'll send an email or Home page to-do if any action is needed from you.
 
States—supported by Middesk—that send physical registration mail
Alabama, Arizona, Delaware, Idaho, Iowa, Kansas, Kentucky, Maryland, Massachusetts, Michigan, Montana, Nevada, New Hampshire, Oklahoma, Rhode Island, Washington, Washington DC, and West Virginia.How to view your digital mailbox or tax account credentials
- Sign in to your admin profile in Gusto.
- Go to Taxes & Compliance and click Tax Setup.
- Find the state where a registration order has been completed, and click Visit Middesk.
- Here's what you can see in the digital mailbox:
- Communications: View mail and other agency communication sent during registration or right after.
- Accounts: View tax account credentials by agency.
 
Q: Can I run payroll before my registration is done?
A: Yes. You may be asked to enter tax rates and tax deposit frequencies, but you can use temporary info.
Important reminders
- We cannot submit tax payments or filings until all tax account numbers are added in Gusto.
- If you run payroll before finishing registration, you might get notices about late tax payments or filings. Any penalties are your responsibility.
- If you’re only registering for unemployment tax and do not have your rate yet, use the new employer rate for your state in Gusto until you get the correct one. Update the rate once you get it.
Q: I need to change some of the registration information that was submitted. What do I do?
A: Email Middesk at taxregistrations@middesk.com.
Q: Can I use Gusto to register in a new state without a Federal Employer Identification Number (FEIN)? What if my business is merging or being acquired?
A: No, you need a FEIN in Gusto to get registration help for state taxes. If your business is merging or being acquired, Middesk cannot help with registration. You'll need to work with a tax advisor and state agencies directly.
Q: What if I'm not liable for unemployment tax yet?
A: If you want Middesk to start setting up an unemployment account number before you're liable, you can:
- Use today’s date as the first date the employee(s) in the new state will be paid.
- Enter the start date of the quarter you expect to meet the liability threshold.
- Check the state’s liability info in the Register on your own section (go to the SUI dropdown). If there’s no info, contact the state agency directly.
 
Q: What do I do if the tax agency contacts me after the registration is submitted?
A: Respond to them. For some agencies (like in CA and IA), you may need to answer a verification call or email to confirm that the registration request is legitimate. If you do not complete this within 3–5 business days, the order may be canceled and refunded.
Q: Can Middesk help if the responsible party is international without an ITIN or SSN?
A: No. Middesk cannot help in this scenario, you'll need to register on your own.
Q: Why am I unable to enter 0% ownership for the responsible party or add a commercial owner?
A: Some states have a 1% minimum for the responsible party's ownership percentage. These states include ID, KS, MN, OH, SC, DC, DE, MD, NJ, NY, and RI.
You’ll need to place registration orders directly with Middesk outside of Gusto or register directly with the agency.
Some states require an individual owner to be listed. If you’re a non-profit or unsure, contact Middesk for help at taxregistrations@middesk.com.
Q: When will my tax account information be available?
A: Each state and agency takes a different amount of time to process a registration. To estimate when your state tax account info will be available, check the Post Submission Questions in Middesk's help article.
Q: Where can I find my tax information?
A: You can find your tax info in several places:
- In Gusto: Click the Taxes & Compliance section and select Tax setup, then scroll to state tax setup.
- In your state’s online portal: Find your account details there.
 - You may need to create accounts on your own, but Middesk does this when it's required to register. Go to the Post Submission Questions in the Middesk help article to see which agencies they'll create credentials for.  
- If Middesk has to create an agency account to register your business, you can find the agency portal login details on the Taxes & compliance > Tax setup page in Gusto once registration is complete.
 
 
- You may need to create accounts on your own, but Middesk does this when it's required to register. Go to the Post Submission Questions in the Middesk help article to see which agencies they'll create credentials for.  
- By mail: Some agencies send tax info by mail. If that happens, Middesk will let you know, and you'll need to enter this info in Gusto.
Gusto’s state tax registration service does not contain tax, legal, financial, or HR advice. Since rules and regulations change over time and can vary by location, consult a lawyer, HR expert, or accountant for specific guidance.
Q: Does Middesk help with giving Gusto third-party access (TPA) or Power of Attorney (POA) for tax payments?
A: Some state agencies need Gusto to have TPA or POA access to file and pay your taxes. Usually, Middesk does not set this up, so you’ll have to do it yourself after registration.
Check the state registration articles to see if TPA or POA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA is not needed right now.
If setting up TPA or POA requires online agency portal access:
- If Middesk has to create an agency account to register your business, you can find the agency portal login details on the Taxes & compliance > Tax setup page in Gusto once registration is complete.
- If Middesk does not need to create an account, but the agency requires TPA to be set up through their portal, you need to set up the agency portal accounts on your own.
Q: Does Middesk help close state tax accounts?
A: No, you'll need to close the tax account yourself.
Q: Can I cancel my Middesk order?
A: At this time, we do not support order cancellations or refunds. 
Q: What is Middesk's phone number?
A: To get support from Middesk, you must email them at taxregistrations@middesk.com. They can help with registration-specific questions, or changing info that's already been submitted. For all other questions, you can message Gusto.
Click the dropdowns below to learn how to register with the CA Employment Development Department (EDD).
- CA Employment Development Department (EDD) – income tax withholding and unemployment tax
Register with the Employment Development Department (EDD)
Check out this video tutorial on how to register for an employer payroll tax account number—follow the steps below as you watch.
Step one: Create a username and password
- Start by heading to the EDD's e-services for businesses site.
- To get a username and password, click Enroll on the right-side of the page.
- Enter your personal information and click Continue.
- Choose your security questions, answer them, then select Continue.
- Review the “Enrollment Summary” and print a copy for your records, then select Submit.
- To complete the enrollment process, click the verification link in the email the CA EDD sent you.
Step two: Register for an Employer Payroll Tax Account Number
Some employers are only required to withhold and deposit Personal Income Tax (PIT). To find out if you're required to deposit PIT only, or are subject to all payroll taxes, refer to the ageny's Information Sheets. If you're PIT-only, or not required to pay certain taxes, you can set up tax exemptions in Gusto.
- Sign in to your E-services for Businesses profile. Use your username and password created above.
- Select New Employer.
- Choose Register for Employer Payroll Tax Account Number. - For employers depositing only personal income tax
 
- You'll be asked for information about your business and its operations in California. Here are a few tips for certain questions that may affect your payroll with Gusto: - “First quarter your wages exceeded $100.” - Gusto will only begin filing your taxes once you run a payroll with California wages.
- You can select the prior quarter, or the current quarter. - If you select a prior quarter, you'll have to file returns with the agency on your own in the meantime.
 
 
- “Taxpayer Representative Contact Information.” - Do not add Gusto as a Taxpayer Representative.
 
- “Are you an authorized Payroll Agent?” - Select No.
 
- “Does this business use professional assistance for payroll reporting?” - Select No.
 
- “Agency where you want your tax mailings sent?”  - Enter your own company name and mailing address. This makes sure your company directly receives any important communications from the EDD.
 
 
- “First quarter your wages exceeded $100.” 
- Submit your completed online registration application to finish this step. - To get your account number quickly, give the agency all requested documents.
 - Registration for non-profit employers can take a little longer if the organization does not provide their non-profile paperwork with their registration (e.g., your 501(c) determination letter from the IRS).
 
 
- To get your account number quickly, give the agency all requested documents.
- Once your registration request is sent, you'll typically receive your account number in the mail 10–15 business days later.
To view the status of your request/registration, log in to e-Services for Business. If you have questions, contact the agency directly.
If you submitted paperwork in person (rather than online), registration can take up to 7 days.
Enter the tax account information in Gusto
Once a valid California work address has been added in Gusto for one or more employees, you can add your tax account information:
- Click the Taxes & compliance section and select Tax setup.
- Scroll to the “California Tax Setup” headline and select Manage taxes.
- Enter your EDD account number and agency-assigned unemployment rate. - Your EDD number will be an eight-digit number in the format 123-4567-8.
- Do not include the "ETT" rate in the rate you enter in Gusto. - If you do not have your assigned rate yet, enter the new employer rate for your state in Gusto in the meantime. Update the rate once you receive it.
 
- 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.
 
If you've already registered in the state, you'll need to enter your tax account details in Gusto.
You'll need to be registered with the CA Employment Development Department (EDD) below agency in order for Gusto to file and pay taxes on your behalf:
If you still need to register, click the applicable dropdown above in this article.
After you register with the California EDD, you can find your EDD payroll tax account number and unemployment rate in a few places:
- On your “New Employer Account Registration Info” letter, or;
- In the upper right-hand corner of any additional agency correspondence (listed as “Account ID”), or;
- In your online e-Services for Business account
Your unemployment (UI) rate, and employment training tax (ETT) rates can be found:
- In your online e-Services for Business account—under the “I Want To” section, click Get My UI Rate.
- On your “UI Rate and Reserve Account” letter from the agency
If you cannot find your account number or tax rates, contact the agency directly at (888) 745-3886.
Personal Income Tax only (PIT-only) companies
Some employers are only required to withhold and deposit Personal Income Tax (PIT). To find out if you're required to deposit PIT only, or are subject to all payroll taxes, refer to the ageny's Information Sheets.
PIT-only businesses usually have an EIN beginning with "8". For any taxes you're not required to pay, set up tax exemptions in Gusto (e.g., for unemployment or state disability insurance).
Once you add a valid California work address to Gusto for at least one employee, you can add your tax account info:
- Click the Taxes & compliance section and select Tax setup.
- Scroll to the “California Tax Setup” headline and select Manage taxes.
- Enter your EDD account number and agency-assigned unemployment rate. - Your EDD number will be an eight-digit number in the format 123-4567-8.
- Do not include the “ETT” rate in the rate you enter in Gusto. - If you do not have your assigned rate yet, enter the new employer rate for your state in Gusto in the meantime—update the rate once you receive it.
 
- 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.
 
Authorizing Gusto with the California Employment Development Department (EDD)
To manage your CA state taxes (withholding, unemployment, and paid leave), Gusto must be authorized as your third-party agent (TPA). This allows us to update your tax account information and troubleshoot any issues with payments or filings.
You will need a Letter ID from the CA EDD to complete authorization. Follow the steps below.
Find your CA EDD Letter ID
Before entering the Letter ID in Gusto, sign in to your E-Services for Business account:
- Sign in to your E-Services for Business profile.
- Go to the More tab.
- Under the Letters section, select View Letters.
- In the Type column of the Letters table, select a letter.
- If you cannot find a letter: - Go to the Search tab.
- In the Sent From field, enter a date from a few years ago.
- Select Search.
 
Tip: The Letter ID is in the top right corner of the letter. It always begins with an “L” followed by 10 numbers.
Enter your Letter ID in Gusto
Once you have your Letter ID:
- Sign in to Gusto.
- On your Home page, under Things to do, click Give Gusto access to California Employment Development Department account.
- Enter the Letter ID in the box.
- Click Submit.
The California State Disability Insurance (SDI) program provides short-term Disability Insurance (DI) and Paid Family Leave (PFL) wage replacement benefits to eligible workers who need time off work.
The city of San Francisco has additional requirements for employers.
Gross Receipts Tax
Gusto does not handle the Gross Receipts Tax. We do not have enough information about your business to file the tax accurately.
Check out the SF Treasurer's website to learn more about this tax, including how to file and pay online. Most companies doing business in San Francisco are subject to the tax.
Overpaid Executive Tax
Gusto does not handle the San Francisco Overpaid Executive Tax (sometimes called Overpaid Executive Gross Receipts Tax). We do not have enough information about your business to file the tax accurately.
This tax is for companies where the highest-paid manager makes a lot more than the average worker in San Francisco.
You file this tax with the Annual Business Tax Return. For more information, check out this website.
San Francisco Health Care Security Ordinance—The Fair Chance Ordinance
Employers covered by the Health Care Security Ordinance must submit the Employer Annual Reporting Form by April 30th each year. If they do not, they could face steep penalties.
Gusto does not file this form. You'll need to complete it on your own.
The California Consumer Privacy Act of 2018 (the “CCPA”), as amended by the California Privacy Rights Act (the “CPRA”), is a comprehensive consumer privacy law. It gives people rights over their personal information. It also makes some companies follow rules to protect this information if they do business in California.
If any of the below apply to your company, you must follow the CCPA:
- It has annual gross revenues greater than $25,000,000.
- It annually buys, sells, or shares the personal information of 100,000 or more California consumers or households.
- It derives 50 percent or more of its annual revenue from selling or sharing California consumers’ personal information.
If any of the above apply, do the following to comply with the CCPA:
- Respond to consumer requests to disclose the personal information you’ve collected about them;
- Delete certain types of personal information if and when requested;
- Allow consumers to opt out of the “sale” (or sharing) of their personal information;
- Provide notices and receive consents from consumers for certain activities;
- Contractually limit data sharing by third parties, maintain an updated privacy policy, and more...
If you have questions about how the law affects your company, reach out to a lawyer. They can give guidance specific to your situation.
We've updated our privacy policy to make it CCPA-compliant. If you have CCPA-related requests for Gusto, submit them online here.
- DE 88* (Payroll Tax Deposit Coupon)
- DE 9 (Quarterly Contribution Return and Report of Wages)
- DE 9C (Combined Payroll Tax Payment Coupon)
- DE 34* (CA Report of New Hires)
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.
- California Employment Development Department 
- Call (888) 745-3886
 
Learn how to close or reopen tax accounts.
 
		  