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.
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:
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:
What the process looks like
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 there's no TPA or POA section, it's not needed right now.
If setting up TPA requires online agency portal access
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:
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 there's no TPA or POA section, it's not needed right now.
If setting up TPA requires online agency portal access
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:
Before your order is done, you can check the order status in your Gusto account:
For most states where tax registration info is sent by physical mail, here's what to expect:
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
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:
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:
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:
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).
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
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.
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.
Once a valid California work address has been added in Gusto for one or more employees, you can add your tax account information:
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:
Your unemployment (UI) rate, and employment training tax (ETT) rates can be found:
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:
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.
Before entering the Letter ID in Gusto, sign in to your E-Services for Business account:
Tip: The Letter ID is in the top right corner of the letter. It always begins with an “L” followed by 10 numbers.
Once you have your Letter ID:
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.
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.
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:
If any of the above apply, do the following to comply with the CCPA:
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.
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.
Learn how to close or reopen tax accounts.