Contents
Overview
Before you can hire employees and start running payroll, most states require you to register as an employer with them. This registration will generate account ids that will be used by Gusto to pay taxes on behalf of your business. Once you’ve completed the registration process and received your Payroll Tax Account IDs, you’re officially registered as an Employer with the state. This process is known as the Employer Registration process.
Usually, Registered Agents and other service providers charge anywhere from $200 - $500 for Employer registration services but you can add this to the list of exclusive services that Collective provides to its members as a part of their subscription. This means that you don’t have to worry about navigating through state websites and filling out complex forms and applications. Collective has a dedicated in-house Employer Registration team that solely works on registering Members with the states and making sure Gusto has all the necessary information to run payroll and file reports successfully.
When do I need to register as an Employer?
Once the EIN and Name Registration Process with IRS is complete, this is the next step. Our Employer Registration Team will start the process as soon as you schedule your first training call with your Accounting Advisor.
What information is required for Employer registration?
Different state agencies require different information. This usually includes:
LLC Information (FEIN, SOS ID, Business Formation Date, LLC Name, Type of Entity)
Member Information (Name, Address, ID)
Address Details (Physical, Mailing, Tax Report Address)
No. of Employees, Wages Paid, Wages Amount etc
Collective already has this information but if anything is missing, we’ll reach out to you and let you know.
What’s the Outcome of the Process?
Once the Employer Registration process is complete, you can expect the state departments to issue you some or all of these account ids:
Withholding Account ID
Unemployment Account ID
PFML Account ID
Contribution Rate
Filing Frequency
Local Level Account IDs (Some States have Local Tax Collection Agencies collecting taxes based on your Municipality, City, School District, etc)
What Account IDs do I need to run payroll?
If you want to know what Account IDs are required by your state to run payroll and file returns, follow these steps:
Login to your Gusto Account
From the Left-handside Menu, click on “Taxes & Compliance”
Then click on Tax Setup
You will see the Account IDs and other information required by Gusto.
If you have employees in multiple states, Gusto will ask you to enter Payroll Tax Account IDs for each state separately.
How long will it take to get the Account IDs?
Every state is different and so is each department in every state. Some departments assign Account IDs immediately after registration. Others can take up to 3 months to process the application and assign the number.
No need to worry though. Our Employer Registration team will regularly follow up with the state to ensure that the Account IDs are entered into Gusto as soon as they are received.
Can I run payroll without Payroll Tax Account IDs?
Some state departments want you to run a minimum of $1500 payroll in a quarter before you can register for the Account ID. Subsequently, Gusto allows you to run payroll even if the Account ID is missing. Others want you to register before you can run payroll and pay your employees. You won't be able to run payroll for these states.
Got questions
Drop us an email at [email protected] - Attn: Employer Registration Team, and one of our experts will get back to you with answers.
Disclaimer: The information contained in this document is provided for informational purposes only and should not be construed as financial or tax advice. It is not intended to be a substitute for obtaining accounting or other financial advice from an appropriate financial adviser or for the purpose of avoiding U.S. Federal, state or local tax payments and penalties.