Employer Registration Services by Collective
Updated over a week ago

Contents

Overview

Once you are ready to run payroll, most states require you to register as an employer for payroll tax accounts. This registration generates unique account IDs crucial for payroll software, such as Gusto, to handle tax payments and file returns on behalf of your business. Once you complete the registration process and obtain your Payroll Tax Account IDs, you officially become a registered employer with the state. This procedure is commonly known as the Employer Registration or Payroll Tax Registration process.

Typically, Registered Agents and service providers charge between $200 and $500 for Employer registration services. However, at Collective, this service is an exclusive inclusion within your subscription. You won't need to navigate state websites or deal with intricate forms – Collective provides a dedicated in-house Employer Registration team. This team focuses solely on registering members with the states, ensuring Gusto receives all necessary information to seamlessly run payroll and file reports on behalf of your business.

When do I need to register as an Employer?

Many of our members find it convenient to initiate their first payroll during the training call with their Accounting Advisors. Once this step is completed, the Employer Registration Team will commence the payroll tax registration process with various state departments.

What information is required for Employer registration?

Various state agencies have specific requirements, typically encompassing

  • 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

Rest assured, Collective already possesses most of this information. If anything is missing, we'll contact you to get the information.

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)

How long will it take to get the Account IDs?

Every state is different and so is each department in every state. While some departments provide Account IDs immediately upon registration, others may take up to 3 months to process the application and issue the numbers.

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.

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.

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