Here’s everything you need to know about registering as an employer and obtaining your Payroll Tax Account IDs, which are essential for running payroll smoothly.
What you need to know
Before you can start payroll, most states require you to register as an employer and obtain unique account IDs. These IDs are vital as they enable payroll software, like Gusto, to manage tax payments and file returns for your business effectively. Once you complete this process, you'll officially be recognized as a registered employer in your state—a process often referred to as Employer Registration or Payroll Tax Registration.
At Collective, we simplify this process for you. Normally, Registered Agents and service providers might charge between $200 and $500 for these services, but we include it with your subscription at no extra cost. Our dedicated in-house Employer Registration team takes care of everything, ensuring that all necessary information is relayed to Gusto seamlessly.
What’s the Outcome?
Once everything is set up, you’ll receive several important account IDs from state departments, including:
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Withholding Account ID
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Unemployment Account ID
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PFML (Paid Family and Medical Leave) Account ID
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Contribution Rate
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Filing Frequency
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Local Level Account IDs (for states with local tax collection agencies that tax based on locality like municipality, city, or school district)
When to Register as an Employer?
It’s common for our members to start their payroll during the training call with their Accounting Advisors. Right after this, our Employer Registration Team will kick off the registration process with the state departments.
What Information Is Needed?
The registration requires specific details which typically include:
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LLC Information: FEIN, SOS ID, Business Formation Date, LLC Name, Type of Entity
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Member Information: Name, Address, ID
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Address Details: Physical, Mailing, and Tax Report Address
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Payroll Details: Number of Employees, Wages Paid, Wages Amount, etc.
Don’t worry—Collective already has most of this info. If we need anything else, we’ll give you a quick call or send an email to gather the missing details.
How Long Does It Take?
The timing varies by state and department. Some issue Account IDs immediately, while others may take up to three months to process your application. But don’t worry—our team stays on top of it and will update Gusto as soon as your IDs are ready.
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.