Why is my registration order “on hold”?

Occasionally, customers will receive notifications from Middesk sharing that their registration is “blocked” or “on hold”, which understandably can sound a bit concerning! However, this is a very common occurrence in the tax registration process, and is almost always nothing to worry about. All this means is that the registration is not yet able to be submitted to the state, usually because a certain date or liability threshold has not been met. 

Please note: There are no such requirements for withholding tax, so it is not uncommon for Middesk to complete a business’s withholding tax in a state much faster than their SUI registration. The only exception would be states that require the two registrations be submitted in tandem on one tax portal, such as Arizona.

Below are some of the most common "blockers":

Blocked by payroll date

• Usually the most common reason a registration will be put on hold - many state agencies will not allow a SUI registration to be submitted until the first payroll date has been run in the state. 

Blocked by hire date

• Similar to the above, there are a handful of agencies that will not allow submissions until the hire date of the first employee in the state has been met.

Blocked by wage liability

• One more common requirement that will lead registrations to be put on hold - wage liability “blocks” registrations with some agencies until they have reached a certain amount of gross wages paid in the state. For businesses that have higher payroll, this is often met on the first payroll date, but can extend further past this date for smaller businesses. The most common threshold is usually $1500 in gross wages paid out in the state.

Once a registration reaches the required liability date, it will automatically move back into processing with our team and be submitted to the state. From there, the registration process will continue as normal.