Gusto & Middesk

Cost and timeline

• Prices and turnaround times vary by state. You can see the cost, process, and how long it takes before submitting an order.

Third-Party Agent (TPA) authorization reminder

• Some state agencies need Gusto to have TPA access to file and pay your taxes. 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 is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA isn't needed right now.

Q: Can I run payroll before my registration is done?

• A: Yes, you can usually run payroll before all state tax info is added in Gusto. You may be asked to enter tax rates and tax deposit frequencies, but can use temporary info.
• Important reminders:
  • Gusto cannot submit tax payments or filings until all tax account numbers are added.
  • If you run payroll before finishing registration, you might get notices about late tax payments or filings. Any penalties are your responsibility.
  • If you’re only registering for unemployment tax and don’t have your rate yet, use the new employer rate for your state in Gusto until you get the correct one. Update the rate once you get it.

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:
  • Use today’s date as the first date the employee(s) in the new state will be paid. 
  • Enter the start date of the quarter you expect to meet the liability threshold.
    • Check the state’s liability info in the Register on your own section (go to the SUI dropdown). If there’s no info, contact the state agency directly.

Q: Can Middesk help if the responsible party is international without an ITIN or SSN?

• A: Middesk is unable to help in this scenario. 

Q: Will Middesk support my entity type?

• A: Today Middesk covers most entity types but if you are one of the following entities, Middesk may not be able to help:
  • sole prop
  • partnerships
  • household employer
  • is a non profit and NOT a 501c3

Q: Does Middesk help with giving Gusto third-party access (TPA) for tax payments?

• A: Some state agencies need Gusto to have TPA access to file and pay your taxes. Middesk doesn’t set this up, so you’ll have to do it yourself after registration. 
  • Check the state registration articles to see if TPA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA isn't needed right now.

Q: Does Middesk help close state tax accounts?

• A: Middesk does not support account closures just yet, you'll need to close the tax account yourself. Check back to see when Middesk can help you with this

Q: Does Middesk set up local, PFML or other types of tax accounts?

• A: Middesk does not support setting up these types of accounts currently. 

Q: Can I run payroll before my registration is done?

• A: Yes, you can usually run payroll before all state tax info is added in Gusto. You may be asked to enter tax rates and tax deposit frequencies, but can use temporary info.
• Important reminders:
  • Gusto cannot submit tax payments or filings until all tax account numbers are added.
  • If you run payroll before finishing registration, you might get notices about late tax payments or filings. Any penalties are your responsibility.
  • If you’re only registering for unemployment tax and don’t have your rate yet, use the new employer rate for your state in Gusto until you get the correct one. Update the rate once you get it.

Q: Why can’t I input a first payroll date more than 2 years in the past?

• A: Registration requirements change if the first payroll date in a state is more than 2 years old. Due to these requirements, Middesk is unable to register on your behalf.

Q: How do I estimate income tax withholding?

• A: If you’re unsure of how to calculate this please refer to Gusto’s Paycheck Calculators, for hourly employees or for salaried employees.

Q: What is an reimbursable employer?

• A: You can learn more about what it means to be a reimbursable employer in Gusto’s help center here.

Q: Why does the state need an address of a remote employee/Why do I need to have an address in the state I am registering in if the employee is remote?

• A: Most states want to confirm that you are indeed liable for taxes before processing your registration and they use this address to determine this. The agency will not use this address for mailing or business purposes. 

Q: What counts as work performed in a state?

• A: Work performed in the state refers to the work performed by the employee in the particular state, including a remote employee working from their residence. Examples of this could be sales, engineering, operations, etc.

Q: Why does the state/agency need my employees SSN (Hawaii specifically)?

• A: The Hawaii Department of Labor requires employees' Social Security Numbers (SSNs) when registering because it is necessary to accurately report wages and verify employment eligibility. 

Q: What is the IRS Notice Letter CP 575 and why is it necessary?

• A: IRS Notice Letter CP 575 is the confirmation letter sent by the IRS which confirms your unique Employer Identification Number (EIN).  
  • Some states and agencies may require this letter to confirm that your business is appropriately registered with the IRS and require it to be provided when submitting the registration. 
  • If you do not have or cannot find your CP 575, you may provide any document from the IRS (must be from the IRS) that demonstrates your EIN.
  • IRS (must be from the IRS) that demonstrates your EIN. 

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:
  • Use today’s date as the first date the employee(s) in the new state will be paid. 
  • Enter the start date of the quarter you expect to meet the liability threshold.
    • Check the state’s liability info in the Register on your own section (go to the SUI dropdown). If there’s no info, contact the state agency directly.

Q: Can Middesk help if the responsible party is international without an ITIN or SSN?

• A: Middesk is unable to help in this scenario. 

Q: Why can’t I enter 0% ownership for the responsible party or add a commercial owner?

• A: Some states have a 1% minimum for the responsible party ownership percentage. These states include: ID, KS, MN, OH, SC, DC, DE, MD, NJ, NY, and RI. Other states require 100% ownership or 3 owners be provided.

Q: Does Middesk help with giving Gusto third-party access (TPA) for tax payments?

• A: Some state agencies need Gusto to have TPA access to file and pay your taxes. Middesk doesn’t set this up, so you’ll have to do it yourself after registration. 
• Check the state registration articles to see if TPA is needed and how to set it up. If there's no “Authorize Gusto” section, then TPA isn't needed right now. 

Q: Does Middesk set up local, PFML or other types of tax accounts?

• A: Middesk does not support setting up these types of accounts currently. 

Q: Why can’t I move past or submit the officer information?

• A: Each state has certain requirements related to officer/owner information:
• For all states:
  • Ownership % cannot exceed 100%
  • There must be at least one individual marked as the “signatory”
  • If the business is a single-member LLC, only one “owner” can be provided

Georgia 

• If the company is an LLC, there must be one LLC owner identified.
• If the company is a multi-member LLC, at least 2 officers must be provided.

Hawaii

• If the company is NOT an LLC one “owner” must be indicated as being on the “board of directors.”
• If the company is an LLC, there must be one LLC owner identified.
• If the company is a multi-member LLC, two officers must be provided.

Iowa

• If the company is NOT an LLC one “owner” must be indicated as being on the “board of directors.”
• If the company is an LLC, there must be one LLC owner identified.

Nebraska

• If the company is a multi-member LLC, two officers must be provided.

North Dakota

• If the company is an LLC, there must be only one LLC owner identified.

South Carolina

• If the company is NOT a nonprofit (501c3), total ownership percentage must equal 100% or 3 owners (with at least 1% ownership) must be provided.
• If the company is NOT an LLC one “owner” must be indicated as being on the “board of directors.”
• If the company is an LLC, there must be one LLC owner identified.
• If the company is a multi-member LLC, two officers must be provided.

Utah

• If the company is an LLC, there must be one LLC owner identified.

Virginia

• If the company is NOT an LLC one “owner” must be indicated as being on the “board of directors.”

Wisconsin

• If the company is NOT an LLC one “owner” must be indicated as being on the “board of directors.”
• If the company is a single-member LLC and taxed as an individual, 100% ownership is required.
• If the company is an LLC, there must be one LLC owner identified.
• If the company is NOT an LLC, a “President” must be identified.

Q: Will Middesk create online credentials that will be available in the event that I need to log into an Agency Portal?

• A: Middesk creates credentials in the event that we are required to do so in order to register on your behalf. Not all agencies require this, for those that do not, if agency portal access is necessary, these user accounts will need to be created. 

Wisconsin

• Department of Workforce Development: Yes, credentials will be created
• Department of Revenue: Yes, credentials will be created

Virginia

• Employment Commission: Yes, credentials will be created
• Department of Taxation: Yes, credentials will be created

Utah

• Department of Workforce Services: Yes, credentials will be created
• State Tax Commission: No, credentials will not be created

South Carolina

• Department of Employment and Workforce: Yes, credentials will be created
• Department of Revenue: Yes, credentials will be created

Nebraska

• Department of Labor: No, credentials will not be created (Middesk does create credentials but these are only used to access the registration portal, not the agency/user portal)
• Department of Revenue: Yes, credentials will be created

North Dakota

• Job Service North Dakota: Yes, credentials will be created
• Office of State Tax Commission: Yes, credentials will be created

Mississippi

• Department of Employment Security: Yes, credentials will be created
• Department of Revenue: Yes, credentials will be created

Louisiana

• Workforce Commission: No, credentials will not be created
• Department of Revenue: Yes, credentials will be created

Indiana

• Department of Workforce Development: Yes, credentials will be created
• Department of Revenue: Yes, credentials will be created

Iowa

• Workforce Development: Yes, credentials will be created
• Department of Revenue: Yes, credentials will be created

Hawaii

• Department of Labor and Industrial Relations: Yes, credentials will be created
• Department of Taxation: Yes, credentials will be created

Georgia

• Department of Labor:  No, credentials will not be created
• Department of Revenue: Yes, credentials will be created

Q: When will my state account information be available?

• A: Each state (and agency within each state) varies in the time it takes to process a registration. The information provided below are estimates:

Wisconsin

• Department of Workforce Development: Immediate upon Middesk submission to the state
• Department of Revenue: Up to 5 business days

Virginia

• Employment Commission: Immediate upon Middesk submission to the state
• Department of Taxation: Immediate upon submission to the state

Utah

• Department of Workforce Services: Immediate upon Middesk submission to the state
• State Tax Commission: Up to 14 business days

South Carolina

• Department of Employment and Workforce: Immediate upon Middesk submission to the state
• Department of Revenue: Up to 5 business days

Nebraska

• Department of Labor: Up to 2 business days
• Department of Revenue: Up to 2 business days

North Dakota

• Job Service North Dakota: Up to 28 business days
• Office of State Tax Commission: Up to 2 business days

Mississippi

• Department of Employment Security: Immediate upon Middesk submission to the state
• Department of Revenue: Up to 14 business days

Louisiana

• Workforce Commission: Immediate upon Middesk submission to the state
• Department of Revenue: Up to 28 business days

Indiana

• Department of Workforce Development: Immediate upon Middesk submission to the state
• Department of Revenue: Up to 2 business days

Iowa

• Workforce Development: Immediate upon Middesk submission to the state
• Department of Revenue: Up to 42 business days

Hawaii

• Department of Labor and Industrial Relations: Up to 5 business days
• Department of Taxation: Up to 5 business days

Georgia

• Department of Labor:  Immediate upon Middesk submission to the state
• Department of Revenue: Immediate upon Middesk submission to the state