Start with a guide
- Independent contractor vs employee is the check before the first payment.
- Hiring your first employee is the list to finish before payday.
- How to pay employees is the paycheck, then the taxes you still send.
- Can I do my own payroll? is the choice between doing each payday by hand, using software, or hiring an accountant.
- Best payroll software for small business is a checklist, not a winner.
How the first paycheck starts a clock in each place
A first paycheck can start a state clock. These places do not share that clock.
- Alabama: A regular shop becomes an employer at $1,500 in a quarter, or one person in 20 weeks.
- Alaska: A regular shop registers when one or more persons work some portion of a day.
- American Samoa: The cited code pages do not print a standing territorial unemployment tax or a new-employer percent.
- Arizona: The Arizona Department of Economic Security: a regular shop becomes an employer at $1,500 in a quarter, or one person in 20 weeks.
- Arkansas: The Division of Workforce Services: a regular shop becomes an employer when it has one or more people at work for some portion of ten days in a calendar year.
- California: The EDD restates that clock as 15 days after you pay more than $100 in a quarter.
- Colorado: A regular shop becomes an employer at $1,500 in a quarter, or one person in 20 weeks.
- Connecticut: A regular shop becomes an employer at $1,500 in a quarter, or one person in 20 weeks, in the current or preceding calendar year.
- Delaware: Tax is due after $1,500 in a quarter, or one person for some portion of a day in each of 20 different weeks.
- District of Columbia: A regular shop is liable when one or more people perform services in the District.
- Florida: A new business reports initial employment in the month after the quarter hiring begins.
- Georgia: A regular shop becomes an employer at $1,500 in a quarter, or one person in 20 weeks.
- Guam: The Department of Labor unemployment page does not print a territorial unemployment tax, a wage base, or a new-employer percent.
- Hawaii: A regular shop becomes an employer when one person works any part of a day in the current calendar year.
- Idaho: A regular shop becomes an employer at $1,500 in a quarter, or one person in 20 weeks.
- Illinois: A regular shop becomes an employer at $1,500 in a quarter, or one person in 20 weeks.
- Indiana: The Indiana Department of Workforce Development: a regular shop becomes an employer after $1 in covered wages.
- Iowa: A regular shop becomes an employer after wages in any quarter.
- Kansas: A regular shop becomes an employer at $1,500 in a quarter, or one person in 20 weeks.
- Kentucky: The Office of Unemployment Insurance: a regular shop becomes an employer at $1,500 in a quarter, or one person in 20 weeks.
- Louisiana: Louisiana Works: a regular shop becomes an employer at $1,500 in a quarter, or one person in 20 weeks.
- Maine: A regular shop becomes an employer at $1,500 in a quarter, or one person in 20 weeks, in the current or preceding calendar year.
- Maryland: A regular shop becomes an employer when it employs at least one individual within the State.
- Massachusetts: The Department of Unemployment Assistance: a regular shop becomes an employer at $1,500 in a quarter, or one person in 13 weeks. Register withholding on MassTaxConnect.
- Michigan: A regular shop becomes an employer at $1,000 in a calendar year, or one person in 20 weeks.
- Minnesota: A regular shop becomes an employer when it pays covered wages in Minnesota.
- Mississippi: Department of Employment Security unemployment starts after $1,500 in a quarter or one person in 20 weeks.
- Missouri: A regular shop becomes an employer at $1,500 in a quarter, or one person in 20 weeks.
- Montana: A regular shop becomes an employer when total wages reach $1,000 in the current or preceding calendar year.
- Nebraska: A regular shop becomes an employer at $1,500 in a quarter, or one person in 20 weeks.
- Nevada: A regular shop becomes an employer at $225 in a quarter.
- New Hampshire: Tax is due after $1,500 in a quarter, or one person in 20 weeks.
- New Jersey: A regular shop becomes an employer at $1,000 in a calendar year.
- New Mexico: A regular shop becomes an employer at $450 in a quarter, or one person in 20 weeks.
- New York: A general business employer becomes liable the first day of the calendar quarter it pays $300 or more.
- North Carolina: A regular shop becomes an employer at $1,500 in a quarter, or one person in 20 weeks.
- North Dakota: Tax is due after $1,500 in a quarter, or one person in 20 weeks.
- Northern Mariana Islands: The cited Finance and Labor pages do not print a territorial unemployment tax.
- Ohio: A regular shop becomes an employer at $1,500 in a quarter, or one person in 20 weeks.
- Oklahoma: The Oklahoma Employment Security Commission: a regular shop becomes an employer at $1,500 in a quarter, or one person in 20 weeks.
- Oregon: The Oregon Employment Department: a regular shop becomes an employer at $1,000 in a quarter, or one person in 18 weeks. Combined Payroll Tax opens a Business Identification Number.
- Pennsylvania: One worker starts that clock.
- Puerto Rico: New-hire reports go to the Department. Its own text says 19 days.
- Rhode Island: A regular shop is an employer when one person works some portion of a day in a calendar year.
- South Carolina: A regular shop becomes an employer at $1,500 in a quarter, or one person in 20 weeks.
- South Dakota: Tax is due after $1,500 in a quarter, or one person in 20 weeks.
- Tennessee: The Tennessee Department of Labor and Workforce Development: a regular shop becomes an employer at $1,500 in a quarter, or one person in 20 weeks.
- Texas: TWC unemployment-tax account. Texas does not take state income tax from paychecks.
- U.S. Virgin Islands: Notify VIDOL when the business begins.
- Utah: A regular shop becomes an employer when one person works some portion of a day in a calendar year.
- Vermont: A regular shop becomes an employer at $1,500 in a quarter, or one person in 20 weeks, in the current or preceding calendar year.
- Virginia: A regular shop becomes an employer at $1,500 in a quarter, or one person in 20 weeks.
- Washington: One Business License Application with DOR forwards the hire to ESD and to L&I.
- West Virginia: A regular shop becomes an employer at $1,500 in a quarter, or one person in 20 weeks.
- Wisconsin: A regular shop becomes an employer at $1,500 in a quarter, or one person in 20 weeks. Register withholding on My Tax Account.
- Wyoming: A regular unemployment employer is an employing unit for whom a worker performs service as an employee.
Not legal advice.
Legal
Not legal advice. In California, confirm registration and rates on EDD and workplace injury insurance on DIR. In Texas, confirm unemployment-tax registration on TWC and workplace injury insurance on TDI. In New York, confirm registration on DOL, new-hire reporting on the Tax Department, and workplace injury insurance on WCB. In Florida, confirm reemployment-tax registration on DOR and workplace injury insurance on DWC. In Illinois, confirm registration on IDES and IDOR, and workplace injury insurance on IWCC. In Pennsylvania, confirm registration on L&I and myPATH, and workplace injury insurance on BWC. In Ohio, confirm unemployment registration on ODJFS and The SOURCE, withholding on the Ohio Department of Taxation, and workplace injury insurance on BWC. In Georgia, confirm unemployment registration on GDOL, withholding on DOR and the Georgia Tax Center, and workplace injury insurance on SBWC. In New Jersey, confirm unemployment registration on NJ DOL, withholding on the Division of Taxation and NJ-REG, and workplace injury insurance on the Division of Workers’ Compensation. In North Carolina, confirm unemployment registration on DES and NCSUITS, withholding on NCDOR, and workplace injury insurance on NCIC. In Michigan, confirm unemployment registration on UIA and UIA’s registration page, withholding on MTO, and workplace injury insurance on WDCA. In Virginia, confirm unemployment registration on VEC and the employer FAQ, withholding on Virginia Tax, and workplace injury insurance on VWC. In Washington, confirm unemployment registration on ESD and the quarterly-report page, the hire path on DOR, and workplace injury insurance on L&I. In Colorado, confirm unemployment registration on CDLE and the employer-liability chart, withholding on the Colorado Department of Revenue, and workplace injury insurance on DOWC. In Arizona, confirm unemployment registration on DES and the UI account-number page, withholding on the Arizona Department of Revenue, and workplace injury insurance on the ICA FAQ. In Massachusetts, confirm unemployment registration on DUA and the DUA registration page, withholding on the Massachusetts Department of Revenue, and workplace injury insurance on DIA. In Tennessee, confirm unemployment registration on TDLWD and the Employer e-Services registration page, and workplace injury insurance on the Tennessee Bureau of Workers’ Compensation. In Indiana, confirm unemployment registration on the DWD Employer Self Service FAQ and the Employer Self Service logon, withholding on the Indiana Department of Revenue, and workplace injury insurance on the Worker’s Compensation Board of Indiana. In Missouri, confirm unemployment registration on the Missouri Division of Employment Security liability page and UInteract, withholding on the Missouri Department of Revenue, and workplace injury insurance on the Division of Workers’ Compensation. In Maryland, confirm unemployment registration on the Division of Unemployment Insurance new-employer page and BEACON, withholding on the Comptroller of Maryland, and workplace injury insurance on the Workers’ Compensation Commission. In Minnesota, confirm unemployment registration on the Minnesota Unemployment Insurance Program new-employer page and ui.mn.gov, withholding on the Minnesota Department of Revenue, and workplace injury insurance on the Department of Labor and Industry. In Wisconsin, confirm unemployment registration on the DWD New Employer Registration page and Employer Online Services, withholding on the Wisconsin Department of Revenue, and workplace injury insurance on WKC-13328. In Oregon, confirm unemployment registration on the Payroll Tax Frequently Asked Questions and Frances Online, Combined Payroll Tax on the Oregon Department of Revenue, and workplace injury insurance on the Workers’ Compensation Division. In South Carolina, confirm unemployment registration on the Department of Employment and Workforce Employer Resources page and SUITS, withholding on the South Carolina Department of Revenue, and workplace injury insurance on the Workers’ Compensation Commission. In Kentucky, confirm unemployment registration on the 2026 Employer Guide and KUIP, withholding on the Kentucky Department of Revenue, and workplace injury insurance on the Department of Workers’ Claims. In Alabama, confirm unemployment registration on the UC tax-liability FAQ and eGov, withholding on the Alabama Department of Revenue, and workplace injury insurance on the Workers’ Compensation insurance-requirement page. In Louisiana, confirm unemployment registration on the employer-account page and LASTARS, withholding on the Louisiana Department of Revenue, and workplace injury insurance on the Office of Workers’ Compensation Administration coverage FAQ. In Oklahoma, confirm unemployment registration on the OESC unemployment-tax page and EZ Tax Express, withholding on the Oklahoma Tax Commission, and workplace injury insurance on 85A O.S. § 35. In Arkansas, confirm unemployment registration on the ADWS employer contributions page and Tax21, withholding on the Department of Finance and Administration, and workplace injury insurance on the Arkansas Workers’ Compensation Commission basic-facts page. In Connecticut, confirm unemployment registration on the How do I Register page and ReEmployCT, withholding on the Department of Revenue Services and myconneCT, and workplace injury insurance on the Workers’ Compensation Commission insurance page. In Mississippi, confirm unemployment registration on the Mississippi Department of Employment Security (MDES) liability-requirements page and AccessMSTax, withholding on the Department of Revenue and TAP, the Taxpayer Access Point, and workplace injury insurance on the Mississippi Workers’ Compensation Commission facts page. In Nevada, confirm unemployment registration on the Department of Employment, Training and Rehabilitation (DETR) Employer Handbook and NUI Employer Self Service, the no-withholding rule on the Department of Taxation, and workplace injury insurance on the Division of Industrial Relations coverage page. In Utah, confirm unemployment registration on the Department of Workforce Services (DWS) Employer Handbook and the employer portal, withholding on the Utah State Tax Commission and Taxpayer Access Point, and workplace injury insurance on the Labor Commission Employers’ Guide. In Kansas, confirm unemployment registration on the Kansas Department of Labor (KDOL) Employer Handbook and KansasLabor.gov, withholding on the Kansas Department of Revenue and the KDOR Customer Service Center, and workplace injury insurance on the employer-services page. In Iowa, confirm unemployment registration on the Iowa Workforce Development (IWD) Employer Handbook and myIowaUI.org, withholding on the Iowa Department of Revenue and GovConnectIowa, and workplace injury insurance on the Department of Inspections, Appeals, and Licensing compliance page. In Idaho, confirm unemployment registration on the Idaho Department of Labor tax-information handbook and the Employer Portal, withholding on the Idaho State Tax Commission and TAP, and workplace injury insurance on the Idaho Industrial Commission employer FAQ. In Nebraska, confirm unemployment registration on the Nebraska Department of Labor employer guide and NEworks, withholding on the Nebraska Department of Revenue and Form 20, and workplace injury insurance on the Nebraska Workers’ Compensation Court employer FAQ. In New Mexico, confirm unemployment registration on the Department of Workforce Solutions UI Tax page and the Unemployment Insurance Tax Self-Service System, withholding on the Taxation and Revenue Department and TAP, and workplace injury insurance on the Workers’ Compensation Administration employer-compliance page. In South Dakota, confirm unemployment registration on the Reemployment Assistance Tax FAQ and the employer-registration page, the no-withholding rule on the Department of Revenue, and workplace injury insurance on the workers’ compensation page. In West Virginia, confirm unemployment registration on the WorkForce West Virginia Navigate page and the One Stop Business Portal, withholding on the State Tax Division and MyTaxes, and workplace injury insurance on W. Va. Code § 23-2-1 and the Offices of the Insurance Commissioner Employer Coverage Unit. In North Dakota, confirm unemployment registration on the Job Service North Dakota employer’s guide and UI EASY, withholding on the Office of State Tax Commissioner and ND TAP, and workplace injury insurance on the Workforce Safety and Insurance coverage-requirements page. In New Hampshire, confirm unemployment registration on the New Employer Registration page and the employer-claims page, the no-withholding rule on the Department of Revenue Administration, and workplace injury insurance on the Department of Labor workers’ compensation FAQ. In Montana, confirm unemployment registration on the employer handbook and UI eServices, withholding on the Department of Revenue and TAP, and workplace injury insurance on MCA 39-71-401 and the Uninsured Employers Fund page. In Delaware, confirm withholding on the Division of Revenue employer’s guide and OneStop, unemployment on the employer FAQ and the Employer Services page, and workplace injury insurance on the workers’ compensation knowledge base. In Wyoming, confirm the no-withholding rule on the state’s About Wyoming page, the joint registration on the Department of Workforce Services new-employers page and WYUI, and workplace injury insurance on the workers’ compensation employers page. In Hawaii, confirm withholding on the Department of Taxation withholding brochure and Hawaii Tax Online, unemployment on the employer handbook and unemployment employer portal, and workplace injury insurance on the Disability Compensation Division. In Vermont, confirm withholding and the Child Care Contribution on the Department of Taxes and Form WHT-436, unemployment on the employer-responsibility page and the 2026 wage-base release, new-hire reporting on the Department of Labor new-hire page, and workplace injury insurance on the business-owner guide and 21 V.S.A. § 687. In Alaska, confirm unemployment registration on the Employment Security Tax page and the Alaska Employer Registration form, the no-withholding rule on AS 43.20.011, new-hire reporting on the Child Support Enforcement Division employer guide, and workplace injury insurance on the profit-employer page. In Maine, confirm withholding on the Maine Revenue Services withholding FAQ and the 2026 Form 941ME instructions, unemployment on the Department of Labor employer page and the 2026 rate array, new-hire reporting on 19-A M.R.S. § 2154, and workplace injury insurance on 39-A M.R.S. § 401. In Rhode Island, confirm registration on the Business Application and Registration and the Department of Labor and Training employer-tax FAQ, 2026 rates on the 2026 rate release, new-hire reporting on the Office of Child Support Services new-hire page, and workplace injury insurance on the workers’ compensation FAQ. In the District of Columbia, confirm withholding on the Office of Tax and Revenue new-business page and MyTax.DC.gov, unemployment and 2026 rates on the Employer Self-Service Portal, new-hire reporting on the Attorney General’s new-hire page, and workplace injury insurance on the Office of Workers’ Compensation brochure. In Puerto Rico, confirm withholding on SURI, the employer number and the 19-day new-hire text on the Department of Labor and Human Resources employer-services page, the 2026 federal rate table on the U.S. Department of Labor’s January 2026 provisions, and workplace injury insurance on the State Insurance Fund policies page. In the U.S. Virgin Islands, confirm withholding on the Bureau of Internal Revenue tax structure booklet and Form 501 V.I., unemployment and the 2026 wage base on the Department of Labor rate release, new-hire reporting on the new-hire form, and workplace injury insurance on the workers’ compensation page. In American Samoa, confirm territorial withholding on the American Samoa Tax Office and American Samoa Code Annotated section 11.0403, Social Security, Medicare, and the federal unemployment rule on Publication 15, and workplace injury insurance on the Office of the Workmen’s Compensation Commission and section 32.0524. In Guam, confirm territorial withholding on the Form W-1 page and 48 U.S.C. § 1421i, the new-hire report on Title 5, section 34303, Social Security, Medicare, and the federal unemployment rule on Publication 15, and workplace injury insurance on the Workers’ Compensation Commission and Title 22, section 9105. In the Northern Mariana Islands, confirm Chapter 2 and Chapter 7 withholding on the withholding guidelines and Form OS-3705, Social Security, Medicare, and the federal unemployment rule on Publication 15, and workplace injury insurance on the Workers’ Compensation Commission and 4 CMC § 9346. Do this before you treat a vendor checklist as current.
Vendor scorecards
A first paycheck starts a state clock. We grade how much of that new-employer paperwork the vendor takes off the owner’s desk versus what the owner still files with the state.
Gusto
Payroll software- EDD / UI account
- B-
- CA returns
- B
- New-hire DE 34
- B
EDD account: Gusto’s California help article says Middesk may register state income-tax withholding and state unemployment tax when there is no existing California account. You still enter the eight-digit account number EDD assigns, and the unemployment-tax rate EDD assigns. Leave Employment Training Tax (ETT) out of that rate field.
Returns: Gusto’s California help article lists DE 9, DE 9C, DE 88, and DE 34 among the forms it files or reports.
New hire: Gusto’s California help article lists DE 34, the California new-hire report, as filed electronically.
Retrieved: 2026-08-31
Patriot
Payroll software- EDD / UI account
- C
- CA returns
- B-
- New-hire DE 34
- C
EDD account: Patriot’s California help article says you register with EDD. It does not claim Patriot opens the eight-digit employer payroll tax account for you.
Returns: Patriot’s help article says Full Service claims DE 9 and DE 9C after Form 8655 and third-party administrator (TPA) authorization. Confirm what your plan actually files.
New hire: Patriot’s help article puts DE 34 on you. The 20-calendar-day clock still sits on you either way.
Retrieved: 2026-08-31
How to use this site
- If the first wages will be paid in California, confirm registration on EDD and workplace injury insurance on DIR before you treat a vendor checklist as current.
- If the first wages will be paid in American Samoa, confirm withholding on the Tax Office page.
- If the first wages will be paid in Guam, confirm withholding on the Form W-1 page.
- If the first wages will be paid in the Northern Mariana Islands, confirm withholding on the withholding guidelines.