How to register for state payroll taxes Withholding and unemployment accounts, state by state

The two state accounts

A new employer usually needs two state tax accounts. They are often run by two different agencies.

• A withholding account. This is for the state income tax you take out of each paycheck. The state revenue or tax department runs it. A state with no income tax on wages has no withholding account.
• An unemployment tax account. This is for the state unemployment tax you pay on wages, often called SUTA or SUI. The state labor or workforce agency usually runs it. Almost every employer needs one. What is SUTA? explains rates and wage bases.

Some states add a third piece, such as a paid leave or disability program, a local tax, or a transit tax. The state page lists them. Workplace injury insurance is separate again. It is a policy, not a tax account.

Step 1: get a federal EIN

Every state form asks for your federal employer identification number, or EIN. The IRS issues it. The IRS EIN page says you never pay a fee for an EIN, and that an approved online application gets the number right away. Hiring employees is one of the common reasons to need one. Be careful of sites that charge for it. The IRS page warns about them.

Many states also want the business registered with the state first, as a company or a trade name. Hiring your first employee lists the whole set of setup steps.

Step 2: know when the state clock starts

States do not all start the clock the same way. Some start at the first dollar of wages. Some start after a dollar amount in a quarter or a number of weeks. Some count days after you hit the line. The state page on this site prints the line and the clock. A few examples:

• California: register with the Employment Development Department within 15 days after you pay more than $100 in wages in a quarter.
• New York: register on Form NYS-100 after $300 in wages in a quarter.
• New Jersey: one NJ-REG registration covers Gross Income Tax withholding and unemployment, once you pay $1,000 in a year.
• Oregon: unemployment applies after $1,000 in wages or 18 weeks of work. The withholding side comes first, before the first paycheck.
• Indiana: unemployment tax applies from $1 in wages.
• Arkansas: the unemployment registration has a 10-day clock.
• Texas: register within 10 days of becoming liable under the Texas Unemployment Compensation Act.
• Florida: reemployment tax is due starting the month after liability begins.

Do not wait for the clock to run out. Register as soon as you know your first payday.

Step 3: register with each agency

These are the agency portals for ten states, with what each one does. Each state page on this site has the full path and the sources.

California

California runs both accounts through one agency, the Employment Development Department, or EDD. The EDD registration page walks the steps: enroll in e-Services for Business, verify your email within 24 hours, then choose New Employer and register for an employer payroll tax account number. You get an eight-digit employer payroll tax account number. EDD also calls it the State Employer Identification Number, or SEIN.

Texas

Texas has no state income tax on wages, so there is no withholding account. You open an unemployment tax account with the Texas Workforce Commission, or TWC. The TWC registration page says to use Unemployment Tax Registration, a free online service that takes about 20 minutes. TWC requires you to register within 10 days of becoming liable. If you are liable, you get the TWC tax account number at the end of the session, and a mailed Employer Liability Notice follows in about two weeks.

New Jersey

New Jersey starts with the Treasury, not the Labor Department. The New Jersey Employer Accounts page says to register the business with the Division of Revenue and Enterprise Services first. The Division of Employer Accounts then handles unemployment and disability contributions. Withholding is filed with the Division of Taxation. The New Jersey page covers the one NJ-REG form that opens both.

Oregon

The Oregon Department of Revenue starting payroll taxes page says to register with the Oregon Business Registry, get an EIN, and then get your Business Identification Number, or BIN, through Revenue Online before you pay employees. The BIN is your main number for filing and paying payroll taxes. The page lists withholding, the Statewide Transit Tax, Paid Leave Oregon, and the Workers’ Benefit Fund, often called WBF. Quarterly payroll reports go through Frances Online, the Employment Department portal. The Oregon page covers Form OQ and the 2026 WBF rate.

Arkansas

Arkansas splits the accounts. Withholding goes through ATAP, the Arkansas Taxpayer Access Point. Unemployment goes through the Division of Workforce Services on Tax21, where you file Form DWS-ARK-201, the Report to Determine Liability. The Division of Workforce Services employer page lists a 2026 new-employer rate of 2.0 percent on a $7,000 wage base.

Indiana

Indiana splits the accounts too. State and county withholding goes to the Department of Revenue on INTIME. Unemployment goes to the Department of Workforce Development. The DWD new-employer rate page says most new employers pay 2.5 percent for their first four calendar years. The Indiana page has the portals and the county tax.

New York

New York’s paper form, NYS-100, is titled Employer Registration Form for Unemployment Insurance and Withholding and Wage Reporting. The New York Department of Labor registration page says general business employers can register online through New York Business Express instead. The New York page covers the $300 line and the NYS-45 quarterly return.

Illinois

Illinois opens both accounts through MyTax Illinois: withholding with the Illinois Department of Revenue, and unemployment with the Illinois Department of Employment Security. The IDES new-employer page says a new business must register with IDES within 30 days of start-up, online through MyTax Illinois or on Form REG-UI-1. The Illinois page covers Form IL-941 and the 2026 wage base.

Florida

Florida has no state income tax on wages. You register for reemployment tax, Florida’s name for unemployment tax, with the Department of Revenue. The Florida Department of Revenue registration page lists reemployment tax on its online Florida Business Tax Application. The Florida page covers when liability begins.

Washington

Washington has no state income tax on wages. Unemployment tax goes to the Employment Security Department. The ESD tax-rate page sets the 2026 wage base at $78,200. Paid family leave and workplace injury insurance are separate state programs. The Washington page lists each one.

Step 4: put the numbers in payroll

When the accounts open, you get account numbers and, for unemployment, a rate notice. Enter both in your payroll setup before the first payday if you can. Keep the notices. You will need the numbers for every quarterly report and every payment.

If you hire in a second state, you open that state’s accounts too. Check the state page for the second state before the first paycheck there.

Does payroll software register for you?

Some plans offer to register state accounts. Gusto’s pricing page, for one, lists a state tax registration fee that varies by state. A payroll login is not a state tax account. How much payroll services cost shows the state fees on a few plans. How to run payroll is the first payday after the accounts exist.

The methodology page grades how much of this state setup software takes off your desk. Gusto is one plain link. Patriot is the other service on this site.

Related guide: California EDD employer registration walks through one state from start to finish.

Related guide: Texas unemployment tax registration covers a state with only an unemployment account.

Related guide: New Jersey payroll tax registration covers a state where one application opens both accounts.