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TAX · 6 min read

Hiring in a new state: what to register and when

Your first employee in a new state creates registration obligations before their first paycheck.

  1. 01

    Withholding account

    Most states with an income tax require a withholding account before you withhold and remit state tax.

  2. 02

    Unemployment insurance account

    Register with the state workforce agency for unemployment insurance. New employers are assigned a starting rate.

  3. 03

    Local taxes

    Some cities, counties, and school districts levy their own payroll taxes. Check the work location, not just the state.

  4. 04

    New-hire reporting

    Every state requires employers to report new hires, usually within about 20 days.

  5. 05

    Postings and paid leave rules

    Required labor-law notices and any state paid sick or family leave programs apply from the first hire.

General information, not legal or tax advice. Rules change; confirm current requirements with the relevant agency or your advisor.

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