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State Registration Requirements for PEO Clients

Dougal Martin
  • Updated

This article is for PEO clients and provides an overview for state tax registration requirements in the United States.

Please note that Vensure will handle state tax registration in all states except:

  • Ohio
  • Nevada
  • North Dakota
  • Washington
  • Wyoming

These states are so-called monopolistic states, which means they have state controlled workers' compensation plans and run state funds. In these states, private insurance companies are not permitted to sell competing funds. 

 

Please follow the instructions to register in each state where you have employees working

[DROPDOWN] Choose a state

[DROPDOWN-OPTION] Ohio

Registering your business in Ohio involves several steps to comply with state and local tax regulations. This guide will help you understand the process, including registering for income tax withholding and unemployment tax.

How to register your company in Ohio

 

✅ Register with the Ohio Business Gateway for income tax withholding

  1. Visit the Ohio Business Gateway Website
  2. Create Your Account: Click Log In and then select Create Account: you will need to provide an email address for verification, provide personal information, create a user name and password, and accept the terms and conditions
  3. Complete Your Registration: you will be asked to estimate your annual withholding tax amount, which will be used to determine your filing frequency. Upon completion you will receive a Transaction Receipt Number that confirms your registration
  4. Generate your Registration Letter: This document will include your Ohio withholding account number. Keep this number for your records.

 

✅ Register with the Ohio Department of Job and Family Service (Unemployment Tax)

  1. Visit The Source to register your account
  2. Select employer and click Register for an Account
  3. Follow the instructions and complete the registration process

 

✅ Find  Local Tax Credits and Municipal Income Taxes

For employees who live and work in different cities (municipalities), where both cities consider them liable to pay income tax, they are usually permitted a full or partial credit for the tax owed and paid to the city they live in.

Employees may seek an exemption to local tax withholdings:

  • if the residential city tax withholdings are mandated: if an employee has consulted with a tax professional and prefers not to withholding their Ohio local tax, you can set up an exemption on their behalf
  • If residential city tax withholdings are optional: if the employee doesn't want to pay the full amount of tax to the city where they reside, they can remove the courtesy withholding and pay the required taxes directly to the city

Employees may verify their residential tax by using the Ohio Tax Finder

 

Contact Information and Resources

[DROPDOWN-OPTION] Nevada

How to register your company in Nevada

Before you can begin paying employees in Nevada, it's essential to ensure that your company is properly registered with the relevant state agencies. This process involves registering for unemployment insurance and the Modified Business Tax (MBT). The registration process can take several weeks, so it's advisable to begin as early as possible.

 

✅ Register online with the Nevada State Agencies for State Unemployment Insurance (SUI) and Modified Business Tax (MBT)

If your company is subject to Nevada unemployment tax, you are automatically required to pay the Modified Business Tax (MBT) as well. When you register for SUI, the registration for MBT is completed simultaneously. You will receive your MBT account number with the "New Nevada Employer Welcome Package."

  1. Instant Registration Online: Follow the instructions to complete the online registration to receive your SIU tax account number

 

✅ Register with the Department of Employment, Training, and Rehabiliation (DETR)

To register your company online with the Nevada Department of Employment, Training & Rehabilitation (DETR), follow these steps:

  1. Visit the DETR Registration Portal: DETR online registration page.
  2. Create an Account: navigate to the "I Want to" section and click Create a new online user account. Select Create New User Account link under the Continue button
  3. Accept the Terms and Conditions
  4. Register as an Employer: select Employer as your registration type
  5. New Employer Set Up: when asked if you have an existing account number, click No
  6. Provide Your Company Details: you will be asked for information about your company
  7. Complete Registration: click next and follow the remaining steps to complete your registration

 

Resources and Contact Information

If you encounter any issues during the registration process or have any questions, you can reach out to the Nevada state agencies using the contact information below

[DROPDOWN-OPTION] North Dakota

How to register your company in North Dakota

In North Dakota, businesses must register with state agencies for income tax withholding and unemployment tax. The following steps outline the process to ensure your business is compliant.

Please Note: you must apply for your state withholding accoun tnumber at least one month before your first payroll. 

 

✅ Register for State Income Tax Withholding

  1. Register Online: Go to the registration page where you will be able to read the Income Tax Withholding Guideline and complete the Electronic Application by following the online instructions

 

✅ State Unemployment Tax Registration

Verify your requirements: Most business are liable if they have at least one employee during 20 different weeks in the same calendar year or pay US $1,500 in wages in a quarter

  1. Register with Job Service: Go to the registration page where you will be able to read the Employer Guide to Unemployment Insurance.
  2. Register for Unemployment Insurance Tax Note: Upon clicking the hyperlink, you will be directed to the State of North Dakota Login page where you will need to enter your User ID and Password or Create Account. Registration form is due from all employers within 20 days of first hiring workers. Once complete, you will be taken to the UI EASY Main Menu to "Register for Unemployment Insurance Tax".
  3. You should receive your Employer Account Number within 2-3 weeks.

 

✅ Unemployment Contribution Rate

When employers first become liable for unemployment taxes, they are classified as “new employers” and are assigned a new employer tax rate (unless their account goes into a negative status). New employers are those that have not had sufficient time in the Unemployment Insurance program to qualify for an experience rating. If you're unsure of your rate, please contact the agency at (701) 328-2814.

 

Resources and Contact Information

If you encounter any issues during the registration process or have any questions, you can reach out to the North Dakota state agencies using the contact information below:

  • North Dakota Office of State Tax Commissioner: (877) 328-7088
  • Job Service North Dakota: (701) 328-2814

 

[DROPDOWN-OPTION] Washington

How to register your company in Washington

Washington requires businesses to register for a business license, worker’s compensation, and unemployment tax. This guide will walk you through the necessary steps.

 

✅ Register Your Business

The requirements to register your business vary based on your business structure:

  • Sole proprietorships and partnerships:
  • Corporations, limited partnerships, LLCs, and LLPs: 
  • Businesses that are already licensed but that are hiring employees for the first time:
    • Refile a business license application with the Business Licensing Service.

 

The Department of Revenue will process your application and:

  • Notify WA Labor & Industry (L&I) to open a workers' compensation account.
  • Notify the Employment Security Department (ESD) to open an unemployment insurance account.

You'll receive a letter from your new Workers' Comp account manager, and a packet of information which you'll need to retain that includes:

  • Your Unified Business Identification (UBI)
  • Your ES (Employment Security) Reference Number
  • Your Workers' Comp Account ID
  • Your Participant Activation Code (PAC) for WA L&I
  • Your State Unemployment and Employment Administration Fund rate

The letter and packet will be sent to you 10 days after registering online, or within 6 weeks if registering by mail.

 

✅ Set Up Worker’s Compensation and Unemployment Accounts

Workers' Compensation insurance protects and covers your business against injuries and illness that could occur as a direct result of the work done while your employees are on the job.

Washington requires that employers get their coverage through a state-operated fund. Once you've filed your business license, you can find the workers' comp rates assigned to you online.

Heads up: Risk class codes are different than Standard Operational Classification (SOC) codes. 

 

Where to find your company's workers' comp rates:  

  1. To get your company's assigned risk class code rates, start by heading to the Washington State Department of Labor & Industries website.
  2. Use the dropdown to search by your company name, Workers' Comp account number, or WA UBI number and enter the information.
  3. Choose your company name from the list of results.
  4. Click Workers' Comp Rates.

  5. Find your agency-assigned Risk Classification, Composite Rate (Hourly Rate) and Employee Deduction (Employee Withholding).

Where to find your unemployment tax rate: When you filed the business license application, you should have received a letter from your new Workers' Comp account manager, and a packet of information which will include your unemployment rate (based on your industry). If you're unsure about your rate, call the agency at (855) 829-9243, and select Option

 

✅ Register for Paid Family and Medical Leave

After you've received your UBI account number from the state, you'll need to register for Paid Family and Medical Leave. This is done online through your SAW (Secure Access Washington) portal by adding Paid Leave to your online services.

Once you've established and logged into your SAW account, follow the instructions below to add your account to the Paid Family and Medical Leave’s system.

  1. Click on the Add a New Service button.
  2. Select I would like to browse a list of services.
  3. On the list of organizations, select the Employment Security Department.
  4. Locate Paid Family and Medical Leave and add it to your services—click the Apply link to add it.
  5. On the confirmation screen that lets you know the service has been added to your list, click OK.
  6. Go back to the SAW homepage and find "Paid Family and Medical Leave" listed under your services and click to access it and create your Paid Family and Medical Leave account.
  7. Select Continue to be brought to the Paid Family and Medical Leave portal. You will be prompted to create an account.
  8. Find “Employer Accounts”, then click Create an Account.
  9. Enter your 9-digit UBI (Unified Business Number) number. If you're not sure of this number, you can reach out to the Department of Revenue. You'll likely receive an error that the UBI is not found. If that's the case, you can press, Create Employer.
  10. This will bring you to a form where you'll need to fill out required information about your business.
    1. After you enter your address and click Next, you'll need to upload supporting
    2. documentation. This can be either:
    3. The Master Business Application (from the Department of Revenue)
    4. The business's Articles of Incorporation (from the Washington Secretary of State)
  11. Washington’s compliance team will review your request and will add the UBInumber to their system.

 

If additional information is needed, the agency will contact you using the contact information you provided on the application.

 

Employee premiums

  • Employers with less than 50 employees: These companies are exempt from paying the employer premium; however, the employee premium is still required. If you're looking to help partially or fully pay the employee-specific premiums. You can issue non-taxable reimbursements at the end of quarter to repay all, or a part of the amount(s) deducted from employees.
  • Employers with 50 or more employees: are required to pay the employer premium.

 

Resources and Contact Information

If you encounter any issues during the registration process or have any questions, you can reach out to the Washington agencies using the contact information below:

  • Washington State Employment Security Department: (855) 829-9243
  • Washington Labor and Industries (L&I): (360) 902-5800
  • Washington Paid Family and Medical Leave: (833) 717-2273

 

[DROPDOWN-OPTION] Wyoming

How to register your company in Wyoming

To operate in Wyoming, businesses must register for unemployment tax and workers' compensation. This guide provides clear steps for compliance.

 

✅ Unemployment Tax Registration

  1. Register online with the Wyoming Department of Workforce Services: 
    1. Obtain your UI Account Number and tax rate following these instructions
    2. Out-of-state businesses must complete the Joint Business Registration and the Out-of-State Questionnaire.
    3. Send the Questionnaire to DWS-UI-OSQ@wyo.gov or FAX to (307) 235-3278.
  2. If your business is a 501(c)(3), you will need to provide a copy of your 501(c)(3) letter from the IRS.

✅ Workers' Compensation Registration

  1. Use the same registration form as for unemployment tax: Your Workers' Compensation Employer Number will be provided within 4-8 weeks.

 

Resources and Contact Information

If you encounter any issues during the registration process or have any questions, you can reach out to the Wyoming state agencies using the contact information below:

  • Wyoming Department of Workforce Services, Unemployment Tax Division: (307) 235-3264

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