When using Deel Payroll - US to pay direct employees, it's essential to stay compliant with federal and state tax regulations. 

This article explains how to manage your Tax IDs, register in new states, and authorize Deel to file taxes on your behalf using Third Party Administrator (TPA) access and provides guidance on resolving rejected or failed tax filings.

In this Article

What Are Tax IDs?

Client Responsibilities

Deel Responsibilities

How to Add Tax IDs

How to Update Rate Information in the Deel App

What Is TPA Access? 

What Is a Rejected Filing?

How to Resolve Rejected Filings

Contacting Tax Agencies

What Are Tax IDs?

Tax IDs, including EANs, EINs, and Account Numbers, are identifiers required by federal, state, and local agencies to ensure payroll filings and payments are matched to the correct employer. These include:

• FEIN (Federal Employer Identification Number) for federal reporting
• State and Local Tax IDs for:
  • State Withholding Tax (SIT)
  • State Unemployment Insurance (SUI)
  • Paid Family & Medical Leave (PFML)
  • Local taxes such as Employee Income Tax (EIT), Local Services Tax (LST), or Occupational Privilege Tax (OPT)

You’ll need tax IDs in every jurisdiction where your employees live or work.

Client Responsibilities

Clients are responsible for:

• Adding or updating tax registrations
  This includes Tax IDs, account numbers, rates, filing/payment frequencies, SOC Codes, and risk class codes. All information must be submitted at least one week before the end of the quarter.
• Registering in new states
  If you hire in a state where you're not yet registered, you must create a new tax registration. You can do this externally or through Deel’s US Registration Services.
• Granting TPA access in required states
  Some states require TPA access for Deel to file taxes on your behalf. Access must be granted one week before the end of the first payroll month.

Deel Responsibilities

Deel will:

• Coordinate with the payroll provider to submit accurate and timely filings based on client-submitted data
• Notify you of any rejected filings and explain why they failed
• Refile taxes after the issue causing the rejection is resolved
• Prompt you to complete or update missing tax information on the platform before filing deadlines

How to Add Tax IDs

Self-Run Clients:

Go to Settings > Entities > [Select Entity] > Add Tax Registrations, and add or edit the details for the relevant state.

Premium Support Clients:

Send your Tax ID details to your Payroll Manager, who will update the information for you.

How to Update Rate Information in the Deel App

1. Log in to the Deel app.
2. Click the Organization Settings icon to access the main settings menu.
3. Select Entities, choose the applicable entity, then open the Payroll tab to view Registrations.
4. Select the relevant registration and click Modify Rates.
5. Enter the updated rate values and select the effective start quarter as provided by the state.
6. Click Next to review the changes, then click Submit to finalize the update.

Review the registration details to confirm the changes have been applied successfully.

What Is TPA Access?

TPA (Third-Party Administrator) authorization allows Deel or the payroll provider to act on your behalf with federal, state, or local tax agencies. This includes the ability to log into your account, file taxes, make payments, and access account information.

Not all agencies require TPA access, but Deel recommends setting it up for all jurisdictions where it is available.

[ACCORDION] States Requiring Client Action for TPA Setup

Some agencies require the client to initiate or approve TPA access. If you have employees in the following states or jurisdictions, please contact your Customer Success Manager or the Support Team for assistance:

CO-DENVER, DC, DCSUI, IA, IASUI, ID, INSUI, KS, KSSUI, KY-Louisville, LASUI, MDSUI (BEACON), MNSUI, MO, NCSUI, NMSUI, OHSUI, PASUI, SCSUI, TXSUI

[/ACCORDION]

What Is a Rejected Filing?

Every quarter, your payroll provider submits tax filings to the appropriate agencies. A rejection occurs when the agency is unable to process the filing due to incorrect, missing, or conflicting information.

Common reasons for rejection include:

• Missing or incorrect Tax ID or EIN
• Missing TPA access or PIN
• Incomplete or inactive tax account
• Incorrect Social Security Number (SSN)
• Another provider already filed for the same period

Deel will alert you if a filing is rejected and let you know what needs to be fixed before we can refile.

How to Resolve Rejected Filings

• Missing registration:
  Register externally or through Deel’s platform (Services > US Registration). Once complete, request a refile through the Support team or your CSM.
• FEIN mismatch with agency records:
  Contact the tax agency directly to correct your registration. Then notify Deel so we can refile.
• Another provider already filed:
  Confirm with your previous payroll provider. If they filed, get a copy of the filing. Deel can submit an amended return if necessary.
• Incorrect or missing Tax ID:
  Double-check the EIN or account number. Update it on the Deel platform, then request a refile.
• Inactive account:
  Contact the tax agency to reactivate your account. Once reactivated, Deel can refile.
• TPA access not granted or incorrect:
  Log in to your state tax account and update or approve the TPA request. Ensure Deel has full access to file and pay.

Contacting Tax Agencies

Use the interactive map provided by the Federation of Tax Administrators to find contact information for your state’s tax authority: 

• Visit FTA Map