When you hire employees, you must register with your state for two key tax obligations: state income tax withholding and state unemployment insurance (SUI/SUTA) tax. These are separate registrations from your federal EIN and must be completed before your first payroll.
30 steps across 10 sections
1. How to Register
- Visit your state's Department of Revenue or Taxation website
- Complete the employer registration form (often combined with SUI registration)
- Receive a state withholding account number
- Begin withholding from employee paychecks using the state's withholding tables
2. Key Forms
- State W-4 equivalent — many states have their own withholding allowance form (e.g., NY IT-2104, CA DE 4)
- State withholding tables — published annually by each state's tax authority
3. Filing and Payment Schedule
- Monthly, quarterly, or annual deposits depending on withholding amount
- States assign frequency based on your total tax liability
- Electronic filing is required or strongly encouraged in most states
4. Employee Withholding States
- Alaska
- New Jersey
- Pennsylvania
5. How to Register
- Contact your state's unemployment insurance agency (often the Department of Labor or Workforce Commission)
- Complete the employer registration (e.g., New York uses Form NYS-100)
- Receive a SUI account number and your assigned tax rate
6. Experience Rating
- Low claims history = lower rate (can be as low as 0%)
- High claims history = higher rate (can exceed 10%)
- Rates are recalculated annually
7. Filing and Payment
- Most states require quarterly SUI tax filing
- Reports include wages paid to each employee during the quarter
- Electronic filing is increasingly required
- Due dates are typically the end of the month following the quarter (April 30, July 31, October 31, January 31)
8. Required Information
- Employee name, address, SSN, date of hire
- Employer name, address, EIN
9. Purpose
- Enforces child support orders
- Reduces unemployment and workers' compensation fraud
- Required by the Personal Responsibility and Work Opportunity Reconciliation Act of 1996
10. How to Report
- Most states accept online reporting through their workforce agency website
- Can also report by fax, mail, or electronic file upload
- Multi-state employers can choose to report to one state or report in each state where employees work
Sources
- 2026 SUTA Tax Rates -- Patriot Software
- Unemployment Insurance Tax Topic -- U.S. Department of Labor
- 2026 Compliance Updates State-by-State -- BambooHR
- Employer's Guide to Year-End and 2026 Payroll Tax Changes -- Aprio
- NYS-50 Employer's Guide -- NY Department of Taxation
- Unemployment Tax Basics -- Texas Workforce Commission