How Do I Register as an Employer in My State?

By Bill Stilwell · Last reviewed October 17, 2026

The short answer

Before your first payroll, register as an employer with your state. That usually means a state income tax withholding account with the state tax agency and an unemployment insurance account with the state workforce agency. You also need workers’ compensation coverage and a way to report new hires. Register in each state where your employees work.

What this means

Your federal Employer Identification Number (EIN) from the Internal Revenue Service (IRS) covers federal payroll taxes. States run their own employer programs. The Small Business Administration (SBA) says you should find out whether you need state or local tax IDs before you hire.

Most states require some mix of:

Withholding account. For state income tax you take out of paychecks (see 10.3.2 State Withholding). A few states have no wage income tax.
Unemployment insurance account. With your state workforce agency (see 10.3.3 State Unemployment).
Workers’ compensation coverage. Through a private insurer, a state program, or self-insurance where allowed (see 10.3.7 Workers’ Compensation).
New-hire reporting. To your state’s new hire registry (see 10.3.6 New-Hire Reporting).
Other programs in some states, such as state disability or paid leave programs.

This page also covers state employer registration from Part 9 (9.2.5) and Part 23 (23.4.1).

Made-up example: Clearwater Window Cleaning hires its first part-time helper. Two weeks before the start date, the owner registers on her state’s combined business registration site for a withholding account and an unemployment account, buys a workers’ compensation policy, and sets up her payroll service with both new account numbers.

Why it matters

Payroll can’t run correctly without account numbers. Your payroll service needs them to file.
Late registration brings penalties. States can charge for late returns and may assign estimated taxes.
Misclassifying workers as contractors to skip registration can lead to back taxes and penalties.
Each state is separate. A remote employee in another state can mean registering there too.

Who this applies to

Any business that pays employees, including part-time and family employees in most cases. Owners of some business types are treated differently, so ask your payroll professional how your own pay is handled. If you only use independent contractors, you may not need to register, but check that they meet the rules for contractors. Rules vary by state, so check your state revenue department and state workforce agency.

How to do it

Get your EIN first (see 10.1.1 Employer Identification Number).
Find your state’s employer registration site. Many states have one combined site. The SBA’s “Pay taxes” page links to every state’s revenue department.
Register for state withholding with the state tax agency, if your state taxes wages.
Register for unemployment insurance with the state workforce agency.
Get workers’ compensation coverage before the first day of work.
Ask about other state programs, like disability or paid leave, during registration.
Check local requirements. Some cities and counties have their own wage taxes or registrations (see 10.2.4 Local Taxes).
Repeat for every state where an employee works.
Give all account numbers to your payroll service and save them in your master business record (see 5 Master Business Record).

What proof to keep

Registration confirmations and account numbers for each state agency
Your unemployment tax rate notice
Workers’ compensation policy or certificate
Login details stored in your password manager (see 11.7.2 Password Manager)

Common mistakes

Registering after the first payday. Do it before.
Registering for withholding but not unemployment, or the other way around. They’re often separate agencies.
Forgetting remote workers in other states.
Letting a payroll company register under its own login with no copy for you. The accounts belong to your business.
Treating employees as contractors to avoid the paperwork.

When to get help from a pro

Payroll professional or certified public accountant (CPA): before your first hire, and any time you hire in a new state. Questions to ask:

Which state and local employer accounts do I need for this hire?
Are there any state disability or paid leave programs I must join?
Is this worker an employee or a contractor under my state’s rules?

Bill’s note

[Bill: add a short note. For example, what the registration process looked like in your state, or a client who ran payroll for months before registering.]

How I did this for SiteSmarty

[Date I did this:]
[What I actually did, step by step: which state sites I used and which accounts I opened for SiteSmarty]
[What it cost and how long it took:]
[What surprised me or what I’d do differently:]
[Screenshot or photo to add, with private info blurred: state registration confirmation pages]
[Result so far:]

Questions people ask

Do I need a state employer ID number? In most states, yes. You usually get one for withholding and one for unemployment insurance.

Which agencies do I register with? Usually the state tax agency for withholding and the state workforce agency for unemployment. Many states combine them on one site.

When do I register? Before your first payroll. Many owners do it when they make the job offer.

Do I register in another state if my employee works there? Usually yes. Employer rules generally follow where the employee works.

Audit check

Question: Is the business registered with every required state agency in each state where it has employees?
Pass looks like: Withholding and unemployment accounts open before the first payroll. Workers’ compensation in place. Account numbers in the master record. Payroll service set up with them.
Fail looks like: Payroll run with no state accounts. Accounts in only one state when employees work in two. Accounts held only by the payroll company.
Evidence to collect: Registration confirmations, account numbers, rate notices, and the workers’ compensation certificate.

Where this fits

Do this first: 10.2.7 Economic Nexus, 10.1.1 Employer Identification Number

Do this next: 10.3.2 State Withholding

Sources

SBA, "Pay taxes" (checked October 17, 2026)
IRS, "Publication 15 (2026), (Circular E), Employer's Tax Guide" (checked October 17, 2026)
U.S. Department of Labor, "State Workers' Compensation Officials" (checked October 17, 2026)

This page explains general rules and Bill's own experience. It is not legal, tax, or insurance advice. Talk to a qualified professional about your situation.