State Tax Registration Services Process
CSR/HCM/Implementation Specialist
- Identify new tax jurisdiction needed as directed by the client. Add tax account to UKG as "Applied For" (Review KB articles UKG Tax Guide and Adding Tax Codes with Missing Acct Information).
- Please note: regarding multi-state employers: remote workers will require withholding and UI accounts to be registered in state of residence.
- Create a HubSpot ticket to inquire if client will register themselves or would like to use PayNW’s registration service. The Registration Service cost to employers is $250.00 per tax type. Provide a copy of the penalty and interest addendum letter. If client objects to either, they are not a good fit for this service. The service will not be offered at no charge at any time.
- Example 1: Client needs to register in California for EDD; cost would be $500.00 (SIT/SUTA)
- Example 2: Client needs to register in Texas TWC; cost would be $250.00 (SUTA only)
- Example 3: Client needs to register in Colorado: cost would be $750.00 (SIT, SUTA, Paid Leave). May be additional $250.00 if an OPT jurisdiction is required.
- If the client elects to use PayNW’s State Tax Registration Service and have agreed to the cost and the penalty and interest addendum letter, reply to the client with copy of the Tax Account Registration Questionnaire (link below). Direct the client to complete the needed information on the form. Advise them that PayNW will not begin any registration work until the form is returned.
Additional information may be needed depending on agency requirements. - Once the client returns the Tax Account Registration Questionnaire, forward the ticket to Tax using the following Hubspot ticket coding:
- Ticket Owner: Trevitt Schultz
- Status: New
- Pipeline: Tax Pipeline
- Product: PR
- Category: Tax Registration
- Sub Category: Tax Registration
- Priority Low (as this is considered a project)
- Please ensure ticket is coded to the appropriate company, MasterTax ID, and contact information.
Tax will begin contact the client and begin to work the request.
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Additional information to consider regarding the state of Washington
There are four basic steps that should be taken by a foreign entity before it starts conducting business in Washington:
- File a Foreign Registration Statement with the Washington Secretary of State.
- File a certificate of existence with the Washington Secretary of State.
- File a business license application with the Washington Department of Revenue.
- File an annual report with the Washington Secretary of State.
The client must register their business structure with the office of the Secretary of State. This requires that the client provide a Registered Agent to receive legal service of documents. The RA must have a WA address. If the client is registering for a remote worker and does not have an actual business location in the state they would need to acquire this service. The cost of this service runs $125 to $300. We do not recommend that we offer to register with the SoS for clients due to the registered agent requirement as well as the need for the client to provide an annual report and renew this license.
The client must also apply for a business license with WA DOR. This is not a free license. Also, it involves the liability for income tax and sales tax which do not relate to payroll taxes. We also recommend that this be done by the client or their CPA and not by us as a payroll provider. As part of this license the client should indicate that they will be hiring or do have employees. When this is indicated on the business license application the agency does forward this information to ESD and they will issue an account number to the client along with rate information. The client would share this information with us and we can ensure that the ESD, FML and LNI information is correct in our system.
If you have any questions regarding the Tax Account Registration process, please reach out to the tax team.