Payroll ecosystem
Payroll services by state — registrations, tax rates, and providers
Every state where you have a W-2 employee requires its own tax registrations, filings, and rate tables. This index links to the providers and rules for each state.
Registrations
Two accounts per state per employee
Before your first payroll runs in a new state, you need both a withholding account and an unemployment (SUTA) account.
- State withholding registration with the Department of Revenue
- Unemployment tax registration with the Department of Labor
- Workers' compensation policy extension (where required)
- Local city/county tax registration where applicable
- Annual state new-hire reporting
Rate variation
What changes state to state
Three numbers move between states and drive your true payroll cost.
- State withholding rates — flat (CO 4.4%) to graduated (CA 1–13.3%)
- SUTA wage base — $7,000 (CA, FL, AZ) to $57,000+ (WA)
- SUTA rate range — typically 0.5% to 12% depending on experience rating
- No-income-tax states: AK, FL, NV, NH, SD, TN, TX, WA, WY
FAQ
Common questions
Do I need to register for payroll tax in every state where I have an employee?
Yes. Each state where you have a W-2 employee requires a state withholding account and an unemployment (SUTA) account. Register within 20 days of the first wages paid.
What states have no payroll income tax?
Nine states have no state income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. SUTA still applies in all of them.
Who handles state payroll registrations?
Most full-service payroll providers will file the ongoing returns, but you typically need to complete the initial registrations yourself. CPA-managed payroll firms often handle the registrations as part of onboarding.
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