Understand why Salaris Payroll needs your state tax ID, what can happen if it is missing, and how to get one.
⚠️ If your state tax ID is missing or you checked "Applied For", it is important to add your businesses State ID as soon as you have it. Salaris Payroll cannot pay or file your state taxes without a valid ID and your business risks incurring fees, penalties and interest, and in extreme cases a business lien.
Why State Tax IDs Matter
A state tax ID is the number your state assigns to your business for payroll taxes. Salaris Payroll uses the ID to pay your state payroll taxes and file your state tax returns for you.
Impact of Missing State Tax ID
Without a valid state tax ID, Salaris Payroll cannot pay your state payroll taxes or file your state tax returns on your behalf. A placeholder ID does not count as a valid ID.
Providing a valid state tax ID is your responsibility as the employer. Any fees or penalties tied to missed filings or missed payments are also your responsibility.
The table below shows what can happen the longer a state tax ID is missing:
What Happens | What It Means for Your Business |
Salaris Payroll cannot pay your state payroll taxes | Your state taxes are not paid |
Salaris Payroll cannot file your state tax returns | Your state filings are missed |
Filings or payments are missed | You are responsible for any fees or penalties |
If the problem continues for several quarters (three-month filing periods) | You could lose your license at the state level, or the state could place a lien or levy on your business |
A lien is a legal claim against your business property for unpaid taxes. A levy is when the state takes money or property to cover unpaid taxes. In serious cases, a lien or levy can threaten your ability to keep your business open.
This article is general information, not legal or tax advice. Consequences vary by state. For questions about your situation, contact your state tax agency or a tax professional.
Apply for and Submit a State Tax ID
Once you add your state tax ID to Salaris Payroll and it is entered correctly, you do not need to add it again. States typically let you register as an employer online in a few minutes, and the state typically issues your ID within a few weeks.
A state tax ID may also be called a state employer ID, state employer identification number, or state payroll tax account number. A state tax ID is different from your federal EIN (Employer Identification Number), which is issued by the IRS. Each state issues its own state tax ID.
Check your records for an existing state tax ID, such as past state tax returns, letters from your state tax agency, or business registration documents. Your accountant may also have it on file
If you cannot find an ID, contact your state tax agency (often called the Department of Revenue) or check whether your state has an online business account portal
If you have never registered as an employer in your state, register with your state and apply for an ID
Wait for your state to issue the ID. States typically issue IDs within a few weeks
In Salaris Payroll in the onboarding component,
complete the state tax forms
sign the state filing forms
If you do not see the state tax forms, ask Salaris Payroll Support for a link to complete them
If you checked "applied for ID" earlier, uncheck that box and complete it with the state tax ID when you receive it. You can reach Salaris Payroll Support at [email protected] or through the live chat.
How State Income Tax Works
What Is State Income Tax?
State income tax is a tax that a US state charges on income earned in that state. Most states have a state income tax. When a state income tax applies, you take it out of the employee's pay.
Each state sets its own state income tax rates, and the rates vary widely. States with an income tax use one of two types of rates:
Flat rate: everyone pays the same percentage
Progressive rate: the percentage increases as income increases
How State Income Tax Is Calculated
The calculation depends on the state. In states with a progressive rate, the employee's state withholding form also plays a role, along with how often the employee is paid and the total amount paid. A state withholding form is the state version of the federal W-4, and it holds details specific to the employee, such as Single or Married.
States Without Income Tax on Wages
The list below shows the nine states that do not charge a state income tax on wages:
Alaska
Florida
Nevada
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming
Employers in these states may still need a state tax ID for other state payroll taxes, such as state unemployment insurance.
Which State Applies to an Employee
In general, an employee is taxed in the state where the employee does the work. This is not always the case, because several factors can change the answer. If you are unsure which state applies to an employee, contact Salaris Payroll Support.
Need Help?
Payroll terms: see the Payroll Glossary and Calculations article
Questions about your state tax ID or payroll: contact Salaris Payroll Support at [email protected], or ask your payroll specialist in the live chat