What's covered in this guide?:
Why granting access matters
Workforce files state withholding and unemployment taxes on your behalf, but most states require you to authorize Workforce on the state's tax portal first. Your implementation consultant walks you through this for each state where you have employees — this article explains why it matters and what to expect.
For Workforce to deposit state taxes and file state returns on your behalf, each state agency needs to recognize Workforce as an authorized party on your account. This authorization is commonly called Third-Party Administrator (TPA) access, but states use different names — Reporting Agent, Power of Attorney, Service Provider, or Authorized Representative.
Without authorization in place, the state agency will reject deposits and returns submitted on your behalf, typically with a "not authorized" or "agent not on file" error. That can lead to:
Late deposit penalties and interest from the state Department of Revenue or unemployment agency
Returns being rejected and needing to be re-filed once access is granted
Notices sent directly to you instead of to Workforce, which delays resolution
Granting access early — before your first pay run that affects each state — keeps tax filings clean from day one.
How different states operate
There is no single national standard for granting third-party access. Every state runs its own withholding system through a Department of Revenue (or equivalent) and its own unemployment insurance program through a Department of Labor or workforce agency. Most states require a separate authorization for each one. A few states — like Washington — also have a separate authorization for workers' compensation through Labor & Industries (L&I).
Across all 50 states and DC, authorization generally falls into one of these patterns:
Online portal authorization. You log into the state's employer tax portal, find the section for managing third parties or authorized users, and add Workforce using a TPA ID, account number, or service-provider code that your implementation consultant gives you. This is the most common pattern.
Reciprocal acceptance — Workforce initiates, you confirm. In some states, Workforce submits a request through its own agent portal and you receive a notification on your employer account to approve the connection.
Paper or PDF Power of Attorney. Some states require a signed POA form mailed, faxed, or uploaded to the agency. The form names a specific filing agent and the tax types covered. Processing can take a few weeks.
Single-provider states. A few states only allow one third-party filer at a time per account. If you're switching from another payroll provider, the previous provider's access has to be removed before Workforce can be added.
No state income tax states. States without a wage income tax (such as Texas, Florida, Tennessee, and others) still require unemployment authorization, and sometimes separate workers' compensation or paid family leave authorizations.
The exact steps, form names, and turnaround times vary by state. Your implementation consultant provides the specific instructions, the Workforce TPA identifiers, and any forms you need to sign.
Form 8655 and federal reporting agent authorization
At the federal level, the IRS uses Form 8655 (Reporting Agent Authorization). Signing Form 8655 authorizes Workforce to file federal employment tax returns (Form 941, Form 940, Form 944) and make federal tax deposits on your behalf. This is a one-time form covering federal taxes only — it does not grant access at the state level. Form 8655 is completed as part of Configure Tax Profiles during onboarding.
Several states have their own equivalent of Form 8655 — a state Reporting Agent or Power of Attorney form that has to be signed and submitted alongside any online portal authorization. Where one applies, your implementation consultant will send it to you for signature.
How setup happens during onboarding
State portal access is set up jointly with your implementation consultant during onboarding. The general flow:
Confirm the states you'll be filing in. Your consultant uses your employee work locations to determine which state withholding and unemployment accounts need authorization.
Receive the state-specific instructions. For each state, your consultant sends the steps, the Workforce TPA ID or agent code, and any forms that need to be signed.
Complete the authorization. You log into each state's portal (or sign and return the form) and grant access. Online authorizations typically take 1–3 business days to process; paper forms can take 2–3 weeks.
Verification. Your consultant confirms the connection on Workforce's side before your first pay run that affects that state.
Tip: Start state portal access early in onboarding, not the week before your first pay run. Online authorizations are usually quick, but mailed forms and single-provider transitions can take several weeks. Your implementation consultant will flag any state with a long lead time.