Last reviewed: July 2026

Quick Answer

New Mississippi employers need four things before the first payroll runs: a federal EIN from the IRS, a withholding account with the Mississippi Department of Revenue, a SUI account with the Mississippi Department of Employment Security (MDES), and workers' compensation coverage. Register in that order, since the state accounts usually ask for the EIN.

Hiring your first Mississippi employee triggers a short list of federal and state registrations. None are complicated by themselves, but doing them out of order can delay your first payroll run. Here's the sequence that avoids that.

Registration Overview

Here's what every new Mississippi employer needs on file before payday:

  • Federal Employer Identification Number (EIN)
  • Mississippi withholding account (Department of Revenue)
  • Mississippi SUI account (Department of Employment Security)
  • Workers' compensation insurance
  • New hire report filed within 15 days
  • A payroll system that can handle federal and state withholding together

Step 1: Get Your Federal EIN

Your Employer Identification Number (EIN) is the federal tax ID for your business. Apply online at IRS.gov/EIN; it's free, and you get the number immediately.

Step 2: Register with Mississippi Revenue

Register for a withholding account with the Mississippi Department of Revenue. This lets you withhold Mississippi income tax from paychecks and remit it on the schedule the Department assigns you.

From the Payroll Desk

Register before you post a job listing, not after someone accepts an offer. Processing is usually quick, but leaving it until the week of your first payroll adds unnecessary risk.

Step 3: Register for SUI with MDES

Register with the Mississippi Department of Employment Security. You'll receive:

  • An employer account number
  • Your new-employer contribution rate (1.0% in 2026)
  • A quarterly filing schedule

SUI is charged on a taxable wage base of $14,000 per employee in 2026 and is paid entirely by the employer. See our Mississippi SUI Rates 2026 guide for the full rate table.

Step 4: Workers' Compensation Insurance

Mississippi requires workers' compensation coverage for employers with five or more employees; smaller employers can opt in voluntarily. Coverage comes from a private insurance carrier, and premiums vary by industry classification and claims history, so comparing quotes is worth the time even if coverage isn't mandatory yet.

Step 5: New Hire Reporting

Report every new hire and rehire to the Mississippi State Directory of New Hires within 15 days of the start date, a tighter window than the 20-day federal default most states use. Our Form 941 guide covers the matching federal reporting cadence once payroll is running.

Step 6: Set Up Payroll

With registrations complete, you're ready to run payroll. Use the paycheck calculator to sanity-check a sample paycheck, and hand new hires the W-4 helper so their federal and Form 89-350 withholding paperwork comes back correct the first time.

Frequently Asked Questions

Where do Mississippi employers register for unemployment insurance?

Mississippi employers register for a SUI account with the Mississippi Department of Employment Security (MDES). Registration happens online, and you'll get an employer account number and a new-employer contribution rate.

Where do Mississippi employers register for state income tax withholding?

Mississippi employers register for withholding with the Mississippi Department of Revenue. You'll receive a withholding account number used on every deposit and return you file afterward.

Do I need to register before running my first payroll in Mississippi?

Yes. Get your Department of Revenue withholding account and your MDES unemployment insurance account set up before your first payroll, since both are needed to file and deposit state payroll taxes on time.

Simplify Mississippi Payroll

Gusto calculates, withholds, and deposits both federal and Mississippi payroll taxes automatically, and files the quarterly and annual returns that go with them. It's used by more than 300,000 small businesses.

Legal & Tax Disclaimer

This article is for general informational purposes only and does not constitute legal, tax, or professional advice. Employment laws, tax regulations, and compliance requirements change frequently. The information on this page reflects our understanding as of July 2026 and may not reflect recent changes in federal or Mississippi state law.

Do not act or refrain from acting based solely on the information in this article. Always consult a qualified attorney, CPA, or HR professional familiar with Mississippi law before making payroll or compliance decisions for your business.

EB
Eric Bennet
Owner, Pacific Data Services

Eric has worked with Pacific Data Services since 1984, a full-service payroll and bookkeeping company serving small businesses across the U.S.