If we were unable to successfully pay taxes accurately and on time on your behalf, we want to avoid the issue continuing so you don’t accrue penalties and interest for incorrect or late tax payments and filings.
Unfortunately, tax agencies don't always provide a specific reason for the failed attempt(s) to file and pay. Review the common reasons below, reach out to the agency directly, and have them help troubleshoot the issue.
Common reasons for failed filings or payment errors
Review each potential problem listed below, and ask the agency which issue might be causing the failed filing.
What to say to the agency
“Hi this is (your name) from (your company name) and our FEIN is XX-XXXXXXX. My payroll provider Gusto, formerly ZenPayroll, received an error message when attempting to file on my behalf—I would like to resolve this as soon as possible. I've got a few things I'd like to check to make sure the next time they file it’s successful:"
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Make sure the account is "active".
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If your state account is inactive due to no longer processing payroll in that state, you’ll need to do one of two things:
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Close your account with the agency.
- Head to this article and scroll to the “Closing your tax accounts with agencies” headline for more information.
- Have Gusto set up state-wide exemptions so we don’t file to an inactive account in the interim—you MUST contact us from the Help section of your account when you hire a new employee in that state or we won’t know to file and pay the required taxes.
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Review the "effective date" on the account.
- This should be the beginning of the first quarter when you have a check date in Gusto for that specific state.
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Confirm your account number matches what is listed in Gusto.
- Find what’s on record in Gusto in the Taxes & compliance section by clicking Tax setup and scrolling to the applicable state headline.
- If you need to update your account number, contact us from the Help section of your account—there may be tax implications we need to help with (like payments made to an incorrect account number, etc).
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Confirm your company name and filing/mailing address in Gusto matches what the agency has on file.
- Find what’s on record in Gusto by heading to the Company section and clicking Company details.
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Make sure the FEIN on file with the agency is what Gusto has on record so the account can be verified.
- Find what’s on record in Gusto in the Taxes & compliance section by clicking Tax setup.
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If required, make sure that Gusto has Third Party Authorization (TPA) or Power of Attorney (PoA)—the effective date should be on or prior to the first date of the quarter(s) in question.
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Make sure a previous service provider isn't still listed as your reporting agent on the account.
- If a previous provider is still listed as the reporting agent it may override Gusto's attempts to obtain access and successfully file. Work directly with the agency and/or previous provider to remove them from the account.
Resolving the issue in Gusto after contacting the agency
- Click the Gusto Home page notification pertaining to the error.
- Click edit next to the company state field.
- Update the state account number (if needed) and/or notify Gusto the problem is resolved. If you indicate you resolved the issue without fixing the issue, it may cause additional failed filings—after three failed attempts, you’ll be required to self-file outside of Gusto.
- If you update the account number: the pending payroll blocker will be removed.
- If you don’t update the account number but indicate the issue is resolved, you’ll likely need to contact us from the Help section of your account to remove the pending payroll blocker.
- We’ll attempt to refile your return(s), usually within 2 weeks, but you won’t be notified unless they fail again—no news is good news.
- Re-filings occur on a varied basis and are processed only after all original filings have been submitted.
- To confirm a re-filing was a success, you must sign in to your online agency portal or contact the agency directly.
- Re-filing attempts will not appear as a separate form in your Gusto account (view the original filing if accessible).
A good indicator a refiling was successful is no notifications or payroll blockers after ~14 days since the issue was “resolved” in Gusto.
More info about each issue
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Inactive accounts
- A state withholding and/or unemployment insurance account may be deemed inactive if no returns are filed, zero returns are filed consecutively, or your account is in a future status (meaning it won’t be active until a future date).
- If your account number has been deemed inactive, discuss reactivation procedures with the agency, as these may vary by state.
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Effective date is incorrect
- Make sure the effective date is on or prior to the first date of the quarter Gusto tried to file and pay on your behalf for.
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Account number not valid
- The account number in Gusto may not match the one issued by the state agency.
- You may have the correct account number, but do not have the correct type of account to file and pay your taxes.
- Call the agency to verify your account number and type, then check to make sure this is the number you have entered in your Gusto account—head to the Taxes & compliance section and select Tax setup to review what's entered in Gusto.
- If you need to update your account number, contact us from the Help section of your account—there may be tax implications we need to help with (like payments to an incorrect account number, etc).
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Company name and filing/mailing address in Gusto does not match agency info.
- Call the agency to verify what company name and address they have on file and check to see if that matches what you have entered in your Gusto account.
- Find what’s on record in Gusto by heading to the Company section and clicking Company details.
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The FEIN in Gusto does not match agency info—the account cannot be verified by Gusto.
- Call the agency to verify the FEIN associated with your account, then check to make sure this is the number you have entered in your Gusto account.
- Find what’s on record in Gusto by heading to the Taxes & compliance section and selecting Tax setup.
- If you need to update your FEIN, contact us from the Help section of your account—there may be tax implications we need to help with.
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Third Party Authorization (TPA) or Power of Attorney (PoA) has an incorrect effective date.
- Confirm with the agency that Gusto's TPA has an effective date beginning the first day of the first quarter for which there is a check date in Gusto for the applicable state.
- Also, confirm that Gusto has been authorized to file and pay on your behalf.
- Click the Payroll section and select Payroll history to confirm the first check date for a given employee in a state.
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A previous service provider is still listed as your reporting agent on the account.
- If a previous provider is still listed as the reporting agent it may override Gusto's attempts to obtain access and successfully file. Work directly with the agency and/or previous provider to remove them from the account.