Set up your Gusto account (for employers)

1. Click Step 1: Company's addresses.
2. Click Add Company Addresses and enter in your first address.
3. Select if the address is one or more of the following:
   • Work Location: This is the address where your employees are physically doing their work.
     • It can be the same as the mailing or filing address so long as it's a physical address; do not enter a PO Box here (per IRS publication 1635 and SS-4 instructions, enter lines 5a-b from your SS-4).
     • If your employee works from home, you can indicate they're working from their home address when you add your employee to Gusto and select their work location.
   • Mailing Address: This is the address that can receive any physical mailings from Gusto, which is oftentimes the same address as the Filing Address. Some tax authorities update employer address information based on tax filings, so we'll use your mailing address on tax returns sent to the agencies.
     • Street 1: Include critical mailing information only, such as the street address, followed by room, apartment or suite numbers, or you can report a P.O. box here. Note: You don't need to re-type your company name here. We'll include your company name first, then your street address.
     • Street 2—optional: Any additional instructions such as "Attention:" or "In care of" (%) can be reported here.
   • Filing Address: This is your primary place of business (e.g. company headquarters) and it should match the address you have on file with the IRS as the company's physical location, not a P.O box.
     • You can find it on the company's IRS Federal EIN assignment form (Form SS-4). You don't need to re-type your company name here. We'll include your company name first, then your street address.
4. Click Save.

Continue this process until all company addresses have been entered.

There are three main steps to adding an employee in Gusto when you're setting up your account. The way you set up each employee will determine their taxes.

If you've already set up your account and you're hiring new employees down the line, reference this article.

As a full-service payroll provider, we take care of your employer federal tax returns and deposits. In order to do this, we need to know your Federal Employer Identification Number (FEIN), your official company name, and company type. You can find this info on form CP-575 from the IRS. 

1. During onboarding, click Step 5: Federal Taxes.
2. Click Add Federal Tax Details.
3. Enter your FEIN and company type.
   • Important: Do not use your Social Security Number (SSN) as your FEIN.
     • This is a common error for sole proprietors and other new employers. The IRS requires a FEIN once you've hired your first employee.
     • You'll need to register as an employer with the IRS and provide us your FEIN - it will be assigned immediately when you register here.
4. Click Save. 
5. Click on the next step to continue with the setup.

What's next? Please add your state and local payroll tax account numbers.

Note: We will default your account to a semiweekly deposit schedule and 941 form filing. If you would like to change these settings, you may do so by clicking the Company section and selecting Company details after your account has been set up.

While setting up your account, we’ll need your company bank account to debit for wages, taxes, and your monthly Gusto fee.

• Heads up: Your company bank account must be a US account and cannot be the same as an employee or contractor's bank account.

If you want to add or change a bank account after you’ve entered one, click the Add, change, or remove a company bank account (after onboarding) dropdown of this article.

Credit payments, credit cards, and savings accounts are not accepted—the account must be linked to a checking bank account in the US.  

1. Click Step 7: Bank account.
2. Click the Add Bank Account button.
   
   • If this button isn't clickable, you may need to refresh the page a few times until you can click it.
3. Select how you want Gusto to verify your bank account:
   • Verify account with Plaid—you'll be asked to link your bank account to Gusto so we can instantly verify your bank.
   • Manually verify your account—If your bank is not eligible for Instant Bank Verification, or you've decided not to use IBV, you'll need to enter your bank information in. We'll then send two test transactions which will hit your bank account in 1-2 business days. You'll need to enter the test transaction amounts in Gusto later.
     • Click the checkbox to acknowledge this change may block payroll for up to 2 business days until bank verification is complete.
4. Click Continue.
   • This bank account will automatically be set as your default bank account. You can add additional bank account later and change which is your default at any time.
     • Click the Add, change, or remove a company bank account (after onboarding) dropdown of this article to learn how.

If your bank is not eligible for Instant Bank Verification, or you've decided not to use IBV, you'll need to enter the two test transaction amounts in Gusto. To do so, follow the steps below.

1. Click the Company section and select Company details.
2. Click Verify Now to enter the two amounts.

What's next? Add your pay schedule to Gusto.

FAQs

Q: What if I don’t get the test transactions?

A: Either the account information was entered incorrectly or the transactions were entered incorrectly in Gusto. If the verification doesn't work, you'll be emailed with a request to make changes to your account details for proper bank setup.

Q: Can I add multiple company bank accounts?

A: Yes—you can add multiple bank accounts and individually select which bank account to use on payroll(s) and contractor payments.

Q: What is Instant Bank Verification (IBV)?

A: IBV is an easy way to instantly connect your bank account to Gusto. We use the same technology that banks use to keep your account information safe so everything you provide is protected.

Q: Does Gusto support alphanumeric bank accounts?

A: Yes. We allow users to use bank accounts with both letters and numbers.

You can securely connect your bank account to your Gusto account using instant bank verification (IBV). We use a third party service called Plaid to instantly verify your bank account. We don't store your bank account’s username and password, and your bank credentials are encrypted.

Connect your bank account with IBV

After you've entered your routing and account number, you have the option to instantly verify your bank account.

1. Select Verify Bank Account.
   • Note: If you don't wish to verify instantly, you can verify by receiving two test transactions to your account. Click verify your account manually to do this.
2. Click Continue.
3. Enter your online bank account username.
4. Enter your online bank account password.
5. Answer any security questions, if needed.
6. If we're able to connect instantly to your account you'll be able to return to the dashboard. If we can't connect we'll ask you to verify manually via two small test transactions. 
7. If you experience any problems connecting your bank, please contact our Assurance team at [email protected].

Set up your pay schedule(s) with Gusto so we know when to pay your employees. We support the following pay schedule frequencies: weekly, biweekly, semimonthly, monthly, quarterly, and annual schedules. 

Pay schedule options 

• Everyone on one pay schedule
  • All employees, hourly and salaried, will be on the same pay schedule
  • Compatible with Gusto Time Tracking and Projects.
• By compensation type
  • Hourly and salaried employees will be on separate pay schedules.
  • Compatible with Gusto Time Tracking and Projects.
• By employee–this pay schedule type can only be established after onboarding has been completed.
  • Allows creation of custom multiple pay schedules (e.g. by location, department, owner status, etc.)
  • Compatible with Gusto Time Tracking and Projects.
• By department–requires that you enable the departments feature.
  • Allows pay schedule assignment for every department.
  • Compatible with Gusto Time Tracking and Projects.

For advice about what schedule(s) would work the best for your company, check out our blog post.

Set up a new pay schedule

1. Go to the Payroll section and select Payroll settings.
   • If you’re still onboarding, go to the Pay Schedule section.
     • Consider Gusto’s recommendation for pay schedule type and paying in arrears–creating a buffer between the end of the pay period and payroll deadline so employees’ hours can be reviewed and approved. 
     • Be sure to check your state laws to know what schedule is right for your team.
2. Click Add New Pay Schedule under the "Pay Schedule" section.
3. Choose how you’d like to assign employees to a pay schedule:
   • Everyone on one schedule
   • By compensation type
   • By employee—this pay schedule type can only be established after onboarding has been completed. You can edit an existing schedule once you complete onboarding. 
   • By department—requires that you enable the departments feature first, then assign employees to departments.
4. Click Continue.
5. Select the pay schedule you’d like to use for each group or add a new one using the drop-downs. 
   • If adding a new schedule: follow the remaining prompts to set it up, click Preview upcoming paydays before saving to see a snapshot of your pay schedule in the future, and click Save once complete.
     • Keep in mind: paydays will always fall on a weekday, regardless of the payment method (check or direct deposit). If the payday falls on a weekend or bank holiday, the system will default to the business day prior to the payday. 
6. Click Continue once all employee types have been assigned to a pay schedule.
7. Review the changes, and click Submit if everything looks correct.
8. If you had autopilot enabled, click the Payroll section and select Payroll settings to enable it again for the new payroll(s).

When adjusting your pay schedule, you might have to run a special transition payroll. If so, it’ll be waiting for you on your Home page. To edit your pay schedule(s) in the future, follow the instructions in this article.

You need to e-sign a few forms to authorize Gusto to debit your bank account and file your payroll taxes. Without a signature on these forms, Gusto won't be able to file or pay taxes for your company.

1. Click Step 10: Sign Documents.
2. Click the Sign Documents button.
3. Select a signatory,* a person who is legally able to sign forms for your company.
   
   • If you elect a signatory who is not yourself, we'll ask you for some personal details so we can identify them in the future. 
4. Enter the signatory's personal information.
5. Click Save & continue.

*Your signatory should be an officer, owner, general partner or LLC member manager, plan administrator, fiduciary, or an authorized representative. An officer is the president, vice president, treasurer, chief accounting officer, etc. Learn more here.

We'll email the signatory to fill out their personal details in Gusto and sign the company forms. If you're the payroll administrator and the signatory, you can move forward by clicking Sign Form next to all required documents.

Unpaid tax liabilities are the employer and employee payroll taxes that haven't yet been paid to the state and federal agencies.

If you're switching over to Gusto mid-year, you may have some outstanding tax liabilities you'd like us to pay. We'll calculate the amounts you may owe based on your payroll history and allow you to select what you'd like us to pay on your behalf.

1. Click Step 12: Unpaid tax liabilities.
2. Select whether you had a previous provider taking care of your taxes, or if you were paying on your own.
3. Select the amounts you'd like us to pay from the drop-down menu.
4. Click Review Previous Tax Liabilities.
   • Important: If you're not sure if these numbers are 100% accurate, review the in-depth overview attached at the bottom of this article for additional guidance.
5. If everything looks good, select Pay Liabilities.

FAQs

Q: How do I find out which tax liabilities still need to be paid?

A: Call your payroll provider and ask for your outstanding tax liabilities. Ask them about every tax liability that you see on Gusto's Pay Previous Tax Liabilities screen. Here are some things you can ask, depending on when you join with us:

• If you're joining Gusto for your first payroll in the quarter, say: Please file and pay all quarterly tax filings for the previous quarter. Will you be refunding me any unpaid taxes? If so, which tax and how much?
• If you're joining Gusto in the middle of the quarter, say: Please do not complete my quarterly filings since I am switching payroll providers. Will you be refunding me any unpaid taxes? If so, which tax and how much?

Q: What if the amounts shown don’t match the amounts from my previous payroll provider?

A: Select Amount Not Available. You'll be prompted to contact our Success team at [email protected] so we can help you figure out why there are any discrepancies in the data.