Confirm your annual tax information

As part of your dashboard to-dos, we'll ask you to make sure your annual tax information is accurate, and update team member information so that employees and contractors who need W-2s and 1099s receive them.

1. Team members: Make sure all employees and contractors (current and dismissed) who were paid this year are accurately recorded in Gusto for tax reporting purposes.
   • To check, click the People section. To add anyone who’s missing, click Add a team member.
2. Employee payments: Report any payrolls run outside of Gusto (including dismissal payrolls, and if you’re new to Gusto this year, any payrolls processed before joining Gusto). This helps ensure accurate tax reporting and compliance.
   • Download your 202X payroll journal report to check. If you know something’s missing, enter a non-Gusto payroll.
3. Contractor payments: Make sure you’ve added all your contractor payments to Gusto. 
   • To add any missing payments, follow these instructions.
4. Benefits: Make sure all your benefit deductions and contributions are correct.
   • To check, run a benefits report. To fix mistakes or add missing amounts, submit a benefit correction.
5. Fringe benefits: Make sure you’ve added any fringe benefits you offered employees in 202X to Gusto. 
   • Examples include the use of a company car, gym stipends/memberships, relocation reimbursements, etc. To add fringe benefits retroactively to Gusto, follow these instructions.
6. Retirement benefits: Make sure you’ve added all your employees’ 202X retirement deductions and contributions to Gusto.
   • To check, run a benefits report and select “401(k) costs.” To add deductions or contributions retroactively to Gusto, follow these instructions.
7. Addresses: Make sure your employees’ work addresses are up-to-date (including anyone working from home).
   • To check, run a custom report showing home address and work address. To learn more about paying out-of-state employees, read this article. 

You'll also be prompted to let us know about special compensation your employees received in 202X. Special compensation often does not appear on paystubs, but we need to record it on your employees’ W-2s.

When the to-do notification appears on your Home page, go to the Taxes & Compliance section of your account to indicate if you offered any of the following. You'll be prompted for specific amounts later on.

• Relocation expenses
  • This is money paid to an employee to cover relocating for work.
• Child and dependent care
  • This is money paid to an employee to take care of any dependents. 
• Allocated tips
  • These are tips paid to your employees in addition to the tips reported on their paystubs.
• Simple Employee Pensions (SEP)
  • This is separate from any other IRA or 401(k) that’s processed as a regular benefit.
• Untracked health insurance
  • If your company offers group health insurance and makes pre-tax contributions to your employees’ premiums, we need to record those amounts. Check this box if those contributions are not set up in Gusto. 
• Non-statutory stock options
  • Sometimes called "non-qualified stock options" (NSOs), these are different from "incentive stock options" (ISOs), and are generally granted to employees, contractors, board members, etc. NSOs include income from exercising stock options.
    • Note: Reporting amounts in this field does not adjust reported wages and taxes. Follow these steps if the wages have not been reported yet.
• Small Employer Health Reimbursement Arrangements (QSEHRA)
  • If you offered to reimburse your employees for medical expenses outside of Gusto, check this box.
    • Reminder: Gusto does not administer QSEHRA plans.
• Minister housing reimbursements
  • If you provided money to employees who are members of the clergy or religious orders for housing, enter each minister or clergy member's total housing allowance for the year (either money paid or the fair market rental value for housing in kind). This will appear on your employee's W-2 in Box 14.
  • Note: Some states require withholding tax on pastor/minister housing allowance, but Gusto currently does not support this functionality.
• Third-party sick pay
  • If you used a third-party sick policy to pay employees, make sure you report it accurately on payroll as required by your policy terms.