Benefits deduction corrections

If your benefits are managed by Gusto (including the broker integration) and a deduction was missed, we’ll apply corrections to upcoming payroll(s) to make sure the missed amounts are caught up. If your benefits are managed by your company or another broker outside of Gusto, head to this article to learn how to correct an incorrect benefit amount.

Situations where benefit deduction corrections are needed are quite common, here are a few examples: 

Missed health benefit deductions

If an employee’s health benefits deductions were missed, we’ll apply 1.5x the normal deduction amount to upcoming payrolls until the missed amount is captured.

Missed 2% shareholder benefit deductions

2% shareholder deductions will be taken from the shareholder’s first paycheck after benefits begin as imputed pay. Because the IRS does not permit shareholders to take part in employer-sponsored (pre-tax) health benefits, the full amount will be added to the following paycheck because imputed pay is subject to federal and state income taxes.

Missed health or dependent care FSA deductions

If you have a Health or Dependent Care FSA, missed deductions will be adjusted and equally apply to the rest of your deductions throughout the plan year.

Missed HSA or commuter benefit deductions

If you miss your first HSA or commuter deduction of the month, you'll see your full monthly election applied to the remaining payroll(s) of that month. If the deductions cannot be fully caught up in the same month, the corrections will continue to appear on future payrolls until caught up.

If you have any questions, or don't want these deduction corrections to occur, please contact us through the Help section of your account.