If you received an agency notice informing you your deposit schedule has changed, make the update in Gusto as soon as possible. Head to the edit company details article to learn how to update other company-specific information.
*You may already be in the right spot—if the link takes you to the same article you came from, scroll down and click the Update my state tax deposit schedule dropdown below.
Based on your historical tax payments, the IRS will assign your company a deposit schedule for tax payments (either semi-weekly or monthly) and they'll assign a specific payroll tax return to file–either Form 941 or Form 944.
IRS deposit schedules
We'll default to depositing on the faster semi-weekly schedule in order to prevent late tax payments, penalties, and tax delinquency notices.
Important: If you specifically instructed us to deposit using the monthly schedule, you must contact us from the Help section of your account if the IRS changes your schedule to semi-weekly. If not done immediately, there may be penalties and interest assessed for late tax deposits–these would be the employer's responsibility to pay.
IRS filing form (941 or 944)
In order to prevent late filings, we will file the quarterly Form 941 for:
If you joined us after Q1, confirm which form the IRS assigned and set up your customer account using the IRS-assigned form requirement.
The following year, we'll automatically file a Form 941 and you'll no longer need to confirm the requirement each year.
The IRS allows certain small businesses to file annually on Form 944 instead of quarterly on Form 941. While this may seem like a benefit for small employers, the IRS may change your filing requirement mid-year which could result in notices and penalties if returns are late.
Filing more frequently (on Form 941) is a way to prevent that from happening, and it costs the same no matter how frequently we file (quarterly or annually).
If you receive an updated deposit schedule, enter it into your Gusto account using the following steps. You can also follow these steps to review the schedules you've had in your account historically.
If you don't see an option to update your schedule in Gusto, please send the notice to Gusto to confirm that you're set up correctly.
If you've entered the wrong deposit schedule, please update this in your Gusto account as soon as possible by selecting Make a correction instead of Add a new schedule. The option to update your schedule will only be available in states where you currently have active employees.
This notice is to inform you of a change to your withholding tax deposit schedule and the day it will become effective—usually listed at the top.
For example: a notice might say “We determined your new deposit schedule for the new tax year."
State or local tax agency responsible for collecting withholding income tax.
Determine the new withholding tax deposit frequency (e.g. semi-weekly, monthly, quarterly) and update it in your Gusto account.
Update a state or local tax deposit schedule in Gusto
Gusto defaults to depositing on the faster semi-weekly schedule in order to prevent late tax payments, penalties, and tax delinquency notices. Unless you've specifically asked Gusto to make your payments monthly, no action is needed.
If you specifically asked Gusto to deposit using the monthly schedule, you must contact us from the Help section of your account if the IRS changes your schedule to semi-weekly. If not done immediately, there may be penalties and interest assessed for late tax deposits–these would be the employer's responsibility to pay.