If you got an agency notice letting you know your deposit schedule has changed, make the update in Gusto as soon as possible using the instructions below.
You can learn how to update other company-specific information in our edit company details article.
If you need to change your state deposit schedule, learn how here.
Based on your historical tax payments, the IRS will assign your company and 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 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 Support 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)
To prevent late filings, we'll 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.
We'll automatically file Form 941 the following year, and you'll no longer need to confirm the requirement each year.
As a reminder, we'll default to depositing on the faster semi-weekly schedule to prevent late tax payments, penalties, and tax delinquency notices.
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 the best way to prevent that from happening, and it costs the same, no matter how frequently we file (quarterly or annually).
At the end of the year, state agencies may issue new deposit schedules (sometimes called filing frequencies) for the upcoming year. This means your company may need to deposit more or less frequently than in prior years, depending on your tax liabilities from prior year(s).
You can also follow these steps to review the schedules (filing frequencies) you've had in your account historically.
If you've entered the wrong deposit schedule, update this in your Gusto account as soon as possible by selecting Make a correction instead of Add a new schedule.
These notices let you know of a change to your withholding income tax deposit schedule for a specific agency, and the day it'll become effective—usually listed at the top of the notice.
Determine the new withholding tax deposit frequency (ex. semi-weekly, monthly, quarterly) and update it in Gusto as needed.
Gusto defaults to depositing on the faster semi-weekly schedule to prevent late tax payments, penalties, and tax delinquency notices.
Unless you've specifically contacted Gusto and requested we make your payments monthly, no action is needed.
If you asked us to deposit using the monthly schedule, contact us from the Support section of your account if the IRS changes your schedule to semi-weekly. If not done immediately, penalties and interest may be assessed for late tax deposits—these would be the employer's responsibility to pay.