Override income tax withholding (for accountants)

• The company paid an employee outside of Gusto, and the CPA needs to match the net/gross/tax amount they calculated.
• CPA advises on using specific tax amounts.
• An employee wants to have a set amount of income tax withheld per paycheck and not follow the regular calculations.
• An employee doesn’t want to have income tax withheld on the payroll. 

One-time overrides are recognized in regular, bonus, off-cycle, and transition payrolls.

Reminder: This feature is for accounting firms only.

1. Sign in to your Partner dashboard.
2. Click Clients on the left-hand side.
3. Select the desired company.
4. Under the Payroll section, click Run payroll.
5. Select the applicable pay period and click Run payroll. 
6. On the far-right, click the three dots under the "Actions" menu and select + Tax overrides.
   • For an off-cycle or bonus payroll, click the three dots under the "Actions" menu and select Override withholding.
7. The first part is for federal income tax—select how you'd like to override taxes:
   • A fixed dollar amount
   • A percentage of gross pay 
8. Enter the amount or percentage you'd like to withhold.
   • If no override amount is applied, withholding amounts will be based on their W-4 information.
9. The second part is for state income tax—select how you'd like to override taxes:
   • A fixed dollar amount
   • A percentage of gross pay
10. Enter the amount or percentage you'd like to withhold.
    
    • If no override amount is applied, withholding amounts will be based on their W-4 information.
11. Check the disclaimer box confirming the override.
    • By checking this box, you understand that you're performing an override of the suggested tax calculation based on the information that was provided by this person on their W-4.
      • Important: This does not modify the employee’s W-4 but rather is overriding the elections on the W-4.
12. Click Save.
13. Finish processing payroll.

The employee will be notified of the adjusted taxes via email as well as a note on their paystub.

Recurring overrides are only available on regular payrolls.

Reminder: This feature is for accounting firms only.

1. Sign in to your Partner dashboard.
2. Click Clients on the left-hand side.
3. Next to the desired company, click the green box with an arrow to go to the company's account.
4. Click the People section.
5. Select the employee’s name.
6. Toggle to the Taxes tab.
7. In either the Federal or State tax sections, click Edit next to "Withholding override".
8. Select when the override should end.
   • Never: Withholding override recurs indefinitely.
   • After a specific number of regular payrolls: Withholding override will stop after the selected amount of pay periods.
9. Select how you'd like to override taxes:
   • A fixed dollar amount
   • A percentage of gross pay 
10. Enter the amount or percentage you'd like to withhold.
11. Check the box confirming the override.
    • By checking this box, you understand that you're performing an override of the suggested tax calculation based on the information that was provided by this person on their W-4. 
      • Important: This does not modify the employee’s W-4 but rather is overriding the elections on the W-4.
12. Click Save. 
13. Process the regular payroll.

The employee will be notified of the adjusted taxes via email as well as a note on their paystub.