This article is for admins who need to manage federal and state tax details in Gusto. It also includes general information about the Electronic Federal Tax Payment System (EFTPS).
To update your company name, entity type, signatory, account numbers, and more, go to edit company details.
To find a specific tax form, view a list of tax forms Gusto files for you (federal and state).
You can manage your federal tax details, deposit schedule, and filing frequency right in Gusto.
We handle your federal tax returns and deposits. To do this, we need your:
Federal Employer Identification Number (FEIN)
Official company name on file with the Internal Revenue Service (IRS)
Business entity type
You can find this information on the notice the IRS issues when you apply for the EIN. If you cannot find your EIN, follow these steps from the IRS.
In the future, you'll also need to add your state and local payroll tax account numbers.
To add your federal tax information:
During your Gusto onboarding, click Step 5: Federal Taxes.
Click Add Federal Tax Details.
Enter your FEIN and business entity type.
Important: Do not use your Social Security Number (SSN) as your FEIN. This is a common mistake for sole proprietors and other new employers. Once you hire your first employee, you need to register as an employer with the IRS to get your FEIN.
Note: An S-Corporation (S-Corp) is not a business entity but a tax election. You can specify this after you select your legal entity type as a C Corporation (C-Corp) or a Limited Liability Company (LLC).
Click Save.
Click the next step to continue onboarding.
We'll set your account to a semi-weekly deposit schedule. This helps protect you from possible IRS penalties.
Gusto files the quarterly Form 941 for most customers.
Form 941 (Employer's Quarterly Federal Tax Return): Most employers file quarterly on Form 941, unless the IRS notifies them in writing to file Form 944 instead.
Form 944 (Employer's Annual Federal Tax Return): This form is for employers whose total annual liability for Social Security, Medicare, and withheld federal income tax is expected to be $1,000 or less for the year. You cannot choose to file Form 944. The IRS has to notify you in writing that you are required to file it instead of Form 941.
Do not use Form 944 unless you have IRS documentation (a notice or letter) saying your company must file Form 944 for the current tax year. If the notice is for a prior tax year, do not assume you can keep filing Form 944. To confirm, call the IRS Business and Specialty Tax Line at 1-800-829-4933.
If you need to change your state deposit schedule, learn how here.
Based on your historical tax payments, the IRS will assign your company a deposit schedule for tax payments (either semi-weekly or monthly). They'll also assign a specific payroll tax return to file—either Form 941 or Form 944.
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 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. To contact us, sign in to your Gusto account and click the help icon in the top-right corner of the page.
Your deposit schedule is based on a lookback period—the amount of employment taxes you reported during a specific past time frame.
Semi-weekly depositors:
Reported more than $50,000 in employment taxes during the lookback period
Deposit due dates depend on payday:
Wednesday, Thursday, or Friday payday: Deposit due the following Wednesday
Saturday, Sunday, Monday, or Tuesday payday: Deposit due the following Friday
Monthly depositors:
Reported $50,000 or less in employment taxes during the lookback period
Taxes for one month are due by the 15th of the following month (for example, January payroll taxes are due by February 15).
Next-day deposit:
If you accumulate $100,000 or more in federal taxes on any single day, the deposit is due the next business day.
Your company becomes a semi-weekly depositor for the rest of the current year and the entire following year.
Lookback period
The lookback period determines your company's deposit schedule for the current year.
Form 941 filers: A 12-month period covering four quarters, ending June 30 of the prior year
Form 944 filers: The second prior calendar year
To prevent late filings, we'll file the quarterly Form 941 for:
Existing customers
New customers that run payroll with us in the first quarter (Q1) of each year
Form 941 helps avoid incorrect filings, IRS notices, and potential penalties. The IRS allows some small businesses to file Form 944 annually, but your filing requirement can change mid-year if the IRS sends you a notice. Because of this, we proactively use Form 941.
If you joined us after Q1, confirm which form the IRS assigned you, then set up your Gusto account using that form.
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.
To update your federal filing form:
Go to Taxes & Compliance.
Select Tax setup.
Under Federal Tax Setup, click Edit.
Click Schedule a future change. Contact us if you cannot find this. To contact us, sign in to your Gusto account and click the help icon in the top-right corner of the page.
Select the Effective Date of the new filing form.
Wait until October 1 or after to make changes that go into effect the following year.
Enter the future filing form change you received on your IRS notice.
Click Save.
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).
If you overpay your federal payroll taxes, the IRS can send your refund by direct deposit or by paper check. Direct deposit is the default, following a federal executive order directing agencies to use electronic payments instead of paper checks.
With direct deposit, Gusto includes your business bank account details on the federal payroll tax returns we file for you (Form 941, Form 940, or Form 944) so the IRS can deposit any refund you're owed. If you'd rather receive a paper check, you can opt out.
Go to Taxes & Compliance and select Tax setup.
Under Federal tax setup, find Tax refund delivery and click Edit.
Choose one:
Direct deposit — Gusto shares your business bank account details with the IRS so any federal tax refund can be deposited directly.
Paper check — the IRS mails any federal tax refund to your business address.
Save your choice.
Your choice applies to the next federal return Gusto files for you. Returns we've already submitted aren't affected, and the IRS treats this as a per-return election — so your saved preference is applied each time we file, and you can change it whenever you like.
You are responsible for ensuring the bank account information on file with Gusto is accurate and up to date. Gusto will submit refund requests to the IRS using the banking details you have provided. If a refund is deposited to an incorrect account due to outdated or inaccurate information, Gusto is not responsible for recovering the funds. Recovery from the IRS or a financial institution may take 90 days or longer and is not guaranteed.
If you don't make a choice, Gusto uses direct deposit.
Gusto only includes your bank account details when a return results in an overpayment that triggers a refund.
Refunds go to the bank account you use for payroll and taxes. You can't route refunds to a different account.
If the IRS rejects an electronic filing and Gusto has to file on paper, we don't include your bank account details on the paper return. In that case, contact the IRS directly to arrange your refund.
If Gusto files your federal taxes under a professional employer organization (PEO) arrangement, this setting doesn't apply to you.
You can manage your state tax details, deposit schedule, filing frequency, and SUI rate right in Gusto.
Important: You may not be able to edit your deposit schedule if:
We handle your schedule automatically (only for certain states). We use the fastest deposit schedule available to avoid late payments.
You have no active employees in that state.
A deposit schedule (also called a filing frequency) is how often your company needs to pay taxes to a state. Each year, the state may change your schedule based on how much tax you paid the year before. If this happens, you’ll usually get a notice from the state at the end of the year.
If you made a mistake while entering your deposit schedule in Gusto, you can edit it.
To edit your state tax deposit schedule:
Go to Taxes & Compliance.
Click Tax setup.
Find the state name and click Manage Taxes.
Find Tax Account Details.
Look for Deposit Schedule or Filing Frequency and click edit.
Click Make a correction.
Update the schedule with the correct information.
If you get a deposit schedule for the upcoming year, you can add it in Gusto.
Note: Changes for the next year need to be entered on or after October 1.
To add a new deposit schedule:
Go to Taxes & Compliance.
Click Tax setup.
Find your state name and click Manage Taxes.
Find Tax Account Details.
Look for Deposit Schedule or Filing Frequency and click edit. You might not see these options if:
We handle your schedule automatically.
You have no active employees in that state.
Click Add a new schedule.
Enter the schedule from the notice.
Set the start date (usually January 1, or the start of a quarter: April 1, July 1, October 1).
Important: If you enter the schedule after the notice deadline, your company may be penalized.
Click Save.
Upload your state notice in Gusto — we’ll take a look and help you fix it.
State agencies assign your company an unemployment insurance tax rate when you register as an employer. Each year, you will get a new notice with your updated rate. These notices usually arrive between November of the prior year and March of the current year.
⚠️ Important compliance reminder: You must keep your SUI rate up to date in Gusto. If you miss deadlines, the state agency may charge penalties or interest, and your company will need to pay them.
Tip: Wait until October 1 or later to add rates for the following year.
Follow these steps to enter a new SUI rate from your state notice:
Go to Taxes & Compliance > Tax setup.
If you're using the Gusto mobile app: Instead, tap More and select Taxes & compliance. Tap Setup tax accounts.
Find the state you're editing and select Manage Taxes.
In State Tax Settings, find the Unemployment Tax Rate and select Edit. This may also be called “SUI rate” or “Experience rate”.
Updating only works in states where you have active employees.
You can also view your past rates here.
Select Add a new rate.
If the rate was effective during a prior closed quarter, you may get a tax notice for an amount owed or a refund (depending on whether you underpaid or overpaid).
Enter the percentage from your notice.
Example: If your notice says .055555, enter 5.5555%.
For state-specific entry instructions, check the state registration articles.
Set the Effective Date from the notice.1
Most states: January 1.
New Jersey, Tennessee, Vermont: Use July 1.
New Hampshire: Dates may be Jan 1, Apr 1, Jul 1, or Oct 1, depending on the notice.
Select Save.
If you entered the wrong rate or effective date, update it as soon as you have the correct info.
Go to Taxes & Compliance > Tax setup.
If you're using the Gusto mobile app: Instead, tap More and select Taxes & compliance. Tap Setup tax accounts.
Find the state you're correcting and select Manage Taxes.
In State Tax Settings, find the Unemployment Tax Rate and select Edit. This may also be called “SUI rate” or “Experience rate”.
Updating only works in states where you have active employees.
You can also view your past rates here.
Choose Make a correction.
Before each quarter ends, Gusto runs a reconciliation payroll to check for differences between your current SUI rate and past rates.
If we find you underpaid, Gusto will debit your account for the missing amount.
If we find you overpaid, Gusto will refund the extra amount.
If the new rate applies to a quarter that has already closed, you will likely get a notice from the agency:
Underpaid → You must pay the agency.
Overpaid → You will receive a refund.
⚠️ Gusto does not amend unemployment returns for past quarters. You either pay the agency directly or accept the refund.
Enter the correct rate (example: .055555 → 5.5555%) and effective date from your notice.
For state-specific entry instructions, check the state registration articles.
Set the Effective Date from the notice.1
Most states: January 1.
New Jersey, Tennessee, Vermont: Use July 1.
New Hampshire: Dates may be Jan 1, Apr 1, Jul 1, or Oct 1, depending on the notice.
Select Save.
1 Failure to timely update or confirm your State Unemployment Insurance rate may result in additional taxes and penalties being imposed on the taxpayer by the taxing authority or agency.
If the update applies to a closed quarter, the agency may issue:
A notice to pay more (if underpaid), or
A refund (if overpaid).
Gusto will not amend unemployment returns for past quarters.
If underpaid → Pay the agency directly.
If overpaid → Accept the refund.
Before the end of each quarter, Gusto runs a reconciliation payroll. If a difference is found:
Gusto will debit your account for underpaid taxes, or
Gusto will refund your account for overpayments.
⚠️ Final compliance reminder: Failure to update or confirm your SUI rate may result in extra taxes and penalties from the agency. The company is responsible for paying these.
Some agencies share rate updates directly with Gusto. If we can confirm your rate, we may update it for you. However, it is still your responsibility to:
Confirm your correct rate is entered in Gusto, and
Update it if necessary.
If you need assistance entering or correcting your rate, message us from the Help (?) icon in your account.
If you add a new state's address for an employee in Gusto, you need to enter that state’s tax information.
To register your business in a new state, go to our state registration page and click the state. Follow the registration steps. Once you have your state tax information, you need to add it to Gusto.
To add your state tax information:
Go to Taxes & Compliance.
Go to Tax setup.
Scroll down to find the state you’re looking for.
Click Manage taxes.
For each field, click Edit to enter your tax details.
To close a state or local tax account, go to close or reopen a tax account.
The Electronic Federal Tax Payment System (EFTPS) is the tax payment service provided by the US Department of the Treasury. When you sign up with Gusto, we'll re-enroll your company with EFTPS so we can pay and file your taxes (required). After we do this, you may receive a letter with a new EFTPS Personal Identification Number (PIN) you can use to log in to the EFTPS. When enrolled with EFTPS, you can:
Pay your federal taxes electronically
Track your tax payments on the EFTPS website
State tax agencies usually offer similar ways to verify tax payments. Contact your state agencies for more details.
Note: We never have your personal EFTPS log-in information. We use our own EFTPS PIN to log in and make the payments for you.
Important: According to the IRS, employers are responsible for filing and paying employment taxes on time, even if you’ve authorized a third party, like Gusto, to handle your taxes. Both the IRS and Gusto recommend you regularly log in to the EFTPS to make sure your taxes are being paid for you on time. We make federal tax deposits to the IRS based on your deposit schedule set in Gusto— you can find this in your account by going to Taxes & Compliance and selecting Tax setup. To see past payments made to the IRS, run an agency payments report.
If your company deferred taxes through Gusto in 2020:
Learn more about the agency notice you received and how to repay your taxes.
Log in to the EFTPS to repay your taxes.