Fix tax filing, payment, and account errors in Gusto (for admins)
This article helps admins fix tax filing and payment errors in Gusto — including failed filings, error codes, and missing tax account information.
For state-specific tax rules, read your state's help center article, or learn how we can help register your business in a new state.
If bank issues block your payroll, learn how to fix banking-related payroll blockers.
If we could not pay or file your taxes accurately and on time, use this section to find and fix the problem.
Tax agencies do not always tell us why a filing or payment failed, and there may be more than one issue. If you see an error code in Gusto, start with "What your error code means" below — then expand "Common reasons your tax filings or payments fail" to troubleshoot further. You may also need to contact the agency directly.
If your failed filing shows a reason code in Gusto, find it below to understand what it means. Then follow the link to the right troubleshooting section.
"Client not liable"
The state agency's records show your company is not responsible for filing that tax type or period. This is often caused by an inactive or unregistered state tax account. See Common reasons your tax filings or payments fail and look for "Inactive tax accounts."
"Not authorized" or "Authorization failed"
We do not have active Third-Party Administrator (TPA) or Power of Attorney (PoA) authorization with the state agency. See Common reasons your tax filings or payments fail and look for "Authorization problems (TPA or PoA)."
"Rejected — will not refile"
The state rejected the filing and we will not retry automatically. This requires manual steps. Contact us to review the rejection and determine next steps. To contact us, sign in to your Gusto account and click the help icon 
in the top-right corner of the page.
Here are some common reasons tax filings fail:
Inactive tax accounts
Your state tax account can become inactive when:
You do not file the required returns.
You file several “zero” returns in a row.
The account starts in the future.
If your account is inactive, contact the agency to learn how to reactivate it. Each state has different rules.
Incorrect effective date
The effective date on your state account must be on or before the start of the quarter when we first tried to file and pay your taxes.
Invalid account number
Your account number in Gusto must match the one the agency has. Two issues can cause failures:
The number in Gusto does not match the agency’s record.
You have the correct number, but the wrong account type.
To fix this:
Call the agency to confirm your account number and account type.
Check your number by going to Taxes & compliance, then Tax setup in Gusto.
If you update an account number after filings have been made, it can cause tax problems. We offer reports that can help you correct past problems.
Company name or address does not match
If your company name or address in Gusto does not match the agency’s record, filings can fail.
To fix this:
Call the agency to confirm what they have on file.
Check your details by going to Company profile, then Company details in Gusto.
FEIN does not match
If your Federal Employer Identification Number (FEIN) in Gusto does not match the agency’s record, the agency cannot verify your account.
To fix this:
Call the agency to confirm your FEIN.
Check your FEIN by going to Taxes & compliance, then Tax setup in Gusto.
FEIN changes can cause tax issues, so we may need to help. To contact us, sign in to your Gusto account and click the help icon in the top-right corner of the page.
Authorization problems (TPA or PoA)
Some states need Third-Party Authorization (TPA) or Power of Attorney (PoA) before we can file for you.
Make sure:
Our authorization date starts on the first day of the quarter when you run your first payroll in that state. You can find your first payroll date by going to Pay, then Pay history.
Gusto is listed as authorized to file and pay on your behalf. Check your state’s TPA rules in the state tax registration section of our Help Center.
Old payroll provider still listed
If your old payroll provider is still listed as your “reporting agent,” the agency may ignore our filings. Contact the agency or your old provider to have them removed.
You can use this script when you speak to the tax agency:
“Hi, this is (your name) from (your company). Our FEIN is XX-XXXXXXX.
My payroll provider, Gusto (formerly ZenPayroll), got an error when trying to file for us. I’d like to fix this. I need to check:
Is my account active?
Is my effective date correct?
Does my account number match your records?
Do my company name and address match?
Is the FEIN you have the same as what Gusto has?
Is Gusto listed as my authorized provider?
Is my old provider still listed as the reporting agent?”
If your account is inactive because you no longer run payroll in that state, close the account and let us know.
After you fix the issue with the tax agency:
On your Home page, click the to-do notification about the filing or payment error. The to-do will stay in Gusto until you fully fix the issue.
You can also go to Taxes & Compliance > Tax documents > Needs attention to view the notification.
Contact us if no to-do appears. To contact us, sign in to your Gusto account and click the help icon
in the top-right corner of the page.
Update the account number or mark the issue as resolved.
Make sure you fix the issue completely. If your tax filings fail three times, you'll need to file taxes outside of Gusto.
Once the issue is fixed:
We usually refile within 2 weeks.
You will not see a separate form in Gusto. We show refilings under the original filing.
To confirm success, check your tax agency portal or contact the agency. If no new notifications appear in Gusto, the refiling most likely worked.
You may have a to-do in your Gusto account for a recently added state. We need some information so we can withhold and pay taxes accurately and on time. You can find your tax account information in your online state account.
Here are some details we might ask for before you can run payroll, and what to do if you do not have them yet.
If you do not have your company-specific tax deposit schedule yet, states assign these schedules to you. For now, select the fastest available option in Gusto.
Pro Tip: Selecting the fastest option helps prevent late payments or filings.
Once you get your assigned deposit schedule, update the information in Gusto right away.
To enter and edit state tax account information:
Go to Taxes & Compliance.
Select Tax setup.
Scroll to the state that needs information.
If your company does not owe state unemployment taxes yet, or you have not received your rate yet, enter the new employer rate for your state in Gusto in the meantime. Update the rate once you receive it.
Many states have ranges of rates for new employers. We cannot advise on which rate to choose for now. Once you update the rate in Gusto to your company-assigned rate (with the correct start date), we'll run a reconciliation payroll to refund or collect any taxes you overpaid or underpaid.
Never enter placeholders for missing account numbers that Gusto needs. This can cause incorrect tax payments and filings, leading to late payment penalties and interest. You must pay these penalties.
Try contacting the agency directly to get your account number as soon as possible.
Here is some general agency contact info. If your agency is not listed, try searching for it online.
If you edit a tax account number after we’ve already made payments or filings, this may affect your taxes. Learn how to pull reports in Gusto that can help you correct any past tax issues related to tax account number updates.
If you need to pay an employee before you have the tax information we need, you can pay them outside of Gusto. Then enter the missing payroll information when you have the required tax account information. You may face penalties or interest for late tax payments or filings. You must pay these penalties.