Tax planning can often feel unpredictable, especially when it comes to expecting a refund or preparing for a payment. That’s why Gusto has partnered with april to offer Paycheck Optimizer, a free tool that helps employees plan ahead with more confidence.1
Paycheck Optimizer is available exclusively in the Gusto mobile app. It gives eligible W-2 employees personalized suggestions to adjust their federal tax withholdings based on what they might owe or get back. If they accept a suggestion, their W-4 is updated automatically.
Taxes can feel uncertain. This tool helps by giving you:
A better idea of what your federal tax refund or payment may look like
Suggestions to help you take home more now or owe less later
Automatic W-4 updates if you accept a suggestion
You’ll spend less time guessing—and more time feeling confident about your paycheck.
No setup is needed for employers. This is a free planning tool W-2 employees can choose to use for their own federal taxes.
Paycheck Optimizer:
Is optional for each employee
Does not affect your not impact your company’s payroll schedule, bookkeeping, or tax processes
Does not require you to make any changes in Gusto beyond your usual people operations.
To use Paycheck Optimizer, you must:
Be an active W-2 employee
Have a single active employee profile in Gusto (Old/inactive profiles will not disqualify you)
Be paid hourly or salaried (Commission-only and owner’s draw roles are not supported)
Have received at least 3 Gusto paychecks this calendar year
Paycheck Optimizer is not available for 1099 contractors.
It is only available in the Gusto mobile app (not on desktop or web).
Here are a few things to know about Paycheck Optimizer:
Federal taxes only: Paycheck Optimizer gives suggestions for federal tax withholdings. It does not adjust for state or local taxes.
You’re still responsible for filing taxes. This tool does not replace filing with the IRS or your state.
Results depend on your info. If your tax information in Gusto is out of date, the suggestions may not be right for you.
No guarantees: Actual tax results may be different from what the tool shows. This is a planning tool—not tax advice or a prediction.
Updates go into your next paycheck only if you accept the suggestion and re-sign your W-4 form.
If you meet the requirements above, here’s how to get started:
Open the Gusto mobile app and sign in.
Tap the Pay tab.
Choose Estimate your tax refund on april.
Review the tax refund information. Tap Get started to go to our partner, april.
Use the Paycheck Optimizer tool to:
Estimate your federal tax refund or payment.
Review suggested changes to your withholdings.
Review and confirm any recommended changes to your federal tax withholdings.
Return to the Gusto mobile app and follow the prompts to sign your updated W-4 form.
Your updated withholdings will apply to your next paycheck.
You can only use Paycheck Optimizer once per pay period. If you already used it, you’ll see it marked as unavailable until your next paycheck is processed.
To get accurate suggestions, make sure your tax information in Gusto is current. That includes:
Home address
Filing status
Number of dependents
Number of jobs
Any other withholdings
You can update your federal tax info in the Gusto mobile app:
In the Gusto mobile app, go to the You section.
Choose Tax Elections.
Select Edit.
Q: Is it free to use the Paycheck Optimizer?
A: Yes! It’s free for eligible W-2 employees using the Gusto mobile app.
Q: Can I use it for past tax years?
A: No. It’s only for projecting your current tax year.
Q: What if I already used it this pay period?
A: You’ll need to wait until your next paycheck to access it again.
Q: Will it change my take-home pay?
A: It can—if you accept a suggestion, your federal withholdings will change and may impact your paycheck amount.
Q: What if my financial situation changes?
A: You should update your tax info in Gusto. Paycheck Optimizer uses your current info to make suggestions.
Q: Does this help with filing my taxes?
A: No. You are still responsible for filing your federal, state, and local tax returns. This tool helps you plan ahead, but does not file for you.
Q: Does it work with Refund Estimator?
A: Yes! Paycheck Optimizer is an extension of the Refund Estimator feature. It helps you take the next step after estimating your refund.
Gusto also offers a tool called Automated Tax Filing with april to help employees with year-end tax filing. Learn more about the Gusto mobile app.
¹ Gusto has partnered with April, a tax planning tool for employees. Personalized tax suggestions are provided by April. Estimates and tax information are private between you, Gusto, and April—the information is not shared with your employer or the IRS. April and Gusto cannot provide tax advice about a specific customer situation.