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State and local withholding tax deposit schedule notices

State or local withholding tax deposit schedule notice

This notice is to inform you of a change to your withholding tax deposit schedule and the day it will become effective—usually listed at the top. 

For example: a notice might say “We determined your new deposit schedule for the new tax year."

Issuing agency

State or local tax agency responsible for collecting withholding income tax.

Action required

Determine the new withholding tax deposit frequency (e.g. semi-weekly, monthly, quarterly) and update it in your Gusto account.

Update a state or local tax deposit schedule in Gusto

  1. Go to the Company Details section.
  2. Click Manage Taxes under the applicable state tax section.
  3. Click Edit next to “Deposit Schedule / Company Filing Status” under the State Tax Settings headline.
    • If you don't see the option to edit your deposit schedule, it means your schedule matches the federal deposit schedule or Gusto uses a default schedule for all customers in that state and no action is needed.
  4. If the effective date is in the future or in the current quarter, select Add a new setting. If the effective date on the notice is from a previous quarter, click Make a correction.
  5. Set the Effective Date to the date listed on your notice, typically the beginning of a year or quarter (i.e. January 1, April 1, July 1, October 1).
    • Important: If your tax deposit frequency is increasing (e.g. monthly to semi-weekly) and you make this change after the effective date on the notice, there may be penalties or interest assessed for late tax payments which you’ll need to pay directly to the agency.
  6. Click Save.

IRS withholding tax deposit schedule notice

Gusto defaults to depositing on the faster semi-weekly schedule in order to prevent late tax payments, penalties, and tax delinquency notices. Unless you've specifically asked Gusto to make your payments monthly, no action is needed.

If you specifically asked Gusto to deposit using the monthly schedule, you must contact us from the Help 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.

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