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Withholding tax deposit schedule notices

Notice: Federal or State Withholding Tax Deposit Schedule Notice for Calendar Year 2016, 2017, or 2018.

Issuing agency: The Internal Revenue Service (IRS) or state agency responsible for collecting withholding income tax.

Action needed: Update the withholding tax deposit schedule in your Gusto account.

Details: 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. Please note your new withholding tax deposit frequency (i.e. semi-weekly, monthly, quarterly).

For example, an IRS notice might say “We determined your 2018 deposit schedule for form 941”

If the notice came from the IRS you can schedule a future change to your Federal Tax deposit schedule in your Gusto account.

To update a state tax deposit schedule in Gusto:

  1. Navigate to the Company Details tab.
  2. Click Manage Taxes under the applicable tax section.
    • Federal Tax Setup
    • Specific State Tax Setup
  3. Click Edit next to “Deposit Schedule / Company Filing Status” under the Federal or State Tax Settings headline.
    • For state settings only: If you don't see the option to edit your deposit schedule, it means your schedule matches the federal filing schedule or has a default schedule that we're already aware of. As long as the federal schedule is correct, no changes need to be made.
  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).
  6. Click Save.

Note: If your tax deposit frequency is increasing (i.e. 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.

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