When setting up your Gusto account, you’ll need to enter any payrolls already run this year to keep year-to-date taxes and W-2s accurate. This article explains what documents you need, how to enter payrolls by check date, and what to do if your records don’t match or changes are needed.
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Why enter previous payrolls
When setting up your Gusto account, you need to enter payrolls you ran earlier in the same year. This keeps your year-to-date filings and W-2s accurate.
- If you do not have any payrolls to report but Gusto asks for them, select I don’t have any payrolls to report for [year] to complete the step.
- If you’ve already run payroll with Gusto, report missing payrolls using the non-Gusto payroll flow.
- Reporting past contractor payments is different than employee payrolls—see our contractor article.
⚠️ Employers can only issue one W-2 per employee per year, so it’s critical that previous payroll information is complete and correct.
Key payroll terms Key payroll terms:
- Check date: The day employees were paid. This determines tax liability.
- Pay period: The time employees worked.
- Example: Worked Dec 15–31, paid Jan 15 → pay period = Dec 15–31, check date = Jan 15.
- Reimbursements: Non-taxable expense repayments. Leave blank if none.
- Exemptions: Add employee tax exemptions in their profile before entering payroll.
- Social Security & Medicare: Flat rates of 6.2% and 1.45% on taxable wages.
Do not save payrolls if the calculated amounts do not match your records. For help, email Gusto at success@gusto.com.
Documents you'll need Before entering payrolls, gather the following for all active and dismissed employees:
- Quarter-to-date (QTD) summaries for each past quarter this year
- Individual paystubs for the current quarter.
| If your first check date in Gusto is... | We'll need... |
| Quarter 1 (Jan 1 – Mar 31) | - All paystubs in the current quarter
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| Quarter 2 (Apr 1 – Jun 30) | - QTD amounts on the last paystub in Q1 (1/1 – 3/31) with a check date of 3/31 or earlier
- All paystubs in the current quarter
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| Quarter 3 (July 1 – Sep 30) | - QTD amounts on the last paystub in Q1 (1/1 – 3/31) with a check date of 3/31 or earlier
- QTD amounts on the last paystub in Q2 (4/1 – 6/30) with a check date of 6/30 or earlier
- All paystubs in the current quarter
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| Quarter 4 (Oct 1 – Dec 31) | - QTD amounts on the last paystub in Q1 (1/1 – 3/31) with a check date of 3/31 or earlier
- QTD amounts on the last paystub in Q2 (4/1 – 6/30) with a check date of 6/30 or earlier
- QTD amounts on the last paystub in Q3 (7/1 – 9/30) with a check date of 9/30 or earlier
- All paystubs in the current quarter
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Payroll tax responsibilities when switching to Gusto When you switch payroll providers in the middle of the year, it is important to know which taxes your old provider already paid and which Gusto will handle. This prevents duplicate payments, rejected filings, and errors in employee tax records.
Why tracking payroll taxes matters
Switching providers mid-year splits tax responsibilities. Without coordination, your business could face:
- Double payment of taxes (especially unemployment taxes)
- Rejected filings due to duplicate submissions
- Incorrect wage reporting for employees
- Confusion about quarterly and annual filings
Critical point: One filer per quarter
⚠️ Important: Only one provider can file a quarterly tax return for any quarter. If both your old provider and Gusto file for the same quarter, the second filing will be rejected and may lead to penalties.
Coordinate with both providers to decide who will handle filings for each quarter.
- Q1: Jan 1 – Mar 31
- Q2: Apr 1 – Jun 30
- Q3: Jul 1 – Sept 30
- Q4: Oct 1 – Dec 31
When you're ready, enter previous payrolls in Gusto.
Taxes your prior payroll provider should handle
Your prior provider remains responsible for taxes and filings on the payroll they processed. They should have managed the following tax responsibilities:
If the payroll was in a completed quarter (before joining Gusto)
- Federal tax deposits: Federal income tax and FICA (Social Security and Medicare).
- State and local deposits: State income tax withholding and local taxes.
- Quarterly filings: Form 941, state, and local filings.
- Example: If you join Gusto on May 7, your old provider files Q1 forms (ending March 31).
- SUTA: State Unemployment Tax deposits for wages from completed quarters.
- FUTA: Federal Unemployment Tax deposits for completed quarters (unless the amount is under $500, which is due at year-end).
- Note: If under $500, your old provider should refund you these taxes so Gusto can handle it. Let us know about this obligation.
If the payroll was in the same quarter you switched
- Federal tax deposits: For pay periods processed with your prior payroll provider.
- State and local deposits: For pay periods processed with your prior payroll provider.
- Exception: Some state/local taxes are paid only at quarter-end. If you switched mid-quarter, your old provider should refund you the tax amount for the quarter you switched. Let us know about this obligation. Gusto will collect and pay these taxes. Some agencies require one full payment for the quarter.
- Quarterly filings: For all quarters before you joined Gusto.
- Example: If you join Gusto on May 7, your old provider files Q1, and Gusto files Q2.
- SUTA deposits: For all quarters before you joined Gusto.
- If you switched mid-quarter, your old provider should refund you the tax amount for the quarter you switched. Let us know about this obligation. Gusto will collect and pay these taxes. Some agencies require one full payment for the quarter.
- FUTA deposits: Same as SUTA — Gusto will handle starting with your first quarter.
- Note: If under $500, your old provider should refund you these taxes so Gusto can handle it. Let us know about this obligation.
- If you switched mid-quarter, your old provider should refund you the tax amount for the quarter you switched. Let us know about this obligation. Gusto will collect and pay these taxes.
Taxes Gusto will handle going forward
Once you switch, Gusto manages:
- Federal, state, and local deposits for all payrolls run in Gusto.
- Quarterly tax returns starting with the quarter of your first check date in Gusto.
- FUTA and SUTA deposits starting with the quarter of your first check date in Gusto.
- Year-end forms: W-2s, 1099-NECs, and annual filings (covering wages paid by both providers)
- ⚠️ Important: Only Gusto should file year-end forms. Make sure your prior provider does not file W-2s or other annual forms after your switch.
FAQs
Q: Who files my quarterly taxes if I switch mid-year?
A: Your prior provider files for completed quarters. Gusto files for the quarter you joined (have your first check date in Gusto for) and forward.
Q: What happens if both providers file for the same quarter?
A: The second filing is rejected by tax agencies, which may cause compliance issues or penalties.
Q: Who issues W-2s at year-end?
A: Only Gusto. Make sure your prior provider does not file W-2s once you switch.
Q: What if unemployment taxes were already paid by my old provider for the quarter I switched?
A: They should refund you. Gusto will collect and pay them correctly for the quarter you joined.
Q: What reports do I need to share with Gusto?
A: Year-to-date payroll reports and proof of tax payments made earlier in the year.
Making changes to previous payrolls - If still onboarding: Next to Add previous payroll records, click Review.
- If finished onboarding but haven’t run payroll: Contact Sales at (415) 918-2367 or success@gusto.com.
- If you’ve already run payroll: Send a message in Gusto from the
in your account.
FAQs Q: Do I have to enter previous payrolls when setting up Gusto?
A: Yes, if you have them. This ensures year-to-date filings and W-2s are accurate.
Q: What if I don’t have any previous payrolls to enter?
A: Select I don’t have any payrolls to report during setup to mark the step complete.
Q: What documents do I need?
A: Gather quarter-to-date summaries for past quarters and individual paystubs for the current quarter.
Q: Can I change or delete payrolls I already entered?
A: Yes, but how depends on your setup stage. Contact Sales (success@gusto.com) or send a message in Gusto from the in your account.
Q: What if my tax amounts don’t match?
A: Edit tax amounts in Gusto or check SUI rates and employee address history. If still wrong, email success@gusto.com.
Q: Can Gusto pay taxes for prior quarters?
A: Only FUTA (federal unemployment tax) can be debited for prior quarters not handled by Gusto.
Q: If I add non-Gusto payment history, can Gusto amend quarterly filings?
A: No. We can only amend if the original quarterly or state filing was submitted by Gusto and accepted by the agency.
