Set up your Gusto account (for employers)

1. Click Step 1: Company's addresses.
2. Click Add Company Addresses and enter in your first address.
3. Select if the address is one or more of the following:
   • Work Location: This is the address where your employees are physically doing their work.
     • It can be the same as the mailing or filing address so long as it's a physical address; do not enter a PO Box here (per IRS publication 1635 and SS-4 instructions, enter lines 5a-b from your SS-4).
     • If your employee works from home, you can indicate they're working from their home address when you add your employee to Gusto and select their work location.
   • Mailing Address: This is the address that can receive any physical mailings from Gusto, which is oftentimes the same address as the Filing Address. Some tax authorities update employer address information based on tax filings, so we'll use your mailing address on tax returns sent to the agencies.
     • Street 1: Include critical mailing information only, such as the street address, followed by room, apartment or suite numbers, or you can report a P.O. box here. Note: You don't need to re-type your company name here. We'll include your company name first, then your street address.
     • Street 2 (optional): Any additional instructions, such as "Attention:" or "In care of" (%) can be reported here.
   • Filing Address: This is your primary place of business (ex. company headquarters) and it should match the address you have on file with the IRS as the company's physical location, not a P.O box.
     • You can find it on the company's IRS Federal EIN assignment form (Form SS-4). You do not need to re-type your company name here. We'll include your company name first, then your street address.
4. Click Save.

Continue this process until all company addresses have been entered.

There are three main steps to adding an employee in Gusto when you're setting up your account. The way you set up each employee will determine their taxes.

If you've already set up your account, and you're hiring new employees down the line, go to this article.

We handle your federal tax returns and deposits. To do this, we need your:

• Federal Employer Identification Number (FEIN)
• Official company name on file with the Internal Revenue Service (IRS)
• Business entity type

You can find this information on the notice the IRS issues when you apply for the EIN. If you cannot find your EIN, follow these steps from the IRS.

In the future, you'll need to add your state and local payroll tax account numbers.

When you set up your Gusto account, we’ll ask for a default company bank account to debit for wages, taxes, and your monthly Gusto fee. You can add other bank accounts later and individually select which bank account to use on payrolls and contractor payments.

Bank account requirements

• The account must be a US-based checking bank account
  • It cannot be the same as a team member's bank account.
• Credit payments, credit cards, and savings accounts are not accepted.
• Alphanumeric account numbers (with both letters and numbers) are accepted.

Add a default company bank account—you can update this later

1. Click Step 7: Bank account.
2. Click the Add Bank Account button.
   
   • If this button does not work, try refreshing the page a few times until you can click it.
3. Select how you want Gusto to verify your bank account:
   • Verify account with Plaid—you'll be asked to link your bank account to Gusto so we can instantly verify your bank.
     • Reminder: If you verify with Plaid, you cannot use "Bottom (blank check stock)" to print checks you may write. Account numbers are encrypted and will not print to this type of check. 
   • Manually verify your account—if your bank is not eligible to connect through Plaid, or you've decided not to instantly connect, you'll need to enter your bank information manually. We'll then send two test transactions, which usually take 2–3 business days to hit your account. You'll need to come back to Gusto to enter these amounts.
     • Click the checkbox to acknowledge this change may block payroll for up to 2 business days until bank verification is complete.
     • Heads up: You may be asked to wire funds to Gusto cover your first payroll if you choose to manually verify your bank account. 
4. Click Continue.

After the account is verified it will automatically be set as your default bank account.

If the account has not been verified yet, here's how to update the details (if needed):

1. Next to "Add Company Details", click the Actions button.
2. Select Review.
3. In the left-side menu, click Bank Account.
   • You'll be taken to a page asking you to enter test bank transaction amounts.
4. Click Back.
5. Enter your new bank account details and proceed.

Enter test transaction amounts in Gusto

Once you've entered your bank details, you'll need to enter the test transaction amounts in Gusto.

1. Sign in to Gusto.
2. Click your name at the top right of Gusto and select Settings. 
3. Go to the Plan & billing tab.
4. Scroll to the “Bank accounts” section and find the bank account.
5. Under the “Status” column, click Confirm test transaction to enter the two amounts.

If you're having issues verifying the account:

1. Make sure the bank account information is entered correctly in Gusto.
2. Check your bank transactions again to make sure they're entered correctly in Gusto.

What's next?

Add your pay schedule to Gusto.

You can securely connect your bank account to your Gusto account using instant bank verification (IBV). We use a third-party service called Plaid to instantly verify your bank account. We will not store your bank account’s username and password, and your bank credentials are encrypted.

Connect your bank account with IBV

After you've entered your routing and account number, you have the option to instantly verify your bank account.

1. Select Verify Bank Account.
   • Note: If you do not want to verify instantly, you can verify by receiving two test transactions to your account. Click verify your account manually to do this.
2. Click Continue.
3. Enter your online bank account username and password.
4. Answer any security questions, if needed.
5. If we're able to connect instantly to your account, you'll be able to return to the dashboard. If we cannot connect, we'll ask you to verify manually via two small test transactions. 
6. If you experience any problems connecting your bank, contact our Assurance team at assurance@gusto.com.

We're still rolling out pay schedule recommendations. If you do not see recommendations, learn more about your pay schedule options here. 

Payday reminder

Team members will always get paid—have a check date—on a weekday, no matter how you choose to issue a payment (check or direct deposit). If payday falls on a weekend or holiday, your team gets paid the business day before.

Review or edit pay schedule recommendations during onboarding

1. During the "Setup payroll" part of onboarding, click Pay schedule.
2. Choose the type of employees you plan to pay (owner-only companies will not see this question)—select Salaried, Hourly, Both salaried and hourly, or I don’t know.
   • Gusto suggests pay schedules based on your selection:
     • Hourly, Both salaried and hourly, or I don’t know → Every other week.
     • Salaried → Twice a month.
     • Owner-only → Every other week.
3. To change any part of the recommended schedule, click Edit schedule.
   • Changes you make will be reflected in the calendar view. Modify pay schedule details to find the right schedule for you. 
4. Choose a pay frequency:
   • Weekly
     • Best for hourly workers needing frequent pay.
   • Every other week
     • Good for a mix of hourly and salaried employees.
   • Twice a month (15th and last day, or 1st and 15th)
     • Best for salaried employees. 
     • The most common choice: 15th and last day of month.
     • If you have only salaried employees to pay, you can also choose:
       • Paid after pay period ends: Good for paying ovetime.
       • Advanced: Choose the start and end of the first pay period, and the first payday.
   • Monthly
     • Best for salaried employees or executives.
   • Quarterly
     • Best for commission-based employees, owner-only companies, or bonuses.
     • You can set the quarter’s start date and first payday.
5. Align "Start of workweek" and "Pay period".
   • The start of workweek should match the first day of the pay period (e.g., If your pay period starts Monday, set the workweek start to Monday). A warning may appear if they do not align—this ensures accurate overtime calculations.
6. Review the "First day employees will be paid on Gusto" and the corresponding "Payroll deadline".
   • The first pay period and payday auto-fill based on your selection.
   • You can adjust the "Payroll deadline" by changing the first day employees are paid.
     • Important: The payroll deadline should be after the pay period ends to prevent errors.
   • If the first payday falls on a bank holiday, we'll automatically adjust the paydate to be paid on the business day before the holiday.
7. Click Preview upcoming paydays to see the next year’s schedule.
8. When everything looks good, click Save changes. 

1. Sign in to Gusto.
2. Next to Add previous payroll records and review tax liabilities, click Get started. 
3. Confirm all active employees are listed → click Save and continue.
4. Confirm all dismissed employees from this year are listed → click Save and continue.
5. If joining after Q1, select any prior quarters where employees were paid. Then, select each check date in the current quarter → click Save and continue.
6. Click Add details for the first check date.
7. Select employees paid on that date → click Save and continue.
8. Enter for each employee:
   • Earnings.
   • Deductions.
   • Reimbursements (if any).
9. Review taxes and contributions:
   • If amounts match, click Looks good.
   • If not, click Edit tax amounts to correct.
10. Check that SUI rates and employee addresses are correct if errors remain.
    • Check SUI rates for the time period: Go back to Tax setup →  Manage taxes.
    • Check employee addresses and effective dates: Go to People.
11. Choose the taxes that are still unpaid so Gusto can debit them.
    • For prior quarters Gusto did not handle, we can only debit FUTA. If you're switching payroll providers mid-year, learn more about the payroll tax responsibilities for each provider.
12. Confirm payroll details: Total payroll, check date, and taxes.
13. Repeat for all check dates.
14. Compare total net pay in Gusto to your previous provider’s year-to-date totals. Fix any mismatches by clicking Edit.
15. Click I’m done when all payrolls are entered.

What’s next

After entering previous payrolls, you’ll need to e-sign forms in Gusto to finish setup.

You need to e-sign a few forms to authorize Gusto to debit your bank account and file your payroll taxes. Without a signature on these forms, Gusto will not be able to file or pay taxes for your company.

1. Click Step 10: Sign Documents.
2. Click the Sign Documents button.
3. Select a signatory,* a person who can legally sign forms for your company.
   
   • If you elect a signatory who is not yourself, we'll ask you for some personal details so we can identify them in the future. 
4. Enter the signatory's personal information.
5. Click Save & continue.

*Your signatory should be an officer, owner, general partner or LLC member manager, plan administrator, fiduciary, or an authorized representative. An officer is the president, vice president, treasurer, chief accounting officer, etc. Learn more here.

We'll email the signatory to fill out their personal details in Gusto and sign the company forms. If you're the payroll administrator and the signatory, you can move forward by clicking Sign Form next to all required documents.

Unpaid tax liabilities are the employer and employee payroll taxes that have not yet been paid to the state and federal agencies.

If you're switching over to Gusto mid-year, you may have some outstanding tax liabilities you'd like us to pay. We'll calculate the amounts you may owe based on your payroll history and allow you to select what you'd like us to pay on your behalf.

1. Click Step 12: Unpaid tax liabilities.
2. Select whether you had a previous provider taking care of your taxes, or if you were paying on your own.
3. Select the amounts you'd like us to pay from the drop-down menu.
4. Click Review Previous Tax Liabilities.
   • Important: If you're not sure if these numbers are 100% accurate, review the in-depth overview attached at the bottom of this article for additional guidance.
5. If everything looks good, select Pay Liabilities.

FAQs

Q: How do I find out which tax liabilities still need to be paid?

A: Call your payroll provider and ask for your outstanding tax liabilities. Ask them about every tax liability that you see on Gusto's Pay Previous Tax Liabilities screen. Here are some things you can ask, depending on when you join with us:

• If you're joining Gusto for your first payroll in the quarter, say: "File and pay all quarterly tax filings for the previous quarter. Will you be refunding me any unpaid taxes? If so, which tax and how much?"
• If you're joining Gusto in the middle of the quarter, say: "Please do not complete my quarterly filings, since I am switching payroll providers. Will you be refunding me any unpaid taxes? If so, which tax and how much?"

Q: What if the amounts shown don’t match the amounts from my previous payroll provider?

A: Select Amount Not Available. You'll be prompted to contact our Success team at success@gusto.com so we can help you figure out why there are any discrepancies in the data.