Amending returns, tax credits, and refunds

If you amend outside Gusto, you must follow all IRS or state electronic filing and payment rules.

⚠️ Starting in 2024, paper filings are not accepted if your company filed 10+ information returns (like W-2s or 1099s) in a calendar year. This includes amendments.

Steps

1. Contact your accountant to submit the amendment.
   • Don’t have one? Use Gusto’s Partner Directory.
2. Go to Taxes & Compliance → Tax documents in Gusto.
3. Pick the right tab (Federal, State, etc.).
4. Download the filing Gusto submitted. Use this as a reference to prepare the amendment. You may need to make changes.
   • You can also run reports in Gusto to help complete it.
5. Contact the state agency for instructions. Ask which forms you need and explain why you’re amending.
6. File the amended return with the agency.

Note: Employers are responsible for paying any penalties or interest related to amended filings.

If you want Gusto to amend a filing, message Gusto Support from the in your account with details about why you need the amendment.

• If Gusto cannot amend, you’ll need to amend the return outside of Gusto and file directly with the agency. 
  • Example: Unemployment rate updates after a quarter is closed. In this case, you can pay the agency if you underpaid, or request a refund if you overpaid.
• If Gusto can amend:
  • The support team will set expectations on timing.
  • You’ll be able to see the completed amendment in your account.
  • For questions, continue working with the support rep handling your case.

How to find an amendment completed by Gusto:

1. Go to Taxes & Compliance → Tax documents.
2. Select the Amended forms tab.
   • If you do not see the tab, the amendment is still in progress. Contact the Gusto team member working on it for an update.
3. View the completed amendment(s).

This section explains how the IRS will send refund money for payroll taxes, and what Gusto will do for you.

The IRS now sends refunds by direct deposit. They will no longer send refund checks by mail. All federal payroll tax refunds will go straight to your business bank account by electronic deposit.

This change is required by a White House Executive Order. The order tells federal agencies, including the IRS, to use electronic payments instead of paper checks.

How this affects your business

If you pay too much in federal payroll taxes, the IRS will send the extra money back to you by putting the refund directly into your business bank account. You will not wait for a check in the mail.

To make this work, we'll include your company’s bank account number on the tax forms we file for you. We only add this information when there is an overpayment that leads to a refund.

How we protect your information

We file tax forms electronically using secure systems, so your bank account information stays protected through both IRS and Gusto security.

What you need to do

Follow these steps to make sure your refund goes to the right place.

1. Check that your business bank account information in Gusto is correct. This helps make sure the IRS can send your refund to the right account.
2. We'll handle the refund setup for you when you qualify for a refund.

If the IRS rejects our electronic filing for your company and we must file a paper form, we will not include your bank account number on the paper form. This protects your financial information. In this case, you will need to work directly with the IRS to give them your electronic refund deposit information.

Q: Can Gusto amend any return?

A: No. Gusto can only amend returns we originally filed and accepted, and only for the last 8 quarters.

Q: What if Gusto didn’t file my original return?

A: You’ll need to amend it directly with the agency, usually with the help of an accountant.

Q: Where do I find an amended return completed by Gusto?

A: Go to Taxes & Compliance → Tax documents → Amended forms. If you don’t see the tab, the amendment is still in progress.

Q: Who pays penalties or interest from an amendment?

A: The employer is responsible for paying any penalties or interest charged by the agency.

Q: Can Gusto amend unemployment returns for updated rates?

A: No. If a rate changes after the quarter is closed, you must pay or accept refunds directly with the agency.