Update a tax deposit schedule (state or federal)

If you need to change your state deposit schedule, learn how here.

Based on your historical tax payments, the IRS will assign your company and deposit schedule for tax payments (either semi-weekly or monthly), and they'll assign a specific payroll tax return to file either Form 941 or Form 944.

How it works in Gusto

IRS deposit schedules

We'll default to depositing on the faster semi-weekly schedule to prevent late tax payments, penalties, and tax delinquency notices.

• Important: If you specifically instructed us 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.

IRS filing form (941 or 944)

To prevent late filings, we'll file the quarterly Form 941 for:

• Existing customers
• New customers that run payroll with us in the first quarter (Q1) of each year

If you joined us after Q1, confirm which form the IRS assigned and set up your customer account using the IRS-assigned form requirement. 

We'll automatically file Form 941 the following year, and you'll no longer need to confirm the requirement each year.

Update your federal filing form in your customer profile (to 941 or 944 if joining after April 1 in the current year)

As a reminder, we'll default to depositing on the faster semi-weekly schedule to prevent late tax payments, penalties, and tax delinquency notices.

1. Sign in to Gusto.
2. Click the Taxes & Compliance section and select Tax setup.
3. Under "Federal Tax Setup," click edit. 
4. Click Schedule a future change.
   • If you do not see this, contact us from the Help (?) section of your account. 
5. Select the Effective Date of the new filing form. 
   • Wait until October 1 or after to make changes that go into effect the following year.
6. Enter the future filing form change you received on your IRS notice. 
7. Click Save. 

Additional details about Form 944

The IRS allows certain small businesses to file annually on Form 944 instead of quarterly on Form 941. While this may seem like a benefit for small employers, the IRS may change your filing requirement mid-year, which could result in notices and penalties if returns are late.

Filing more frequently (on Form 941) is the best way to prevent that from happening, and it costs the same, no matter how frequently we file (quarterly or annually).

A deposit schedule (also called a filing frequency) tells you how often your company must send payroll taxes to a state. Each year, the state may change your schedule based on how much tax you paid last year.

When do deposit schedules change?

State agencies may send new deposit schedules at the end of the year for the next calendar year. Your company may need to deposit more or less often than before.

What to do if you get a new deposit schedule from the state

To change your tax deposit schedule:

1. Sign in to your Gusto admin account.
2. Go to Taxes & Compliance and click Tax setup.
3. Scroll to the state name, and click Manage Taxes.
4. Scroll to "Tax Account Details".
5. Find "Deposit Schedule" or "Filing Frequency" and click edit.
   • You may not see these titles, or be able to edit the payment schedule if:
     • Gusto handles the schedule automatically.
       • We'll use the fastest deposit schedule available to avoid late payments (only in select states).
     • There are no active employees in that state.
6. Click Add a new schedule.
7. Enter the schedule from the notice.
8. Set the Effective Date (usually Jan 1, or the start of a quarter: Apr 1, Jul 1, Oct 1).
   
   • Important: If you enter the schedule after the notice deadline, your company is responsible for any penalties.
   • Wait until October 1 or after to make changes that go into effect the following year.
9. Click Save.

How to view past tax deposit schedules

To view past tax deposit schedules in your account:

1. Sign in to your Gusto admin account.
2. Go to Taxes & Compliance and click Tax setup.
3. Scroll to the state name, and click Manage Taxes.
4. Scroll to "Tax Account Details".
5. Find "Deposit Schedule" or "Filing Frequency" and click edit.
6. Click Add a new schedule to view past schedules you've had in Gusto. 

Why can't I edit the deposit schedule?

You may not see an option to edit if:

• Gusto handles the schedule automatically.
  • We'll use the fastest deposit schedule available to avoid late payments (only in select states).

• There are no active employees in that state.

What to do if you think Gusto is using the wrong deposit schedule

If you think Gusto is not depositing taxes on time:

• Go to the section in your Gusto account to contact support, or;
• Upload the state notice in Gusto—we’ll review the issue and walk you through the fix.

How to fix a deposit schedule mistake

If you entered the wrong tax deposit schedule in Gusto:

1. Sign in to your Gusto admin account.
2. Go to Taxes & Compliance and click Tax setup.
3. Scroll to the state name, and click Manage Taxes.
4. Scroll to "Tax Account Details".
5. Find "Deposit Schedule" or "Filing Frequency" and click edit.
6. Click Make a correction, instead of Add a new schedule.
7. Update the schedule with the correct information.

State or local withholding tax deposit schedule notice

These notices let you know of a change to your withholding income tax deposit schedule for a specific agency, and the day it'll become effective—usually listed at the top of the notice.  

• Example: A notice might say “We determined your new deposit schedule for the new tax year."

Determine the new withholding tax deposit frequency (ex. semi-weekly, monthly, quarterly) and update it in Gusto as needed.

IRS withholding tax deposit schedule notice

Gusto defaults to depositing on the faster semi-weekly schedule to prevent late tax payments, penalties, and tax delinquency notices.

Unless you've specifically contacted Gusto and requested we make your payments monthly, no action is needed.

If you asked us make monthly payments and need to change it to semi-weekly, you'll need our help. If not done immediately, penalties and interest may be assessed for late tax deposits—these would be the employer's responsibility to pay.

To contact us, sign in to your Gusto account and click the help icon in the top-right corner of the page.