Summary
Solution
Gusto Giving allows you to support charities you care about by donating directly from your paycheck. We'll handle the payroll deductions, Form W-2 reporting, and donation processing. Your employer has the option to match donations. Ask your employer to confirm your company's matching policy.
How it works
With Gusto Giving, employees can donate parts of their paycheck to non-profits of their choice from FrontStream’s database of 501(c)3 IRS-recognized organizations.
Employees can make a one-time or recurring donation. Employers have the option to match donations. If they do, employees will see it on their pay stub.
We get $0 from contributions and do not charge additional fees for charitable transactions.
W-2 reporting
Donations are 100% tax-deductible.
We automatically report annual charitable donations in Box 14 of employees’ Form W-2. This means employees do not need to keep receipts when donating to charities through Gusto.
View donations in Gusto
To view past and upcoming donations:
- Sign in to Gusto.
- In the left menu, go to Giving. Here you can see all upcoming donations.
- To view past donations, click Donation history.
Pay stubs include the donation amount, name of the charity, and the employer match, if any.
Donor information shared with the charity
If the charity signs up for a FrontStream account (required for electronic funds transfer (EFT) deposits), they can view a donor report that includes the employee's first and last name. For charities without a FrontStream account that get check payments, they will not be able to view employee names.
Gusto Giving allows you to support charities you care about by donating directly from your paycheck. We'll handle the payroll deductions, Form W-2 reporting, and donation processing through our partner, FrontStream.
- Sign in to your Gusto employee account.
- Go to the Giving tab.
- Click Make a donation.
- Search your charity by name or EIN.
- Click Save and continue.
- Choose how much you'd like to donate.
- To make it a recurring donation: Click the toggle next to "Per paycheck." On each paycheck going forward, you'll be deducted the selected amount.
- Click Save and continue.
- Review your donation amount and click Set up donation.
On the next payroll run, Gusto deducts the donation from your paycheck and sends it to FrontStream. Your charity will receive the donation from FrontStream in the following month.
You can view upcoming and past donations anytime from the Giving section of your employee account.
Taxes and reporting: Deductions are taken post-tax. Gusto automatically reports your annual charitable donations in Box 14 of your Form W-2. This means you do not need to keep receipts when donating to charities through Gusto.
About FrontStream, our donations partner
All donations are processed through FrontStream, an industry leader in online donations. A little about them:
- Charities can receive donations whether or not they have a free account with FrontStream.
- Donations made to charities that do not have a FrontStream account are issued by check and incur a check issuance fee. For this reason, we recommend ensuring organizations are signed up for ACH distribution. To add an organization, have them contact FrontStream by email at vetting@frontstream.com.
- FrontStream charges a 3.6%1 service fee per donation to pay banks, credit card companies, and cover other associated costs of processing donations. See FrontStream's Terms & Conditions for more details.
- By donating, you're creating a FrontStream account. Your email will be shared with FrontStream and the nonprofit you selected.
You can cancel upcoming charitable donations in your employee account as long as the donation has not yet been processed.
- Sign in to your Gusto employee account.
- Go to the Giving section.
- Under "Upcoming donations," find the donation you want to cancel. Click the three dots icon in the Actions column.
- Click Cancel donation.
- Confirm your cancellation.
On the next payroll run, you will no longer be deducted for the donation you canceled.
You can edit an upcoming donation through your employee account as long as the donation has not yet been processed.
To choose a different charity, first cancel your current donation and then set up a new one.
Here's how to change a donation amount or frequency:
- Sign in to your Gusto employee account.
- Go to the Giving section.
- Under "Upcoming donations," find the donation you want to change. Click the three dots icon in the Actions column.
- Choose Edit donation.
- Indicate how much you'd like to donate.
- To change whether this is a one-time or recurring donation, click the toggle next to "Per paycheck."
- Click Submit.
Your change will be reflected on the next payroll run.
1. As of 7/1/2024, service fees increase from 3.5% to 3.6%.
