Payroll tax management with the push of a button

Payroll taxes are no one’s cup of tea. But with Gusto, you can kick back and relax knowing your federal, state, and local taxes are taken care of. With every payroll you run, we make sure your taxes are paid, deductions made, forms are filed, and you stay compliant every step of the way.

How Gusto works Create account

Payroll taxes from coast to coast

Gusto’s got payroll taxes covered in all 50 states, so it’s the same simple process no matter where you or your employees call home.

Less risk, less worry

Compliance violations and missed deadlines can cost your business big time. Avoid risk, limit your liability, and breathe easy with built-in compliance.

Fully automated, fully free

Not only does Gusto handle the tough stuff, but payroll taxes are seamlessly integrated, automatically calculated, and completely free with all of our plans.

“I love how Gusto takes care of all the tax payments for each paycheck done, and at the end of the year they have all the documentation required when filing taxes.”

Virginia Hernandez

LLC, Texscapes and Patios LLC

Worry-free compliance

State and federal, employee or contractor, we’ve got you covered.

Payroll taxes are time-consuming and complex—and the rules change every year. Miss a beat, and compliance violations can mean penalties, audits, back pay, and more. But you can feel confident knowing your federal and state taxes are paid accurately and on time, your employer contributions to benefits are covered, and it’s all completely free of charge with Gusto.

Easy remote hiring

Grow your business without growing your admin.

Hiring across state lines gives you the power to build your team with the best people, no matter where they live. But with different taxes, requirements, and regulations in every state, it can feel like more work than it’s worth. Lucky for you, Gusto has built-in payroll tax and hiring compliance for all 50 states, meaning you can expand your search from coast to coast without adding complexity to your payroll.

Automated payroll

Streamlined and stress-free—we’ll take care of your payroll taxes.

Spend less time worrying about FICA and FUTA and more time growing your business. Automating your payroll taxes saves you time, money, and a whole lotta stress. We also integrate with your favorite accounting software—including Quickbooks and Xero—so you’re just a few clicks away from being ready come tax time. Just review and approve your payroll each period, and leave the rest to us.

How does payroll tax management work?

Gusto offers payroll tax services completely free of charge with all of our plans. We calculate how much both you and your employee need to pay each pay period, we automatically deduct the taxes from your account (and from your employee’s paycheck), and we file all the necessary state and federal forms each quarter. We can also e-file and send out end-of-the-year tax forms like 1099s and W-2s.

What payroll taxes do I have to pay?

Payroll taxes are paid both by the employer and the employee, but you’re each responsible for different ones. Employers are responsible for FUTA (federal unemployment tax), SUI (state unemployment insurance), local taxes, and any employer contributions. Medicare and social security taxes need to be paid by both the employer and the employee. And your employees must pay federal and state income tax, along with any employee deductions (such as for healthcare or other benefits). To see your estimated payroll tax liability, check out this handy payroll tax calculator.

Do I have to pay payroll taxes for remote workers?

Yes. But don’t worry. Gusto’s tax management services cover workers in all 50 states—whether remote or in-house, contractor or full time. When you hire an out-of-state employee, we’ll walk you through all the steps to get them set up and paid in their state, and everything works on autopilot from there!

What is payroll compliance?

Federal and state regulations are endlessly complex. Payroll compliance means keeping up to date with tax codes, wage and hour rules, and myriad forms that both states and the federal government require. Employers are responsible for paying their own taxes (of course) but also for paying withholding taxes for their employees in addition to staying on top of wage garnishments and overtime laws. Our payroll tax software handles all of this and more automatically so you can be 100% sure your business stays compliant.

What payroll tax forms does Gusto file?

Gusto’s payroll tax compliance software files all of the forms you’re required to file—both federal and state—automatically. This includes Form 944 (Employer’s Annual Federal Tax Return) or Form 941 if you’re a quarterly filer, FUTA (Employer's Annual Federal Unemployment Tax Return), Form 940 and Schedule A (Multi-State Employer and Credit Reduction Information), and Form 8974 (Qualified Small Business Payroll Tax Credit). Check out a complete breakdown of the payroll tax forms we file here.