Payroll tax management with the push of a button

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.

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.

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!

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.

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.