Does Gusto Report to the IRS?

Yes. Gusto not only streamlines payroll and tax reporting for employers but also extends its user-friendly interface and functionalities to employees, making it easier for them to manage their taxes and understand their pay. One of the standout features is the ability to import W-2 forms directly into TurboTax, simplifying the tax filing process.

Direct W-2 Import to TurboTax

• Simplified Tax Filing: Gusto’s integration with TurboTax allows employees to directly import their W-2 information into TurboTax when they are preparing their taxes. This feature eliminates the need for manual data entry, reducing the potential for errors and saving time during the tax filing process.
• Access to W-2 Forms: Employees can access their W-2 forms through their Gusto account as soon as they are available, well before the IRS deadline for employers to distribute these forms. This early access enables employees to get a head start on their tax preparations.
• Secure Data Transfer: The direct import feature utilizes secure data transfer protocols to ensure that sensitive personal and financial information is protected throughout the process.

Additional Employee Tax Features

• Year-Round Access: Employees have year-round access to their paystubs and tax documents through the Gusto platform, allowing them to review their earnings, withholdings, and other pertinent information at any time. This accessibility is particularly useful for financial planning and when addressing any tax-related queries.
• Tax Support and Resources: Gusto provides employees with tax support and resources, including FAQs, guides on understanding their W-2 forms, and tips for tax filing. This educational content is designed to demystify the tax filing process and empower employees to manage their taxes more effectively.
• Real-Time Notifications: Employees receive notifications about important tax document availability, such as W-2 and 1099 forms, ensuring they are aware of when their tax information is ready for review and use.

Gusto’s comprehensive approach to payroll and tax management extends significant benefits to both employers and employees. For employees, Gusto’s integration with TurboTax and its suite of tax-related features simplify the tax filing process, enhance understanding of payroll documents, and provide tools for better financial management. By reducing the complexities associated with tax reporting and filing, Gusto empowers employees to handle their tax obligations with confidence and ease.

Types of Reports Gusto Files with the IRS

Gusto automates the filing of several essential reports to the IRS on behalf of businesses, including but not limited to:

1. Form 941 (Employer’s Quarterly Federal Tax Return): This form reports the federal withholdings from employees’ paychecks for income tax, Social Security, and Medicare taxes. Gusto calculates these taxes each payroll and files this form quarterly to report the totals.
2. Form 940 (Employer’s Annual Federal Unemployment (FUTA) Tax Return): This form is filed annually and reports the employer’s federal unemployment tax liability. Gusto calculates the FUTA tax based on the wages paid to employees and files this form on behalf of the employer.
3. Form W-2 (Wage and Tax Statement): At the end of the year, Gusto generates W-2 forms for each employee, which summarize the yearly wages paid and taxes withheld. These forms are then distributed to employees and filed with the Social Security Administration (SSA), which shares the information with the IRS.
4. Form 1099 (Miscellaneous Income): For businesses that work with freelancers or independent contractors, Gusto facilitates the filing of Form 1099, which reports payments made to these non-employee workers.