Update your federal tax withholding elections on a computer
For personal tax advice, consult a CPA or licensed tax advisor—we cannot advise on your personal W-4 elections. If needed, additional resources can be found below the instructions.
- Sign in to your employee account.
- Go to the Job & Pay section.
- Scroll to “Federal Taxes” and click edit.
- The selections you’ll make correspond to the IRS’s Form W-4.
- Box 1(c)–Enter your federal filing status, this is the only required field.
- More information about the “Head of household” option can be found by clicking the question mark icon on this IRS page (next to the question itself).
- If you select “Exempt from withholding”, we won’t withhold federal income taxes, but we’ll still report taxable wages on a W-2.
- Keep in mind: Anyone who claims exemption from withholding needs to sign a new W-4 (or update their withholding in Gusto) by Feb 15 of each year—more information below.
- Complete the optional next sections only if they apply to you—otherwise, skip these.
- Box 2(c)–Multiple job: Answering this results in higher withholding, but to preserve privacy, this can be left unchecked.
- Box 3–Dependent total: If your total income will be $200,000 or less ($400,000 or less if married filing jointly), add the amounts below and enter the total in Gusto.
- Multiply the number of qualifying children under age 17 by $2,000;
- Multiply the number of other dependents by $500.
- Box 4(a)–Other income, not from jobs: If you want tax withheld for other income you expect this year that won’t have withholding, enter the amount of other income here. This may include interest, dividends, and retirement income.
- Box 4(b)–Deductions: If you expect to claim deductions other than the standard deduction and want to reduce your withholding, use the “Deductions Worksheet” on page 3 of the W-4 instructions and enter the result in Gusto.
- Box 4(c)–Extra withholding: Enter any additional tax you want withheld each pay period.
- Click Save.
- Click Sign Document and sign your new W-4 form.
- You can also review and sign this form later in your Documents section.
Your changes will take effect the next time your employer runs payroll. On or after the check date, view your paystub and review your withholding under “Employee Taxes Withheld.”
Update your tax withholdings on the Gusto Wallet app
- Sign in to your account on the mobile app.
- Go to the You tab.
- Select Tax Elections.
- Click edit for the sections that need to be updated.
- Click Save.
- Click Sign Document and sign your new W-4 form.
- You can also review and sign this form later in your Documents section.
Your changes will take effect the next time your employer runs payroll. On or after the check date, view your paystub and review your withholding under “Employee Taxes Withheld.”
Related resources
- Form W-4 and the Form W-4 worksheet
- IRS W-4 FAQs
- IRS tax withholding estimator
- Gusto’s blog on how to fill out the 2023 W-4
Update your state tax withholding elections
- Sign in to Gusto.
- Go to the Job & Pay section.
- Scroll to the applicable “[State] taxes” section and click edit.
- Enter your state filing status.
- If you choose “Do Not Withhold,” or in some state-specific cases, “Yes, you’re exempt from withholding,” Gusto won’t withhold state income tax from your wages. All taxable wages will still be reported on your W-2.
- Fill out the remaining fields.
- Click Save.
Your changes will take effect the next time your employer runs payroll. On or after the check date, view your paystub and review your withholding under “Employee Taxes Withheld.”
