When you register your practice as an employer with your state, the state starts expecting a payroll tax return every quarter. That includes quarters where you haven't paid any wages yet.
Heard Payroll is powered by Gusto, and Gusto becomes your authorized filer starting with the quarter of your first payroll. If you registered with your state, or set an employee start date, in an earlier quarter, Gusto can't file the returns for those earlier quarters, including ones that are already past due. These are called "no payroll" or "$0" returns, and you file them directly with your state agency.
Who this applies to
This applies to you if your state registration or employee start date falls in an earlier quarter than your first payroll.
For example: you register with your state in August (Q3) and run your first payroll in October (Q4). Gusto files your Q4 return and every quarter after that. Gusto doesn't file the Q3 return, so you'll file it as a $0 return directly with your state.
This is a one-time filing for the quarters before your first payroll. After that, Gusto generally files each quarter for you, including quarters with $0 in wages.
To avoid a gap quarter, set your start date to the day you enroll in payroll and run your first payroll in the same quarter you register with your state.
What happens if a $0 return isn't filed
If your state doesn't receive a return for a quarter, it may mark your account as delinquent. You might receive a notice showing an estimated balance plus a penalty, even though you didn't pay any wages that quarter.
That balance is usually an estimate, since the state didn't receive a return for that quarter. Filing the $0 return gives the state the information it was missing and updates your account with your real wages for the quarter. For questions about penalties, your state agency is the best source.
How to file a $0 return
Each state has its own portal and filing steps, so the exact process depends on your state. The Heard Payroll team isn't able to complete the $0 filing for you.
- Find the missing quarters. Compare the quarter of your state registration or employee start date with the quarter of your first payroll. Each quarter in between gets a $0 return.
- Log in to your state's payroll tax portal.
- File a return for each missing quarter with $0 in wages.
- Save your confirmation. Keep a copy of each filing confirmation for your records.
- Upload your confirmation. Add it to Documents > Taxes in Heard so it's on file with your other tax records.