How ADP, QuickBooks Payroll & Gusto Can Help with Unpaid Payroll Taxes

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Ergedine Pericles, February 24, 2025

Why Unpaid Payroll Taxes Are a Major Business Risk

Unpaid payroll taxes can lead to IRS penalties, tax liens, wage garnishments, and legal action. Many businesses fall behind because they don’t have automated payroll tax systems in place. This is a common problem for small businesses.

The solution? Payroll providers like ADP, QuickBooks Payroll, and Gusto help businesses:

Accurately calculate and pay payroll taxes
Prevent IRS penalties and interest
Automate payroll compliance across multiple states
Save money by including key HR features in one system
Ensure payroll tax payments are sent immediately to the IRS and state agencies instead of waiting until quarterly deadlines

Let’s compare which payroll provider offers the most value for your business. Choosing the right payroll software is crucial for financial health.

Real-Time Payroll Tax Payments: Preventing Unpaid Payroll Taxes

Immediate Payroll Tax Payments: Unlike older payroll systems that wait until the end of the quarter to remit taxes, ADP, QuickBooks Payroll, and Gusto automatically pay payroll taxes to the IRS and state agencies as soon as wages are processed. This is a key feature in preventing unpaid payroll taxes.

Prevents using payroll tax funds for other expenses: Since taxes are paid immediately, businesses can’t accidentally spend money meant for payroll taxes, reducing the risk of unpaid payroll tax debt.

Avoids IRS penalties & interest: The IRS imposes steep fines for late payroll tax payments. Real-time tax payments help businesses stay compliant and avoid these costly penalties.

Ensures cash flow accuracy: Businesses know exactly what they owe for payroll without a surprise tax bill later. This improves cash flow management.

Payroll Software Features & Which Plans Include Them

Features	ADP	QuickBooks Payroll	Gusto
Best For	Large businesses with complex payroll needs	Small businesses using QuickBooks	Startups & growing businesses
Automated Payroll Tax Filing	✅ Included	✅ Included	✅ Included
Real-Time Tax Payments to IRS & State	✅ Included	✅ Included	✅ Included
Tax Penalty Protection	✅Yes, Included with HR-focused Plans	✅ Yes, Higher Plans	✅ Yes, Higher Plans
Direct IRS & State Tax Payments	✅ Included	✅ Included	✅ Included
Integrated Time Tracking	✅ Yes, Included with HR-focused Plans	✅Yes, Higher Plans	✅ Included
Mileage Tracking	❌ No, but Integrates with third-party apps	✅ Yes, Higher Plans, however with QuickBooks Online included with All Plans	✅ Yes, Higher Plans
Mobile App	✅ Included	✅ Included	✅ Included
Employee Handbook Creation	✅ Yes, Included with HR-focused Plans	❌ No	✅ Yes, Higher Plans
Background Checks	✅ Yes, Included with HR-focused Plans	❌ No	✅ Yes, Higher Plans
Multi-state	✅ Included	✅ Yes, Higher Plans	✅ Yes, Higher Plans
1099 Independent Contractor	✅ Included	✅ Included	✅ Included
Number of Software Integrations	100	750	150
Customer Support	✅ (Chat & Phone)	✅ (Chat & Phone)	✅ (Chat & Phone)

Need help with payroll tax issues? Contact us today!

Can These Payroll Providers File Back Payroll Tax Returns or Amend Incorrect Filings?

QuickBooks Payroll

Cannot file unfiled back payroll tax returns but can help you correct errors within current or recent periods through manual adjustments.

Gusto

Can amend previously filed payroll tax returns if an error is detected.
Cannot file unfiled back payroll tax returns but provides reports to assist in the process.

ADP

Offers amendment services for incorrect payroll tax filings.
Can assist with back payroll tax returns through its compliance support services (varies by plan).

Which Payroll Solution Saves Your Business the Most Money?

Many businesses spend thousands per year on extra software for:

Time tracking & mileage tracking
Employee handbook creation
Background checks
Multi-state payroll tax compliance

QuickBooks Payroll (Higher Plans) includes mileage tracking & tax registration in all 50 states, eliminating the need for extra compliance software.

Gusto (Higher Plans) includes time tracking, background checks, and employee handbook creation, saving businesses from using separate HR tools.

ADP (HR Plans) provides customized HR services, background checks, and employee handbooks, making it ideal for businesses needing all-in-one payroll & HR.

👉 Get started with the best payroll provider today!

🔗 Sign up for ADP Payroll
🔗 Get QuickBooks Payroll
🔗 Try Gusto Payroll

How to Get Payroll Tax Back on Track

If you’re behind on payroll taxes, take action now:

File missing payroll tax returns to reduce penalties.
Set up an IRS payment plan for back taxes.
Use a payroll provider like ADP, QuickBooks Payroll, or Gusto to prevent future payroll tax problems. These platforms automate tax calculations and payments, minimizing the risk of errors and missed deadlines that lead to unpaid taxes.
Work with a tax professional if your payroll tax debt is significant.