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Report previous payrolls: Basic info

  1. It is critical that you provide previous payroll information to Gusto because an employer can only issue one W2 per employee per year.

  2. There is a difference between a check date and the pay period:

    • The check date is the date the employee was paid. This date determines your payroll tax liability and will be the date you’ll enter when reporting previous payrolls. The pay period is the period of time during which the wages were earned.

    • For example, if an employee worked from December 15th to December 31st and was paid on January 15th, the pay period is the 15th - 31st and the check date is January 15th.

  3. Reimbursements: Business-related expenses incurred by the employee that are reimbursed on a non-taxable basis. Enter zero when reporting previous payrolls if no reimbursements were paid.

  4. Exemptions: If your employee has tax exemptions, you’ll need to return to the employee setup before entering the employee’s paystubs. Check out our article on how to add exemptions for more details. 

  5. Social Security and Medicare: Social Security and Medicare are flat tax rates of 6.2% and 1.45% of taxable wages, respectively.  

    • Do NOT enter Gusto’s values if your figures don’t match. Double check that the employee wages, deductions, and reimbursements as well as employer contributions are all properly allocated.

    • If you cannot find the source of the error please reach out to our Success team at success@gusto.com and they will assist with troubleshooting.

  6. Errors saving paystubs: This can be due to several different reasons.

    • Not entering year-to-date values. Be sure that you’re entering year-to-date values, not just the values for the current pay period.  Most providers include these details on each paystub.  If not, you may need to add up the previous paystubs to get the year-to-date values.

    • Entering employee and employer paid benefits in the wrong box. Check that employee deductions haven’t been entered as employer contributions and that pre-tax/post-tax deductions are entered in the corresponding boxes.  All post-tax deductions should be grouped in the “Post-Tax Deductions” field. If you’re unsure what to enter, hover your cursor over the box to view tooltips.
    • Forgetting to enter a value. Double check that all boxes are filled in, including the reimbursements field. If you did not pay out any reimbursements please put a zero in the box.