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Map your chart of accounts from Xero to Gusto

When setting up your mappings you will be prompted to add:

  • Earnings Types (Regular, Bonus, Commission etc.)
  • Employer Taxes
  • Reimbursements
  • Benefit Expenses
  • Benefit Liabilities
  • Deduction/Garnishment Liabilities
  • Owner's Draw

Once all payroll items are matched with the corresponding accounts, the building blocks are in place for the Bill that Gusto will sync over into Xero.

The more accounts you choose when setting up your integration, the more detail there will be in the line entries on your Bills. More detail in the Bill results in more detailed reports in Xero (expense reports, outstanding liability reports, etc.)

For example, if you'd like all wages from all employees to go to the same expense account, regardless of what type of earnings they are, you would select the exact same expense account for all earnings items. For reporting purposes you would have one expense account item measuring all earnings.

If you'd like to break out different types of earnings into different expense accounts you can make different account selections for each earnings type.  For example, you could have one expense account for vacation pay and a different expense account for overtime.

Job mappings

Job code mapping is another way to add additional granularity. Mapping accounts by job is useful for businesses with multiple employees in the same role and when some employees work some hours in one role and other hours in another role. 

Hourly employees can be assigned to multiple roles while salary employees can only be assigned to one role. 

This means you can have the earnings of one job go to one account and the earnings of a second job go to a different account. This will expand the entry we send over into the accounting software.

Department mappings

Department mappings are another way to add additional granularity. With department mappings you can use different accounts for the different payroll items within a department.  This means you can have the earnings of one department go to one account and the earnings of a second department go to a different account.  This will expand the entry we send over into the accounting software.

As an example, I have two departments: Design and Marketing.  Before I enabled department mappings, all regular wages earned went to one "salaries and wages" expense account.  After enabling department mappings, I can use two expense accounts: a "Sales Wages" expense account and a "Marketing Wages" expense account.  When running reports in my accounting software I will have this additional breakdown.

Tracking categories

When setting up your mappings, you will simply align a department with a Tracking Category. The result will be the same accounts in your default mappings that are used for each department will now be tagged with Tracking Categories. The line entry will then tie to your dimensional reporting needs in your accounting software. You can even have a combination of different expense accounts with different Tracking Categories.

Project mapping

When setting up your mappings, you can associate specific project work to specific Tracking Categories. Mapping by projects (as opposed to job codes or departments) is good for businesses with multiple people in the same role and when some employees work hours in one role and other hours in another role.

Benefits and deductions

Since Gusto does not take any money for benefits or deductions, we include a mapping for benefit/deduction liabilities. This will create line items within the Bill and accrue an amount owed for the benefit/deduction. When the benefit/deduction is then paid to the correct party, in Xero you can offset your liability and zero out the amount owed.  

Click here to learn more about mapping your accounts.

Mapping FAQs

Q: If I update my mappings, can I re-sync a payroll to update the Bill?

A: Yes 

Q: Do you book the wage expense as gross wages or net wages?

A: Gross wages, meaning the wage expense will include employee pay, employee taxes, and employee deductions. Employer taxes and employer contributions will have their own expense line item. 

Q: Do you break out individual taxes?

A: We do not break out individual taxes. By transitioning to Gusto you will no longer have tax payments coming over to your balance sheet as a liability. Taxes are handled on a cash basis instead of an accrual basis, our tax debits for each payroll are considered a closed transaction.

  • Q: Which Xero account types are currently surfaced in Gusto for 'all mappings'?'
  • Current Asset account
  • Current Liability account
  • Direct Costs account
  • Equity account
  • Expense account
  • Liability account
  • Non-current Asset account
  • Overhead
  • Bank account

Q: Can I post over individual employee payroll information?

A: Gusto does not currently support mapping for individual employees. Payroll information is pushed over at the company level.

However you can accomplish this by using Departments. Add one employee to each team, which can then map to specific accounts. Post this over to see the individual employee payroll details. 

Payroll, benefits, HR and more.