This article is for admins who want to connect their Gusto account with QuickBooks Online.
QuickBooks Online is an online platform for small to medium-sized businesses. Features include expense tracking, data entry, mobile compatibility, and accountant access.
When you connect your Gusto and QuickBooks Online accounts, we build and sync a detailed journal entry into QuickBooks Online each time you run payroll. We pull your chart of accounts directly from QuickBooks Online and use your customized accounts to create a journal entry. You can also add more detail based on earnings types, Gusto departments, and QuickBooks Online classes.
Gusto Accountant Partners who have clients with QuickBooks Online connected to Gusto can track a payroll budget using payroll to revenue ratio and see how much it will cost to hire a new employee with our People Analytics tool.
You need admin permissions in both Gusto and QuickBooks Online to connect the accounts.
To connect to QuickBooks Online:
Go to the App directory.
Search for QuickBooks Online and select it.
Click Connect.
Enter your QuickBooks Online credentials.
If you're an accounting firm: First, select your firm. Then select the specific company you manage.
Click Authorize to sync QuickBooks Online and Gusto.
Setting your default mappings is optional but we recommend it to avoid sync errors. This feature lets you choose which QuickBooks Online accounts to use by default for new payroll categories. When you add a new item in Gusto, you will not need to map it manually. We'll automatically apply your default mapping.
To set your default mappings:
Go to the Default tab.
For each section (Wages & Salaries, Employer Taxes, etc.) you want to map, select the QuickBooks Online account where new categories should map.
If you have unmapped categories in the Detailed tab, we'll ask if you want to apply your default mappings to those categories. This can help you complete your mappings faster if you use the same chart of account for multiple categories.
If you prefer to map new categories manually when you create them, leave the default mapping blank and map this in the Detailed tab.
Select either an AI-recommended mapping or manually search for your chart of accounts in the search bar or drop-down menu.
Repeat for all sections.
We automatically save your selections.
For more information about default mappings, go to the "Default mappings" section of this article.
Detailed mappings are the more granular breakdown of your defaults. You need to fully map all detailed mappings for the sync to QuickBooks Online to work.
To set your detailed mappings:
Go to the Detailed tab.
Click any section (Wages & Salaries, Employer Taxes, etc.) to expand the view.
For each Gusto category, click the search box and choose the matching QuickBooks Online account.
To select your detailed mapping:
You can select from the AI-recommended mappings
If you do not see the account you want, start typing the account name to find it.
If you still cannot find an account you'd like to use: Create the account in QuickBooks Online then click Refresh chart of accounts in Gusto.
Learn more about types of accounts and commonly used pairings.
Repeat until you've selected an account for each Gusto category. We automatically save your progress as you go.
Unmapped categories move to the top of the list. You will know the section has been fully mapped when the pill on each section turns green.
Note: Accounts Receivable and Accounts Payable account types are not supported at this time because these require a contact to be used with the account. Asset and Liability accounts are supported without a contact.
For more information about account types and common pairings, click here.
Time-saving tips
To map multiple items at once:
Check the box next to each item you want to map.
Click Actions at the top.
Choose Edit account type.
Type the account name and select it.
Click Submit.
To show unmapped items only:
Next to Actions, click the filter icon.
Select Display unmapped accounts only.
Click Apply.
If you want to customize your integration further, you can do so in Settings under the Manage tab in the integration. Options include breaking journal entries down by department, employee, job title, or project, breaking down the Employer Taxes section to more granular taxes, consolidating contractor payment syncs, or changing when your journal entry is posted.
For a description of each setting and how to set them up, go to the "Customize your integration" section of this article.
Q: If I update my mappings, can I re-sync a payroll to update the journal entry?
A: Yes, you can update mappings at any time. If you need a previous journal entry to be updated with your latest mappings, go to the "Sync or re-sync journal entries manually to QuickBooks Online" section of this article.
Q: How do I break out individual employee payroll items?
A: Under Settings, click Manage. Next to Journal entry consolidation, click Edit and select By Employee, then click the Employee tab under Detailed.
Q: Can you break down payroll taxes on the journal entry?
A: Yes, you can choose to not consolidate your payroll taxes, which will break down the employer taxes. To do this, under Settings, click Manage. Under Employer tax consolidation, click Edit and choose Don't consolidate. This means when the journal entry pushes over to QuickBooks Online, it will separate the employer taxes. At this time, we do not support mapping each individual employer tax.
Q: Why can I only choose an expense account for employer taxes?
A: Since we withhold and pay all payroll taxes for you, there is no reason to record this as a liability.
Q: What if I will not be using one of the payroll items listed?
A: You still need to map the item to a QuickBooks Online account. If the payroll item does not apply to you, no data will sync related to the account selected in your entry. Only payroll items that apply to a processed payroll will appear in the synced entry.
Q: Can I include employee benefit deductions on the journal entry?
A: We include employee deductions in the gross wages amounts that appear on the journal entry. We do not track these separately because they're not an extra expense to the company beyond what we already report for wages. We include employee deduction amounts in the Benefit Liability along with the Employer Contributions. Go to "Map benefits and deductions" above to learn more.
Q: Can I break out unique reimbursements through separate mappings?
A: No, not at this time. We push all reimbursements over as a lump sum (e.g. Cell Phone Reimbursement + Gym Reimbursement + Office Supplies Reimbursement).
When you make changes to your Gusto account (like adding a custom deduction, creating a new earnings type, or setting up a new benefit), we create new payroll line items. You need to map these items to an account in QuickBooks Online. If you do not map them, they can cause sync issues. Setting up default mappings can help prevent this problem.
Default mappings let you choose which QuickBooks Online accounts to use for new payroll categories. When you create a new line item, you will not need to map it manually. We'll automatically apply your default mapping.
Example: You create a new earnings type in Gusto. It appears under Wages & Salaries. If you already set a default mapping for Wages & Salaries, the new line item automatically maps to your default QuickBooks Online account. Your sync continues without interruption.
Setting up default mappings is optional. If you prefer to map new Gusto categories manually, simply leave the default mapping blank.
You can change default mappings at any time in the Default tab. Your changes only apply to new journal entries going forward.
Q: Why can't I find the QuickBooks Online account I need in the drop-down menu?
A: The initial list in the dropdown menu shows recommended accounts based on the category you selected. To choose a different account, type the account name into the search box. If you still cannot find the account, you might need to create it in QuickBooks Online first. Once you create the account, click Refresh chart of accounts in Gusto and search for it again in the search box.
Q: Do I need to select a default for each section?
A: No, you do not need to select a default for every section. If you prefer to map specific sections manually, leave those sections blank.
Q: What happens if I do not set up default mappings?
A: Default mappings automatically map new or unmapped categories in the Detailed tab. If you do not turn on default mappings, you need to manually select the correct account for each new payroll category in the Detailed tab.
Q: When does Gusto create new mapping categories?
A: We may create new categories in your integration when you:
Add a deduction
Create a new earning type
Set up a benefit for the first time
Set up a new time-off policy
Move to new states such as New York or Hawaii
Request payroll adjustments
Each of these actions can introduce new payroll categories that you need to map to keep your integration running smoothly.
Q: If I set up or change default mappings, will that change what I already mapped on the Detailed tab?
A: No. Your changes only apply to new categories added in the future. If you have unmapped categories in that section, you can choose to apply the default account to fill them in. You can still manually update any existing detailed mappings on the Detailed tab.
Q: Can I change my default mapping selection later?
A: Yes, you can change your default mapping selections at any time. Your changes only affect future journal entries. Your existing journal entries stay the same unless you resync the entry.
You can customize how we sync payroll data to QuickBooks Online. Choose how contractor payments appear, how taxes are grouped, when journal entries post, and more.
To access your sync settings:
Go to the App directory.
Click Connected Apps.
Select QuickBooks Online.
Under Settings, go to the Manage tab.
Find the setting you'd like to review. See below to learn about each setting.
If you pay contractors through Gusto, choose how to sync those payments:
Batch payments into a single entry (recommended for 30+ contractor payments): We group all contractor payments for a given pay date as a single entry. We sync payments (including auto-syncs) at 5pm PT on the payment processing date.
Sync each contractor payment as a separate entry: Each contractor payment appears as its own journal entry.
Choose how you want employer taxes to appear in QuickBooks Online:
Consolidate: Group all employer taxes into a single amount (e.g., "Payroll Taxes").
Don't Consolidate: List out individual tax amounts (e.g., Federal Unemployment, Social Security, Medicare, State Unemployment). This will allow you to map individual employer taxes to the selected chart of accounts.
At this time, only employer taxes are shown on the journal entry, not employee taxes.
By default, we group entries of the same type into a single journal entry. You can also group entries:
By employee
By department
By job
By project (if using Gusto Project Tracking)
To learn more about journal entry consolidation and QuickBooks Online classes, go to the "Journal entry consolidation and QuickBooks Online classes" section of this article.
Select when your journal entry appears in QuickBooks Online:
Check date: The date your employees received their payments
Debit date: The date we debited taxes and net pay from your company's bank account
End of pay period: The end date of the pay period
You can add more detail to your chart of accounts by mapping it by employee, job, department, or Gusto Projects (available to companies using Gusto Project Tracking). If you use QuickBooks Classes, you can also assign a class to each grouping option.
This step is optional.
Step 1: Choose your journal entry consolidation method
To choose how to consolidate your journal entries:
Go to the App directory.
Click Connected Apps.
Select QuickBooks Online.
Under Settings, go to the Manage tab.
Next to Journal entry consolidation, click Edit.
Choose how you want to consolidate entries:
By employee: This gives you more detailed reporting. Example: You can track each employee's wages in separate accounts instead of one "Salaries and Wages" account.
By department: This helps you track wages, taxes, and benefits separately. Example: You can send Design wages to one account and Marketing wages to another, instead of combining everything into "Salaries and Wages." You can also map departments to QuickBooks Online classes if needed. Click here to learn how to turn on departments.
By job: This can split wages, taxes, and benefits by role. Example: You can track cashier wages and cook wages in separate accounts instead of sending all wages to "Salaries and Wages." If you use QuickBooks Online classes, you can also map each job to a class for more detailed reporting. Click here to learn how to turn on multiple job titles for employees.
By project: You must first turn on Gusto Project Tracking. We do not integrate with QuickBooks Projects. You can track wages, taxes, and benefits by project. Example: Instead of sending all wages to "Salaries and Wages," you can split wages into separate accounts for each Gusto Project.
Click Submit.
Step 2: Set up mapping overrides and QuickBooks Online classes (optional)
This step is optional. If you do not apply overrides, we still categorize your journal entries correctly according to what you set on the Detailed tab.
When you select a consolidation method, a new tab appears on the left. Example: If you choose to consolidate by employee, the tab will be labeled Employee. If you consolidate by department, the tab will be labeled Department.
You can override detailed mappings for individual employees, departments, jobs, or projects. When you override a detailed mapping in this tab, you assign different charts of accounts to payroll items at these levels. This will not affect your mappings in the Detailed or Default tabs.
To override consolidated charts of accounts or assign a QuickBooks Online class:
Find the new tab that matches the consolidation method you chose. Example: If you consolidated by employee, go to the Employee tab.
Click Edit.
If your company uses QuickBooks Online classes, you can first choose a tracking category at the top of this page.
If you want to adjust your mappings for this specific consolidation, select the new chart of account from the dropdown for the corresponding Gusto category. This will only apply to this specific consolidation.
You can consolidate journal entries by employee and department when you pay contractors.
You cannot consolidate by job or project when you pay contractors. Job titles and Gusto Projects are not currently supported for contractor profiles. If your company pays contractors and uses job or project consolidation, we sync contractor payments using your default company mappings.
Q: Can I use more than one QuickBooks Online class or journal consolidation method? For example, can I consolidate my journal entries by employee and by job?
A: No, not at this time. You need to choose to consolidate by one method (by employee, department, job, or project). Next, you may select one class for each employee, department, job, or project.
Q: Can I change how I consolidate my mappings?
A: Yes, you can change your consolidation preferences at any time. Under Settings, go to the Manage tab. Note that we'll delete any previous consolidated account mapping overrides when you make changes.
Q: Do I need to set up overrides for consolidated mappings?
A: No, setting up overrides for consolidated mappings is optional. While you do not need to do this, it lets you customize the mapping layout for each unique grouping you set up.
Q: Do I need to set up a QuickBooks Online class for each consolidated grouping?
A: No, this is optional based on your specific needs.
Q: Can I assign multiple QuickBooks Online classes to a single consolidated grouping?
A: No, you can only assign one QuickBooks Online class per consolidated grouping right now.
Q: Does Gusto integrate with QuickBooks Projects?
A: No, we do not currently integrate with QuickBooks Projects. If you choose to consolidate your mappings by project, we'll split each entry according to the projects you set up in your Gusto Project Tracker. However, we will not sync this information directly to QuickBooks Projects.
This integration now includes an AI-powered feature that helps you choose the right accounts when setting up mappings for your chart of accounts. This is especially helpful if you're not sure which account to pick for a payroll category.
Example: Say you're setting up default accounts and don't know what to choose. Gusto might suggest using Payroll Wages for Wages & Salaries, or Payroll Deductions Payable for Deductions.
Gusto's AI provides recommendations based on:
Industry standard accounting guidance from US-based certified public accountant (CPA) firms
Common account structures used by thousands of small and mid-sized businesses
Aggregated, anonymous patterns from other Gusto customers who use platforms like QuickBooks Online, Xero, and FreshBooks
The AI model never stores or accesses your personal financial information. All suggestions are based on general patterns, not individual data.
We do not take any money for benefits or deductions. We include a mapping for benefit and deduction liabilities. This creates line items within the journal entry and tracks the amount you owe for the benefit or deduction. When you pay the benefit or deduction to the correct party, you can offset your liability in QuickBooks Online and zero out the amount owed.
Benefits always have two line items on the journal entry:
Employer Benefit Expense: This tracks the cost of employer contributions to benefits.
Benefit Liabilities: This tracks the amount owed to the benefit provider. It's the total of employee deductions plus employer contributions.
Important: When we withdraw from a flexible spending account (FSA) or commuter benefit, before the amount is deducted from payroll, make sure you do not create an expense. Instead, set up a receivable. We'll expense the amount in payroll when we deduct it. At that point, reduce the receivable with the deduction.
Option 1: Create an entry from the bank debit (created by paying the benefit or deduction) and assign it to the liability account.
To do this:
Go to Banking.
Select the applicable bank account.
Click on the bank debit created from paying the benefit or deduction.
In the middle field, select the liability account from the dropdown menu.
Click Add.
Option 2: Create a bill and link it to the liability account.
To do this:
In the upper-right corner, click the + plus sign.
Under Vendors, select Bill.
Manually enter or select the liability account from the drop-down menu under Accounts.
Finish creating the bill.
Click Save.
If you turned on auto-sync in your Manage tab, manually syncing is not required unless you want to manually sync a prior journal entry.
If you prefer to sync journal entries manually or need to retroactively sync a journal entry, follow these steps:
Go to the App Directory tab.
Click Connected Apps.
Select QuickBooks Online.
Click the Sync or Re-sync button at the top of the screen.
Check which journal entry or entries you want to sync or re-sync.
Click the Sync or Re-sync button at the bottom of the drawer.
(Optional): If you have already resolved an issue outside of Guso and want to clear this error, you can mark as resolved.
A timestamp will appear to confirm we sent the data to QuickBooks Online.
If you’re syncing or re-syncing multiple journal entries at once, this may take some time. You can leave the page and come back later. The status will update once the process is complete.
Note: This view only displays the outcomes of previous syncs (success or failure). To sync a payroll that has not been sent to QuickBooks Online yet, navigate to the Pay History page, select the desired check date, and then click the sync button located at the top of the page.
To view the synced data:
The journal entry will post to your bank register for review and reconciliation.
Note: If you do not see the Sync button, confirm your integration is still set up and connected.
Q: How do I view the status of my journal entry syncs to QuickBooks Online?
A: Go to the "Check your sync status" section of this article.
Q: Why didn't my sync work?
A: A sync usually stops working if you're no longer connected to QuickBooks Online or you have a missing mapping. Go to the "Troubleshoot syncing errors" section above for more information.
Q: How do I manually re-sync a journal entry?
A: Go to the "Sync or re-sync journal entries manually to QuickBooks Online" section of this article.
Q: Why did Gusto disconnect from QuickBooks Online?
A: Sometimes, an authorization issue disconnects the integration. To fix this, reconnect the integration:
Sign in to Gusto.
Go to the App directory.
Search for QuickBooks Online.
Click Connect.
Enter your admin credentials.
After you reconnect, we keep all your previous mappings.
Q: If I update my mappings, can I re-sync a payroll to update the journal entry?
A: Yes, you can update mappings at any time. If you need a previous journal entry to be updated with your latest mappings, go to the "Sync or re-sync journal entries manually to QuickBooks Online" section of this article.
Q: What does marking a sync error as resolved do?
A: If you mark an error as resolved in Gusto, this does not override the sync in QuickBooks or attempt to re-sync the entry again. This only clears the alert in Gusto in the event you have already resolved this error within QuickBooks.
Q: How do employee taxes and employee benefit contributions sync to QuickBooks Online?
A: We always include them in Gross Wages & Salaries.
Q: How do contractor payments sync over?
A: You have two options for syncing contractor payments: separate or batched. To learn more, see the "Contractor payment consolidation" section.
Q: Is there a way to retroactively sync all payrolls once I turn on auto-sync?
A: Auto-sync only works for payrolls you run after you turn it on. You can manually sync any payrolls you ran before you turned on auto-sync in bulk.
Q: What does the timestamp indicate?
A: The exact time we successfully synced a payroll to the accounting software.
Q: Can I re-sync an entry that I already reconciled?
A: You need to un-reconcile an entry before you can re-sync it. This includes unmatching any bank transactions with the journal entries. QuickBooks Online considers matching as partial reconciliation. Otherwise, you can mark the error as resolved in Gusto to clear the error message
Q: Can I sync non-US contractor payments to QuickBooks Online?
A: Yes, you can sync both US-based and non-US-based contractor payments. If you turned on auto-sync, these payments should automatically push over to QuickBooks Online on the day we debit your bank for the contractor payment. To see the status of these syncs, go to the "Check your sync status" section of this article.
Q: Can I sync non-US employee payrolls to QuickBooks Online?
A: No, not at this time.
Q: Can I sync Gusto or NEXT insurance invoices to QuickBooks Online?
A: No, not at this time.
To review sync status in the app directory:
Go to the App directory.
Click Connected Apps.
Select QuickBooks Online.
Click the Sync or Re-sync button on top of the integration page.
Review the sync status:
Synced: Journal entry was successful
Pending: Journal entry is still syncing
Sync failed: There was an issue with the journal entry and it needs to be resolved and re-synced. Fix this by reviewing the error message on the main integration page. Go to the "Troubleshoot syncing errors" section if needed. If this issue was already resolved, check the journal entry or entries and click Re-sync.
Resolved: This journal entry was marked as resolved by a Gusto admin, which means the journal entry was manually created in QuickBooks Online. If this was marked resolved by mistake, you can manually re-sync this journal entry by following the steps in the "Sync or re-sync journal entries manually to QuickBooks Online" section.
Please note, this view only displays the outcomes of previous syncs (success or failure). To sync a payroll that has not been sent to QuickBooks Online yet, navigate to the Pay History page, select the desired check date, and then click the sync button located at the top of the page.
If a journal entry fails to sync from Gusto to QuickBooks Online, QuickBooks Online will send us an error code. You can use these error codes to troubleshoot the syncing failure.
Error message
Detail
How to fix it
Map all Detailed chart of accounts to fix sync issues
A change has been made to your chart of accounts which prevents the journal entry from syncing. Or, you have not completed your mappings.
Make sure you’ve mapped Gusto categories a QuickBooks Online account in the Detailed tab. If you turned on consolidated journal entries, make sure those categories are also fully mapped. To avoid this in the future, set up default mappings.
This entry is already synced and matched to a bank transaction. To re-sync, unmatch the transaction in QuickBooks using these steps.
The journal entry has already been reconciled and cannot be re-synced.
Unmatch the corresponding bank debits so you can manually re-sync the journal entry. You can complete this in QuickBooks Online within your Bank Feed. For more help, view this QuickBooks Help article. Once you do this, click the re-sync button in Gusto.
QuickBooks Online has become disconnected. Reconnect to continue syncing, no data has been lost.
There has been an issue with the connection between Gusto and QuickBooks Online.
When this happens, the integration may already be disconnected. You need to reconnect the integration by entering your QuickBooks Online credentials. Once you reconnect, we save all prior mappings and give you the option to re-sync any failed journal entries.
Your QuickBooks Online subscription is inactive.
You cannot add data to QuickBooks Online because your trial or subscription period ended, you canceled your subscription, or there was a billing problem.
To update your subscription, click the gear icon and view your account information. Manage billing, payment, and subscription info in QuickBooks Online. Once this is complete, click the re-sync button within the Gusto integration. If you do not want to continue your QuickBooks Online subscription, you can also disconnect the integration.
One of your mapped accounts has been deleted in QuickBooks Online.
The mapped account or class was archived in QuickBooks Online and therefore was removed in the integration.
Two options: Restore the class in QuickBooks Online. Or, click the Refresh chart of accounts button in both the Detailed tab and your consolidated journal entry tab (if applicable). Then click the re-sync button in Gusto.
Your books are closed and Gusto cannot modify them. Please reopen your books by going to your advanced settings in QuickBooks Online.
The quarter and/or year has been closed in your QuickBooks Online account.
Open the quarter and/or year in QuickBooks Online. Then click the re-sync button in Gusto. If you do not want to reopen this period, you can mark this journal entry as Resolved in Gusto.
The journal entry is not balanced.
The credits and debits on the journal do not balance.
Contact QuickBooks Online support.
QuickBooks Online Permissions Error
Your permissions in QuickBooks Online have changed and you no longer have access.
Contact your QuickBooks Online admin to update your permissions.
If you no longer want data to sync between Gusto and QuickBooks Online, follow the steps below to disconnect the integration. You can also follow these steps if you're troubleshooting the connection. You can reconnect anytime.
To disconnect the integration:
Go to the App directory.
Find and select QuickBooks Online.
Under Settings, click Manage.
On the right side of the page, select Disconnect app.
Going forward, data will no longer sync between Gusto and QuickBooks Online.
Q: Do you support QuickBooks Online classes?
A: Yes. Go to the "Journal entry consolidation and QuickBooks Online classes" section of this article.
Q: The chart of accounts in Gusto does not look correct. What should I do?
A: First, click Refresh chart of accounts in Gusto. If this does not fix the issue, you may have linked the wrong QuickBooks account. Disconnect the integration and reconnect to the correct QuickBooks Online account.
Q: How do I handle checks?
A: If you pay employees by check, we recommend printing the checks through Gusto.
If you prefer to print checks from QuickBooks Online, do this by editing the journal entry in QuickBooks Online to avoid double reporting. Then we recommend updating the bank account line item on the journal to a liability account. When you create the check in QuickBooks Online, code the line item to the same liability account. This offsets the account balance. Learn more about creating a liability check in QuickBooks Online.
Q: How do you edit a Gusto journal entry in QuickBooks Online?
A: To edit a Gusto journal entry in QuickBooks Online:
Click Bank Register.
Select the bank account currently connected to your Gusto account through your account mappings.
Find the debits from your most recent payroll. On the left side of the debit, click on the green Journal Gusto.
Open the journal entry. Reduce the line entry for "Wages & Salaries" by the amount of the check.
Remove the credit line item for the check payment.
Q: Can you break down journal entries by department or employee?
A: Yes, you can consolidate journal entries by department, employee, job, or project. You can only choose to consolidate by one option at a time. Go to the "Journal entry consolidation and QuickBooks Online classes" section of this article.