Manage company bank account details (for admins)
This article is for admins who need to add or edit their company’s bank account information in Gusto.
If you’re an employee or contractor, you can learn how to update your bank details here.
Expand the sections to learn more. Use CMD + F (or CTRL + F) to search for words in the article.
When you set up your Gusto account, we’ll ask for a default company bank account to debit for wages, taxes, and your monthly Gusto fee. You can add other bank accounts later and select which bank account to use for individual payrolls and contractor payments.
Bank account requirements
The account needs to be a US-based checking account
It cannot be the same as a team member's bank account.
Cannot be a credit card or savings account.
Alphanumeric account numbers (with both letters and numbers) are accepted.
To add a default company bank account (you can update this later):
During account setup, click Step 7: Bank account.
Click Add Bank Account. If this button does not work, refresh the page until you can click it.
Select how you want Gusto to verify your bank account:
Verify account with Plaid—you'll be asked to link your bank account to Gusto so we can instantly verify your bank.
Note: If you verify with Plaid, you cannot use "Bottom (blank check stock)" to print checks you may write. Account numbers are encrypted and will not print to this type of check.
Manually verify your account—if your bank is not eligible to connect through Plaid, or you've decided not to instantly connect, you'll need to enter your bank information manually. We'll then send two test transactions, which usually take 2–3 business days to hit your account. You'll need to come back to Gusto to enter these amounts.
Click the checkbox to acknowledge this change may block payroll for up to 2 business days until bank verification is complete.
Heads up: You may be asked to wire funds to Gusto cover your first payroll if you choose to manually verify your bank account.
Click Continue.
Once we’ve verified your account, we’ll set it as your default bank account.
You can add additional bank accounts when you’re done onboarding and have been approved.
Enter test transaction amounts
Once you've entered your bank details, you'll need to enter the test transaction amounts in Gusto.
To enter a test transaction:
Click your name at the top right of Gusto and select Settings.
Go to Plan & billing.
Scroll down to Bank accounts and find the bank account.
Under Status, click Confirm test transaction to enter the two amounts.
If you're having issues verifying the account:
Make sure the bank account information is correct in Gusto.
Check your bank transactions again to make sure they're correct in Gusto.
To update your bank account before we’ve verified it (if needed):
Next to Add Company Details, click Actions.
Select Review.
In the left menu, click Bank Account. On the next page, you’ll need to enter test bank transaction amounts.
Click Back.
Edit your bank account.
What's next?
Add your pay schedule to Gusto.
We need to verify your new bank account before you can use it to pay your team in Gusto.
Reminders
Until we verify your new account, we’ll use the bank elections you have in place when processing a payment (either manually or using Payroll on AutoPilot®).
If you’ve already processed a payroll, adding a new account while the money is in-flight will not change which bank account we used. If the account on file returns a bank error after we process a payroll, we’ll charge you a debit failure fee and may move you to a slower direct-deposit speed.
If you qualify, you can use instant bank verification to set up right away. Otherwise, we’ll send two test transactions to your bank account for verification. This may take 2 – 3 business days.
If you have tax-advantaged accounts with Gusto — including Flexible Spending Accounts (FSAs), Health Savings Accounts (HSAs), Dependent Care Flexible Spending Accounts (DFSAs), or commuter benefits — you’ll see a non-refundable $1 test debit under “MBI/Med-I-Bank.”
If you offer an HSA, you’ll see an additional $0.01 test debit.
Company bank account requirements
Must be a US bank checking account
It cannot be the same as an employee’s or contractor’s bank account.
Credit payments and credit cards are not accepted.
Review these important details about permissions, default accounts, and payment processing.
Permissions: You can add, remove, or assign bank accounts to specific payrolls or payments if you have at least one of these permissions:
“Full access” admins
Admins who can “Run payroll”
Admins who can “Pay contractors”
Remember the last 4 digits of bank accounts: If we’ve verified multiple banks for you, remember the last 4 digits when assigning a bank to specific payrolls/payments. At this time, you cannot add nicknames to bank accounts.
Default bank info
We use your “default” bank account for:
Your monthly invoice
General payroll and contractor payments (unless you choose a different bank)
Workers’ comp debits (from NEXT insurance)
Tax-advantaged accounts: FSA, HSA, DCFSA, and commuter benefits
Payroll on AutoPilot®, unless you set up a different bank account (learn more in the Add more bank accounts section of the article)
Refunds or debits related to wage corrections, tax reconciliations, cancellations, and more
If you change your default bank account, we’ll keep using your current default bank account for all standard debits (examples listed in the bullet above) until we fully verify and set up the new account.
Once we verify it, we’ll use the new default bank account for all of the above.
Payroll reversals: If we need to debit or credit funds to your company because of a reversal, we’ll use the bank account linked to that payment (as long as the bank account is still active in Gusto).
If you’ve removed the account, we’ll send the money to your default account.
Companies still onboarding: You cannot add more bank accounts until you finish setting up your account completely, and we approve it.
Before you can add more bank accounts, you’ll need to have added one verified bank account, completed your Gusto onboarding, and gotten approval from our team. Once that’s complete, you can add more bank accounts.
To add more bank accounts:
In the left menu, at the bottom, click your company name.
Under Settings, click Plan & billing. If you do not see it, ask the primary admin to update your permissions.
Scroll to the “Bank Accounts” headline and click Add bank account.
If you do not see this option, you may not have added one verified bank account, completed your Gusto onboarding, and gotten approval from our team. You need to complete these steps before you can add more bank accounts.
Choose whether you’d like to Connect Instantly (by securely signing in to your bank with Plaid) or Connect Manually (1–2 business days).
Some customers can only connect manually using test transactions.
If you verify with Plaid, you cannot use “Bottom (blank check stock)” to print checks you write. Plaid encrypts account numbers, so they will not print on this type of check.
If connecting manually, enter the new routing number and account number.
Click the checkbox to acknowledge that this change may block payroll for up to 2 business days until we complete the bank verification.
Until we verify the new account, we’ll use the bank elections you have in place when processing a payment (either manually or using Payroll on AutoPilot®).
If you’ve already processed a payroll, adding a new account while the money is in-flight will not change which bank account we used.
Click Continue.
Review the timeline — we’ll test your account with two small transactions.
Don’t want to wait? Click the Verify with Plaid instead link.
Once you see the transactions in your bank (this can take a few days), return to this part of your profile to confirm the amounts.
Click Go to Gusto Home to return to your Home page.
If we’ve verified multiple bank accounts in Gusto, remember the last 4 numbers of the bank account(s) you want to use when making payments. At this time, you cannot add nicknames to accounts.
We use your default bank account for:
Your monthly invoice
General payroll and domestic contractor payments (unless you choose a different bank)
Workers’ comp debits/premiums (from NEXT insurance)
Payroll on AutoPilot®, unless you set up a different bank account (learn more in the Add more bank accounts section of the article)
Refunds or debits related to wage corrections, tax reconciliations, cancellations, and more
How to change your default bank account
Until we fully verify and set up the new bank account, we’ll use your current default bank account for all standard debits and payrolls you’ve already processed. If the account on file returns a bank error at the time we processed a payroll, we may move you to a slower direct-deposit speed.
To change your default bank account:
In the left menu, at the bottom, click your company name.
Under Settings, click Plan & billing. If you do not see it, ask the primary admin to update your permissions.
Scroll to the “Bank Accounts” headline, find the bank account you want to make the default account, and click the three-dot menu in the Actions column.
If we have not yet verified another bank account, you’ll need to add, verify, and set an alternate bank account as the default before you remove the current default account.
Choose Set as default.
If your company uses Payroll on AutoPilot®, we’ll debit from your default bank account unless you assign a different account.
How to assign a specific bank account for Payroll on AutoPilot®
To assign a specific bank account for Payroll on AutoPilot®:
Go to Pay and select Pay settings.
If you do not see this section in your account, you may not have the required permissions.
Next to the AutoPilot section, click Edit.
Select the bank account you want from the dropdown box.
Click Save.
After you save, Payroll on AutoPilot® will debit funds from the bank account you selected.
If you delete a bank account with scheduled future payments, we’ll warn you that we’ll cancel those payments. You’ll need to reschedule them.
To delete a bank account:
In the left menu, at the bottom, click your company name.
Under Settings, click Plan & billing. If you do not see it, ask the primary admin to update your permissions.
Scroll to the “Bank Accounts” headline, find the bank account you want to remove, and click the three-dot menu in the Actions column.
If we have not yet verified another bank account, you’ll need to add, verify, and set an alternate bank account as the default before you delete this account.
Click Delete.
Q: Can I add multiple company bank accounts?
A: Yes. You can add multiple bank accounts and choose which one to use for payroll(s) and contractor payments.
Q: I paid people from the wrong account. What do I do?
A: If we have not debited your account yet, you can cancel the payroll or contractor payment and reschedule it from the correct bank account.
If we’ve already debited the account, contact your bank to transfer the necessary funds into that account.
Q: Can we split the payments between multiple bank accounts?
A: No. All payments come from one bank account. If you want to split payments, run multiple payrolls, and select a different bank account for each one.
Q: Can we have a bank account associated with each employee?
A: No, but you can assign employees to departments and set up pay schedules for each department. Then you can link a bank account to each pay schedule.
Q: Does Gusto support alphanumeric bank accounts?
A: Yes. We accept bank accounts with both letters and numbers.
Q: I cannot print checks because of an “issue with bank verification.” What does that mean?
A: If you verify with Plaid, you cannot use “Bottom (blank check stock)” to print checks you may write. Plaid encrypts account numbers, so they will not print on this type of check. Use the other check stock type we offer.
Here’s a quick guide to each bank status and any actions you may need to take. You can manage your bank accounts by going to Settings, then clicking Plan & billing.
Note: If you cannot find Plan & billing, work with your primary administrator to get the access (or permissions) you need.
You can use active accounts, but not inactive ones.
Status
Description
Connected
Active, connected to Plaid
Verified
Active, Plaid connection recommended
Unverified
Inactive, re-verify the account
In progress
Inactive, test transactions are in progress
Disconnected
Active, no longer connected to Plaid
Deactivated
Unusable account
We'll initiate 3 separate debit transactions from your company's bank account after each payroll is submitted:
One for employee pay (who are being paid by direct deposit)
One for your employee reimbursements
One for all payroll taxes
These transactions will happen at the same time, ahead of your paydate (the debit date depends on your direct deposit speed).
Employee pay and reimbursements will be sent by direct deposit to their bank accounts, and we'll send your payroll tax amounts to the applicable state and federal agencies.
You may also see debit transactions from your company's bank account for:
Contractor payments
Employee or contractor payment reversals
Monthly invoices
Historical tax payments
Tax reconciliation payrolls (when needed)
You can run a "bank transactions" report to view bank transactions and an "agency payments" report to see taxes we've paid on your behalf. Check out this list of the types of reports you can run.
Bank codes related to debits and/or credits from Gusto
Code: Transaction Type; EBV: Electronic Bank Verification - Credit Test Transaction; NET: Debit Net Pay; TAX: Debit Tax; CON: Credit Contractor Pay; ICD: International Contractor Pay; HPT: Debit Historical Payroll Taxes; BBV: Bank Verification Debit; BVC: Bank Verification Credit; FRP: Credit Flex Repayment (Modern Bank); FPP: Credit Flex Pay Principal (Modern Bank); FPF: Credit Flex Pay Fee (Modern Bank); TLR: Credit Tax Liability Refund ; CSC: Credit Child Support Garnishment; REM: Debit Reimbursement; TCD: Debit Tax Correction; FEE: Debit Payroll Fee; CND: Debit Contractor Pay; RFD: Debit Refund; PDR: Debit Employee Wages; DDR: Debit Donation; CSD: Debit Child Support Garnishment ; DOV: Debit Overpayment; FPD: Flex Pay Debit (Modern Bank); PAY: Credit Employee Pay; INV: Credit Payroll Fee - Invoice Refund; SAV: Credit Employee Savings; CRF: Credit Contractor payment refund; DCR: Credit Donation; PAR: Credit Wages Refund; TRC: Credit Tax Refund; TAX DEP: Tax Department Payment; IEE: Credit Internal Error Expense (concessions); TXP: Credit Tax; TPI: Credit Tax Penalty; WPF: Wire Payment Fee; ITC: Credit Internal Transfer Contractor Pay; ITE: Credit Internal Transfer Employee Pay; ITT: Credit Internal Transfer Tax Payment; ITF: Credit Internal Transfer Fees and Penalties; ITV: Credit Internal Transfer Verification; ITI: Credit Internal Transfer Invoices; ITO: Credit Internal Transfer Other; ITP: Credit Internal Transfer Overpayment; ITG: Credit Internal Transfer Child Support Garnishment; COV: Credit Overpayment; PRS: Credit Partner Revenue Share
Code
Transaction Type
EBV
Electronic Bank Verification - Credit Test Transaction
NET
Debit Net Pay
TAX
Debit Tax
CON
Credit Contractor Pay
ICD
International Contractor Pay
HPT
Debit Historical Payroll Taxes
BBV
Bank Verification Debit
BVC
Bank Verification Credit
FRP
Credit Flex Repayment (Modern Bank)
FPP
Credit Flex Pay Principal (Modern Bank)
FPF
Credit Flex Pay Fee (Modern Bank)
TLR
Credit Tax Liability Refund
CSC
Credit Child Support Garnishment
REM
Debit Reimbursement
TCD
Debit Tax Correction
FEE
Debit Payroll Fee
CND
Debit Contractor Pay
RFD
Debit Refund
PDR
Debit Employee Wages
DDR
Debit Donation
CSD
Debit Child Support Garnishment
DOV
Debit Overpayment
FPD
Flex Pay Debit (Modern Bank)
PAY
Credit Employee Pay
INV
Credit Payroll Fee - Invoice Refund
SAV
Credit Employee Savings
CRF
Credit Contractor payment refund
DCR
Credit Donation
PAR
Credit Wages Refund
TRC
Credit Tax Refund
TAX DEP
Tax Department Payment
IEE
Credit Internal Error Expense (concessions)
TXP
Credit Tax
TPI
Credit Tax Penalty
WPF
Wire Payment Fee
ITC
Credit Internal Transfer Contractor Pay
ITE
Credit Internal Transfer Employee Pay
ITT
Credit Internal Transfer Tax Payment
ITF
Credit Internal Transfer Fees and Penalties
ITV
Credit Internal Transfer Verification
ITI
Credit Internal Transfer Invoices
ITO
Credit Internal Transfer Other
ITP
Credit Internal Transfer Overpayment
ITG
Credit Internal Transfer Child Support Garnishment
COV
Credit Overpayment
PRS
Credit Partner Revenue Share
Right now, other bank transactions only show payments made to Gusto for outstanding balances.
View the transaction status for outstanding balances
To view the transaction status for outstanding balances:
Go to Pay.
Click Pay history at the top-right.
Click the Other tab.
Review the details of the transactions:
When it started
The transaction type
For now, this only includes outstanding balances.
A description
The funding type (ACH, Wire, and others)
Status (see details below)
Total amount
Use the links in the Status column to take actions like:
Pay balance
Check wire status
See wire instructions
Complete any action you need to take.
What each transaction status in Gusto means
Here’s a quick guide to each transaction status in Other transactions and its meaning.
Status
Description
Submitted
Submitted for processing or review
In progress
Transaction or request is underway but not complete yet
Action required
Action is required on your end to complete the transaction or request
Unpaid
There has been an unpaid balance on your account for over 3 months. Contact us for next steps. To contact us, sign in to your Gusto account and click the help icon 
in the top-right corner of the page.
Complete
Transaction or request is complete
Bank of America is updating how it connects to apps like Gusto through Plaid. Because of this change, some Bank of America (BofA / BoA) bank connections in Gusto will need to be reconnected.
When: March 13, 2026 to October 23, 2026
What you’ll see: a “Reconnect” or “Reverify Bank of America” message in Gusto (and sometimes an email)
What you need to do: Reconnect your Bank of America account in Gusto when prompted (usually takes about 1 minute)
What’s changing (in simple terms)
Gusto uses Plaid to securely connect to your bank. Bank of America is switching to a new connection method. As they switch, the old connection may stop working until you refresh (reconnect/reverify) it.
Your payroll history and pay info are still safe.
This only affects the live bank connection we use for things like bank verification and balance/transaction checks.
What you need to do
When you see a prompt in Gusto that says Reconnect or Reverify Bank of America, follow the steps below:
Choose your company (if you manage more than one).
Go to Settings (click your company name in the left menu) → Plan & billing → Bank accounts.
Find your Bank of America account.
Click Reconnect / Reverify (or follow the prompt on your Home dashboard/to‑do).
Complete the Plaid steps:
Sign in to Bank of America
Complete any 2‑step verification (2FA)
Confirm the correct funding account
Bank of America connection update FAQ
Q: Why am I seeing reconnect or reverify Bank of America in Gusto?
A: Because Bank of America is moving everyone to a new Plaid connection during the migration window (March 13, 2026–October 23, 2026). This is expected during the update. It usually is not a problem with your specific account.
Q: Is this a Gusto outage?
A: No. This is a planned update by Bank of America and Plaid that is rolling out over several months.
Q: Will payroll stop if I do not reconnect right away?
A: In many cases, payroll can still run, but reconnecting is strongly recommended. If you do not reconnect:
The live connection may stop working
We may not be able to do certain balance/transaction checks
That can increase the chance of payment issues later. Best practice is to reconnect as soon as you see the prompt.
Q: Is it safe to reconnect through Plaid?
A: Yes. When you reconnect:
You sign in through Plaid
Gusto does not see or store your Bank of America username or password
Plaid is designed to securely encrypt the connection
Q: Where will I see the reconnect request?
A: You may see it in one or more places:
A Home page to‑do in Gusto
A banner on your dashboard or Bank settings page.
An email from Gusto about reconnecting Bank of America
Q: What if my accountant manages payroll for me?
A: If your company is accountant-managed, your accountant may help guide you, but each affected company still needs to reconnect the Bank of America account in Gusto when prompted.
Q: I reverified, but Gusto still shows "Reconnect". What should I do?
A: Try these quick checks:
Wait 15–30 minutes, then refresh the page (sometimes it takes a short time to update).
Make sure you:
Finished the full Plaid flow (including 2FA)
Selected the correct Bank of America account
Confirm you’re in the right company in Gusto (if you manage multiple companies).
Go back to Settings → Plan & billing → Bank accounts and check the same Bank of America account.
If it still shows Reconnect after you’ve completed Plaid and waited a bit, contact Gusto Support and tell them:
You completed Plaid reconnect
The message did not clear
Any error text you saw (copy/paste is ideal)
To contact us, sign in to your Gusto account and click the help icon in the top-right corner of the page.