Manage company bank account details

Admins with the required permissions can learn how to add and edit your company bank account details below. If you're an employee or contractor, you can learn how to update your bank details here.

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Add a company bank account during onboarding

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 individually select which bank account to use on payrolls and contractor payments.

Bank account requirements

The account must be a US-based checking bank account
- It cannot be the same as a team member's bank account.
Credit payments, credit cards, and savings accounts are not accepted.
Alphanumeric account numbers (with both letters and numbers) are accepted.

Add a default company bank account—you can update this later

Click Step 7: Bank account.
Click the Add Bank Account button.
- If this button does not work, try refreshing the page a few times 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.
  - Reminder: 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.

After the account is verified it will automatically be set as your default bank account.

You can add additional bank accounts, but you'll need to wait until you've finished setting up your account (completed onboarding) and been approved.

If the account has not been verified yet, here's how to update the details (if needed):

Next to "Add Company Details", click the Actions button.
Select Review.
In the left-side menu, click Bank Account.
- You'll be taken to a page asking you to enter test bank transaction amounts.
Click Back.
Enter your new bank account details and proceed.

Enter test transaction amounts in Gusto

Once you've entered your bank details, you'll need to enter the test transaction amounts in Gusto.

Sign in to Gusto.
Click the Settings section.
At the top, toggle to the Plan & billing tab.
Scroll to the “Bank accounts” section and find the bank account.
Under the “Status” column, click Confirm test transaction to enter the two amounts.

If you're having issues verifying the account:

Make sure the bank account information is entered correctly in Gusto.
Check your bank transactions again to make sure they're entered correctly in Gusto.

What's next?

Add your pay schedule to Gusto.

Add, change, or remove a bank account (after onboarding)

Before you can pay your team with a new bank account, we'll need to verify your new bank account before it can be fully set up and used in Gusto.

Reminders

Until the new account has been verified, we'll use the bank elections that are in place at the time a payment is processed (manually, or using Payroll on AutoPilot®).

For payrolls already processed, adding a new account while the money is in-flight will not change the bank account that was used. If we receive a bank error from the account on file at the time a payroll was processed, you'll be charged a debit failure fee, and you may be moved to a slower direct-deposit speed.

If eligible, you can use instant bank verification to get set up right away. Otherwise, you'll get two test transactions sent to your bank account for verification—this may take 2–3 business days.

If you have tax-advantaged accounts with Gusto (like FSAs, HSAs 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 or contractor's bank account.
Credit payments and credit cards are not accepted

What to know before you add multiple bank accounts or change your default bank account

Permissions—only admins with at least one of the below permissions can add, remove, or assign bank accounts to specific payrolls or payments:
- “Full access” admins
- Admins who can “Run payroll”
- Admins who can “Pay contractors”
Remember the last 4 digits of bank accounts—if you have multiple banks verified, remember the last 4 digits for when you want to assign a bank to specific payrolls/payments—at this time, you can’t add nicknames to the accounts.
Default bank info
- We use the “default” bank account for:
  - Your monthly invoice
  - General payroll and contractor payments (unless otherwise specified)
  - 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 below).
  - Refunds or debits related to wage corrections, tax reconciliations, cancellations, etc
- If you change your default bank account, until the new account is fully verified and set up, your current default bank account will be used for all standard debits (examples listed in the bullet above).
  - Once verified, the new default bank account will be used for all of the above.
Payroll reversals—if funds need to be debited or credited to the company as a result of a reversal, we'll use the bank account associated with the payment (so long as the bank account is still active in Gusto).
- If you’ve removed the account, we’ll send the money to the default account.
Companies still onboarding—you cannot add additional bank accounts until you've finished the set up of your account completely and the account has been approved.

Add additional bank accounts

Before you can add additional bank accounts, you'll need to finish the set up of your account completely and wait for your account to be verified. After the account is approved, you can add additional bank accounts.

Sign into your admin account.
Head to the Settings section.
Toggle to the Plan & billing tab.
Scroll to the “Bank Accounts” headline and click Add bank account.
- If you do not see this option, your account needs to be approved first. After it's been approved 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).
- A few reminders:
  - Some customers may only be able to connect manually, using test transactions.
  - 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.
If connecting manually, enter the new routing number and account number.
Click the checkbox to acknowledge this change may block payroll for up to two business days until the bank verification is complete.
- Until the new account has been verified, we'll use the bank elections that are in place at the time a payment is processed (manually, or using Payroll on AutoPilot®).
  - For payrolls already processed, adding a new account while the money is in-flight will not change the bank account that was 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), come back to this part of your profile to confirm the amounts.
Click Go to Gusto Home to return to your Home page.

If you have multiple bank accounts verified in Gusto, you'll need to remember the last four numbers of the bank account(s) you want to use when making payments—at this time, you can’t add nicknames to the accounts.

Change the default bank account

Gusto uses your “default” bank account for the below:

Your monthly invoice
General payroll and domestic contractor payments (unless otherwise specified)
All international contractor payments.
Workers' comp debits/premiums (from NEXT insurance)
Payroll on AutoPilot®, unless you set up a different bank account (learn more below).
Refunds or debits related to wage corrections, tax reconciliations, cancellations, etc

Change your default bank account

Until the new bank account is fully verified and set up, your current default bank account will be used for all standard debits and already-processed payrolls. If we receive a bank error from the account on file at the time a payroll was processed, you may be moved to a slower direct-deposit speed.

Sign into your admin account.
Head to the Settings section.
Toggle to the Plan & billing tab.
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 you don't have another bank account verified already, you'll need to add, verify, and set an alternate bank account as the default before removing the current default account.
Choose Set as default.

Assign a bank account to a Payroll on AutoPilot (for multiple bank accounts only)

If your company uses Payroll on AutoPilot®, we'll debit from the “default” bank account unless you assign a different account.

Assign a specific bank account for Payroll on AutoPilot®

Click the Pay section and select Pay settings.
- If you don't see this section in your account, you may not have the required permissions.
Next to the AutoPilot section, click edit.
Select the desired bank account from the dropdown box.
Click Save.

Going forward, Payroll on AutoPilot® will debit funds from the selected bank account.

Delete a bank account

If you choose to delete a bank account from which payments are scheduled in the future, we’ll warn you that the future payments will be canceled, and you’ll need to reschedule the payments again.

Sign into your admin account.
Head to the Settings section.
Toggle to the Plan & billing tab.
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 you don't have another bank account verified already, you'll need to add, verify, and set an alternate bank account as the default before deleting this account.
Click Delete.

FAQs

Q: Can I add multiple company bank accounts?

A: Yes—you can add multiple bank accounts and individually select which bank account to use on payroll(s) and contractor payments.

Q: I paid people from the wrong account, what do I do?

A: If Gusto has not already debited your account, you can cancel the payroll or contractor payment and reschedule the payment from the right bank account.

If Gusto has already debited the bank account, you’ll want to contact your bank to transfer the required funds into the bank 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, we suggest running multiple payrolls and selecting different bank accounts for each.

Q: Can we have a bank account associated with each employee?

A: No—but you can allocate employees to departments and set up pay schedules per department and then each pay schedule can have a bank account associated with it.

Q: Does Gusto support alphanumeric bank accounts?

A: Yes. We allow users to use 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. Account numbers are encrypted and will not print to this type of check. Use the other type of check stock offered.

Bank statuses (in Gusto) and what they mean

Here’s a quick guide to each bank status and any actions that may be needed. You can manage your bank accounts by going to Settings section and selecting the Plan & billing tab.

If you do not have this tab, work with your primary administrator to get the access (or permissions) you need.

Active accounts can be used, but inactive accounts cannot.

Status	Description
Connected	Active, connected to Plaid
Verified	Active, Plaid connection recommended
Unverified	Inactive, re-verify the account
Pending	Inactive, confirm test transactions
Disconnected	Active, no longer connected to Plaid

Bank transactions and code glossary—how transactions look in your bank 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 reports to view bank transactions and to see which 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

View other bank transactions

For now, other bank transactions only include bank transactions related to paying Gusto back for outstanding balances owed.

View the transaction status for outstanding balances

Go to the Pay section and choose Pay history.
Click the Other transactions tab.
Review the details of the transactions:
- When it was initiated
- What type of transaction it was.
  - For now, this is limited to outstanding balances.
- A description
- The funding type (ACH, Wire, etc)
- 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 needed.

Transaction statuses (in Gusto) and what they mean

Here’s a quick guide to each transaction status in “Other transactions” and what it means.

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 from the Help section for next steps.
Complete	Transaction or request is complete