When you change an employee’s pay schedule, there may be a gap between their last day on the old schedule and their first day on the new schedule. A transition payroll lets you pay employees for any workdays that fall during this gap. Click the notification on your Home page to get started.
- Any transition payrolls must be run before your next regular payroll can be processed.
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Transition payrolls will use the same default settings and tax calculations as your new Regular Payroll schedule.
- Expect different taxation if you're transitioning from one type of pay period to another (ex. monthly to semimonthly).
- A transition payroll will automatically pro-rate for actual days worked for salaried employees.
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You can skip a transition payroll for one or all employees by following the directions here. If needed, you can always process an off-cycle payroll in place of skipped transition payrolls.
- Time tracking hours won't sync to transition payrolls.
Important: If your accountant has set up a recurring income tax override for an employee, the recurring override will not be recognized in the transition payroll. Only one-time income tax overrides will be recognized in the transition payroll.
Benefits and transition payrolls
- Gusto benefit deductions will not occur on transition payrolls.
- If you process a transition payroll, please contact us from the Help section of your account so we can review your benefits and make sure all amounts are accurate on the upcoming payroll.
- External benefit deductions will occur.