Processing payroll overview

Check date is the date that the paycheck will be made for—the day your team receives their wages for a corresponding pay period.

Pay period is the timeframe during which your employee worked. 

Debit date is the date the funds will be taken out of your company bank account in order to pay employees by the check date. 

How does this work for regular payrolls?

For regular payrolls, the debit date is generally two or four business days before the check date.

How does this work for backdated payrolls?

When you backdate a payroll, you can change the check date to a date in the past as long as it's within the same calendar year quarter that the payroll is being created.

• For example, you can create a payroll with a check date in April until the end of June.

For any backdated payrolls, the debit date will generally be one to two business days after the backdated payroll is processed. If you need to update your pay schedule, follow the steps in this article. 

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, 3 business days before payday. Employee pay and reimbursements will be submitted for direct deposit payments, 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
• Monthly invoices
• Historical tax payments

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 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

For businesses with more than one employee, you can manage the Run Payroll flow with ease using the tools below.

Search

Use the search bar above the "Employees" column to jump directly to the employee's payroll information you're looking to review.

Sort

Use the carat next to the "Employees" column to reveal a drop-down for sorting options. Employees can be sorted by first or last name.

Filter

Use the filter button at the top-right of the payroll page to filter by:

• Employee type
• Department (if enabled)
• Skipped / Not-skipped (on the payroll)

Keep in mind: If one or more employees are selected in the far left column, the filter option will not appear until those checkboxes are deselected.

Bulk edit

Use the bulk edit tool to apply changes to all or some of your employees. To do so:

1. Click the checkboxes next to the names of the employees you'd like to make a change for.
   •  To select all employees on the payroll, click the checkbox next to the column titled "Employees." 
2. Click Bulk edit.
3. Select the action you'd like to take from the drop-down.
   • For example, if you'd like to skip the payroll for multiple employees, choose Skip Payroll. If you'd like to add the same note to multiple employees, choose Personal Note.
4. Fill in any additional fields required.
5. Click Update.
6. Repeat as needed for any other bulk edits.
7. Finish running payroll. 

Gusto may require you to wire us funds if you run a sufficiently large payroll.

If we require you to wire us funds, we'll notify you when you run payroll and provide instructions in your Gusto account to complete the wire. To access our wire info after processing payroll, click the sticky on your Home page that reads Wire funds to cover your recent payroll.

To keep your account safe, we'll never send you wire instructions via email or over the phone. Instead, to view your wire instructions, sign into Gusto and look for the instructions on your Home page. If you're instructed to do a wire transfer via email or over the phone, please contact [email protected] before sending funds.

Fees

Your bank will typically charge $10–$30 to send a wire. Our bank will charge $5 to accept it. This $5 charge will appear on your monthly Gusto invoice. 

Payrolls and direct deposits do not process on Federal bank holidays. If a bank holiday falls on the day you typically run payroll, pay employees, or anytime in between, you must run your payroll on the prior business day. We'll send you a reminder if a bank holiday is coming up.