This article is for firm admins and firm members who want to connect and set up the Karbon integration in their Gusto Pro account.
Karbon is a practice management platform built for accounting and bookkeeping firms. It helps teams manage client work, communication, and payroll workflows in one place. Not a Karbon user yet? Learn more here.
When you connect Karbon with your Gusto Pro account, you can generate payroll work items in Karbon directly from Gusto, or create work in Karbon using the integrated template and have it automatically sync with your connected clients. The integration updates due dates to match your clients' pay schedules — so dates stay accurate even during bank holidays — and provides real-time status updates for payroll prep tasks like time tracking, time off requests, expense requests, and processing payroll.
Follow these steps to connect Karbon to Gusto.
The firm admin must connect Karbon and configure their team and clients before the integration is active. To set up the integration, follow these steps.
Go to Settings in the bottom-left menu.
Select Firm Integrations.
Click Get Started under Karbon.
Select the option that best describes how you currently manage your Karbon account:
We create work in Karbon — your team creates work manually in Karbon for your clients. This option lets Gusto generate work in Karbon automatically and tie it to the client's pay schedule in Gusto.
A third party software automates work creation — work is generated in Karbon via another proposal software integrated with Karbon.
Sign in with your Karbon credentials to authorize Gusto.
Based on the option you select, Gusto will guide you through the next steps.
Important: Do not update the name of the template once it is uploaded to Karbon—this will break the connection. You can update the name of the Work Item once it's generated on your Work tab.
To import the Gusto template, firm admins can follow these steps.
Click Add to Karbon.
Click View in Karbon to adjust the template according to your firm’s needs.
Firm member matching makes sure the colleagues set in Karbon match the firm member contacts set in Gusto.
Important: If you do not match a firm member on this page, that person cannot connect work in Karbon with their clients in Gusto.
To adjust firm member matching at any time, follow these steps.
In Gusto Pro, go to Settings.
Select Firm Integrations.
Click Settings in the top-right corner of the Karbon integration.
Click Firm Member Mappings.
Client matching connects client organizations in Karbon to the correct client account in Gusto.
Important: Clients you do not match on this page will not appear on the Create Work step. Gusto also cannot connect to work created in Karbon for unmatched clients.
To adjust client matching at any time:
In Gusto Pro, go to Settings.
Select Firm Integrations.
Click Settings in the top-right corner of the Karbon integration.
Click Client Mappings.
If you selected "We create work in Karbon" in Step 2, a Create Work screen appears automatically after you finish client matching. This screen lets you create payroll processing work in Karbon for your selected clients. Any firm members you matched in Step 3 will also see the option to create work for clients they are assigned to.
You can create work for clients now or come back to the Karbon integration in Gusto Pro and generate work at any time. See the "Create work" section below for more detail.
Q: Why am I not seeing a team member on the firm matching page?
A: Only firm members on your Gusto Pro account appear on this page. To add a firm member, go to Firm Directory and select Add a firm member.
Q: Why cannot I find my firm member in the dropdown?
A: Make sure they are set up as a colleague in Karbon. To add a team member, see Karbon's help center.
Q: Why is my client not appearing on the list?
A: If your client does not appear in the Gusto client column, they are not listed as a client of your firm in Gusto. If they do not appear in the Karbon client column, the client is not set up as an organization in Karbon. Gusto does not pull individual contacts or client groups from Karbon at this time.
Q: Can I update the Gusto Template once I download it to Karbon?
A: Yes, you are absolutely able to edit anything on this template to fit your firm’s needs. However, please do not change the name of the template as that will break the connection to Gusto. You can change the name of the Work Item once work is generated.
Once the firm admin sets up the Karbon integration, both firm admins and connected firm members can create integrated payroll work from Gusto or in Karbon.
To create work from Gusto, follow these steps.
Go to Settings in the bottom-left navigation.
Select Firm Integrations in the top navigation.
Click Create Work.
Check the box next to the client or clients you want to create work for.
If you see "Gusto work detected," integrated Gusto work has already been created in Karbon by you or another firm member.
Click Create Work at the bottom of the page.
This automatically generates repeating work based on the client's pay schedule.
Allow a couple of minutes for the work to be generated.
Sign in to Karbon and go to the Work tab.
The work title defaults to "Payroll Processing (Integrated with Gusto) - due date."
See below for more adjustments you can make to this template.
Create work via a third-party integration in Karbon
If you use a third-party integration with Karbon — like Ignition — integrated work is created through the third party, not Gusto.
To make sure the integration works properly, update your service template within your proposal software. This creates Payroll work items in Karbon using Gusto's integrated template, and applies to new proposals or clients going through a renewal process.
If you're using Ignition, follow these instructions to update your services to the integrated template.
The integrated payroll template includes default settings you may want to review or adjust.
Template Name: Payroll Processing (integrated with Gusto)
It’s important to not update the name of the template in your template library, otherwise we will not be able to connect. You are able to update the name of the work item once work is generated.
External name (what clients see): Payroll Processing
Work Type: Payroll
Assigned Roles: Payroll Specialist
Budget: Fixed Fees — $250. See this article for how to adjust budget settings.
Repeat settings: Based on the client's pay schedule in Gusto. We do not recommend changing this unless necessary.
Start Date: 3 business days from when work is due
Due Date: The day payroll needs to be run in Gusto (based on the client’s pay schedule and direct deposit speed)
Create work: One week before start date
Create task and budget: One week before start date — recommended so any template adjustments apply to future work only
Q: What is the integrated Gusto template?
A: The integrated Gusto template is a pre-built workflow for firms that run payroll in Gusto for their clients. You must use this template for work to integrate with your clients in Gusto. You can find it in the Karbon Template Library under Payroll Processing (integrated with Gusto).
Q: Will creating work through Gusto override work I already created in Karbon?
A: No. Creating work through Gusto generates new recurring payroll work in Karbon — it does not override existing work.
Q: Do I need to update the due dates in Karbon for bank holidays?
A: No. Due dates update automatically based on the pay schedule set in the client's Gusto account.
Q: Can I customize the template for my firm?
A: Yes. Generate the work for a client via Gusto first, then update the most recent work item in the Work tab. Adjustments made on the first work item automatically carry over to future work items.
Q: What happens if my client has more than one pay schedule?
A: If you create work for a client with multiple pay schedules set in Gusto, each pay schedule in Gusto will automatically create it's own payroll Work Item for that client in Karbon.
Q: What happens if a pay schedule is updated in Gusto?
A: Gusto will automatically update the work item’s due and deadline dates in Karbon if the pay schedule is updated in Gusto.
If something is not working as expected, use the sections below to identify and fix the issue.
Team member not showing on the firm matching page
Only firm members on your Gusto Pro account appear on this page. To add a firm member, go to Firm Directory and select Add a firm member.
Firm member not appearing in the dropdown
Make sure they are set up as a colleague in Karbon.
Client not appearing on the list
If your client does not appear in the Gusto client column, they are not listed as a client of your firm in Gusto. If they not appear in the Karbon client column, the client is either not set up as an organization in Karbon or their contact in Karbon is set to private. Gusto does not pull individual contacts or client groups from Karbon at this time.
Option to create Karbon work not visible in Gusto
If you are a firm member and do not see the option to create Karbon work in Gusto, contact your firm admin and ask them to add you to the firm member mapping page.
Client not visible on the create work page
Firm members only see clients they have admin access to in Gusto. Contact your firm admin if your permissions need to be updated.
Client work in Karbon not updating to reflect payroll progress in Gusto
Check the following:
Make sure the integration is connected in the Firm Integrations tab.
Ensure your firm has uploaded the Gusto integrated template from the Karbon template library first.
Make sure the Gusto client is mapped to the Karbon organization or client group. Only firm admins can map clients in Gusto.
Q: Why do the dates in Karbon not match my client's pay schedule in Gusto?
A: If work is created in Karbon with incorrect dates, the dates are automatically updated by the next business day to match the client's pay schedule.
If you no longer want data to sync between Gusto and Karbon, you can disconnect at any time and reconnect later.
To disconnect the integration, follow these steps.
In the bottom-left, go to Settings.
Select Firm Integrations.
In the top-right corner of the Karbon integration, click Settings.
Select Disconnect.
Gusto is not responsible for third-party platform functionality, content, or changes.
Data Sharing Notice: This integration requires sharing data between Gusto and Karbon, including firm member information, client account data, and payroll schedule details. By connecting your accounts, you authorize this data exchange. Gusto is not responsible for Karbon's data practices. Please review Karbon's Privacy Policy and Gusto's Privacy Policy before enabling this integration.