This article is for employers who want to understand how to choose the right direct deposit speed for their team.
When you run payroll in Gusto, you can choose how quickly your team gets paid depending on your plan, payment history, and account standing.
We offer three standard payment speeds and two late payroll options:
Standard speeds (included in your plan): Next-day pay, 2-day pay, 4-day pay
Late payroll options (fees apply): Same-day Pay, Instant Pay
New to Gusto? Most new employers start on 4-day pay. You gain access* to 2-day pay after a 15-day waiting period and one successful payroll debit on the 4-day schedule.
Some employers will qualify for next-day payments. You may also qualify for Same-day Pay or Instant Pay if your payroll is late.
Speed
Cost
Submission deadline
When funds arrive
Who can use it
Can cancel?
4-day pay
Included
4pm PT, 4 business days before payday
4 business days after payroll runs, usually morning
All employers (default for new employers)
Yes, before deadline
2-day pay
Included
4pm PT, 2 business days before payday
2 business days after payroll runs, usually morning
After 15-day waiting period + 1 successful debit*
Yes, before deadline
Next-day pay
Included
4pm PT, 1 business day before payday
Next business day, usually afternoon–early evening
Simple, Plus, and Premium plans; good account standing
Yes, before deadline
Same-day Pay
$90/payroll
12am–11am PT, Monday–Friday (same day)
By end of same business day
Qualified late payrolls only
Yes, before 11am PT
Instant Pay
$100/payroll
Available 24/7
Usually within minutes
Qualified late payrolls only
No
Click the dropdowns below to learn more.
Before choosing your payment speed, it helps to understand how payroll timing works. These basics will help you avoid delays and fees while making sure your team gets paid on time.
Banks process direct deposits on business days only. Banks do not process payments on weekends or holidays.
If payday falls on a weekend or holiday, employees get paid the business day before.
The submission deadline for all standard payment speeds is 4pm PT on the applicable business day. Payrolls submitted after 4pm PT process the next business day.
Your company bank account must have enough money by 4pm PT on the debit date to cover payroll and taxes.
If you do not have enough funds by the deadline:
We charge a $100 processing fee.
Payroll processing stops until the automatic re-debit clears.
You may lose access to next-day and 2-day pay speeds for a time.
Pro tip: Use Instant Bank Verification to help prevent errors and fees.
When you submit regular payroll early, employees still get paid on the scheduled payday (check date). Early submission does not pay employees early.
After you submit payroll, employees can see that payday is on the way in their employee pay tracker. We do this because employees want clear, reliable information about when they will get paid.
The pay tracker helps:
Set clear expectations about payday
Reduce questions like “Is my check coming?”
Give employees peace of mind, especially when timing matters for their budget
The pay tracker only confirms that payroll was submitted and that payment is moving through normal processing steps. It does not include private payroll details, banking information, or employer actions.
If there is ever a delay, we will not tell employees the reason. Instead, the message directs them to reach out to their employer or admin for more information. This keeps sensitive account details private while still helping employees stay informed.
Clear communication helps build trust, reduces confusion, and makes payday feel predictable for everyone.
Life happens — a payroll deadline slips, a new hire’s first check needs to land today, or an employee cannot wait for a standard payroll cycle. Instant Pay puts money in your employees’ bank accounts the same day you run payroll, usually within minutes of submission. No more awkward “your check is coming Friday” conversations.
You missed a standard payroll deadline and your team still needs to be paid today.
An employee has an urgent need and waiting for the next cycle is not an option.
You want to keep employee trust intact when the calendar gets away from you.
Submit your late payroll as usual. If it qualifies, you will see Instant Pay as an option at checkout.
Funds typically arrive in your employees’ accounts within minutes.*
Available 24/7, including weekends and holidays.
$100 per payroll, added to your monthly invoice.
Instant Pay is currently available on qualified late payrolls only. It will not appear as an option on every late submission. Always try to submit payroll on time — Instant Pay is not guaranteed just because we have offered it before.
Once submitted, Instant Pay cannot be canceled or reversed — funds move in real time. If you need to recover funds, you will need to request repayment from the employee directly. In Gusto, adjusting an Instant Pay that has already processed is for tax and reporting purposes only.
If you choose to pay late instead, review your state labor laws to understand the consequences of late payroll.
*Payment speeds depend on bank processing.
Instant Pay vs. Same-day Pay: Both options get your team paid faster than standard speeds. Choose Instant Pay when minutes matter, or when it is outside business hours. Choose Same-day Pay if you can submit before 11am PT on a weekday and end-of-day delivery works. See the full comparison →
If a late payroll is eligible for Instant Pay, you will see it at the end of the payroll run. If you do not see it, the payroll is not eligible.
To use Instant Pay:
Go to Pay.
Click Run Payroll.
Review or edit payroll information, then click Review summary.
Choose Instant Pay as the payment option.
If you do not select Instant Pay, payroll defaults to your standard deposit speed.
Read important messages if any appear.
Important: You cannot cancel or reverse Instant Pay. In Gusto, adjusting an Instant Pay that has already processed is for tax and reporting purposes only. If you need the money back, you must ask the employee to return it to you directly.
Review the payroll summary and confirm the payday, then click Submit payroll.
Next steps
Review when Gusto will take the payroll money from your company’s bank account. Tell your employees they will get paid soon — usually in a few minutes, depending on their bank.
If you need to change something after submitting Instant Pay, you will have to ask your employee to give the money back directly. We cannot take money out of their bank account. However, you can still adjust the payroll in Gusto to fix the tax records.
If we get a bank error on any of the team’s payments, we will email you to let you know and share the next steps.
Common errors and next steps:
Employee bank account does not support real-time payments (how Instant Pay is sent): We retry automatically, but pay may be delayed.
If you need to pay urgently, you can pay by check and adjust the payroll to let us know you paid by check. We will return the net payment to the company bank account.
Invalid account number: We email the employee, but you should also reach out to make sure they correct the account number.
If they edit the existing invalid account, we retry automatically.
If they add a new account, they must contact us to redirect the funds.
If you need to pay urgently, you can pay by check and adjust the payroll to let us know you paid by check. We will return the net payment to the company bank account.
Q: Does Gusto notify customers about the Instant Pay fee?
A: Yes. We notify you in-app and by email on the day you submit the payroll.
Q: Why is the Instant Pay fee not mentioned during signup?
A: We may charge extra fees outside the monthly payroll subscription for special services or actions your company takes. See the Terms of Service for details.
Q: How can I avoid this fee?
A: Use a regular payroll cycle to pay employees on time instead of Instant Pay.
Q: Can I reverse an Instant Pay?
A: No. Once submitted, you cannot cancel or reverse Instant Pay. You will need to ask the employee to return the money directly. You can still adjust the payroll in Gusto to correct tax records.
Q: What is the difference between Instant Pay and Same-day Pay?
A: Instant Pay ($100) is available 24/7 and funds arrive within minutes. Same-day Pay ($90) is available Monday–Friday until 11am PT and funds arrive by end of the business day. Both options are for qualified late payrolls only.
When you miss a payroll deadline but your employees still need to be paid today, Same-day Pay gets funds into their accounts by the end of the same business day.
You missed a standard deadline and can submit before 11am PT on a weekday.
You want a lower-cost faster option than Instant Pay and end-of-day delivery works.
Submit before 11am PT, Monday–Friday.
Funds arrive by end of the same business day.*
$90 per payroll, added to your monthly invoice.
Same-day Pay is currently available on qualified late payrolls only. Always try to submit payroll on time — Same-day Pay is not guaranteed just because we have offered it before.
You can cancel before 11am PT on the submission day. After that, Same-day Pay cannot be reversed. If you need to recover funds, you will need to request repayment from the employee directly. In Gusto, adjusting a Same-day Pay that has already processed is for tax and reporting purposes only.
If you choose to pay late instead, review your state labor laws to understand the consequences of late payroll.
*Payment speeds depend on bank processing.
Same-day Pay vs. Instant Pay: Same-day Pay ($90) works Monday–Friday until 11am PT with end-of-business-day delivery. Instant Pay ($100) works 24/7 and funds arrive within minutes. See the full comparison →
If a late payroll is eligible for Same-day Pay, you will see it at the end of the payroll run. If you do not see it, the payroll is not eligible.
To use Same-day Pay:
Go to Pay.
Click Run Payroll.
Review or edit payroll information, then click Review summary.
Choose Same-day Pay as the payment option.
If you do not select Same-day Pay, payroll defaults to your standard deposit speed.
Read important messages if any appear.
Important: You cannot reverse Same-day Pay after 11am PT. In Gusto, adjusting a Same-day Pay that has already processed is for tax and reporting purposes only. If you need the money back, you must ask the employee to return it to you directly.
Review the payroll summary and confirm the payday, then click Submit payroll.
Next steps
Review when Gusto will take the payroll money from your company’s bank account. Tell your employees they will get paid by the end of the business day.
If you need to change something after submitting Same-day Pay, you will have to ask your employee to give the money back directly. We cannot take money out of their bank account. However, you can still adjust the payroll in Gusto to fix the tax records.
If we get a bank error on any of the team’s payments, we will email you to let you know and share the next steps.
Common errors and next steps:
Employee bank account does not support real-time payments (how Same-day Pay is sent): We retry automatically, but pay may be delayed.
If you need to pay urgently, you can pay by check and adjust the payroll to let us know you paid by check. We will return the net payment to the company bank account.
Invalid account number: We email the employee, but you should also reach out to make sure they correct the account number.
If they edit the existing invalid account, we retry automatically.
If they add a new account, they need to contact us to redirect the funds.
If you need to pay urgently, you can pay by check and adjust the payroll to let us know you paid by check. We will return the net payment to the company bank account.
Q: Does Gusto notify customers about the Same-day Pay fee?
A: Yes. We notify you in-app and by email on the day you submit the payroll.
Q: Why is the Same-day Pay fee not mentioned during signup?
A: We may charge extra fees outside the monthly payroll subscription for special services or actions your company takes. See the Terms of Service for details.
Q: How can I avoid this fee?
A: Use a regular payroll cycle to pay employees on time instead of Same-day Pay.
Q: Can I reverse a Same-day Pay?
A: No. After 11am PT, you cannot cancel or reverse Same-day Pay. You will need to ask the employee to return the money directly. You can still adjust the payroll in Gusto to correct tax records.
Q: What is the difference between Same-day Pay and Instant Pay?
A: Same-day Pay ($90) is available Monday–Friday until 11am PT and funds arrive by end of the business day. Instant Pay ($100) is available 24/7 and funds arrive within minutes. Both options are for qualified late payrolls only.
Next-day pay is our fastest regular payment option when you plan ahead and want to get your team paid quickly.
Next-day pay is available on Simple, Plus, and Premium plans. Admins can upgrade or add on as needed.
We deposit funds the next business day, usually in the afternoon or early evening. Payments may arrive as late as the end of the business day.
The submission deadline is 4pm PT, one business day before payday.
Payments over your direct deposit limit may require extra steps, like wiring funds or printing checks.
Keep enough money in your account.
Check your bank account before making payments. If we cannot debit funds, we will block your payments and turn off next-day processing.
We will not offer next-day pay if the total amount exceeds your assigned direct deposit limit.
If your payment exceeds your direct deposit limit — which we cannot change — we may give you a few options before we move this payroll to 4-day processing:
Wire in funds to cover the amount needed, OR
Print and deliver checks to pay sooner than a 4-day processing timeline.
The submission deadline is 4pm PT, one business day before payday. If you missed the deadline, run the payments late or pay your employees by check for one payroll period.
Thursday by 4pm PT: Run payroll or payment.
Thursday: We debit funds from the company bank account (they’re now processing).
Friday afternoon (usually between 1:30pm – 5pm local): The team sees deposits in their accounts.
We deposit funds into your team’s accounts two business days after you run payroll, usually in the morning.
New employers: You gain access to 2-day pay after a 15-day waiting period and one successful payroll debit on the 4-day schedule.
The submission deadline is 4pm PT, two business days before payday.
Payments over your direct deposit limit may require wiring funds or paying by check.
Keep enough money in your account.
Check your bank account before making payments. If we are unable to debit funds, we will block your payments and turn off 2-day processing.
We will not offer 2-day pay if the total amount exceeds your assigned direct deposit limit.
If your payment exceeds your direct deposit limit — which we cannot change — we may give you a few options before we move this payroll to 4-day processing:
Wire in funds to cover the amount needed, OR
Print and deliver checks to pay sooner than a 4-day processing timeline.
The submission deadline is 4pm PT, two business days before payday. If you missed the deadline, run late payments or pay your employees by check for one payroll period.
Wednesday by 4pm PT: Run payroll or payment.
Wednesday: We debit funds from the company bank account (they’re now processing).
Friday morning (usually): The team sees deposits in their accounts.
You need to submit payroll or payments four business days before a check date.
We deposit funds four business days after payroll runs.
The submission deadline is 4pm PT, four business days before payday.
You must have enough money in your account when you submit payroll. We may debit money from your account the same day or the next day (depending on the bank).
Monday by 4pm PT: Run payroll or payment.
Tuesday – Thursday: We process funds.
Friday morning (usually): The team sees deposits in their accounts.
If you missed the payroll deadline, run payments late or pay your employees by check for one payroll period.
You need the right admin permissions to switch your direct deposit speed. Contact your primary admin if you cannot edit.
To switch your direct deposit speed:
Go to Pay.
On the top-right, click Settings.
Under Payroll info, find Direct deposit speed and click Edit.
Select your preferred speed from the available options.
Next-day pay is available on Simple, Plus, and Premium plans. Admins can upgrade or add on at any time.
Click Continue.
Click Confirm.
*New employers gain access to 2-day pay after an initial 15-day waiting period and one successful payroll debit on the 4-day schedule.