Direct deposit payment speeds

• Paydays cannot be on a weekend or bank holiday—banks do not move money on these days.
• A payment submitted on a weekend or bank holiday will not start to process until the next business day. 
• There must be enough funds in your bank account to cover both the net payroll amount and all associated taxes in full—if the funds are not available by 4pm PT on the debit date listed in Gusto:
  • You'll be charged a $100 processing fee for the error, and;
  • The ability to process payroll will be blocked until our automatic re-debit clears, and;
  • Your access to next day and 2-day payroll processing speeds will be suspended for a period of time.
• We recommend using Instant Bank Verification to prevent errors and fees.
• Submitting a regular payroll early does not mean employees will get paid sooner—regular payrolls default to paying out on their scheduled check date. Regardless of your direct deposit speed, if you submit a regular payroll early, it will not pay out early. 

Next-day payments are available on Simple, Plus, and Premium plans—admins can upgrade (or add-on) at any time.

With next-day payments, you can run payroll or contractor payments up to one business day in advance of the check date. We may ask you to wire funds (if necessary). 

Important: Employees get paid in the afternoon (or early evening) on payday—notify your team

For next-day payments, funds are deposited in your team's bank account in the afternoon (or early evening) of the next business day. Most people—depending on their bank—will see the funds arrive the next afternoon, but payments may arrive as late as the end of the business day.

Next-day payment requirements

1. Keep enough money in your account.
   • Check your bank account before making payments. If we’re unable to debit funds, your payments will be blocked and next-day will be turned off.
   • Next-day payments will not apply if the total amount exceeds your assigned direct deposit limit.
2. If your payment exceeds your direct deposit limit—which cannot be changed—you may given a few options before getting pushed to four-day processing on the payroll:
   • Wire in funds to cover the amount needed.
   • Print and deliver checks to pay sooner (than a four-day processing timeline).
3. The deadline to run payments in Gusto is 4pm PT, one business day before payday. If you missed the deadline, run late payments or pay your employees by check for one payroll.  

Next-day payment timeline example

• Thursday: Run payroll or contractor payments by 4pm PT. 
• Thursday: You will see funds debited from your company's bank account—funds are processing.
• Friday: Funds are deposited in your team's bank account(s) in the afternoon, between 1:30pm local and 5pm local (end of business day).

With 2-day payments, you can process payments up to two business days in advance of the check date. Funds are usually deposited in your team's bank account(s) earlier in the morning.

We may ask you to wire funds (if necessary).

2-day payment requirements

1. Keep enough money in your account.
   • Check your bank account before making payments. If we’re unable to debit funds, your payments will be blocked and next-day will be turned off.
   • 2-day payments will not apply if the total amount exceeds your assigned direct deposit limit.
2. If your payment exceeds your direct deposit limit—which cannot be changed—you may given a few options before getting pushed to four-day processing on the payroll:
   • Wire in funds to cover the amount needed.
   • Print and deliver checks to pay sooner (than a four-day processing timeline).
3. The deadline to run payments in Gusto 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.  

2-day payment timeline example

• Wednesday: Run payroll or contractor payments by 4pm PT. 
• Wednesday: You will see funds debited from your company's bank account. Funds are processing.
• Friday: Funds are deposited in your team's bank account(s), usually in the morning.

With 4-day payments, you have to process payments four business days in advance of the check date. It's important to remember you must have enough funds available in your bank account at the time the payroll is processed.

• Monday: Run payroll or contractor payments by 4pm PT. 
  • Important: Make sure you have enough funds available in your company bank account—depending on the bank, you may see the funds debited the same day, or on occasion, the next day.
• Tuesday –Thursday: Funds are processing.
• Friday: Funds are deposited in your team's bank account(s), usually in the morning.

If you missed the deadline, run late payments or pay your employees by check for one payroll.

1. Go to the Pay section and select Pay settings.
2. Under the header “General” and next to "Direct deposit speed", click edit.
   • To change direct deposit speeds, you need the applicable admin permissions—reach out to your primary administrator to make the update if you're unable to view or edit the direct deposit speed.
3. Select the direct deposit speed you’d like from your available options.
   • Next-day payments are available on Simple, Plus, and Premium plans—admins can upgrade (or add-on) at any time.
4. Click Save.