This article is for employers who want to understand how to choose the right direct deposit speed for their team.
Are you an employee? To see when you’ll get paid, go to Track your pay and troubleshoot payment issues. To find a paystub, go to View and understand your paystub.
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 faster pay options:
Standard speeds: Next-day pay, 2-day pay, and 4-day pay. Your plan includes 2-day and 4-day pay. The Plus and Premium plans include next-day pay, and you can add it to the Simple plan.
Faster pay options — eligibility applies: Included with Premium, or available for an added cost on Simple and Plus: Same-day Pay, Instant Pay.
Same-day and Instant Pay are offered for eligible payrolls and US contractor payments only — they cannot be enabled or activated by employers as-needed. Eligible payrolls include late regular payrolls and off-cycle bonus or correction payrolls. US contractor payments can qualify whether or not they’re late. Dismissal payrolls and international contractor payments are not eligible.
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 on a late regular payroll, or on an off-cycle bonus or correction payroll. You can also use them on an eligible US contractor payment.
With Premium, Same-day Pay and Instant Pay are included at no extra cost. Eligibility still applies — they are available on qualified payrolls and US contractor payments only, and you cannot turn them on manually.
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 with Plus and Premium. Add-on for Simple.
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
Included with Premium.
$90/payroll on Simple and Plus.
$45 per contractor payment run on Simple and Plus.
12am–11am PT, Monday–Friday (same day)
By end of same business day
Qualified payrolls — late regular payrolls, or eligible bonus or correction payrolls.
Eligible US contractor payments also qualify, whether or not they’re late.
The admin who runs payroll or submits the contractor payment must have 2-step verification turned on.
Same-day Pay cannot be enabled or activated by employers.
Yes, before 11am PT
Instant Pay
Included with Premium.
$100/payroll on Simple and Plus.
$50 per contractor payment run on Simple and Plus.
Available 24/7
Usually within minutes
Qualified payrolls — late regular payrolls, or eligible bonus or correction payrolls.
Eligible US contractor payments also qualify, whether or not they’re late.
The admin who runs payroll or submits the contractor payment must have 2-step verification turned on.
Instant Pay cannot be enabled or activated by employers.
No
Open each section 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.
You need to pay a US contractor within minutes, whether or not the payment is late.
Submit your payroll as usual. If it qualifies, you will see Instant Pay as an option at checkout. For US contractor payments, you’ll see it on the Review and submit page.
Note: Instant Pay cannot be enabled or activated by admins — the payroll or contractor payment must be eligible.
Funds typically arrive in your employees’ accounts within minutes.*
Available 24/7, including weekends and holidays.
Instant Pay is included with Premium at no extra cost. On Simple and Plus, it costs $100 per payroll, added to your monthly invoice.
To qualify, the admin who runs payroll or submits a contractor payment must have 2-step verification turned on.
Instant Pay is available on qualified payrolls and eligible US contractor payments only. Eligible payrolls include late regular payrolls and off-cycle bonus or correction payrolls. Dismissal payrolls are not eligible. US contractor payments can also qualify, whether or not they’re late. Learn how to use Instant Pay for US contractor payments. Instant Pay will not appear on every payroll. 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 or contractor 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 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: If you are on Simple or Plus, yes. We notify you in-app and by email on the day you submit the payroll. This notice is for payrolls only. For contractor payments, the fee shows on your monthly invoice. Premium includes Instant Pay at no extra cost, so there is no fee.
Q: Why is the Instant Pay fee not mentioned during signup?
A: Instant Pay is included with Premium at no extra cost. On Simple and Plus, it costs $100 per payroll. We may charge fees outside your monthly payroll subscription for special services like this. See the Terms of Service for details.
Q: How can I avoid this fee?
A: Premium includes Instant Pay at no extra cost. On Simple and Plus, 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 or contractor 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 is included with Premium, or $100 per payroll on Simple and Plus. It is available 24/7, and funds arrive within minutes. Same-day Pay is included with Premium, or $90 per payroll on Simple and Plus. It is available Monday–Friday until 11am PT, and funds arrive by the end of the business day. Both options are for qualified payrolls and US contractor payments 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.
You need to pay a US contractor by the end of the day, whether or not the payment is late, and you can submit before 11am PT on a weekday.
Submit before 11am PT, Monday–Friday. If it qualifies, you will see Same-day Pay as an option at checkout. For US contractor payments, you’ll see it on the Review and submit page.
Note: Same-day Pay cannot be enabled or activated by admins — the payroll or contractor payment must be eligible.
Funds arrive by end of the same business day.*
Same-day Pay is included with Premium at no extra cost. On Simple and Plus, it costs $90 per payroll, added to your monthly invoice.
To qualify, the admin who runs payroll or submits a contractor payment must have 2-step verification turned on.
Same-day Pay is available on qualified payrolls and eligible US contractor payments only. Eligible payrolls include late regular payrolls and off-cycle bonus or correction payrolls. Dismissal payrolls are not eligible. US contractor payments can also qualify, whether or not they’re late. Learn how to use Same-day Pay for US contractor payments. 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 or contractor 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 per payroll, or $45 per contractor payment run) works Monday–Friday until 11am PT with end-of-business-day delivery. Instant Pay ($100 per payroll, or $50 per contractor payment run) works 24/7 and funds arrive within minutes. See the full comparison →
If a 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:
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: If you are on Simple or Plus, yes. We notify you in-app and by email on the day you submit the payroll. This notice is for payrolls only. For contractor payments, the fee shows on your monthly invoice. Premium includes Same-day Pay at no extra cost, so there is no fee.
Q: Why is the Same-day Pay fee not mentioned during signup?
A: Same-day Pay is included with Premium at no extra cost. On Simple and Plus, it costs $90 per payroll. We may charge fees outside your monthly payroll subscription for special services like this. See the Terms of Service for details.
Q: How can I avoid this fee?
A: Premium includes Same-day Pay at no extra cost. On Simple and Plus, 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 or contractor 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 is included with Premium, or $90 per payroll on Simple and Plus. It is available Monday–Friday until 11am PT, and funds arrive by the end of the business day. Instant Pay is included with Premium, or $100 per payroll on Simple and Plus. It is available 24/7, and funds arrive within minutes. Both options are for qualified payrolls and US contractor payments only.
If your company is eligible, you can pay US contractors with Same-day Pay or Instant Pay, even when the payment is not late. International contractor payments are not eligible.
To choose Same-day Pay or Instant Pay for a contractor payment, follow these steps:
Sign in to Gusto and go to Pay.
On the right, click Pay a US contractor.
Enter your payments, then click Review summary.
On the Review and submit page, choose Same-day Pay or Instant Pay as the payment speed, if either one shows. If neither shows, the payment is not eligible.
Confirm the payment details, then click Submit.
The faster speeds show only when all of these are true:
Every US contractor in the payment is paid by direct deposit. If one contractor is paid by check, neither option shows.
Every contractor has been in Gusto for more than 24 hours.
The admin who submits the payment has 2-step verification turned on.
Payday is set to the earliest available date.
It is a payment you submit yourself. Same-day Pay and Instant Pay are not available for automated payments.
For Same-day Pay, you submit before 11am PT, Monday–Friday.
For Instant Pay, every contractor’s bank supports real-time payments. A Gusto Cash Account works for Same-day Pay but not for Instant Pay. Instant Pay is available 24/7.
If the payment also includes international contractors, they’re paid at their usual speed. The faster option applies to your US contractors.
Same-day Pay and Instant Pay are included with Premium at no extra cost. On Simple and Plus, Same-day Pay costs $45 and Instant Pay costs $50 per payment run (not per contractor), added to your monthly invoice. Your contractors receive the full payment amount.
Unlike payrolls, we do not send an in-app or email notice about this fee on the day you submit. You’ll see it on your monthly invoice.
You cannot cancel or reverse Instant Pay after you submit it.
You can cancel Same-day Pay until 11am PT on the day you submit it. After that, it cannot be reversed. Learn how to change or cancel a contractor payment.
If a contractor already received the money, work with them directly to recover it.
If an Instant Pay payment cannot go through, we send it with Same-day Pay instead and adjust the fee.
When you run payroll in Gusto, Same-day Pay and Instant Pay show up at the end of the payroll run only if that payroll qualifies. For a US contractor payment, they show on the Review and submit page only if the payment qualifies. If you do not see either option, the payroll or payment is not eligible, and you cannot turn the options on yourself.
It's not an eligible payroll type. Only late regular payrolls and eligible off-cycle bonus or correction payrolls can qualify. Dismissal payrolls do not qualify.
Your company does not qualify right now. We review each company's payment history and account standing. This decides whether you can use these options at all. For example, your company is new and has not connected its bank account with instant verification yet.
The payroll is over your company’s limit. Each company has a limit on how much it can pay with Same-day Pay and Instant Pay. Your payment history and account standing set the limit.
2-step verification is off. The admin who runs payroll must have 2-step verification turned on. It's required for both options, but it does not make every payroll eligible.
It's past the Same-day Pay cutoff. Same-day Pay is only available 12am–11am PT, Monday–Friday. Instant Pay is available 24/7.
Your company’s eligibility, limit, 2-step verification and the Same-day Pay cutoff apply to contractor payments too. A contractor payment also might not qualify if:
A contractor in the payment is paid by check. Neither option shows for the whole payment.
A contractor was added to Gusto 24 hours ago or less.
Payday is not set to the earliest available date.
It is an automated payment. Same-day Pay and Instant Pay are not available for automated payments.
For Instant Pay only: a contractor’s bank does not support real-time payments, or the contractor is paid to a Gusto Cash Account.
International contractors are not eligible, but they do not block the faster speeds for your US contractors. Learn how to use Same-day Pay or Instant Pay for US contractor payments.
Pay by check. You can print checks in Gusto and hand them out the same day you run payroll. Learn how to pay by check for one payroll.
Pay at your usual speed. If you submit without a faster option, we pay your team on your usual direct deposit timeline. Review your state labor laws about late pay first.
Upgrading does not change eligibility. Premium includes Same-day Pay and Instant Pay at no extra cost. A payroll still has to qualify to show either option.
To avoid late payrolls, submit payroll by your deadline. If you often need more time, change your direct deposit speed to a faster speed, like next-day pay.
Next-day pay is our fastest regular payment option when you plan ahead and want to get your team paid quickly.
The Plus and Premium plans include next-day pay. On the Simple plan, you can add it on for an extra cost. Admins can upgrade or add on as needed. Compare plans and pricing on gusto.com.
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 change your direct deposit speed. Contact your primary admin if you cannot edit.
To change 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 depends on your plan. Admins can upgrade or add on at any time.
Click Continue.
Click Confirm.
The speeds you can choose depend on your plan, payment history, and account standing. A faster speed might be missing for one of these reasons:
You're new to Gusto. Most new employers start on 4-day pay. You get access to 2-day pay after a 15-day waiting period and 1 successful payroll debit on the 4-day schedule.
Your plan does not include next-day pay. The Plus and Premium plans include next-day pay. On the Simple plan, it's an add-on. Admins can upgrade or add on next-day pay.
A payroll debit failed. If a payroll debit fails because of a bank error, we may move you to 4-day pay for a set time. How long depends on your payment history and how quickly you pay back the failed amount. In most cases, your faster speed comes back on its own after that, as long as your debits go through. During this time, run at least 1 successful payroll or payment each month. If a month goes by without one, the wait starts over. Contact us to find out when your faster speed can return.
*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.