Use this article and the dropdowns below to understand the different ways a Regular payroll can be used.
Heads up: Regular payrolls are directly linked to your company's pay schedule and pay periods. Therefore, if you need to change the dates of the pay period you're running payroll for, run an off-cycle payroll instead. Alternatively, if you need to change your pay schedule for the regular payroll, head to this article.
If you need to pay a contractor, follow these steps instead.
If you'd like to payroll to run automatically according to your company's pay schedule, enable Autopilot.
You can easily add a one-time commission amount for an employee in regular payroll. If you have commission-only employees and your payroll is on Autopilot®, you'll need to enter a commission before the payroll runs—these employees are set to a $0 salary so they won't be paid if no commission is entered.
This commission amount will be taxed as regular wages. It will also be seen as a separate line item for commission on the employee's paystub.
If your employee has received a bonus, run a specific bonus payroll to apply the IRS' recommended supplemental withholding rate of 22%.If you need more information about taxability, check out IRS Publication 15 here.
If you'd rather aggregate the bonus amount in regular wages, add this to your next regular payroll. This will combine the bonus and any other taxable wages for the purposes of calculating the Federal Income Tax. Remember that the higher the gross pay, the higher the taxes. Therefore depending on the amount of the bonus, the employee might up paying more taxes on this payroll because of the bonus.
To aggregate the bonus amount in regular wages:
This bonus amount will be taxed as regular wages. It will also be seen as a separate line item for a bonus on the employee's paystub.
Note: If your employee has an active garnishment, you may need to check with the garnishment authority to see if there are specific requirements for garnishing the bonus payment.
Let your employees know why they're receiving a bonus, adjusted wages, or other special payment by adding a personal note the next time you run payroll. Personal notes can't be added retroactively, so you'll need to do it while processing the payroll.
You can enter cash and paycheck tips for employees in your regular payroll.
Both paycheck and cash tips will be taxed as regular wages. The tips will appear as separate line items on the employee's paystub.
If your employee is set up with multiple pay rates, follow the steps below for how to enter each rate when running payroll. Note: Multiple pay rates for salaried employees is not supported at this time.
If you're on the Plus or Premium product plan, you can use Gusto Time Tracking to seamlessly sync employee's hours.
Step 1. Enter regular hours
Step 2. Enter overtime hours
Note: If you are using your own overtime calculation, you can calculate the overtime wage amount you want entered, and instead add this total as another Additional Earning. We also suggest adding a Personal Note to let the employee know what this extra amount is for.
Step 3. Enter paid time off hours
If you need to accommodate unpaid time off taken in a pay period, deduct these hours in your payroll. For salaried employees, you'll want to deduct 8 hours for every work day taken for unpaid time off.
If your employee has taken unpaid time off for an entire pay period, you can skip them on that payroll so that no paid working hours are entered for that time period.
If you're an administrator with the required permissions, you can follow the steps below to skip an employee on payroll. If you need to remove them permanently, dismiss them from the company. Skipped employees will remain on your invoice, while dismissed employees will not.
Skipping an emplyee on a payroll means the employee will not receive a paystub. Paying an employee $0 on a payroll will product a $0 paystub.
The employee you skipped will not be paid for this payroll.
All employees you selected will not be paid for this payroll.
Keep in mind: Skipping an employee from payroll will only affect this one instance. If you need to skip them again, follow the same process in your future payrolls.
If you need to pay an employee for a skipped payroll, process an off-cycle payroll.