Set up and manage time off policies

You can set up a variety of time off policies in Gusto depending on your Gusto plan. If you're on the Gusto Simple plan and would like to offer the additional policy types, upgrade your plan at any time.

Once set up, employees will be able to request time off both on a computer, and through our Gusto Wallet mobile app if time off requests are enabled. You can also assign managers to handle these time off requests, or admins can handle them.


Q: I have pending time off requests, but I already ran payroll. How do I fix this?

A: When you go back to the Time off tab, these requests will still be under "Pending Requests" where you can decline or approve them.

If you manually added the time off hours when running payroll, Decline the time off request since you already incorporated these hours. 

If you did not manually add the time off hours when running payroll, Approve the time off request. Remember to also do the following if the time off requester is a salaried employee or hourly employee:

  • Salaried employees: Go to the Employees tab, and manually update the employee's time off balance to compensate for this approved request, since this will not be calculated automatically.
  • Hourly employees: Process an off-cycle payroll for the hourly employee. Make sure to add the correct work period, and enter the requested time off date range. By adding this date range, the requested time off hours will autofill on the "Vacation & Sick Days" page of the correction payroll. This will also automatically recalculate the employee's remaining time off balance.

Q: Does AutoPilot still run if I have pending time off requests?

A: Yes, AutoPilot will still run if you have not approved or declined pending time off requests.

Q: I use a time and attendance integration. How does this affect time off requests in Gusto?

A: You can still sync regular hours from your time and attendance integration when running payroll. However, if you also track vacation and/or sick hours through the time and attendance integration, Gusto will not sync these time off hours. Instead, vacation and sick hours will only be pulled from the requests made through Gusto.

Q: Why can only salaried employees request time off in past/processed payrolls (historical payrolls), but hourly employees cannot?

A: Salaried employees are paid the same amount every pay period, and a set amount of taxes are taken out from each paycheck. If salaried employees submit a historical time off request, there are no tax implications.

Taxes for hourly employees depend on the actual amount of hours worked in the pay period. If an hourly employee submits a historical time off request, this changes the amount paid to the employee and therefore causes tax implications. To avoid any penalties with this scenario, hourly employees will not have the ability to submit historical time off requests.

Q: What happens when a historical time off request for a salaried employee is approved?

A: The following will happen:

  • In the payroll admin/manager view, the request will move from the To Review section to the Paid section.
  • In the employee view, the request will move from the Pending Requests section to the Past Vacation/Sick Time section.
  • The employee's remaining time balance will update.
  • The paystub for that affected timeframe will include the new time hours.