Off-cycle payrolls

Follow the steps below to run an off-cycle payroll. If at any point you need to exit to payroll flow, click Save changes for later at the bottom of the page to save this payroll as a draft. The steps to access this draft are the same as below.

1. Click the Payroll section and select Run payroll.
2. Scroll to "Other payroll options" and select Off-Cycle Payroll.
3. On the next page, select the employee(s) this Off-cycle payroll should apply to.
   • Employees can be selected through the search bar, filtered by department/job titles, or directly via the check-box.
4. Click Continue to enter Step 1 of the Off-cycle payroll.
   • If at any point you need to edit the employee list during Step 1, select Edit Employees.
5. Once in Step 1, enter a work period.
   • The timeframe in which the employee worked to earn this payment.
     • If you enter a timeframe in which an employee has requested time off, the bonus payroll will include and pay out the time off.
   • Off-cycles do not accrue time off.
6. Select the payment date.
   • If you need to run a payroll with a check date in the past to appropriately report missed wages, check out our article on recording past payrolls.
7. If you have multiple bank accounts set up, select which bank account you would like to process payroll from.
   • If you don't see this option, head to this article to learn more.
8. Select if you want deductions and contributions to be included.
   • Block all deductions and contributions:
     • We won't make any benefit deductions or contributions.
       • Important: We're unable to turn off 401(k) deductions and contributions due to the requirements of most plans.
   • Make all the regular payroll deductions and contributions:
     • We'll make all your normal benefit deductions and contributions.
     • If your benefits are managed by Gusto, your standard benefit will not automatically be applied unless you choose them to be included.
9. Review the tax withholding rates.
   • If you want to make a change, click Edit rates under the Tax withholding rates section.
10. Enter the payment details (hours, earnings, payment method, etc) for each employee.
    
    • Gross Earnings: The amount of money your employees receive before any taxes and deductions are taken out.
    • Net Earnings: The amount of money your employees take home after all deductions have been taken out. This is the money they have in their pocket on payday.
    • Other Earnings: Option to add either a commission, bonus, paycheck tip, or cash tip.
    • Reimbursement: Reimbursements and expense reimbursements are not taxed, and therefore not reported as regular wages.
11. Click Save & continue.
12. Add in any time off or sick hours for the employee(s) selected.
13. Click Save & continue.
14. Review the details of your payroll. When you're ready, click Submit payroll. If you need to make changes, click Go back.

On the next screen, you'll see a summary of the payroll. From here, you can:

• Return to your Home page
• Click Full Summary to view a downloadable PDF report
  • All active employees will show on this report, but only employees that you entered a payment for will get paid.
• Cancel this payroll

You'll receive a confirmation email letting you know that your off-cycle payroll has been processed. If you need to edit the off-cycle payroll, cancel the payroll and rerun it.

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 off-cycle payroll.

Here are some examples of why you might need to run an off-cycle payroll:

• An employee needs to be paid before the next regular pay day.
• An employee is given extra compensation outside of regular payroll.
• You need to reimburse an employee.
• You need to pay severance that was missed on an employee's dismissal payroll.
• You need to pay additional wages that were missed on a regular payroll.
• You need to fix errors from a previous payroll.