You might need to pay your team or an individual employee outside of your regular pay schedule for a variety of reasons, and to do that you can run an off-cycle payroll. There's no extra fee to run an off-cycle payroll, and you'll still be able to process your regular payroll.
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.
- Sign in to Gusto.
- Click the Pay section and select Run payroll.
- Click Off-cycle payroll from the list on the right-hand side.
- 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.
- 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.
- Once in Step 1, enter a work period.
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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 off-cycle payroll will include and pay out the time off.
- Off-cycles do not accrue time off.
- 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.
- If you have multiple bank accounts set up, select which bank account you would like to process payroll from.
- If you do not see this option, head to this article to learn more.
- Select if you want deductions and contributions to be included.
- Block all deductions and contributions:
- We will not make any benefit deductions or contributions.
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Important: We're unable to turn off 401(k) deductions and contributions due to the requirements of most plans.
- For integrated 401(k) with Guideline, Betterment, Human Interest, Vestwell, or other partners, Gusto cannot turn off integrated deductions due to 401(k) requirements.
- For 401(k) plans managed outside of Gusto, we recommend updating your employees’ 401(k) elections.
- 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.
- Review the tax withholding rates.
- If you want to make a change, click Edit rates under the Tax withholding rates section.
- Enter the payment details (hours, earnings, payment method, etc.) for each employee.
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Regular Hours/Overtime: For hourly employees, click Enter hours, add the hours they've worked, and scroll to the bottom of the pop-up and click Save.
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Gross Earnings: The amount of money your employees receive before any taxes and deductions are taken out.
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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.
- Click Direct Deposit or Check to change your employee's payment method for this payroll.
- If you only see the option to pay by check, your employee has not set up a bank account for direct deposit.
- Click Save & continue.
- Add in any time off or sick hours for the employee(s) selected.
- Click Save & continue.
- 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.