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Time needed to process payments

There are three timelines used to process payments by direct deposit. All customers will be put on 2-day payments when they begin running payroll with Gusto, and some customers will qualify for next-day payments.

Payments run on a weekend or bank holiday will not begin processing until the following business day. 

Next-day payments 

With next-day payments, you can run payroll or contractor payments up to one business day in advance of the check date. Funds are deposited in your team's bank account by end of day.

  • Next-day payments is available to our Complete and Concierge customers. If you don’t have access to this feature, upgrade your plan.

Next-day payment requirements

  1. Keep enough money in your account.
    • Check your bank account before making payments. If we’re unable to debit funds, your payments will be blocked and next-day will be turned off.
  2. Any payment exceeding your direct deposit limit will be processed in four business days.
    • Next-day payments will not apply if the total amount exceeds your assigned direct deposit limit.
  3. The deadline to run payments in Gusto is 4pm PT, one business day before payday.

Next-day payment timeline example

  • Thursday: Run payroll or contractor payments by 4pm PT. 
  • Thursday: You will see funds debited from your company's bank account. Funds are processing.
  • Friday: Funds are deposited in your team's bank account(s) by the end of the business day.

2-day payments 

With 2-day payments, you can process payments up to two business days in advance of the check date. Funds are usually deposited in your team's bank account(s) earlier in the morning. 

2-day payment requirements

  1. Keep enough money in your account.
    • Check your bank account before making payments. If we’re unable to debit funds, your payments will be blocked and next-day will be turned off.
  2. Any payment exceeding your direct deposit limit will be processed in four business days.
    • 2-day payments will not apply if the total amount exceeds your assigned direct deposit limit.
  3. The deadline to run payments in Gusto is 4pm PT two business days before payday.

2-day payment timeline example

  • Wednesday: Run payroll or contractor payments by 4pm PT. 
  • Wednesday: You will see funds debited from your company's bank account. Funds are processing.
  • Friday: Funds are deposited in your team's bank account(s), usually in the morning.

4-day payments

With 4-day payments, you have to process payments four business days in advance of the check date.

  • Monday: Run payroll or contractor payments by 4pm PT. 
  • Tuesday: You will see funds debited from your company's bank account. 
  • Wednesday –Thursday: Funds are processing.
  • Friday: Funds are deposited in your team's bank account(s), usually in the morning.

If you missed the deadline, run late payments and request an expedite or pay your employees by check for one payroll.  

Switch your direct deposit speed

If you're processing 2-day or 1-day payments and want to go back to a 4-day processing time:

  1. Go to the Settings section.

  2. Click the Payroll tab.

  3. Next to Direct deposit speed, click edit.

  4. Select the direct deposit speed you’d like from your available options.

  5. Click Save.

Payroll, benefits, HR and more.