How is the check payment method handled in Gusto?
If an employee or contractor is set to receive check payments, Gusto will not debit the individual’s net pay and checks will need to be written/distributed by the employer. Once the individual deposits the check, the funds for their net pay will be debited from the company’s bank account. Please be aware that the payroll will still report on total gross wages regardless of payment method. Example: You run a payroll that costs $10,000, where your employee is receiving a $7,000 check from you. In the $10,000 expense synced over from Gusto, you can see line items for $9,000 of gross wages (this includes a $7,000 check + $2,000 in employee taxes) and $1,000 of employer payroll taxes.
What is the difference between an off-cycle payroll and a bonus payroll?
Off-cycle payrolls are available if you need to pay your team outside of the regular payroll schedule, separate from a bonus payout. A bonus payroll can be used if/when paying out employee bonuses and will default to the supplemental withholding rate of 22%.
What type of pay schedules does Gusto support?
We currently support weekly, bi-weekly, semi-monthly, monthly, quarterly, and annually. More information here.
Does Gusto debit for employee deductions and employer contributions for benefits (e.g health insurance)?
Gusto will not debit for company benefits – the company will always be responsible for this payment.