How to Set Up & Run Payroll With Gusto

When it comes to payroll, companies can run a lot of different types. The internet is rife with guides for setting up everything from manual systems in spreadsheets to fancy cloud-based ones that take care of all the processing and taxes. How do you decide what’s best? We’ll give some advice on how to approach this important decision by looking at the pros and cons.

The “how to set up a pc” is a guide that will teach you how to set up and run payroll with Gusto.

Payroll processing with Gusto is straightforward; the setup procedure takes less than an hour, compared to a few weeks with other big-name suppliers. If you’re thinking about using Gusto or have just signed up for its service, learning how to use the program can help you determine if it’s worth it and ensuring that your payroll is done correctly the first time.

If you haven’t already, you may join up for a 30-day free trial of Gusto’s payroll service and follow along with the instructions below.

Try Gusto

Some of the screenshots we give may change from what you see depending on where you are in the process and how you first access Gusto. In general, the procedure and information required should be the same. Follow along with our video on how to set up and handle payroll with Gusto if you want more than just screenshots as help.

1. Register for an account

To use Gusto for payroll, you must first establish an account. To protect the account, you’ll need to provide your business name and create a password. You’ll also be asked a few questions about how your firm has handled payroll in previous months of the current year, as well as the kind of employees you want to pay.

Select “Create my account” when you’ve finished answering the questions. A notification will appear informing you to check your email for a message from Gusto, which will include a link that you must click to verify your email address.

Tip: You may speak with a Gusto support specialist at any moment if you’re having problems. When you’re signed in to your account, click the green circle in the bottom-right corner of the screen (as seen below) to launch a chat window. If you wish to speak with a real person, dial the phone number in the top left corner of the screen.

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Gusto’s customer support representatives will assist you in setting up your account through online chat. A new conversation will begin automatically. The chat box is simple to use and displays the current response timings.

2. Provide information about your company

Adding corporate information is the first step in getting Gusto up and running. You’ll be asked to provide some basic information, such as your name and company name, phone number, and address (es). This helps Gusto figure out the paperwork you’ll need in your state. If you simply have one place, this phase will be completed quickly. “Continue Setup” should be selected.

The next step is to add your bookkeeper or accountant. If you have an accountant, choose “Add your accountant” and fill in their name, email address, and other details so Gusto can provide them safe access to your account. Select “Skip this step” if you don’t need to grant a bookkeeper administrative access to your account.

Tip: Follow along with our video on how to make payroll with Gusto if you want to keep on track with your payroll account setup.

3. Increase the number of employees

You’ll collect the employee’s information and enter it into the system in the same way you did with your business information earlier. You’ll begin with some fundamental information:

Employee name: If feasible, use the name that appears on their W-4 form. This information will be used by Gusto for all employee records, including year-end tax filings.
The employee’s work address should be the physical address of the company where he or she will be employed. If you just have one location, you’ll fill in this form with the identical address for each employee.
Employee email address: Employees will use this email address to log in to their Gusto accounts and access information such as check stubs and personal information.
Date of hire: This is the date on which they were hired.
Enter the employee’s work title here. If the person does the same work as a current employee in your Gusto payroll account, you may choose from a drop-down rather than having to type it in.
Employee classification: You’ll say if the person is paid hourly or on a salary, how much they’re paid, and how often they’re paid (weekly, monthly, annually).
Check this box if this employee will get commission or other kinds of remuneration in addition to their normal hourly or salary pay in the future.
Default hours worked each pay period: If the time worked is constant, this will fill during each pay run and prevent you from having to input hours each pay period.
You won’t need to input data in this area, but you’ll notice a link at the bottom of the screen. If your workers will be accumulating paid time off (PTO), you can set up a policy in Gusto that will keep track of it and keep it up to date for each employee.

Documents for Employee Onboarding

Gusto will advise you that your employee will get a W-4 form and a direct deposit permission form to complete, both of which are standard documentation for new workers. “Save and Continue” is the option to choose.

If the employee is actually new, that is, they were employed recently, Gusto will send them welcome materials to show his or her delight in having them join the team. Gusto, on the other hand, will skip this stage if the employee you’re adding has been with your organization for a while. This is why it’s critical to input the right hiring date for each employee when they’re created.

Select “Save and Continue” once you’ve input all of your workers. If this is not the case, return to the Gusto setup page and choose Step 3: Add Employees. You should see a list of all the workers you’ve added to the system so far, their status, and a button to “add a new employee” that you may pick. Select “Continue Gusto Setup” after you’re finished.

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You may add workers one at a time or upload a CSV file to add several employees at once. You may return to this page as many times as you need to until you’ve added all of your workers to the system if you wish to add them one at a time.

4. Fill in the federal tax information

The next step is to provide Gusto with the tax information it will need to submit your payroll taxes. Look to the right side of the page for extra information if you’re uncertain about any of the information Gusto requires. Your Employer Identification Number (EIN), firm type (sole proprietorship, partnership, or LLC), and formal business name are all required. If you don’t already have an EIN, Gusto will provide you with a link to the IRS website where you may register for one online. Select “Add Federal Tax Details” when you’re ready to give Gusto the information he needs.

There will also be a question concerning whether the IRS assigned you Form 941 or Form 944 as your federal filing form. Quarterly tax returns are filed on Form 941, while yearly tax returns are filed on Form 944.

5. Include state tax information

You’ll need to submit state tax information even if you reside in a state that doesn’t collect income tax (like Florida or Texas). “Add (Your State Name) Tax Details” should be selected. Your state unemployment insurance (SUI) rate and State Employer ID number will be required by Gusto. A revenue account number is also required in certain states, such as Louisiana. Depending on where your company is situated, the layout of this page may differ.

Gusto, like the other processes, will provide recommendations for what to input and offer connections to relevant authorities. One of the tax setting pages looks like this.

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Example of Gusto’s tax setup page; green text indicates links to further information.

To go to the next stage, choose “Continue Gusto Setup.”

6. Fill up your bank account information

The next step is to connect your company bank account to Gusto. This is essential so that Gusto may pay workers and state and federal tax authorities on your behalf using your company payroll checking account. You’ll need your bank account number and routing information for payroll. Choose “Add bank account” from the drop-down menu.

Enter the account number and routing number for your bank. Gusto will make two minor bank deposits (which will display in a day or two) that you will input into the system to validate your account later. Please note that until the bank verification is completed, you will not be able to execute payroll for up to two business days. “Choose to validate your bank account.”

For this procedure to operate, Gusto will need to be linked to your online banking account. You’ll be asked to log in after entering or selecting your bank name. The connection will be complete after you log in, and the transactions will be visible. This is the fastest method of account verification. You may also do it manually if you choose. All you have to do now is wait a day or two for the transactions to appear in your account. You’ll need to input the sums on this page after they’ve done so. “Continue Gusto Setup” should be selected.

Tip: Set up a different bank account from the one you use for your other company activities. And you won’t be able to use your own bank account. Check out our list of the finest business checking accounts if you require a business bank account.

7. Include a pay schedule.

Choose “Add Pay Schedule” from the drop-down menu. It’s now time to put in some specifics about how often you’ll be running payroll.

Employees will be paid weekly, every other week, twice a month, or monthly, depending on the pay period.
Payday: When your firm pays you, what day of the week or month (if weekly) or days (if twice monthly) will it be?
When are you going to conduct your first payroll? It must be after today’s date (at least one or two days after if your bank account is being verified manually).
For work completed during the time period: How long will the first pay period last? Some companies make payments for the current week, while others make payments a week or two later (called paying in arrears).

Weekly Payroll Paid One Week Late as an Example

If your pay cycle is from Sunday night at midnight to the following Sunday, you may wish to start paying one week in advance on Fridays. You’ll gather hours from workers for the previous week and pay them on Friday for the previous week’s labor.

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Based on what you’ve input so far during setup, Gusto will offer a pay plan. Gusto offers a variety of pay schedules, and if the suggested cycle isn’t right for your company, you can click “change pay schedule” to choose your own.

To continue, choose “Continue Gusto Setup.”

8. Documents to Sign

Select “Sign Documents” from the drop-down menu. You’re almost ready to conduct payroll now that you’ve input your federal and state tax information and set up your pay schedule. You must first supply your electronic signature allowing Gusto authorization to process payroll on your behalf before you can do so (which includes submitting payroll money and documents).

You’ll need to provide your complete name, SSN, title, birth date, phone number, and home address. “Save and Continue” is the option to choose.

Sign official company documents

Add yourself as a corporate signatory to sign the paperwork. The signatory is the individual at your company who has the power to sign these papers and any other documents provided to the government in the future (like payroll tax forms). You may sign the documents online after they’ve been filled out.

Gusto will send you an email if any paperwork need to be signed. You may also add an e-signature with a single click.

You’ll need to sign three forms electronically at this point:

Gusto has authorized to debit your bank account for payroll and tax payments if you authorize direct deposit. When practical, we advocate requiring all workers to have direct deposit in order to prevent the difficulties of paper checks and dependence on snail mail.
ACH Debit and Credit Tax Authorization Agreement: This form provides Gusto permission to deduct state taxes from your account. Depending on your configuration, you may or may not see this.
Form 8655: Authorization of Reporting Agent: This form gives Gusto permission to pay your federal taxes.

For each of these papers, pick “Sign Form,” type your name (in cursive font to resemble a signature), check the box that says you consent to electronically sign this form, and then click “Sign.” Select “Continue Gusto Setup” after you’re finished.

Gusto will remind you at this moment if you haven’t validated your bank account yet. You’re almost done with the setup.

9. Pick a business.

Gusto has to comply with financial standards, therefore they’ve asked you to reveal your industry. You’ll get a drop-down choice after entering the first few letters of your industry, which should hopefully contain the one you require. If yes, check the box next to “I can’t locate my industry.” If not, check the box next to “I can’t find my industry.” Below that, provide a brief description of your industry. Then choose “Gusto Setup Continue.”

Add Workers’ Compensation Insurance to the mix.

Select “Add Workers’ Compensation” and inform Gusto whether you are already insured. Most states need it, but Gusto will inform you whether it is required in your state.

If you already have a workers’ compensation policy, you may provide the policy number, insurance company name, and renewal date in this box. You may sign up for workers’ compensation insurance straight via Gusto if you don’t have it but need it to comply. Its partner, AP Intego, can locate a variety of options in your region. There are no extra costs (other than the cost of insurance), and premiums will be computed and taken automatically from your company bank account each month.

You can also opt to do this step later. To continue, choose “Continue Gusto Setup.”

11. Make a Strategy

You’ll be prompted to pick a plan at this point if you’re utilizing a trial to test out Gusto. This will not end your trial or force you to pay any money up front. If you want to join up for regular service, it will just make the move easier. “Choose the best plan for you” should be selected.

Gusto offers three different full-service payroll options: Concierge, Core, and Complete. For more details about each plan and the services Gusto provides, see our whole Gusto review.

Make your choice by clicking “Select a Plan.” Then pick between a two-day or four-day direct deposit schedule. This is the time it takes for your workers to get their paychecks once you Payroll submission.

Tip: Direct deposit is accessible the next day, but not for new employers. To enable this feature, you’ll need to execute a couple payrolls and chat with a Gusto representative.

When you’re finished, click “Save and Continue.” You’re now ready to run payroll, which should be a snap if you’ve been doing it manually up to this point and have a strong procedure in place.

12. Enter the employee’s working hours.

You’ll have a few choices for entering the employee’s working hours. You may use Gusto’s basic timekeeping solution, or a separate timekeeping system like Homebase, to manually input the hours of each pay period based on the employee’s time card.

You’ll need to sync the two systems so that you can input the hours worked into Gusto if you’re using Homebase.

In each hourly employee’s profile, set a default work hour total every pay period. Gusto will then add this to your payroll automatically, with the ability to alter it if required. If the hours stay constant, you will not have to input them each pay month.

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Gusto’s simple run payroll feature allows you to complete payroll in a matter of seconds.

Enter your vacation time.

You’ll be able to record any paid time off (PTO) that workers took during the pay period if you implemented a time off policy. This will guarantee that their PTO balance is always current and that they are paid appropriately.

13. Review Payroll & Submit

You’ll be able to undertake a last review of your payroll transactions at this time. Check to see whether your tax and net pay levels are appropriate. Verify that you haven’t overlooked anything (such as bonuses, gratuities, or uniform cost deductions) or made any serious errors (such as keying in an extra zero).

This will grow simpler as you complete more payrolls. You may still make changes if necessary. This also allows you to calculate how much money you’ll need in your payroll bank account to pay workers, allowing you to deposit funds into that account.

Payroll submission

When you’re sure payroll is accurate, select “Payroll submission.” At this point, you can’t reverse the transaction. All employees who are set up for direct deposit will receive their paycheck in two to four business days, depending on how your business account is set up.

Gusto will ask you to print checks if you’re paying workers via check. Make sure your printer has MICR toner and blank check stock. This will guarantee that your staff do not encounter any difficulties at the bank.

Congratulations! You’ve just completed your first paycheck using one of the industry’s top online payroll systems. If you’re ready to learn more, check out our payroll training recommendations.

Conclusion

Gusto for payroll is fast and easy to set up, and by following the instructions above, you can have your account up and running in minutes. Sign up for a 30-day free trial of Gusto’s payroll service if you haven’t already.