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How to run your first payroll in Gusto

From the payroll calendar to the confirmation email, with the deadlines and fees that catch first-timers.

Shanin Drucquer

Shanin DrucquerGusto user since 2024 · Updated September 2026

Start with Gusto

$100 Visa gift card after your first payroll, through my referral link.

Have these ready

  • Your bank account verified, instantly with Plaid or by test deposits
  • Everyone’s onboarding finished: SSN, home address, and bank details
  • Final hours for the pay period
  • Any bonuses, tips, or reimbursements to add
  • Enough in the bank for net pay plus taxes

  1. Step 1 of 7 · 2 min

    Find your payroll and its deadline

    Sign in and go to Pay. Your first payroll shows two dates: the run-by date and payday. Submit by 4 pm PT on the run-by date, or it processes the next business day.

    Watch out

    New accounts start on 4-day pay, so your first payday is four business days after you submit. Two-day pay unlocks after 15 days and one successful payroll.

    Gusto

    Upcoming payroll

    Sep 29 – Oct 10

    • Run byMon, Oct 6 · 4 pm PT
    • PaydayFri, Oct 10
    • Deposit speed4-day
    Screens are recreated with example data.

  2. Step 2 of 7 · 3 min

    Get final hours before you start

    For hourly people, every hour in the pay period has to be worked before you run payroll. If the pay period ends after your deadline, those hours won’t make it in. If you use Gusto’s time tracking, hours sync on their own.

    From Shanin

    I track my crew’s hours in Jobber, so I pull those totals first and have them ready before I open Gusto.

    Gusto

    Hours for this pay period

    Ready to enter

    • Maria L. · 80 hrs + 6 OTFinal
    • James R. · 76 hrsFinal
    • Ana P. · 63.25 hrsWaiting on Friday

  3. Step 3 of 7 · 5 min

    Enter hours and pay

    Click Run payroll. Salaries fill in automatically. Enter hours as decimals, so 1 hour 15 minutes is 1.25. Overtime goes in its own column, and anyone with more than one pay rate has an arrow next to their name to enter each job.

    Gusto

    Maria Lopez

    Hourly · $24/hr

    Regular hours

    80.00

    Overtime hours

    6.00

    Paid at 1.5x

    Review summary

  4. Step 4 of 7 · 2 min

    Add bonuses, tips, and reimbursements

    Bonuses in a regular payroll are taxed at the regular rate. For the 22% supplemental rate, run a separate extra-pay payroll instead. Reimbursements aren’t taxed. Use cash tips for tips already paid out, and paycheck tips for tips you’re paying now.

    Watch out

    When you add a bonus or cut someone’s pay, add a personal note to their pay stub. Gusto warns that an unexplained change can lead to a wage complaint.

    Gusto

    One-time pay

    This payroll only

    Bonus

    $150.00

    Reimbursement

    $42.50

    Not taxed

    Personal note

    Spring cleanup bonus

    Save

  5. Step 5 of 7 · 2 min

    Review the summary

    Click Review summary. Gusto flags unusual pay changes first; edit or dismiss each one. Then check the withdrawal amount and expand what will be taxed and debited.

    Gusto

    Payroll summary

    Payday Fri, Oct 10

    Gross pay
    $6,420.00
    Employee taxes and deductions
    −$1,118.52
    Employer taxes
    $491.13
    Reimbursements
    $42.50
    Total withdrawal
    $6,953.63

  6. Step 6 of 7 · 1 min

    Make sure the money is there

    The full withdrawal has to be in your account by 4 pm PT on the debit date. If it isn’t, Gusto charges a $100 fee, holds payroll until the retry clears, and can pause faster pay speeds.

    From Shanin

    Gusto takes three separate withdrawals: net pay, taxes, and reimbursements. QuickBooks files my wages and payroll taxes in their own categories from the bank feed, so they’re easy to match.

    Gusto

    Bank withdrawals

    Debit date Mon, Oct 6

    • Net pay · code NET$5,301.48
    • Taxes · code TAX$1,609.65
    • Reimbursements · code REM$42.50

  7. Step 7 of 7 · 1 min

    Submit, and cancel if you need to

    Click Submit payroll. You can cancel and resubmit any time before the money is withdrawn. Submitting early doesn’t pay anyone early. Gusto emails a confirmation, and you can download the payroll details and a cash requirement report.

    If you signed up through my link, this is the payroll that unlocks your $100 Visa gift card.

    Open Gusto
    Gusto

    Payroll submitted

    Payday Fri, Oct 10

    • Confirmation emailSent
    • Cash requirement reportReady
    • Cancel payrollUntil Mon, 4 pm PT

After you submit

Your team sees it coming

Employees can see their payday is on the way in Gusto’s pay tracker, without any of your payroll details.

Taxes get paid and filed

Gusto pays the payroll taxes from each run and files the quarterly and annual forms.

Next time is faster

Salaries carry over, so later payrolls are mostly entering hours. Two-day pay unlocks after your first successful payroll and 15 days.

Common questions

When is the Gusto payroll deadline?

4 pm PT on the run-by date in your payroll calendar. Payrolls submitted after that process the next business day.

How long does the first payroll take to reach employees?

New accounts start on 4-day pay, so money arrives four business days after the run-by date. Two-day pay becomes available after a 15-day wait and one successful payroll, and next-day pay depends on your plan and account standing.

What happens if I don’t have enough money for payroll?

Gusto charges a $100 processing fee, blocks payroll until the automatic retry clears, and may pause next-day and two-day pay for a while.

Can I cancel a payroll after submitting it?

Yes. You can cancel and resubmit any time before Gusto withdraws the money. Instant pay is the exception: it can’t be canceled.

How are bonuses taxed in Gusto?

In a regular payroll, bonuses are taxed at the regular rate. Run an extra-pay payroll to use the 22% supplemental rate instead.

Does submitting payroll early pay employees early?

No. Employees are paid on the scheduled payday. To pay outside the schedule, run an off-cycle payroll.

Haven’t signed up yet?

Sign up through my link and run your first payroll, and Gusto sends you a $100 Visa gift card.

Start with Gusto

How to set up Gusto payroll →

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Payroll hours calculator →

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