Why Do I Have "Needs Review" Items, and How Do I Handle Them?

When processing payroll, you may notice items flagged with a "Needs Review" status on your Payroll Grid. These items signal missing or incomplete information for one or more employees, which requires your attention before the payroll can proceed.

You might also notice items in your notifications section related to company or team member sync errors. For more information, check out this help article.

Here’s a breakdown of the most common "Needs Review" items, why they appear, and how to handle each one effectively.

Why "Needs Review" Items Appear

"Needs Review" items often occur due to missing or incomplete information essential for payroll processing. Some of the most frequent causes include:

1. Catch-Up Deductions: If an employee has received benefits but was not correctly deducted, they may owe a catch-up deduction. This often happens after an approved life event, like a change in benefit coverage, requiring adjustments to back pay.

2. Missing Key Employment Information: Critical information like a Social Security Number (SSN) may be missing from an employee's profile, which is essential for payroll and tax purposes.

3. Incomplete Tax or Direct Deposit Details: Missing tax withholdings or direct deposit details can prevent correct payment and tax processing. In these cases, you may need to use default values or gather updated information from the employee.

4. Unrecorded Hours: If an employee lacks recorded hours for the pay period, this could create an item needing review, as hours are essential for accurate wage calculation.

5. Missing State or Local-Specific Tax Details: When managing employee profiles in Embedded Payroll with Gusto, you may see state-specific special tax fields that vary by work location. If your state doesn't require these fields, such as SOC codes, you won’t be able to add them. Understanding these fields is essential for accurate data entry and compliance, as some state requirements or local taxes (like school district taxes) may be missing or not set up correctly.

6. Employee-Specific Errors: Occasionally, an employee’s setup may not meet the requirements for payroll processing in Gusto, leading to unique errors that may only appear after you reach the "Preview" stage.

How to Handle "Needs Review" Items

Once you know why an item is flagged, here’s how to address each common situation:

1. Catch-Up Deductions

   • You can choose to add the catch-up deduction to this pay run (or spread it across upcoming payrolls, depending on the warning details).
   • Alternatively, you may proceed with the standard deduction and manage the reconciliation offline if needed.

2. Missing Key Employment Information (e.g., SSN)

   • Add the missing SSN or other key details directly within the payroll screen to clear this item.
   • If the employee needs to supply the information, contact them promptly.

3. Incomplete Tax or Direct Deposit Details

   • If tax or direct deposit information is incomplete, you can use default values to continue the pay run. However, confirm these defaults will meet compliance needs.
   • Alternatively, you can ask the employee to update their profile, but this will require you to refresh the pay run in order to pull the changes through.

4. Unrecorded Hours

   • Ensure all employees have recorded hours, and make updates directly in the pay run screen if hours are missing.

5. Missing State or Local-Specific Tax Details

   • Add any missing state or local tax information in the pay run. These details are crucial for regional compliance.

6. Employee-Specific Errors

   • Employee-specific errors often require unique solutions, as these indicate the employee's profile isn’t fully compatible with Gusto’s processing requirements. Review the error messages carefully, as they may provide insights on required actions.

Additional Tips for Handling New Hire Review Items

For new hires, "Needs Review" items are typically due to incomplete tax forms or direct deposit preferences. Here are some options:

• Exclude from Current Pay Run: Temporarily remove the employee from this pay run to give them time to complete their profile.
• Request Profile Update: Ask the new hire to fill out their profile and refresh the pay run. Be aware that refresing will remove any adjustments you’ve already made. You can also choose to refresh the payroll run for that specific employee. 
• Complete Missing Details in the Pay Run: For faster processing, fill in any missing tax or payment information directly within the pay run. Carefully review any warnings to ensure compliance.

Once you’ve resolved all "Needs Review" items, you’re set to proceed with payroll processing.

If you’re ever uncertain about an item or the best action to take, our team is here to help! Reach out at support@goco.io.

Happy Hiring! 💚

Updated 11.19.24