Curious about GoCo's embedded payroll option with Gusto? Read more below!
We’ve partnered with an industry-leading payroll provider to create an easy-to-use all-in-one solution; GoCo + Embedded Payroll (Gusto).
Embedded payroll allows you to run payroll directly from GoCo, seamlessly capture
paystubs and automatically manage reconciliations.
GoCo acts as the source of truth so changes in employee's personal information, benefit deductions and earnings will automatically flow into payroll. No more double entry for you!
What are some limitations or needs to know that I should be aware of?
When using Embedded Payroll, here are a few tips & tricks that we recommend to make note of.
- Effective Dates and Raises: Wage changes should be applied at the beginning of the next pay period. For mid-period raises, calculate the difference manually and add it as an Additional Earning Amount. Note that retroactive pay raises must be manually calculated, as the system won’t automatically adjust missed wages in future pay runs.
- Salary Limitations: Salaried employees cannot be paid for more than 40 hours per week or receive additional hourly earnings. For extra work, use a different earnings code to pay an additional amount only.
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Hourly Employees and Additional Jobs: For hourly employees with additional jobs, add the job to the Payroll Grid from the dropdown after entering the earnings. GoCo will highlight where the job needs to be specified.
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Time Off and Accruals: Off-cycle payments for salaried employees won't include hours worked or contribute to accruals. Manually adjust the accrual balance if needed.
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Company Contributions: Company contributions are not updated during embedded payroll catchups or refunds. Contact the GoCo embedded payroll team to update contributions after the pay date.
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Contractor Payments: Contractors are paid by amount, not hours, and only have three earnings codes: Wage (Amount), Bonus, and Reimbursement.
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Payroll Deadlines: Ensure to review deadlines and avoid missing payroll dates.
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Profile Changes: Taxes and payment info sync immediately with profile changes. Refresh the entire pay run or specific employee to update changes. Changes made directly in the payroll run will not affect the employee's profile.
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One-Time Bonuses: To ensure proper taxation, run one-time bonuses separately from scheduled payroll if necessary, as they may not be taxed at 22% when included in scheduled payroll.
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Zero Earnings Reminder: Check "Include in the payroll run with $0 earnings" for employees without regular pay (hourly or salaried).
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Work Location and Payroll: Managing payroll for remote workers across state lines involves understanding various tax rules. Generally:
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Golden Rule: Employees may need to pay taxes and file returns in both their home state and the state where the employer is located.
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State Income Tax Credit: Employees can request a credit on their tax return to avoid double taxation if taxed in both states.
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Reciprocal Agreements: If states have agreements, employers withhold taxes only in the employee's state of residence, eliminating the need for a credit.
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COE Rule: If an employee works in another state for the employer's convenience, the work address is where the employer’s control is based, avoiding additional state unemployment taxes. If the employee chooses their work location, taxes are typically due in both states.
Note: Many states do not have income tax reciprocity agreements, so it's important to check specific state regulations.
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⚠️ If you have questions about what work address to use for an employee in GoCo, work with a tax advisor or accountant- GoCo cannot advise.
FAQ's
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What Fields Transfer to Gusto via API?:
- Automatically Transferred: GoCo sends over personal information, benefit deductions (like Health, Dental, and Vision), earnings, and employment details to Gusto instantly.
- Not Transferred: Garnishments, such as Child Support, aren't included and need to be set up manually by your Payroll Specialist.
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What is the difference between Time Tracking vs. Time Off with payroll?
- Time Tracking: This process requires careful handling due to multiple approval steps and exporting, so make sure to follow each step closely.
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- Time Off: This process is seamless and flows directly into payroll and paychecks. Remember, Time Off and Time Tracking are handled separately and update payroll independently.
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What limitations are there for Benefits Syncing?
- 401k/403b/Simple IRA: These benefits aren’t managed through GoCo’s benefits module. Instead, they are updated via the Human Interest API or manually. Be sure to update any deferral changes on employee profiles before running payroll.
- How do I add a one-time earning?
- One-time bonuses or earnings can be added directly onto the payroll run in GoCo before the checks are created, simply select the earning from the drop-down provided when preparing your paychecks. For more information on this process, check out this help article.
- One-time bonuses or earnings can be added directly onto the payroll run in GoCo before the checks are created, simply select the earning from the drop-down provided when preparing your paychecks. For more information on this process, check out this help article.
- How do I make a recurring commission/bonus/etc?
- On an employee's profile, you will use the Employment Change Wizard, to set up any recurring earnings that should be included on all checks. For more information on this process, check out this help article.
- On an employee's profile, you will use the Employment Change Wizard, to set up any recurring earnings that should be included on all checks. For more information on this process, check out this help article.
- How do you create an earning code? How do you create a deduction code?
- For the codes to be available to you in GoCo, we need to get them set up in Gusto first. Contact our Support team for assistance!
Published 8/20/24