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Gusto Payroll Process Using Time Tracking for Hourly Employees

Gusto Payroll Process Using Time Tracking for Hourly Employees
Gusto Payroll Process Using Time Tracking for Hourly Employees
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Published on
Dec 13, 2023

Paul W. Carlson, CPA (00:00):

Hi, this is Paul Carlson, CPA. In this video, we're looking at how to run payroll within Gusto for a firm that has both salaried and hourly employees. So the old school way of running payroll is you'd use a system like Gusto or Paychex. You'd log in, and you'd say run payroll, run regular payroll. A system will come up with the salaries for salaried employees. But then for hourly, we'd have to go track down all the employees, and calculate how much they worked, and if they had any overtime, you have to calculate their overtime for the pay periods. And that turns out to be quite the process, and it's a lot of time behind the scenes. If there's any revisions, it can just take hours to get that detail. So Gusto has a simple time tracker that fixes much of that. So when we have Gusto turned on to use the time tracker, the process to run payroll as a firm logs in to the dashboard, we go over to time tracking, we're going to look at our team's hours.


And here's the big gotcha, that typically you run payroll after the prior pay period has ended, Gusto will default to the current pay period. So usually you need to click in this box to switch back to the pay period that just ended. Once you see this box, and you pay attention that you're in the right pay period, it makes a lot of sense. So this is silly sample data. So we don't have that issue. So here we can see that Dexter and Isaiah have entered their time into Gusto. So from here we can view, and we can scroll through, and see what they did. We can edit their time if we need to, we can add notes, or the employees can add notes to their time. So once we're satisfied that their total time is correct, we can click approve. What the approval does is that once the time is approved, employees can no longer make changes to their time.


Now that we have reviewed the time and approved it, we can sync those hours to payroll. So watch, Dexter had eight hours, and Isaiah had 11. So now we go back to run payroll, we're going to run our regular payroll. Here we have Hannah's salary, and here we have Isaiah's 11 hours, and we have Dexter's eight hours. And it's going to bring over regular hours, RH and overtime based on the time tracker. So a lot of our firms don't pay on a straight weekly pay. They pay twice a month. So Gusto behind the scenes is calculating our weekly overtime based on state rules. And with that, once everything is correct, we can just scroll to the bottom, save, and continue, and run our payroll.


Just one note, if you log in, an hourly employees have a default time, so they have 80 hours default, or 40 hours time default. Contact us, and we'll turn that off, that once the time tracker's turned on, we do not want the default hours in, then we want all hours to go into the time tracker system. All right, thanks.