Fix payroll blockers in Gusto (for admins)

If you see a to-do on your Home page about an outstanding balance, we paid your team, but could not pull funds due to an insufficient balance. You must pay the balance before you can run payroll again.

• Bank error codes: R01 and R09

Debit failure fees: We charge $100 per day for each failed debit. This fee only applies to faster payrolls (for employees) and contractor payments. Bank verification issues or invoice failures do not include this fee. See our Terms of Service.

Pay an outstanding balance in Gusto (for insufficient funds errors)

To pay an outstanding balance:

1. Sign in to your admin profile.
2. On the Home page, click the to-do Payroll is blocked: Pay outstanding balance (or go to Pay).
3. Review failed transactions. Pay one or all together.
4. Choose a payment method:
   • Automated Clearing House (ACH) debit: Takes a few business days. Choose a verified bank, then click Continue.
   • Wire transfer: Fastest. There is a $5 Gusto fee plus your bank’s fees (bank fees may vary).
5. For wire transfers, download the PDF with our details, give it to your bank, and send the exact amount.
   
   • We cannot do anything until we get the wire. They’re usually instant, but there’s no guarantee we’ll get it the same day it’s sent.
   • We’ll give you the details to give to your bank. Our wire requirements:
     • The total amount you send must match the amount in the instructions.
     • The originating bank account must be based in the US.
     • You must be authorized to use the bank account on behalf of the company.
6. Click Submit to confirm the wire details. The wire may take time to transfer from your bank to ours — check the status in Pay history.

If we’re not authorized to debit your bank account, the debit will fail, and you must resolve the issue. In these instances, we typically* pay your team as planned.

• Bank error codes: R05, R06, R07, R08, R10, R16, R29, R31, R74

Debit failure fees: We charge $100 per day for each failed debit. This fee only applies to faster payrolls (for employees) and contractor payments. Bank verification issues or invoice failures do not include this fee. See our Terms of Service.

Resolve bank issues and pay outstanding balances (Gusto was not authorized to debit)

To resolve bank authorization issues:

First, check your email for specific info about the bank error and the exact steps required to fix it.

1. Sign in to Gusto as admin.
2. On the Home page, click Payroll is blocked: Resolve banking issues (or go to Pay).
3. Review failed transactions. Pay one or all together.
4. Tell us if you want to use the existing account or add a new one.

If using the same account: We’ll need to verify that we’re authorized to debit before it can be used again.

1. Contact your bank to authorize Gusto. If your bank asks for authorization codes, give them the list of codes shown in Gusto.
2. When you’re done, confirm in Gusto by checking the box.
3. We’ll send test debits ($2 total). These can take a few business days to clear, and you should have at least $2 in your account to prevent overdraft fees.
4. After the tests are clear (bank is not verified until they do), pay the outstanding balance with a wire transfer.

If adding a new account: Choose how you want to verify your new bank account.

1. Verify instantly with Plaid, or
   • Once verified, you can pay the outstanding balance by ACH debit or wire transfer (the fastest option).
2. Verify manually with two test transactions (2 – 3 business days).
   • We’ll make two small test transactions. Once they reach your bank account, return to Gusto and confirm the amounts to finish this step.
   • After the tests are clear (bank is not verified until they do), pay the outstanding balance with a wire transfer.

If the preexisting account was the default bank account in Gusto, choose a different bank as the default, or set up a new default account.

*Special notes:

• Sometimes, payrolls for employees are canceled. After the bank issue is fixed, re-run them if your team still needs to be paid.
• For contractors, payments may switch to checks (contractors will not get a direct deposit). Deliver physical checks on time.

In these cases, you’ll need to:

• Review the details of the failed transactions.
• Clarify your company's funding methods moving forward.
• Rerun team payments if needed.

In these instances, we paid your team, but payroll may be blocked because the bank account was closed, you entered the wrong details, or your bank made changes. As a result, we’ve deactivated the bank account in Gusto, and you need to pay the account balance before you can run payroll again.

• Bank error codes: R02, R03, R04, R12, R13, R15, R20, R34

Debit failure fees: We charge $100 per day for each failed debit. This fee only applies to faster payrolls (for employees) and contractor payments. Bank verification issues or invoice failures do not include this fee. See our Terms of Service.

Resolve deactivated bank account issues

To resolve deactivated bank account issues:

1. Sign in as admin.
2. On the Home page, click Payroll is blocked: Resolve banking issues (or go to Pay).
3. Review failed transactions. You’ll need to do one or more of the following:
   • Add a new bank account (if you only had one in Gusto).
   • Set a new default bank account if we deactivated the old one.
   • Pay the balance with ACH debit or wire transfer.
4. Tell us if you want to add a new bank account or use an existing one.

If adding a new account: Choose how you want to verify your new bank account.

1. Verify instantly with Plaid, or
   • Once verified, you can pay the outstanding balance by ACH debit or wire transfer (the fastest option).
2. Verify manually with two test transactions (2 – 3 business days).
   • We’ll make two small test transactions. Once they reach your bank account, return to Gusto and confirm the amounts to finish this step.
   • After the tests are clear (bank is not verified until they do), pay the outstanding balance with a wire transfer.

If using a pre-existing account: You’ll need to set a new default account since we deactivated the previous one.

1. Choose a payment method:
   • ACH debit: Takes a few business days. Choose a verified bank, then click Continue.
   • Wire transfer: Fastest. There is a $5 Gusto fee plus your bank’s fees (bank fees may vary).
2. For wire transfers, download the PDF with our details, give it to your bank, and send the exact amount.
   
   • We cannot do anything until we get the wire. They’re usually instant, but there’s no guarantee we’ll get it the same day it’s sent.
   • We’ll give you the details to give to your bank. Our wire requirements:
     • The total amount you send must match the amount in the instructions.
     • The originating bank account must be based in the US.
     • You must be authorized to use the bank account on behalf of the company.
3. Click Submit to confirm the wire details. The wire may take time to transfer from your bank to ours — check the status in Pay history.

Payroll may be blocked if there is a tax filing or payment problem.

👉 Troubleshoot filing or payment issues here.

Sometimes payroll is blocked because the company’s signatory has not signed a form. 

To sign required forms:

1. The signatory should sign in to Gusto.
2. Review and sign any required forms.