Direct deposit payment speeds in Gusto

Before choosing your payment speed, it helps to understand how payroll timing works. These basics will help you avoid delays and fees while making sure your team gets paid on time.

Payday and bank holiday rules

Banks process direct deposits on business days only. Banks do not process payments on weekends or holidays.

If payday falls on a weekend or holiday, employees get paid the business day before.

Payroll deadlines

Payrolls submitted after 4pm PT process the next business day.

Your company bank account must have enough money by 4pm PT on the debit date to cover payroll and taxes.

Insufficient funds

If you do not have enough funds by the deadline:

• We charge a $100 processing fee (for the error).
• Payroll processing stops until the automatic re-debit clears.
• You may lose access to next-day and 2-day pay speeds for a time.

Submit payroll early

When you submit regular payroll early, employees still get paid on the scheduled payday (check date). Early submission does not pay employees early.

If you miss the payroll deadline, you may still be able to pay your team on time using Instant Pay.

Key details

• Payments arrive the same day, usually within minutes* of submitting payroll.
• Costs $100 per payroll (added to your monthly invoice)
  
  • If you choose to pay late instead, review your state labor laws to better understand the consequences of late payroll.
• Available 24/7, all year, but only if payroll qualifies
  
  • Some payrolls may be eligible for Instant Payroll, and others may not. You should always try to submit payroll on time — the Instant Payroll option is not guaranteed just because it’s been available before.
• You cannot cancel or reverse Instant Payrolls. If you need the money back, ask the employee directly. 
  
  • In Gusto, adjusting an Instant Payroll that’s already processed will only be for tax and reporting purposes. If you need the money you paid back, you must ask the employee to return it directly.

*Payment speeds depend on bank processing.

Use Instant Pay (for qualified late payrolls)

If a late payroll is eligible for Instant Pay, you’ll see it at the end of the payroll run. If you do not see it, the payroll is not eligible.

To use Instant Pay:

1. Sign in to Gusto.
2. Go to Pay.
3. Click Run Payroll.
4. Review or edit payroll information, then click Review summary.
5. Choose Instant Pay as the payment option. 
   • If you do not select Instant Pay, payroll defaults to your standard deposit speed.
6. Read important messages if any appear.
   • Important: You cannot cancel or reverse Instant Payrolls. In Gusto, adjusting an Instant Payroll that's already processed will only be for tax and reporting purposes. If you need the money you paid back, you must ask the employee to return it to you directly. 
7. Review the payroll summary and confirm the payday, then click Submit payroll.

Next steps

• Review when Gusto will take the payroll money from your company’s bank account. Tell your employees they’ll get paid soon — usually in a few minutes, depending on their bank.
• If you need to change something after an Instant Payroll is submitted, you’ll have to ask your employee to give the money back directly. We cannot take money out of their bank account. However, you can still adjust the payroll in Gusto to fix the tax records.

*Bank errors with Instant Pay

If we get a bank error on any of the team’s payments, we’ll email you to let you know and share the next steps. 

Common errors and next steps:

• Employee bank account does not support real-time payments (how Instant Pay is sent): We retry automatically, but pay may be delayed.
  • If you need to pay urgently, you can pay by check and adjust the payroll to let us know you paid by check. We’ll return the net payment to the company bank account.
• Invalid account number: We email the employee, but you should also reach out to make sure they correct the account number.
  • If they edit the existing invalid account, we retry automatically.
  • If they add a new account, they must contact us to redirect the funds.
  • If you need to pay urgently, you can pay by check and adjust the payroll to let us know you paid by check. We'll return the net payment to the company bank account.

FAQs

Q: Does Gusto notify customers about the Instant Payroll fee?

A: Yes, customers are notified in-app and by email on the day the payroll is submitted.

Q: Why is the Instant Payroll fee not mentioned during signup?

A: Gusto may charge extra fees outside the monthly payroll subscription for special services or actions your company takes. See the Terms of Service for details.

Q: How can I avoid this fee?

A: Use a regular payroll cycle to pay employees on time instead of Instant Payroll.

Q: Can I reverse an Instant Payroll?

A: If you need to change something after an Instant Payroll is submitted, you’ll have to ask your employee to give the money back directly. We cannot take money out of their bank account. However, you can still adjust the payroll in Gusto to fix the tax records.

If you miss the payroll deadline, you may still be able to pay your team on time using Same-day Pay.

Key details

• Payments arrive by the end of the same day.*
• Costs $90 per payroll (added to your monthly invoice)
  
  • If you choose to pay late instead, review your state labor laws to better understand the consequences of late payroll.
• You can only use it between 12am – 11am PT, Monday – Friday (on qualified payrolls).
  
  • You can cancel before 11am PT, but not after.
  • Some payrolls may be eligible for Same-day Pay, and others may not. You should always try to submit payroll on time — the Same-day Pay option is not guaranteed just because it’s been available before.
• You cannot cancel or reverse Same-day Payrolls. If you need the money back, ask the employee directly. 
  
  • In Gusto, adjusting a Same-day Payroll that’s already processed will only be for tax and reporting purposes. If you need the money you paid back, you must ask the employee to return it directly.

*Payment speeds depend on bank processing.

Use Same-day Pay (for qualified late payrolls)

If a late payroll is eligible for Same-day Pay, you’ll see it at the end of the payroll run. If you do not see it, the payroll is not eligible.

To use Same-Day Pay:

1. Sign in to Gusto.
2. Go to Pay.
3. Click Run Payroll.
4. Review or edit payroll information, then click Review summary.
5. Choose Same-day Pay as the payment option. 
   • If you do not select Same-day Pay, payroll defaults to your standard deposit speed.
6. Read important messages if any appear.
   • Important: You cannot reverse Same-day Payrolls. In Gusto, adjusting a Same-day Payroll that's already processed will only be for tax and reporting purposes. If you need the money you paid back, you must ask the employee to return it to you directly. 
7. Review the payroll summary and confirm the payday, then click Submit payroll.

Next steps

• Review when Gusto will take the payroll money from your company’s bank account. Tell your employees they’ll get paid soon — usually in a few minutes, depending on their bank.
• If you need to change something after a Same-day Payroll is submitted, you’ll have to ask your employee to give the money back directly. We cannot take money out of their bank account. However, you can still adjust the payroll in Gusto to fix the tax records.

*Bank errors and Same-day Pay

If we get a bank error on any of the team’s payments, we’ll email you to let you know and share the next steps. 

Common errors and next steps:

• Employee bank account does not support real-time payments (how Same-day Pay is sent): We retry automatically, but pay may be delayed.
  • If you need to pay urgently, you can pay by check and adjust the payroll to let us know you paid by check. We’ll return the net payment to the company bank account.
• Invalid account number: We email the employee, but you should also reach out to make sure they correct the account number.
  • If they edit the existing invalid account, we retry automatically.
  • If they add a new account, they need to contact us to redirect the funds.
  • If payment is needed urgently, you can pay by check and adjust the payroll to let us know you paid by check. We'll return the net payment to the company bank account.

FAQs

Q: Does Gusto notify customers about the Same-day Pay fee?

A: Yes, we notify customers in-app and by email on the day the payroll is submitted.

Q: Why is the Same-day Pay fee not mentioned during signup?

A: We may charge extra fees outside the monthly payroll subscription for special services or actions your company takes. See the Terms of Service for details.

Q: How can I avoid this fee?

A: Use a regular payroll cycle to pay employees on time instead of Same-day Pay.

Q: Can I reverse a Same-day Payroll?

A: If you need to change something after a Same-day Payroll is submitted, you’ll have to ask your employee to give the money back directly. We cannot take money out of their bank account. However, you can still adjust the payroll in Gusto to fix the tax records.

Next-day payments are our fastest regular payment option when you plan ahead and want to get your team paid quickly.

Next-day payments are available on Simple, Plus, and Premium plans. Admins can upgrade or add-on as needed.

Key details

• We deposit funds the next business day, usually in the afternoon or early evening. Payments may arrive as late as the end of the business day.
• The deadline to run payroll is 4pm PT, one business day before payday.
• Payments over your direct deposit limit may require extra steps, like wiring funds or printing checks.

Next-day payment requirements

1. Keep enough money in your account.
   • Check your bank account before making payments. If we cannot debit funds, we’ll block your payments and turn off next-day processing.
   • We will not offer next-day payments if the total amount exceeds your assigned direct deposit limit.
2. If your payment exceeds your direct deposit limit — which we cannot change — we may give you a few options before we move this payroll to 4-day processing:
   • Wire in funds to cover the amount needed, OR
   • Print and deliver checks to pay sooner (than a four-day processing timeline).
3. The deadline to run payments in Gusto is 4pm PT, one business day before payday. If you missed the deadline, run the payments late, or pay your employees by check for one payroll period. 

Example timeline for next-day pay

• Thursday by 4pm PT: Run payroll or payment.
• Thursday: We debit funds from the company bank account (they're now processing).
• Friday afternoon (usually between 1:30pm – 5 pm local): The team sees deposits in their accounts.

We deposit funds into your team’s accounts two business days after you run payroll, usually in the morning.

New employers gain access to 2-day payments after an initial 15-day waiting period, and one successful payroll debit (on a 4-day schedule).

Key details

• The deadline is 4pm PT, two business days before payday.
• Payments over your direct deposit limit may require wiring funds or paying by check.

2-day payment requirements

1. Keep enough money in your account.
   • Check your bank account before making payments. If we’re unable to debit funds, we’ll block your payments and turn off 2-day processing.
   • We will not offer 2-day payments if the total amount exceeds your assigned direct deposit limit.
2. If your payment exceeds your direct deposit limit — which we cannot change — we may give you a few options before we move this payroll to 4-day processing:
   • Wire in funds to cover the amount needed, OR
   • Print and deliver checks to pay sooner (than a 4-day processing timeline).
3. The deadline to run payments in Gusto is 4pm PT, two business days before payday. If you missed the deadline, run late payments, or pay your employees by check for one payroll period.  

Example timeline for 2-day pay

• Wednesday by 4pm PT: Run payroll or payment.
• Wednesday: We debit funds from the company bank account (they’re now processing).
• Friday morning (usually): The team sees deposits in their accounts.

You need to submit payroll or payments four business days before a check date.

Key details

• We deposit funds four business days after payroll runs.
• The deadline is 4pm PT, four business days before payday.
• You must have enough money in your account when you submit payroll. We may debit money from your account the same day or the next day (depending on the bank).

Example timeline for 4-day pay

• Monday by 4pm PT: Run payroll or payment.
• Tuesday – Thursday: We process funds.
• Friday morning (usually): The team sees deposits in their accounts.

If you missed the payroll deadline, run payments late or pay your employees by check for one payroll period.

You need the right admin permissions to make this change. Contact your primary admin if you cannot edit.

To switch your direct deposit speed:

1. Sign in to Gusto.
2. Go to Pay.
3. On the top-right, click Settings.
4. Under Payroll info, find Direct deposit speed and click Edit.
5. Select your preferred speed from the available options.
   • Next-day payments are available on Simple, Plus, and Premium plans. Admins can upgrade or add-on at anytime.
6. Click Continue.
7. Click Confirm.