You might need to pay your team or an individual employee outside of your regular pay schedule for a variety of reasons, and to do that you can run an off-cycle payroll.
There's no extra fee to run an off-cycle payroll, and you'll still be able to process your regular payroll.
Important Reminders:
Time tracking hours do not sync to off-cycle payrolls, only regular payrolls.
Off-cycle payrolls default to using the same withholding rates, deductions, and contributions made in regular payrolls.
To pay bonuses with a supplemental withholding rate of 22%, run a bonus payroll.
Gusto does not make child support payments for garnishments collected on off-cycle payrolls—we only make payments on regular, transition, or dismissal payrolls.
Off-cycles typically pay out in 2 business days, but can vary depending on your company's direct deposit speed.
Reasons To Run An Off-Cycle Payroll
Reasons To Run An Off-Cycle Payroll
Here are some examples of why you might need to run an off-cycle payroll:
An employee needs to be paid before the next regular pay day.
An employee is given extra compensation outside of regular payroll.
You need to reimburse an employee.
You need to pay severance that was missed on an employee's dismissal payroll.
You need to pay additional wages that were missed on a regular payroll.
You need to fix errors from a previous payroll.
How To Run An Off-Cycle Payroll
How To Run An Off-Cycle Payroll
Go to Settings → Users → Payroll.
Click Run Off-Cycle Payroll.
Enter a work period.
The timeframe in which the employee worked to earn this payment.
If you enter a timeframe in which an employee has requested time off, the off-cycle payroll will include and pay out the time off.
Off-cycles do not accrue time off.
Select the payment date.
If you need to run a payroll with a check date in the past to appropriately report missed wages, check out our article on recording past payrolls.
Select if you want deductions and contributions to be included.
Block all deductions and contributions:
We will not make any benefit deductions or contributions.
Important: We're unable to turn off 401(k) deductions and contributions due to the requirements of most plans.
Make all the regular payroll deductions and contributions:
We'll make all your normal benefit deductions and contributions.
If your benefits are managed by Gusto, your standard benefit will not automatically be applied unless you choose them to be included.
Review the Tax Withholding Rates.
If you want to make a change, click Edit next to the Tax withholding rates section.
Select the employee(s) this Off-cycle payroll should apply to.
Click Continue.
On the next page, click on the ⫶ Icon to enter the payment details (hours, earnings, payment method, etc.) for each employee.
Regular Hours/Overtime: For hourly employees, click Enter hours, add the hours they've worked, and scroll to the bottom of the pop-up and click Save.
Gross Earnings: The amount of money your employees receive before any taxes and deductions are taken out.
Net Earnings: The amount of money your employees take home after all deductions have been taken out. This is the money they have in their pocket on payday.
Other Earnings: Option to add either a commission, bonus, paycheck tip, or cash tip.
Reimbursement: Reimbursements and expense reimbursements are not taxed, and therefore not reported as regular wages.
Click Direct Deposit or Check to change your employee's payment method for this payroll.
If you only see the option to pay by check, your employee has not set up a bank account for direct deposit.
Click Continue
Review and submit the payroll by clicking Submit Payroll.
If you need to make changes, click Edit Payroll.
Close the tab, and return to CleanCloud.
Refresh the page, and Go to Settings → Users → Payroll if you want to view a Full Summary or Cancel the Off-Cycle Payroll.