Gusto (formerly ZenPayroll) is a separate paid app that integrates with FreshBooks to bring you payroll, W-2s, 1099s, payroll runs and direct deposits. The Gusto app allows you to automatically import Payroll Runs as categorized Expenses and manage your Payroll Runs from within your FreshBooks account.
Gusto can import every Payroll Run you complete into FreshBooks as Expenses with the appropriate Expense Categories automatically. Business Owners can set this up using the below steps:
Click on the gear icon in the top left corner
Click on Payroll Settings
If you already have a Gusto account, click on the Import Expenses button
If you’ve never set up Gusto before, click on Create a Trial Account to get started with a free 2-month trial
You’ll be taken to Gusto’s signup page, enter your signup details and click on Get Started
Add your Password and any extra details, then click on Create My Account
After your Gusto account is set up, inside Gusto, click on the App Directory tab
In the Find an app search bar, type in FreshBooks and click on the result
Click on the Connect button
Then choose the at my.freshbooks.com option
Enter your FreshBooks login credentials (if prompted to) and click on Allow to authorize Gusto to access your FreshBooks account
Choose the business (if you have multiple) that you’d like Gusto to connect to and click on Connect to FreshBooks
Once connected, click on the edit button to customize your Account Mappings to determine which Expense Categories you'd like Gusto to use when importing expenses into your FreshBooks account (Parent Categories can only be selected)
In your Gusto account, click on Settings while inside the FreshBooks app
For Auto-Sync, ensure Auto sync is selected so Payroll Runs are automatically imported into FreshBooks for you
If needed, under Grouped mapping, choose Department from the dropdown to enable Department Account Mapping if needed
For Entry Date, choose between Check Date, Debit Date, or End of Pay Period for the date of the Expense when it’s created in FreshBooks. Once you’ve reviewed your Settings, your app is all set up.
Note: If you’re using Bank Reconciliation as well, we recommend working with your Accountant on the mapping of your Gusto payroll expenses.
Import Payroll Information
To access your Gusto Payroll runs in your FreshBooks account, use these steps:
In FreshBooks, click on My Team
Then click on Payroll underneath My Team
If you haven’t connected your Gusto account for Payroll Information yet, click on Import Payroll Info, then click Continue to proceed to Gusto
Click Authorize
Choose which Gusto Company to import Payroll runs from (if you have multiple), then click Select. Your Gusto account will be connected and you can begin Payroll Runs.
Run Payroll
Once connected to your Gusto account, you can run payroll and see payroll information:
More Actions - Click on Payroll Settings to manage your integration with Gusto
Payroll Information - Your Last Payroll Run, Last Payroll Total, Next Payroll Period and Next Payroll Run are displayed with the date and time of your last sync listed
Last Payroll Runs - Each Payroll Run is listed with its Period, Payroll Date, Amount and a quick link to view it inside your Gusto account
Notes:
When you’ve completed a Payroll Run, refresh your FreshBooks account to see the run appear in your Last Payroll Runs
If you cancel your payroll run inside Gusto, all imported Expenses in your FreshBooks account by Gusto will be removed automatically
Manage Payroll Settings
Access your Gusto settings using the below steps:
Click on the gear icon in the top left corner
Select Payroll Settings
From here you can:
Run Payroll in Gusto - This opens your Gusto account so you can run a Payroll cycle for your team
Manage Gusto Integration Settings
Automatically Import Expenses to FreshBooks
Manage Gusto Account - Click to manage your app with FreshBooks in your Gusto account
Import Expenses / Disconnect Expenses Info - Click to start or stop importing Payroll Runs as Expenses in your FreshBooks account
Import Payroll Information to FreshBooks
Import / Disconnect Payroll Info - Click to start or stop syncing Payroll runs from Gusto into FreshBooks
Switch Company - Click to switch between multiple companies in your Gusto account to view different payroll information in your FreshBooks account
FAQs
What happens to my Expenses if I have both the Gusto app and a Bank Connection?
If you have Gusto integrated, your payroll runs are automatically imported as Expenses. If you also have a bank account connected via Bank Connections that is also the same account you use for payroll runs, you will also see the same payroll runs automatically imported as Expenses too.
To handle the duplicates, it is recommended to delete all payroll expenses imported in by Gusto and keep the bank account imported ones, especially if you use Bank Reconciliation.
This ensures you only have one copy of your payroll expenses in your Expenses, rather than double-reporting them.
How can I match my Gusto payroll transactions in Bank Reconciliation?
To reconcile Gusto entries, refer to the Payroll App steps here. Gusto will import specific Expenses into your FreshBooks account, which will also appear in your Bank Rec under FreshBooks Entries:
Gross Wages - Depending on your setup in Gusto, this may also be imported with more details into different Expense Categories - by default, this is assigned the Subcategory of Wages, under the Category of Other Expenses
Employer Taxes
Payments to contractors (if applicable)
Reimbursements to employees (if applicable)
When your payroll is withdrawn from your bank account, these entries appear in your Bank Rec under Unreconciled Bank Transactions:
Total employer and employee taxes - Both State and Federal are combined into one entry
Net pay for employees
Payment to contractors (if applicable)
Reimbursements to employees (if applicable)
Payments for child support benefits to employees (if applicable)
Notes:
The Gusto app does not withdraw from your bank account for employee benefits but it still imports into your FreshBooks account as Expenses - work with your Accountant to record a Journal Entry for the Liability related to the benefits in FreshBooks
Any payments made for child support garnishments are already recognized by Gusto as an expense and are withdrawn from your bank account as a separate transaction
