What is FreshBooks Payroll?

FreshBooks Payroll powered by Gusto is a paid add-on that allows businesses in the United States to run payroll for employees and contractor payments, file payroll taxes automatically for each particular tax, and maintain labor compliance.

First, you’ll set up your FreshBooks Payroll with your business and bank account information, onboard employees, add state tax details and sign documents. Then once your FreshBooks Payroll is set up, you can run payroll, add contractors to run contractor payments, and review payroll details as needed.

 

FreshBooks Payroll is only available for US-based businesses with employees (W-2) and contractors (1099). If you're using other payroll features listed in Payroll Eligibility here, use the Gusto app instead.

 

Select any of the below links to get started with FreshBooks Payroll:

1. Set up payroll
2. Run payroll
3. Manage payroll settings and add team members to payroll
4. Download the Payroll Journal report
5. Download the Contractor Payment report

 

Payroll Add-on and Usage Fees

FreshBooks Payroll is a paid add-on with additional usage fees:

• FreshBooks Payroll Add-on - This is billed every month or every year on your FreshBooks subscription for the payroll feature
  • The add-on receipt is sent after the approval process is completed, and is prorated for the remaining month or year of your FreshBooks subscription
• Payroll Usage Fee - Usage fees are billed for the previous month’s service and include the following:
  • • Employees - Active employees enrolled in payroll and newly dismissed employees for the previous month
    • Contractors - Contractors that were paid in the previous month, regardless of how many times the contractor was paid
  • Payroll Usage Fee Receipts - Usage Fees may be reflected differently on your receipts depending on your FreshBooks subscription:
    • Monthly Subscriptions - This may be included in your FreshBooks subscription receipt as a separate line item, or sent as a separate receipt
    • Yearly Subscriptions - This is sent on a monthly basis, separate from your FreshBooks subscription which is sent yearly

 

You can review your FreshBooks subscription and usage fees receipts in your list of receipts in the Billing and Upgrade section here.

If you need to dismiss an employee that you’re no longer running payroll for, follow the Dismiss Employee steps here.