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 - This is billed separately from your FreshBooks subscription, usage fees are billed for each active individual per month that is enrolled in payroll
    • Billed on the second of each calendar month and will display your usage charges for the prior month
    • Includes any newly dismissed employees that were dismissed during the Payroll Usage Fees period
    • Includes any contractors that you pay through FreshBooks Payroll during the Payroll Usage Fees period, regardless of how many times the contractor was paid
 
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.