How does Gusto payroll handle payroll for hourly employees?

Q: How does Gusto payroll handle payroll for hourly employees?

Gusto payroll can handle payroll for hourly employees by tracking their hours worked and calculating their pay based on their hourly rate.

Gusto Payroll provides comprehensive tools to handle payroll for hourly employees, ensuring accurate calculations, compliance with labor laws, and streamlined payments. The platform makes it easy for employers to track hours worked, calculate overtime, and pay hourly employees on time. Below is an overview of how Gusto manages payroll for hourly employees, including time tracking, overtime calculations, and payment options.

Time Tracking for Hourly Employees

Integration with Time Tracking Tools

Gusto integrates with popular time tracking tools like TSheets, Homebase, and Deputy, allowing employers to seamlessly import employee hours into the payroll system. These integrations help ensure that all hours worked are accurately recorded, including regular hours, overtime, and paid time off. Employers can choose the time tracking tool that best fits their business needs, making payroll management more efficient.

Gusto’s Built-in Time Tracking Features

For businesses without a separate time tracking tool, Gusto offers built-in time tracking features. Employees can clock in and out directly through the Gusto platform, and their hours are automatically recorded and imported into the payroll system. This feature simplifies the payroll process by reducing manual entry and minimizing errors associated with tracking employee hours.

Overtime Calculations

Automatic Overtime Calculation

Gusto automatically calculates overtime pay for hourly employees in accordance with federal and state labor laws. The platform supports various overtime rules, including time and a half and double time, ensuring compliance with regulations. Gusto also allows employers to customize overtime settings to match specific company policies or state-specific requirements.

Compliance with State and Federal Overtime Laws

Gusto stays up-to-date with state and federal overtime laws, adjusting calculations as needed to ensure compliance. This helps employers avoid potential penalties for non-compliance and ensures that employees are paid fairly for all hours worked, including any overtime or double time.

Flexible Payment Options

Regular and Off-Cycle Payroll Runs

Gusto allows employers to run regular and off-cycle payrolls to accommodate different pay schedules and special payment needs. Whether paying employees weekly, bi-weekly, or monthly, Gusto makes it easy to set up and manage payroll runs. Off-cycle payroll runs can be used to handle special circumstances, such as bonuses, commissions, or corrections to previous payrolls.

Direct Deposit and Other Payment Methods

Gusto supports multiple payment methods for hourly employees, including direct deposit, paper checks, and prepaid debit cards. Direct deposit is the most common and convenient option, allowing employees to receive their pay directly in their bank accounts. For those without bank accounts, Gusto offers alternative payment methods to ensure timely and secure access to their wages.

Employee Self-Service Portal

Access to Pay Stubs and Tax Documents

Gusto provides an employee self-service portal where hourly employees can access their pay stubs, tax documents, and work history. This portal empowers employees to manage their payroll information independently, reducing the administrative burden on employers and improving transparency.

Time-Off Requests and Management

Through the Gusto employee portal, hourly employees can submit time-off requests, view their available PTO balances, and track their hours worked. Managers can easily approve or deny time-off requests, and the system automatically updates the payroll to reflect any changes in hours worked or paid time off.

Conclusion

Gusto Payroll offers a range of tools and features specifically designed to handle payroll for hourly employees. From time tracking and overtime calculations to flexible payment options and employee self-service, Gusto simplifies the payroll process and ensures compliance with labor laws. This comprehensive approach helps businesses manage their hourly workforce effectively and efficiently.