How does Gusto payroll handle payroll for hourly employees?

Gusto is built to make paying hourly employees simple and accurate. Instead of tallying timesheets and calculating overtime by hand, you approve hours and Gusto does the math, withholds the right taxes, and pays your team by direct deposit.

Built-in time tracking

On the Plus and Premium plans, employees can clock in and out from their phone or computer, and their hours flow straight into payroll. You review and approve timesheets before running payroll, so there is no manual re-entry.

Automatic overtime and multiple pay rates

• Overtime is calculated automatically based on hours worked and applicable rules.
• Multiple pay rates are supported for employees who work different roles or shifts.
• Tips, bonuses, and reimbursements can be added to any payroll run.

Sync hours from the tools you use

Already using a scheduling app? Gusto connects with tools like When I Work, Homebase, and Deputy, so approved hours import directly. Retail and restaurant teams can also sync hours from connected point-of-sale systems.

Then Gusto handles the taxes

Once hours are approved, Gusto calculates gross pay, withholds federal, state, and local taxes, and files them for you — the same automatic process covered in our payroll taxes guide. Estimate an hourly paycheck with the Gusto payroll calculator, and get a $300 Visa card when you run your first payroll.