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Payroll from the bank feed
The Gusto or ADP draft is cash leaving. It is not the whole payroll story.
The Gusto or ADP draft is cash leaving. It is not the whole payroll story.
What This Is
A payroll provider usually takes one or two withdrawals: net pay, taxes, sometimes fees. Wages, employer taxes, and withholdings live on the payroll report, not on the bank line.
Tally holds payroll-provider rows as special work. It will not dump them into an expense to clear Fast Coding.
Why It Matters
If you code the draft to Wages, you miss taxes and you overstate net pay as the full cost.
Park the draft, then true it up from the report
Code the bank row to payroll clearing, or leave it unposted. Ask Tally to review a Gusto Payroll Journal Summary. Confirm the preview before anything posts.
How To Book It
- Do not code a Gusto, ADP, or Paychex draft to an ordinary expense. See How Tally codes your bank feed.
- Put the withdrawal against payroll clearing, or leave it waiting.
- Save the payroll report in company Files, under Payroll.
- Ask Tally to review the report. Map each category the first time.
- Confirm the preview. Tally posts a true-up, not a second cash movement.
Checklist
- The draft is not sitting in Wages by itself
- The report is in Files
- Wages and employer tax are on the books
- Cash moved only once