Vagaro Payroll FAQ

No, we are not tax experts. We can only assist with Vagaro Payroll functionality and the Vagaro software.

Yes, you can seamlessly switch to Vagaro Payroll from Gusto. Also, if you're on the Gusto Plus plan and switch to Vagaro Payroll, you’ll pay less than 50% of the cost to run your payroll through Vagaro.

Vagaro Payroll is fully supported on the web, tablet, and Pay Desk versions of Vagaro. On a phone, you can activate Vagaro Payroll, onboard your business and employees, and run payroll and reports, but you cannot set up Payroll Configuration or add employees to your payroll.

Yes, based on what you entered on your state and federal tax forms during onboarding, Vagaro will automatically calculate your federal and state tax withholdings. Employees can change their withholding information in their Employee Profile in the Payroll tab. For Vagaro account owners, this information can be changed in the Vagaro Payroll screen.

We do not oversee employer account numbers for unemployment, workers' compensation, etc., from their state's Labor Department website.

If you need to fix or update payroll after you've submitted it in Vagaro Payroll for your employees or your contractors, you'll need to cancel it, make your changes, and then resubmit the payroll until the funds have been received.

By default your employees will receive their pay four days after you submit your payroll in Vagaro Payroll; however, if you had a two-day deposit schedule in Gusto, your deposit schedule will remain the same.

Do not close your Gusto Account after you migrate to Vagaro Payroll because it is still required for the integration.You will not be charged for Gusto once you migrate over. If you've already cancelled your Gusto account, contact Gusto Support to reopen it.

No, you do not need a Gusto account to activate or Vagaro Payroll, unless you're already a Gusto customer and migrating your payroll to Vagaro Payroll.

The amount of taxes and deductions withheld for each pay period depends on the tax rates for the state that your business is located in. All employers and their employees, or your team members, must report their taxable wages, also known as "subject wages." Payroll taxes are calculated, deducted, and withheld by employers, depending on the tax type and the current tax rates.

Pre- and post-tax deductions are calculated as follows:

If you already have a Gusto account, log in to it to manage benefits for your employees.

Otherwise, if you migrated from another payroll software or created a new payroll, contact our support team to help you set up a Gusto account to manage their benefits.

Switching your payroll system from Gusto to Vagaro Payroll only requires you to migrate your Gusto account.

Your subscription for this feature will not begin until you complete your migration to Vagaro Payroll.

You can run your first payroll immediately after migrating to Vagaro Payroll; it may take up to 10 minutes depending on how many employees and contractors you have.

Yes, depending on how the service, class, or product and its deposit were paid, the commission will be removed from the same or future pay period.

After you switch to Vagaro Payroll, you will be billed at your normal billing cycle by Vagaro.

If you are billed by Gusto after migrating to Vagaro Payroll, contact Vagaro Support.

After your migration from Gusto to Vagaro Payroll is complete, you must perform all of your payroll actions in Vagaro Payroll, managing PTO policies, requesting and approving PTO, as well as running and submitting payroll.

If you're currently using the Gusto integration, it will be automatically disabled after activating Vagaro Payroll, and you will be billed for Vagaro Payroll instead.

If you set up Vagaro Payroll without connecting your Gusto account, just contact Vagaro support. We will reset the onboarding process so you can migrate your existing Gusto account.

If a business uses Vagaro Payroll, employees and contractors can download their paystubs, tax forms, and other documents in their Employee Profile on the Payroll tab under the Documents heading.

You only need to upload your employees' previous paystubs if you're switching from a payroll system other than Gusto or creating a new payroll in Vagaro Payroll. Your employees' paystubs are needed to prevent duplicate tax forms from your previous payroll software and from the IRS.

For example, if you switched to Vagaro Payroll in February, you need to upload paystubs starting from January until the date you first run Vagaro Payroll.

Switching to Vagaro Payroll will not cancel your Gusto account. It will remain active and is still required to use Vagaro Payroll.

No, you are not required to upload previous pay stubs.

There may be a delay. Please wait until 5 PM PST for the funds to be deposited. If they haven't received funds after 5 PM PST, please contact Vagaro support.

We can no longer cancel payroll if it's after 4:00 pm PST.

Yes, you can run an off-cycle payroll that allows you to pay out your employees for a previous pay period. We do not recommend running a regular payroll for a missed payroll.