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How to Close Out Payroll

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Donna J
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Follow the steps below to close out the payroll and mark it as Paid. We will also go over how to close out payroll using Gusto Integration.

Important

To close out your payroll, you have to mark it as paid. If all employees are not included in the report, the Payroll Paid button will not appear, and you won't be able to close out the pay for that period.

What's in this Article?

Prerequisites

This feature is available for all Vagaro businesses

However, Gusto integration is recommended if you want to send your employees direct deposits. See This Feature Works Best With Gusto for more information.

Close Out Your Payroll

Things to keep in mind while reading this article

  • Please set up your Payroll Configuration before running Payroll. Nothing will display if you do not have payroll configured for your employees.

  • The Payroll report is a live report and will recalculate hourly rates, commissions, and frequency based on your Payroll Configuration.

  • Vagaro's payroll system is great for payroll reporting, and with Vagaro's Gusto integration, you can set up direct deposits and income tax withholding for your employees.

  • If you do not have Gusto, you cannot set up direct deposit with Vagaro. Closing payroll finalizes payroll for reporting purposes only.

Vagaro Pro App

  1. Go to More → Reports → Payroll.

  2. Tap the filter_icon_vpro_2x.pngicon in the top-right corner, select the Payroll Closing Date using the __-_icon_vpro_2x.png icons, and then select the Service Provider(s) you want to review.

    settings_payroll_vpro_2x.png

    If you do not select a Service Provider, all employees will be displayed.

    Note

    Expand advanced filters to Include Past Employees and run payroll for multiple locations.

    See here to learn more about multi-location payroll.

  3. Tap the Sort By field to sort the report by Business Costs, Hourly Pay, Commission, and more.

  4. Tap Run Report.

  5. The Payroll Due row, located at the bottom of an employee's card, shows the total amount owed to the employee. The Payroll Due total does not include income tax deductions.

  6. Once you have paid all your employees the Payroll Due, tap the filter_icon_vpro_2x.png icon again, and then tap Payroll Paid. This will save the Payroll Period in the Payroll History report.

    Note

    Once saved, you cannot close out the payroll period again without deleting the saved report in Payroll History. See this article to learn more.

Web Version

  1. Go to Reports → Payroll.

  2. Select the Payroll Closing Date using the up_down_web_2x.png icons, then select the Service Provider(s) you want to review.

    Payroll_run_web_2x.png

    If you do not select a Service Provider, all employees will be displayed.

    Note

    Expand advanced filters to Include Past Employees and run payroll for multiple locations.

    See here to learn more about multi-location payroll.

  3. Click Run Report.

  4. The final column, Payroll Due, displays the amount you owe each employee. The Payroll Due total does not include income tax deductions.

  5. Once you have paid all your employees the Payroll Due, click Payroll Paid. This will save the Payroll Period in the Payroll History report.

    Note

    Once saved, you cannot close out the payroll period again without deleting the saved report in Payroll History. See this article to learn more.

Close Out Payroll in Gusto

Important

Gusto integration is only available to US customers.

For more information on running payroll with Gusto, see here.

Vagaro Pro App

  1. After running the Payroll Report, tap Run Payroll with Gusto

    run_payroll_with_gusto_vpro_2x.png

  2. On the pop-up box that displays, you have two options:

    • Sync and I'll Finish Later

      This option syncs your payroll data to Gusto but doesn't complete it. You will still need to log into Gusto to complete the payroll and pay your Employees.

    • Complete in Gusto

      This option finalizes the payroll in Gusto. Choose Complete in Gusto if you are ready to finalize your payroll and pay your employees.

  3. You are redirected to your Gusto Dashboard to finalize your payroll. Tap the Menu dropdown, then select Run payroll.

    run_payroll_gusto_vpro_2x.png

  4. Select the payroll period you want to review, then tap Run Payroll.

    payroll_date_vpro_2x.png

  5. Verify that your employees' hours, commission earnings, and payment types are correct. Select the employees you want to run payroll for, then tap Continue.

    continue_vpro_2x.png

  6. Enter Time Off or Sick Time used during this Pay Period, and then click Continue.

    sick_hours_vpro_2x.png

  7. Review the payroll before finalizing: Verify that all totals are correct, then click Submit Payroll.

    submit_payroll_vpro_2x.png

Web Version

  1. After running the Payroll Report, click Run Payroll with Gusto

    run_payroll_with_gusto_web_2x.png

  2. On the pop-up box that displays, you have two options:

    ready_payroll_web_2x.png

    • Sync and I'll Finish Later

      This option syncs your payroll data to Gusto but doesn't complete it. You will still need to log into Gusto to complete the payroll and pay your Employees.

    • Complete in Gusto

      This option finalizes the payroll in Gusto. Choose Complete in Gusto if you are ready to finalize your payroll and pay your employees.

  3. You are redirected to your Gusto Dashboard to finalize your payroll. Expand Payroll, then select Run payroll from the sidebar menu.

    run_payroll_gusto_web_2x.png

  4. Select the payroll period that you want to review, then click Run Payroll.

    payroll_date_web_2x.png

  5. Verify that your employees' hours, commission earnings, and payment types are correct. Select the employees you want to run payroll for, then click Continue

    select_employees_payroll_web_2x.png

  6. Enter Time Off or Sick Time used during this Pay Period, then click Continue.

    sick_hours_web_2x.png

  7. Review the payroll before finalizing: Verify that all totals are correct, and click Submit Payroll.

    submit_payroll_web_2x.png

Additional Information

This Feature Works Best With Gusto

Eliminate your bookkeeping and payroll issues and spend less time on money management, time card calculations, and processing employee pay with Vagaro's integration with Gusto!

You can also do the following with this powerful feature:

  • Get real-time payroll reports

  • Centralize and track payments, invoices, employee hours, and payroll

  • Boost productivity by freeing up valuable time

  • Automate key administrative functions in bookkeeping and payroll

  • Avoid costly manual errors with automation

  • Seamlessly sync hours and earnings

  • Ease the employee onboarding process with Gusto's streamlined onboarding platform

  • Take advantage of flexible payroll options

  • Sync any type of pay structure

  • Automatically calculate and deduct tax withholding

See here to learn how to activate Gusto Integration.

Note

Gusto and Vagaro's integration is free but requires a Gusto subscription. However, Vagaro does offer a three-month free trial if you sign up for Gusto with Vagaro.

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2 comments

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    Ivana Proscurov

    Can we see the payroll in mobile app?

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  • Avatar
    Tracy Manko

    Hi

    Is there a way to separate product sales from regular payroll?

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