Gusto allows employees to change and update their bank account details by logging in to their profiles. It also offers employees the chance to have multiple accounts and split their salary. In this article, we’ll go through all the steps to change bank account in Gusto and other related topics that you will need. So, without further ado, let’s start exploring!
How To Add Payment Methods In Gusto
Both employees and contractors can update payment method Gusto by changing their bank account details using the following steps:
For Employees
Access the Gusto log in page
Enter your ‘Email,’ ‘Password,’ and click ‘Continue’ button
Once logged in, click on your profile and select the ‘Pay’ tab
Now, go to the ‘Payment’ section and select ‘Add Payment Method’
Enter the details for the desired payment method
Click ‘Save’ once you have changed your bank account
For Contractors
Log in to Gusto and enter your ‘Email,’ ‘Password,’ and press the ‘Continue’ button
Go to your profile, access the ‘Information’ tab, and click on the ‘Pay’ option
Now, select ‘Add Payment Method’
Complete the 2FA or fill in your current bank account details or both (depending on what you are prompted to
Then, enter new account details and click ‘Save’
Adding Multiple Bank Accounts In Gusto And Splitting Payments
US employees can add up to five bank accounts to their Gusto profile and choose to split the payment. Contractors, as of now, cannot create multiple accounts or access the split payment feature. Follow the steps below to add multiple accounts:
Adding Multiple Accounts
Log in to your Gusto account using your credentials
Click on ‘My Profile’ and select ‘Add Payment Method’
Add the new bank account details and click ‘Save’
Now, click on the ‘Manage Account’ tab under the added bank account and make it the default account for payroll
Splitting Payments
You can have your salary imbursed in multiple bank accounts instead of just one. You can manage split payments by following the steps:
Log in to Gusto using your email and password
Navigate to ‘Profile’ and click on ‘Pay’ option
Within the ‘Payment’ section, click ‘Split Pay’
You can split your payments into multiple accounts by percentage or a specific amount
If you are going with an amount, you can drag each bank to change their order
The salary will be credited according to the order of the banks e.g. the bank on the top will be credited first
At last, press ‘Save’
Verifying Bank Account
Once you have added, updated, or changed your bank account details on Gusto, you will be asked to verify it. There are two ways to verify your bank account, these are by using:
Plaid
Test transactions
Verification Using Plaid
Plaid is a platform that allows users to connect their bank accounts to online applications like Gusto. It’s a relatively faster method of verifying your bank account and requires fewer steps. Follow these steps to complete the verification:
Log in to Gusto using the preferred method
Go to ‘Settings’ and click the ‘Plan & Billing’ tab on the top
Look for the bank account or create a new one under the ‘Bank Account’ tab
Select ‘Connect my bank’ option
Select ‘Connect to Plaid’ from the action buttons
Click ‘Continue’ to proceed with the process
Once done, the status will be turned to ‘Connected’ under the ‘Bank Connection’ section
Verification Using Test Transactions
Users can manually verify their bank accounts by adding their account number and routing number. Once added, Gusto will send test transactions to the employee’s bank. Employees then are required to come back to Gusto, add those amounts, and complete the verification. This process requires a few manual steps and takes 2-3 business days.
Here’s a step-by-step process on how you can do it:
Log in to your Gusto profile
Go to ‘Settings’ and again click the ‘Plan & Billing’ tab
Select ‘Bank Accounts’ and click ‘Confirm Test Transaction’ under the ‘Status’ column
Now, enter the two test amounts for verification purposes
Possible Issues You Might Encounter With Manual Verification:
There is a chance of human and technical errors in manual verification. If these issues occur, you will have to repeat the whole process again. Additionally, there can be a $100 fee in case of a debit failure. Following are the issues that might occur:
Incorrect amounts added during the verification
Employee account is frozen
Bank rejects the debit
Bank blocks the amount
Bank Account Statuses And Their Meanings
Gusto shows a number of account statuses. Knowing what each status means is important in understanding the verification process and successfully completing it. Here’s what each status means:
Connected: It means that the account is active and connected
Verified: It means the account is in an active state, but connecting it to Plaid is recommended
Unverified: The account is inactive, and you’ll have to verify it again
Pending: It’s inactive, and you’ll have to verify it using the test transactions
Disconnected: It’s inactive and disconnected from Plaid
Deleting Bank Account From Gusto
If you want to clear the clutter and just have bank accounts that you’ll actually be using, then you can simply delete the ones that you don’t need. You can delete a bank account from Gusto using the following steps:
Log in to your Gusto profile
Navigate to the ‘My Profile’ tab
Go to the ‘Pay’ section and find the bank account you want to delete
Click on ‘Edit’ next to the bank account
You will receive a code via email or text confirming the deletion process
Enter the code in the pop-up box on Gusto and click ‘Remove Account’
FAQs
If it happens, we highly recommend running the whole process again with a stable internet connection.
This means your bank account is not compatible with Plaid. You can still verify it manually by sending test transactions.
You might have entered the wrong account information. Re-enter the account information to receive the test transactions.
Yes, you will receive the funds, but the money might be credited to the previous account.
