> For the complete documentation index, see [llms.txt](https://docs.kick.co/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://docs.kick.co/common-workflows/payroll.md). # Payroll Payroll is one of the more complex areas of bookkeeping because a single payroll run involves multiple expense types - wages, taxes, benefits, and contractor payments - that all need to land in the right places in your books. *** ### If you use Gusto Kick has a direct integration with [Gusto](/integrations/gusto.md). When you run payroll, Kick pulls in each payroll run as a single transaction that's automatically split into individual line items and mapped to the right accounts: * **Wages and salaries** - maps to your salaries and wages account * **Employer payroll taxes** - maps to your payroll taxes account * **Employee benefits** - maps to your benefits account * **Retirement contributions** - maps to your retirement benefits account * **Contractor payments** - maps to your contract labor account This happens automatically - you don't need to manually categorize each component. **If you use Gusto departments**, those sync into Kick as [Classes](/common-workflows/classes.md) so you can see payroll broken out by team or department in your reports. **Reconciling benefits and retirement:** Most payroll items reconcile automatically. Benefits and retirement contributions - because they're paid to third-party vendors on a separate schedule - need a manual reconciliation step. Your accountant typically handles this using the Reconcile Gusto feature in bulk actions. *** ### If you use a different payroll provider If your payroll runs through ADP, Paychex, Rippling, QuickBooks Payroll, or any other provider, the transactions will sync from your bank account as a lump sum. They won't be automatically split. In this case, the standard approach is: 1. Categorize the payment to a payroll clearing account 2. Provide your accountant with a payroll journal report from your provider 3. Your accountant creates a journal entry to reclassify the payment into the correct expense accounts This is typically done at the end of each quarter or tax year. If you run payroll frequently and want it reflected accurately in real time, talk to your accountant about the best approach for your situation. *** ### Payroll and tax prep Payroll reconciliation is one of the more common reasons business owners bring in a bookkeeping partner at year-end. Each tax year requires its own reconciliation, and it involves matching payroll records to bank transactions and tax filings. If you have payroll history that hasn't been reconciled, address this before generating your [Tax Package](/reports/tax-package.md). -> [Tax Prep Guide](/best-practice-guides/tax-prep-guide.md)\ -> [Partner Program](/referrals-and-partnerships/partner-program.md) --- # Agent Instructions This documentation is published with GitBook. GitBook is the documentation platform designed so that both humans and AI agents can read, navigate, and reason over technical content effectively. Learn more at gitbook.com. ## Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://docs.kick.co/common-workflows/payroll.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.