With this procedure you can correctly account for the different payroll categories in Xero once payroll is processed.
Who can do this
Anyone who is approved to run payroll and has access to the accounting system Xero.
What you need
Access to Xero, Access to Gusto as an admin.
What discrete actions constitute the procedure? Make sure to nest them as appropriate.
This first thing you need to do is to run payroll. This will cause a bill to be created in Xero noting the different categories (taxes, Payroll, Reimbursements).
Delete the line in the Gusto bill that was created for reimbursements.
This only applies if there are reimbursements that were paid in the payroll. This allows you to match the reimbursement that processes in the bank account to match the employee submitted expense claims which are already in Xero.
Match the Employee pay Bill in Xero to the Bank transaction (this will need to be split between the Employee pay and the taxes bill that was created in Xero by Gusto).
Match the Taxes bank feed line item to the taxes bill that was created by Gusto when you processed payroll.
Re-classify Taxes once reconciled.
Once the taxes are reconciled to the Gusto bill, you'll need to re-classify this total and separate it out into its specific amounts according to the below guide. You can find totals in Gusto under (Reports>Employee Payroll).
This requires matching the amounts shown in Gusto to the correct Payroll tax account and Wages and Salaries Accounts. You can see what goes with what below:
CA State Income Tax> Wages and Salaries- CA Income Tax
CA SUI> Payroll Tax Expense- CA Unemployment
NJ WF/SWF> Payroll Tax Expense- NJ Unemploy
NJ Employer SUI> Payroll Tax Expense- NJ Unemploy
NJ Employee SDI> Wages and Salaries-NJ Disability
Medicare> BOTH Wages and Salaries and Payroll Tax Expense Categories (if both listed)
Social Security> BOTH Wages and Salaries and Payroll Tax Expense Categories
CA SDI> Wages and Salaries- CA Disability
NJ Employer SDI> Payroll Tax Expense- NJ Disability
Federal Income Tax> Wages and Salaries- Federal Income Tax
TN Unemployment Insurance> Payroll Tax Expense- TN Unemployment
NJ State Tax> Wages and Salaries- NJ Income tax??
NJ Employee SUI> Wages and Salaries- NJ Unemploy
NJ Family Leave Insurance> Wages and Salaries- NJ Employee FLI
FUTA> Payroll Tax Expense- CA FUTA Credit