Question on payroll software (Gusto) extraction of Payroll from business account - advice needed on how to do P&L

[nick83]

My Payroll (Gusto) will create 2 line items on my bank:

• 1 for the Direct deposits of Payroll wages. Fine.
• 1 for the Taxes. (where i have issue)

The issue with the taxes line is that it INCLUDES both the Employee taxes and the company taxes. (1 extract for what seems like it should be 2.

But I certainly cant deduct "employee taxes" from my own Business Profit and Loss statement right?

So this seemingly requires me to have make a manual adjustment for for every month to my accounting software where i must reduce the line item by the employee taxes.

GIven how tedious this is I am wondering if this is a gusto thing or I am doing it wrong.

Side note: I have the EXACT same issue with 401K benefits. Gusto deducts 1 line amount for benefits, but these should be separate as 401K employee paid, and 401K employer paid.

You can imagine I am pulling my hair out for my new business in 2023.

 

[inconditusunus]

@nick83 Has this been happening since day one of using Gusto?

 

[nick83]

@inconditusunus Yes. Every single month.

Same issue with the 401k: one $ line for the Company Benefits, but this consists of

Employer paid 401K (25% salary match per IRS rules)

Employee Paid 401K (whatever they elect, which since is me is $19,500

Seems wrong and creates a lot of work unless i allowed to deduct BOTH of these as employer expenses.

 

[inconditusunus]

@nick83 Yeah Idk why they would separate everything like that but this is something that Gusto seems to do with their customers. Do you use one of their integrations to a preferred 401k partner?