# Recording Manual Payroll in Digits

Use these steps to record payroll from providers other than Gusto directly in Digits.

If you use a payroll provider other than Gusto, Digits won’t receive detailed (itemized) payroll data automatically.\
Instead, you’ll record payroll using **journal entries** based on your payroll reports, so your:

* Gross wages
* Taxes
* Benefits

are all reflected correctly.

Digits will still see the **net payroll payment** from your connected bank account, but you’ll add a matching entry in the Ledger so everything balances.

***

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### Step 1: Run Payroll Reports from Your Provider

1. Export a **payroll journal** from your payroll system for the relevant pay period. (CSV or Excel formats work best.)
2. Review the report to identify key categories, such as:

* **Gross salaries/wages**
* **Benefits** (e.g., health insurance, retirement contributions)
* **Employer payroll taxes**

These totals are what you’ll use in Digits.
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### Step 2: Record the Payroll Journal Entry in Digits

1. From your dashboard, go to **Accounting → Ledger**.
2. Click **New Transaction → Journal.**
3. Using the numbers from your payroll report, enter each part of payroll, for example:
   * **Salaries** – Total gross wages paid
   * **Benefits** – Employer-paid benefits (e.g., insurance, retirement)
   * **Payroll Taxes** – Employer tax liabilities
4. For the **net pay** (the actual amount pulled from your bank by the payroll provider), post that amount to your **Payroll Clearing** account (a temporary holding account used to match payroll withdrawals).
5. Double-check all details and click **Save & Close.**

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**Tip:** Ensure the **Payroll Clearing** account matches the one tied to your payroll withdrawals.
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**See also:** [Journal Entries in Digits](/business-agentic-general-ledger/journal-entries.md)
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### Step 3: Verify Your Bank Sync and Account Mapping

* **Verify the bank connection.**
  * Confirm the payroll bank account is connected in Digits.
  * See: [Digits Connections: Banks & Cards via Plaid](/business-connections/plaid.md)
* **Confirm mapping.**
  * Make sure payroll withdrawals are being recorded in the **Payroll Clearing** account.
* **Check for missing or duplicate entries.**
  * Compare your payroll report with entries in the **Ledger.**
  * Add or adjust any missed transactions.
* **Recheck totals.**
  * Ensure the journal entry totals match the net pay and payroll withdrawals exactly.
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### Step 4: Review and Maintain Regularly

To keep payroll data accurate, set a recurring cadence to review:

* Incoming payroll bank payments
* Posted journal entries
* Remaining balances in clearing accounts

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**Best Practice:** Regular reviews help prevent misstatements and keep your books clean and current.
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### Frequently Asked Questions

<details>

<summary> Can I automate payroll if I don't use Gusto?</summary>

Not yet. Digits currently automates payroll only for customers connected to Gusto. Other providers require manual journal entries — but automation for additional systems is on the roadmap.

</details>

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<p align="center"><a href="https://portal.usepylon.com/digits/forms/get-in-touch-with-digits-support" class="button primary" data-icon="envelope-open-text">Contact Digits Support</a></p>
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