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.

Tip: Ensure the Payroll Clearing account matches the one tied to your payroll withdrawals.

See also: Journal Entries in Digits

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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

• 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

Best Practice: Regular reviews help prevent misstatements and keep your books clean and current.

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Frequently Asked Questions

Can I automate payroll if I don't use Gusto?

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.

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Something not adding up? Contact Digits Support at [email protected]