# Recording Manual Payroll in Digits

If your client uses a **payroll provider other than Gusto**, Digits won’t receive itemized payroll data automatically.

You’ll record payroll using journal entries based on your client’s payroll reports — ensuring gross wages, taxes, and benefits are accurately reflected.

Digits still pulls the **net payroll payment** from the client’s connected bank account, but you’ll need to enter **offsetting entries** in the Ledger to complete the picture.

***

{% stepper %}
{% step %}

### Step 1: Run Payroll Reports from Your Client’s Provider

1. Export a **payroll journal** from your client’s 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**
  {% endstep %}

{% step %}

### Step 2: Prepare to Record a Journal Entry in Digits

1. From your client’s dashboard, go to **Accounting → Ledger**.
2. Click **New Transaction → Journal.**
3. Using your payroll provider’s journal report, input each payroll component:
   * **Salaries** – Total gross wages paid
   * **Benefits** – Employer-paid benefits (e.g., insurance, retirement)
   * **Payroll Taxes** – Employer tax liabilities
4. Offset the **net pay** (the amount withdrawn from the client’s bank) to the **Payroll Clearing** account.
5. Double-check all details and click **Save & Close.**

{% hint style="info" %}
**Tip:** Ensure the **Payroll Clearing** account matches the one tied to your client’s payroll withdrawals.
{% endhint %}

**See also:** [**Journal Entries in Digits**](/firms-agentic-general-ledger/journal-entries.md) 
{% endstep %}

{% step %}

### Step 3: Verify Your Bank Sync and Account Mapping

* **Verify the bank connection.**
  * Confirm the payroll bank account is connected in Digits.
  * See: [Cards & Banks via Plaid ](/firms-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 client’s 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.
    {% endstep %}

{% step %}

### 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

{% hint style="info" %}
**Best Practice:** Regular reviews help prevent misstatements and keep your clients’ books clean and current.
{% endhint %}
{% endstep %}
{% endstepper %}

***

### Frequently Asked Questions

<details>

<summary> Can I automate payroll for non-Gusto clients?</summary>

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

</details>

***

{% columns %}
{% column width="66.66666666666666%" valign="middle" %}
Got a question or feedback? Our team is all ears—come say hello!
{% endcolumn %}

{% column width="33.33333333333334%" valign="middle" %}

<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>
{% endcolumn %}
{% endcolumns %}

***


---

# Agent Instructions: 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://help.digits.com/firms-connections/manual-payroll.md?ask=<question>
```

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.