Recording Manual Payroll in Digits
Digits syncs payroll automatically through Gusto and 15+ other providers (including ADP, Paychex, and QuickBooks Payroll) via our payroll connector. Use a manual journal entry only for a provider that isn't on the supported list.
Step 1: Run Payroll Reports from Your Client’s Provider
Export a payroll journal from your client’s payroll system for the relevant pay period. (CSV or Excel formats work best.)
Review the report to identify key categories, such as:
Gross salaries/wages
Benefits (e.g., health insurance, retirement contributions)
Employer payroll taxes
Step 2: Prepare to Record a Journal Entry in Digits
From your client’s dashboard, go to Accounting → Ledger.
Click New Transaction → Journal.
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
Offset the net pay (the amount withdrawn from the client’s bank) to the Payroll Clearing account.
Double-check all details and click Save & Close.
See also: Journal Entries in Digits
Step 3: Verify Your Bank Sync and Account Mapping
Verify the bank connection.
Confirm the payroll bank account is connected in Digits.
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.