Gusto Payroll Failed: Meaning, Causes, and What to Do
Gusto payroll failed? Learn what it means, why payroll fails in Gusto, and how employers and employees can fix it quickly.
PAYROLL PLATFORMS
Alex Morgan
1/15/20261 min read
Q1: What does “Gusto payroll failed” mean?
In Gusto, “payroll failed” means the payroll run did not complete successfully. Payments were not sent to employees, and taxes may not have been submitted.
This is different from “processed” or “pending.”
Q2: Does failed payroll mean employees won’t get paid?
Yes.
If payroll fails, no money is deposited until the issue is fixed and payroll is re-run.
Q3: Why does payroll fail in Gusto?
The most common reasons include:
Employer bank account has insufficient funds
Bank account or routing number is incorrect
Payroll was submitted after cutoff time
Employer bank rejected the transaction
Account verification or compliance issue
Temporary system or network error
Q4: How can an employer fix a failed payroll?
Employers or payroll admins should:
Log in to Gusto
Open the failed payroll run
Review the error message
Fix the issue (funding, bank info, verification)
Re-run payroll immediately
Employees cannot fix failed payroll themselves.
Q5: How long does it take to fix a failed payroll?
Minor issues: Same business day
Bank-related issues: 1–3 business days
Verification problems: May take longer
Once re-run, normal direct deposit timelines apply.
Q6: Will employees be notified if payroll fails?
Not always.
Employees usually notice when payment doesn’t arrive on payday. Employers receive the main alert.
Q7: Can payroll fail after being processed?
Yes.
Payroll can show “processed” first and later fail if the bank rejects funding.
Q8: What should employees do if payroll fails?
Employees should:
Contact their employer or HR immediately
Ask if payroll was re-run
Confirm the new expected pay date
Employees should not contact Gusto directly.
A Gusto payroll failed status means payments were not completed. The issue must be fixed by the employer and payroll re-run before employees are paid. Most failures are caused by funding or bank errors and can be resolved quickly.
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