Tracking Payroll Expenses in Money Pro

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Money Pro doesn't connect directly to payroll services like Gusto, ADP, or QuickBooks Payroll. There's no button to link your payroll account. Instead, payroll expenses flow into Money Pro the same way all other business spending does: through your connected bank account. When your payroll provider debits your business checking account to fund a payroll run, that transaction syncs to Money Pro automatically and you categorize it as a payroll expense.

How Payroll Expenses Appear in Money Pro

When you run payroll, your payroll service (Gusto, ADP, or any other provider) pulls money from your business bank account in one or more debits. Money Pro sees those debits as bank transactions — the same as any other expense — and imports them automatically within 3–5 business days after they post to your account.

Most payroll services create several separate bank debits per payroll run:

Employee net pay — the amount that reaches employees' bank accounts
Employee tax withholdings — the taxes withheld from employee paychecks and remitted to federal and state agencies
Employer payroll taxes — your share of Social Security, Medicare (FICA), and unemployment taxes (FUTA/SUTA)

Each of these shows up as a separate transaction in Money Pro. That's expected — the total across all three debits equals your true cost of running payroll for that period.

Step-by-Step: Tracking Payroll from Gusto (or Any Provider)

Step 1: Connect your business bank account

Your payroll expenses only appear in Money Pro if the bank account your payroll provider debits is connected.

In Money Pro, go to Banking → Connected Accounts
Click Link New Account
Search for your bank and sign in through Plaid
Select the account your payroll provider uses for payroll debits
Set the account type to Business Only so all transactions default to Business

If your bank account is already connected, skip to Step 2.

Step 2: Wait for payroll debits to sync

After your payroll runs, give the transactions 3–5 business days to settle at your bank and sync to Money Pro. Pending transactions won't appear until they fully post.

Step 3: Categorize each payroll transaction

In Money Pro, go to Finance → Expenses (or the Transactions tab)
Click a payroll debit to open it
Set the category:
Employee net pay → select Wages (IRS Schedule C, Line 26)
Tax withholding remittances and employer taxes → select Taxes & Licenses (IRS Schedule C, Line 23)
Confirm it's tagged Business
Click Save

Step 4: Set a categorization rule so future payroll runs categorize automatically

After saving the category, click Create Rule if prompted
Money Pro will apply the same category to all future transactions from that merchant (usually named something like "Gusto" or "ADP Tax Service")
This eliminates the manual step for every future payroll run

Tracking 1099 Contractor Payments

Money Pro can track payments to independent contractors after the money leaves your connected business bank account, but it does not collect W-9 forms, generate Form 1099-NEC, or file contractor tax forms for you. If you pay contractors, collect a completed W-9 before payment and use a payroll or contractor payment provider, accountant, or tax professional to manage year-end 1099 requirements.

When the contractor payment appears in Money Pro, categorize it as Contract Labor or the closest contractor category in your account — not Wages. This keeps contractor payments separate from W-2 employee payroll. If you pay through Gusto, ADP, OnPay, or another provider, the synced bank debit is still categorized the same way in Money Pro; the provider handles the contractor records and tax forms outside Money Pro.

Tips for Clean Payroll Bookkeeping

Use subcategories to separate gross wages from payroll taxes. If you want to see employee wages and payroll taxes as separate line items on your Profit & Loss report, create subcategories: go to Expenses → gear icon → Business Categories → Add. Create a "Gross Wages" subcategory under Wages and a "Payroll Taxes" subcategory under Taxes & Licenses.

Record year-end employer totals if needed. For tax preparation, your accountant may want total wages paid and total payroll taxes paid for the year. Money Pro's expense reports by category give you these totals. Go to Finance → Reports → Expenses, filter by category, and select the year.

Don't double-count the gross pay. If you track each debit separately (net pay + tax withholdings), the sum of those transactions equals the gross payroll cost — you do not need a separate "gross wages" entry on top.

Frequently Asked Questions

Does Money Pro integrate with Gusto?

No — there is no direct integration between Gusto and Money Pro. Money Pro doesn't connect to Gusto's API, and Gusto payroll runs don't automatically create entries in Money Pro. However, once you connect the bank account Gusto debits for payroll, those transactions sync to Money Pro automatically via Plaid, just like any other purchase or expense.

Why does Gusto show as multiple transactions in Money Pro?

Gusto splits a payroll run into several bank debits: one for employee net pay, one for employee tax withholdings, and one for employer payroll taxes. This is how most payroll services operate. Each debit appears as a separate transaction in Money Pro. Categorize each one individually — employee net pay as Wages, tax payments as Taxes & Licenses.

What if I use ADP, QuickBooks Payroll, or another payroll service instead of Gusto?

The same approach works for any payroll provider. Connect the bank account your payroll service debits, and payroll transactions will sync to Money Pro automatically. ZenBusiness recommends RUN Powered by ADP® as its preferred payroll solution for small businesses. ADP and Money Pro are separate products, and you can use both together — ADP manages payroll processing and tax filing, while Money Pro tracks your overall business finances.

What IRS category should I use for payroll in Money Pro?

Use Wages (IRS Schedule C, Line 26) for employee compensation — specifically the net pay debit or gross wages if you're entering payroll manually. Use Taxes & Licenses (IRS Schedule C, Line 23) for payroll tax remittances, including the amounts Gusto collects and pays on your behalf for federal and state payroll taxes.

How do I track payroll if my bank account isn't connected to Money Pro?

Enter payroll expenses manually. In Money Pro, click Add Expense, enter the payroll date, description (for example, "Gusto Payroll — Jan 31"), amount, and category (Wages for employee pay, Taxes & Licenses for tax payments), mark it Business, and save. Manual entries appear in your Profit & Loss and tax reports the same as bank-synced transactions.

How do I categorize contractor payments through Gusto?

If you pay independent contractors through Gusto, categorize those payments as Contract Labor (IRS Schedule C, Line 11) — not Wages. Contractor payments are reported on Form 1099-NEC, not W-2, so the IRS category is different. Keeping them separate in Money Pro ensures your expense reports reflect the correct categories for tax filing.

Can Money Pro collect W-9 forms or issue 1099-NEC forms?

No. Money Pro does not collect W-9 forms, generate 1099-NEC forms, or file contractor tax forms. Collect W-9s from contractors before paying them and use a payroll/contractor payment platform, accountant, or tax professional for year-end 1099 handling. Money Pro tracks the payment after it appears in your bank feed.

What should I do before paying a new 1099 contractor?

Ask the contractor for a completed W-9, decide how you will pay them, and keep the W-9 with your business records. If you use a contractor payment platform, it may store the W-9 and help prepare year-end forms. In Money Pro, categorize the synced payment as Contract Labor or Contractors, not Wages.

Should I pay myself payroll through Gusto and track it in Money Pro?

It depends on your business structure. If your LLC has elected S corp tax status, you're required to pay yourself a reasonable salary through payroll — categorize that as Wages in Money Pro. If you're a standard single-member LLC (default tax treatment), you typically take owner's draws rather than payroll. Owner's draws are not business expenses — record them as Owner's Draw (under Equity) or Personal, not under Wages. If you're unsure which applies to you, check with a tax professional.

Why aren't my payroll transactions syncing to Money Pro?

The most common reason is that payroll transactions are still pending at your bank and haven't fully posted yet — give it 3–5 business days after your payroll runs. If transactions are still missing after that, check that the bank account Gusto debits is connected in Money Pro under Banking → Connected Accounts. Look for a red error icon indicating the connection needs to be refreshed, and click Reconnect to re-authenticate through Plaid.

Can I see a summary of total payroll costs for the year in Money Pro?

Yes. Go to Finance → Reports → Expenses, set the date range to the full year, and filter by the Wages and Taxes & Licenses categories. The report shows your total payroll-related spending for that period. You can export it as a CSV for your accountant or attach it to your tax records.

Still need help?

If your payroll transactions aren't syncing correctly or you need help categorizing an unusual payroll entry, contact ZenBusiness support or use live chat in your ZenBusiness dashboard.