Overview

Action 1 of 2 - Salary Module on Collective Dashboard

Action 2 of 2 - Update your Salary with Gusto

Overview

Every quarter the tax team does a reasonable compensation check to make you are paying yourself the right amount. We crunch all your Gusto and QuickBooks numbers to see if a new advised range is appropriate. If yes, you will be directed to your Collective Dashboard and asked to confirm an annual salary.

Action 1 of 2 - Salary Module on Collective Dashboard

  1. Please login to your dashboard and go to the section "Update your Annual Salary". It looks like this:

  2. Use the slide bar to choose a salary within the green "Advised range" and hit confirm.

  3. If your current salary is still within the green "Advised range" and you are comfortable with the "defensibility", then you can leave it as is and click "confirm."

  4. If you would like to decrease or increase your salary within the green "Advised range", then choose a salary you are comfortable with the "defensibility", click "confirm".

  5. Next, there will be a pop-up confirming the amount you chose along with a link to an article about payroll. Click "Approve Salary" in the bottom right corner. It looks like this:

  6. You are now done with the module.

  7. Please read the next section to update your salary with Gusto. This will update the monthly payroll. This is a very important step.

  8. Your monthly payroll = annual salary/payroll frequency per year. Most of our members run payroll once a month. For example, the monthly payroll for an annual salary of $36,000, on a monthly payroll frequency, is 36,000/12 = $3,000/month.

Action 2 of 2 - Update your Salary with Gusto

  1. Login to gusto.com

  2. Click the People section and select Team members.

  3. Click on your employee's name.

  4. Under Compensation, click edit.

  5. Enter in their new salary or hourly rate.

  6. Select an effective date for the new compensation by selecting a specific pay period from the drop-down menu. Select the first available pay period. The first day of the pay period is the day the change will take effect.

  7. Click Save.

  8. This compensation change is used to alter your monthly payroll.

  9. Your monthly payroll = annual salary/payroll frequency per year. Most of our members run payroll once a month. For example, the monthly payroll for an annual salary of $36,000, on a monthly payroll frequency, is 36,000/12 = $3,000/month.

  10. Note: You do not need to process any catch-up payroll when setting a new salary. Think of it as a raise at work, the boss doesn't retroactively catch you up. Though we can all dream :-)

Note: If you are in a community property state (i.e. California) and have chosen to split your salary with your spouse, the total of both spouses' wages should still be within the recommended reasonable compensation range. For example, if the total reasonable compensation chosen is $50,000, you may choose to pay yourself $25,000 and your spouse $25,000.

If you need help, please email [email protected] and reference this article's url.

Did this answer your question?