Gusto is one of the most popular payroll platforms for small and medium-sized US businesses — and for good reason. It handles federal and state tax filings, direct deposits, benefits administration, and employee onboarding in a clean, easy-to-use interface. What it doesn't do natively is push payroll data directly into your accounting system's general ledger.
That's where payroll integration comes in. By connecting Gusto to TallyArc via OAuth2, your payroll data syncs automatically: every pay run posts journal entries to the GL, employee records stay current, and you eliminate the manual data entry that otherwise sits between payday and closed books.
Why payroll-accounting integration matters
Without integration, the typical workflow looks like this: run payroll in Gusto → download the payroll summary report → manually enter totals into your accounting system (gross wages, employer taxes, benefits, net pay). This happens every pay period, every month, all year.
The problems with manual re-entry are predictable:
- Errors — transcription mistakes are common and often not caught until reconciliation
- Lag — your GL doesn't reflect labor costs until someone manually posts them, often days after the pay run
- Inconsistency — different people may post entries differently, making historical comparisons unreliable
- Wasted time — payroll posting is entirely mechanical work that software should do
How the Gusto OAuth2 integration works in TallyArc
TallyArc uses Gusto's OAuth2 flow — the same authentication standard used by leading integrations across the software industry. Here's the sequence:
- In TallyArc, navigate to Integrations → Payroll and click Connect on the Gusto tile
- Click Connect with Gusto → — you're redirected to Gusto's authorization page
- Log in with your Gusto credentials and authorize TallyArc to access your payroll data
- Gusto redirects you back to TallyArc with an authorization code
- TallyArc exchanges the code for an access token and refresh token — both stored securely in your integration settings
- The connection is live — you can now sync payroll data with one click
Your Gusto credentials are never stored in TallyArc. The OAuth2 flow means TallyArc only ever holds an access token, which can be revoked from your Gusto account at any time.
What data syncs from Gusto
A Gusto sync via TallyArc pulls:
- Employees — names, employment type, compensation details, department
- Pay runs — gross wages, employee taxes withheld, employer taxes, net pay, pay period dates
- Company payrolls — historical payroll records and upcoming scheduled runs
Each pay run sync creates journal entries in TallyArc's general ledger — debiting wage expense accounts and crediting the appropriate liability and cash accounts — so your books reflect payroll costs the moment they're synced, not days later when someone gets around to manual posting.
Gusto vs other payroll providers
TallyArc supports 10 payroll providers, but Gusto receives our deepest integration because:
- It offers a full OAuth2 flow — no API keys to manage or rotate
- Its API is well-documented and stable
- It's purpose-built for US small businesses, the same audience TallyArc serves
- Its employee and payroll data model aligns cleanly with TallyArc's GL posting logic
If you're not yet using a payroll provider, Gusto is our recommended starting point for US-based businesses with W-2 employees.
Getting started
To connect Gusto to TallyArc:
- Log into TallyArc and go to Integrations → Payroll
- Click Connect → on the Gusto tile
- You'll see setup instructions including your OAuth redirect URI — this must be registered in your Gusto Developer Portal
- Enter your Gusto application's Client ID and Client Secret, then click Connect with Gusto →
- Authorize the connection in Gusto's portal and you'll be returned to TallyArc with the integration active
Once connected, use the ↻ Sync Now button to pull your latest payroll data. Future syncs can be triggered manually or automatically on a schedule.