What Is an Invoic | How to Send an Invoice in Gusto

What Is an Invoic?

An invoice is a legally binding document issued by a business to a client or customer requesting payment for goods or services delivered. It includes:

  • Itemized list of products/services, quantities, and prices
  • Payment due date, terms (e.g., Net 30), and accepted methods
  • Unique invoice number, tax details, and business/client information
    Invoices formalize transactions, ensure tax compliance, and accelerate cash flow. Gusto simplifies this process for U.S. businesses paying contractors (not employees).

How to Send an Invoice in Gusto (Step-by-Step)

Gusto’s invoicing is designed for contractor payments only (1099 workers). Here’s how to send invoices:

  1. Access Contractor Payments
    Log in to Gusto → Navigate to Contractors → Select Pay Contractors.
  2. Create a New Invoice Request
    Click Request an invoice → Choose the contractor → Set an invoice due date.
  3. Add Invoice Details
    • Description: Enter services rendered (e.g., “Web Design – July 2024”).
    • Amount: Input the pre-agreed rate or hourly total.
    • Attachments: Upload work receipts or contracts (PDF/PNG).
  4. Review & Send
    Gusto auto-generates a professional invoice. Click Send Request → The contractor receives an email to approve/submit the invoice directly in Gusto.
  5. Approve & Pay
    Once the contractor submits the invoice:
    • Review it in Pending Approvals.
    • Click Approve → Funds are processed via Gusto’s payment system (bank transfer or check).

Key Benefits of Sending Invoices via Gusto

✅ Automated Tracking: Syncs with accounting and tax filings.
✅ Contractor Self-Service: Contractors submit invoices via Gusto’s portal.
✅ Compliance: Auto-calculates local taxes and generates 1099s.
✅ Audit Trail: Stores all invoices and approvals in one dashboard.

⚠️ Limitations:

  • Gusto does not support client invoicing (e.g., billing customers). Use tools like QuickBooks or Zoho for that.
  • Invoices are only for U.S.-based contractors

Pro Tip

Use Gusto’s reminder automation to nudge contractors about pending invoices (Contractors → Invoice reminders). This reduces follow-ups by 80%!