Karbon and Gusto Partner to Make Payroll Faster for Accounting Firms

The integration gives firms a single, up-to-date view of payroll work alongside the rest of their client work, without duplicate entry

Automatically creates payroll work in Karbon from Gusto pay schedules, with deadlines kept in sync

Tracks approvals and client tasks in real time, so firms can see the status of every payroll cycle

Karbon, the leading AI-powered accounting practice management software, today announced a partnership with Gusto that brings payroll workflow management directly into the firm’s practice management platform. The integration, now available in beta, auto-creates payroll work items in Karbon with synced due dates from Gusto’s pay schedule, tracks approvals and client tasks in real time, and surfaces payroll deadlines alongside the rest of a firm’s work.

Gusto serves more than 500,000 small businesses, with thousands of accounting and bookkeeping firms recommending and managing Gusto on behalf of their clients. A significant share of Karbon’s U.S. customers already run client payroll through Gusto. The integration tracks in Karbon the real-time progress of activities within Gusto, so firms have one accurate view of every client payroll cycle without duplicating work across platforms.

“Payroll is one of the most valuable service lines a modern firm can build, and Gusto is one of the most loved platforms for delivering it. It’s already the system of choice for a huge share of Karbon firms running payroll for their clients,” said Mary Delaney, CEO at Karbon. “This partnership brings that experience directly inside Karbon, giving firms a single, connected view of every client payroll cycle with approvals, deadlines, and client tasks living where the rest of the firm’s work already does.”

Key benefits of the Gusto integration:

Gusto client sync: Gusto clients sync into Karbon contacts automatically, with no manual re-entry and no duplicate records.

Pre-built payroll workflow templates: Ready-made Karbon work templates that include integrated workflows cover recurring payroll runs, new client onboarding to Gusto, and annual compliance tasks like time tracking, time off, and expense requests.

Auto work item creation: Work items are generated in Karbon whenever a new pay cycle begins in Gusto, with no manual trigger needed.

Automated client requests: Karbon auto-generates client-facing tasks such as timesheet approval and payroll sign-off at the right point in each cycle.

Payroll deadline visibility: Gusto due dates surface in a firm’s Work dashboard and My Week view alongside every other client deadline, including automatic adjustments for bank holidays.

The partnership reflects Karbon’s strategy of connecting the accounting profession’s most-used tools into a single AI operating system for the firm. Modern accounting firms are consolidating around fewer, better-connected tools, and payroll is something firms touch every month for every client.

Karbon customers report saving an average of 18.5 hours per week per employee by running their practice through Karbon, and removing the manual coordination that surrounds every payroll cycle directly extends that story. It also supports the profession-wide shift toward Client Advisory Services, where firms are increasingly taking ownership of client payroll as a service line and need payroll workflows inside the practice management tool rather than siloed in a separate system.

“Payroll is one of the highest-frequency, highest-stakes services accounting firms deliver for their clients. When that workflow lives in a separate system from everything else the firm manages, it creates real coordination overhead,” said Bridgette Haymaker, GM & VP of Product Management at Gusto. “Connecting Gusto’s pay schedule and client data directly into Karbon means fewer dropped deadlines and less manual work — and for the firms building payroll into a true advisory service line, that matters.”

The Karbon and Gusto integration is available today in beta to Karbon customers in the United States. General availability is on track for mid-2026.

To learn more or join the beta waitlist.

Meet the Karbon team on stand 930 at Accountex London, taking place at Excel on the 13-14 May 2026.

Register for your free ticket here.

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