> ## Documentation Index
> Fetch the complete documentation index at: https://docs.toku.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Applying the Toku Deduction in Gusto

> How Toku applies the stablecoin deduction through Gusto's employee deduction API

Each pay period, Toku applies one dedicated deduction per participating employee, using Gusto's employee deduction (garnishments) API. This is the only write Toku performs against your Gusto account.

## Endpoint

```bash theme={null}
curl -X POST "https://api.gusto.com/v1/employees/<employee_id>/garnishments" \
  -H "Authorization: Bearer <access_token>" \
  -H "Content-Type: application/json" \
  -d '{
    "amount": "250.00",
    "description": "Toku Deduction",
    "recurring": false,
    "court_ordered": false,
    "deduct_as_percentage": false,
    "active": true
  }'
```

Gusto models employee deductions and garnishments on the same resource — Toku uses it as a standard, non-court-ordered employee deduction. See Gusto's reference to validate the call: [Create a garnishment (employee deduction)](https://docs.gusto.com/app-integrations/reference/post-v1-employees-employee_id-garnishments).

## How the Amount Is Set

* The employee's stablecoin election in Toku determines the amount for each pay period.
* Toku recalculates and updates the deduction before each run, so one-off changes (bonuses, prorated periods, paused elections) are handled automatically.
* The line item appears on the employee's pay statement with the Toku description, so payslips stay self-explanatory.

## Guarantees

| Behavior         | Detail                                                                |
| ---------------- | --------------------------------------------------------------------- |
| One line item    | Exactly one Toku deduction per participating employee per run         |
| No gross changes | Gross pay, taxes, and every other pay item are untouched              |
| Bounded amount   | The deduction is validated against net pay before it is applied       |
| Reversible       | Removing an employee's election stops the deduction from the next run |

<Warning>
  Toku never modifies compensation, tax withholding, benefits, or existing deductions in Gusto — the scope of write access is limited to the Toku deduction itself.
</Warning>

## Reconciliation

After the payroll is processed, Toku reads the finalized run, confirms each applied deduction, and releases the matching on-chain stablecoin payments. Any mismatch blocks settlement and is surfaced in the Toku dashboard before funds move.

## Next

<CardGroup cols={2}>
  <Card title="Integration Overview" icon="map" href="/integrations/gusto">
    Back to the Gusto integration overview
  </Card>

  <Card title="Employee Sync" icon="users" href="/integrations/gusto/employee-sync">
    How Toku reads your employee roster
  </Card>
</CardGroup>