Add and pay US contractors in Gusto (for admins)
This article is for Gusto admins who manage contractor payments and onboarding.
Are you the contractor getting paid? This article is for the admin who pays you. See how to set up your account and get paid through Gusto.
You can add US-based contractors, invite them to onboard, send contracts, and pay them through Gusto. You can use Gusto to pay contractors even if you do not run employee payroll with us.
For non-US contractors, learn how to add and pay international contractors (based outside the US).
Key reminders
Worker classification: We cannot tell you if someone should be a W-2 employee or 1099 contractor. Work with an HR specialist or review Internal Revenue Service (IRS) guidance.
Payment methods: You can pay contractors by direct deposit or check at the same cost. For check payments, you print and hand out the check yourself — Gusto’s check mailing service is not available for contractor payments. You cannot pay them with prepaid debit cards.
Payment speed: US contractor payments process as fast as your employee payroll.
Compliance: Contractors must meet IRS reporting rules.
Contractor payment limits: There is no limit on how many times you can pay a contractor. You can run contractor payments as often as you need, on any plan.
Contractor tips and the One Big Beautiful Bill (OBBB): To make sure contractors can claim the new tax deduction, include their tip amounts in their total earnings on the 1099. You can do this by adding a historical payment in Gusto that includes any past payments or tips that have not already been entered. Get additional information about the tip reporting requirements in this article.
Contractor fee: $6, $12, or $22 per contractor, per month, depending on your plan.
We only charge the fee for months when you pay a contractor or report a historical payment.
Having a contractor in your account does not cost anything on its own.
If you pay the same contractor more than once in a month, you are still charged one fee for that month.
Gusto supports US-based contractors who meet the following criteria.
Individuals
Have a valid Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN)
Are at least 13 years old
Businesses
Have a valid Federal Employer Identification Number (FEIN)
All US-based contractors also need
A US address (for year-end filings)
A US bank account (for direct deposit)
No tax or backup withholding required (Gusto does not support this)
Before you add a contractor in Gusto, review these key topics. They cover legal agreements, tax identification, year-end reporting, and state new hire requirements.
You can create and send agreements for independent US contractors when you add them in Gusto. You can also manage agreements outside the hiring process — edit or use saved templates anytime.
Learn more about setting up and managing contractor agreements.
Contractors complete an electronic W-9 in Gusto. Once signed, the form cannot be edited.
If the contractor does not use Gusto’s W-9, you must keep their signed paper copy.
If a W-9 needs changes, have them fill it out manually and upload it to their Gusto profile.
To view a W-9 in Gusto:
Go to People.
Select the contractor’s profile.
Under Additional, click Documents.
Select Taxpayer Identification (Form W-9).
We file and deliver electronic 1099-NECs to eligible contractors.
Most corporations do not need a 1099-NEC, including LLCs taxed as C or S Corps.
If annual payments are under $2,000/year, you may not need to file a 1099-NEC.
Learn more about 1099 reporting requirements.
Form 8655 (Reporting Agent Authorization)
Gusto files these forms as your reporting agent. You sign Form 8655 when you set up your account, which is what lets us file for you.
You can only have one active Form 8655 at a time. While Gusto files for you, no other payroll company or accountant can file those forms.
Important: You cannot use Gusto for contractor payments if you're already using another payroll service.
Reach out if you want to pay a contractor in Gusto but do not want us to create or file a 1099-NEC.
To contact us, sign in to your Gusto account and click the help icon in the top-right corner of the page.
Gusto does not support:
1099-MISC or other 1099 types for any agency
Backup withholding (even if it’s required for your contractor)
State-specific contractor withholding
Non-US (international) contractor withholding or reporting
Gusto gives you the option to send a new hire report when you add a new contractor. If you did not send one at that time, or need to refile a new hire report, we can help.
To contact us, sign in to your Gusto account and click the help icon in the top-right corner of the page.
To add a US contractor in Gusto and invite them to their account:
Sign in to Gusto in your web browser.
Go to People.
Click Add person.
Enter their full name and preferred first name. We use the preferred name in communications where a legal first name is not required, like offer letters, onboarding emails, and org charts.
Select the worker type:
Individual contractor: An independent worker under contract for a specific project or projects, usually on a short-term basis.
Business contractor: A registered business under contract for a specific project or projects, usually on a short-term basis.
Choose United States as the country.
Enter a personal email, not a company email.
If they already have a Gusto profile with your company or another, use the same email so they can switch between their profiles.
Under Onboarding Options, review and select if you want to include:
Contractor agreement: Available for individual (independent) contractors based in the US. Learn more.
Background check: Available for individual (independent) contractors based in the US. Learn more.
For business contractors, run a background check directly in Checkr.
Click Save and continue.
Fill out their employment info:
Contract start date
Department
Job title (optional). Contractors typically work as external consultants or project owners. Make sure the job title reflects the contractor’s scope of work.
Manager (optional)
Hourly rate (optional) — if the contractor is not hourly, skip this and pay them with a flat amount instead when you run their payment. To use time tracking in Gusto, a contractor must have an hourly rate set up.
Click Save and continue.
If you chose to send a contractor agreement: You'll be prompted to fill out the details. Go to our contractor agreements article to finish adding the contractor.
On the Send invitation page you can invite the team member to securely enter their own personal information. We recommend letting them do it.
Click Send and continue to send the onboarding email while you finish setting up their Gusto features.
If you click Skip, you'll have to return to their onboarding checklist later to invite them to Gusto.
Set up the contractor's Gusto features:
Contact details (their personal email)
Documents — we may automatically create some forms. Add additional individual or team documents or agreements (Plus/Premium plans only).
Time & Attendance — invite them to track time (optional).
New hire reporting — available if a work address or work state was entered during onboarding.
New hire check-ins —turn this on to set up a private check-in schedule. We'll add a Check-ins section to the contractor's profile, under their Performance tab, where you can record how they're doing over time. Only admins with full access or performance permissions can see this information. Learn more about new hire check-ins.
Click Save and continue.
You should see the contractor’s onboarding checklist. Plus and Premium customers can add custom tasks.
The contractor will get an email to complete their profile with their SSN/ITIN or EIN, address, and payment info. We’ll let you know when they’re done. They’ll be in the Onboarding tab of the People page until they’ve fully onboarded.
For information about W-9s, 1099-NEC reporting, contractor agreements, and new hire reporting, see What to know before adding a contractor above.
You can add multiple US-based contractors, W-2 employees, and unpaid team members at once in two ways:
By uploading a CSV spreadsheet (template), OR
By entering the team members’ info directly into Gusto
You cannot send offer letters and background checks in bulk. If you use Gusto Recruiting, hire your candidates from the Hiring page, where you can see Gusto Recruiting details.
Another way you can add team members in bulk is by entering them directly into the table in Gusto.
To add multiple US-based team members (employees, contractors, and unpaid team members) without a spreadsheet:
Go to People.
Click Add person.
On the right, choose Add multiple team members.
Fill out a row for each new team member. Required columns are marked with an asterisk (*).
You can copy and paste from a spreadsheet directly into the table.
We save your progress as you go, so you can leave this page if needed.
Once you’ve added each new employee to the table, click Create team member profiles.
You’ll return to Onboarding, where you can view onboarding statuses and add team members who are being paid to payroll.
We’ll email any team members you’ve selected to self-onboard.
Uploading a spreadsheet is one way to add multiple US team members at once (employees, contractors, and unpaid team members). Once you upload the spreadsheet, we’ll prompt you to fill out a table with more hiring information.
Step 1: Set up your spreadsheet
If you want to upload your data using a spreadsheet, you can fill out this template or set it up on your own.
If you set it up yourself, here are the column labels to include in Row 1. Required fields are marked with an asterisk (*).
Note: If you have more data fields to add, you can enter them directly into Gusto after uploading the spreadsheet.
Member type* — choose Employee, Contractor (individual), Contractor (business), or Unpaid team member.
Leave the cell blank to default to Employee.
Legal first name*
Last name*
Middle initial
Preferred first name
Email
Start date (MM/DD/YYYY or YYYY/MM/DD)*
Job title
Step 2: Upload the spreadsheet to Gusto
To upload the spreadsheet to Gusto:
Go to People.
Click Add person.
On the right, choose Add multiple team members.
Click Upload CSV.
Either drag and drop your CSV file or click Upload to select the file from your computer.
Click Continue.
We’ll automatically match your spreadsheet’s columns to Gusto’s data fields. Review each category.
To change how a field is mapped, click the field under the Gusto column and select the correct field. If you choose Unmatched, that column will not be imported.
On the next page, you can add data to any columns that cannot be matched.
Once your categories match, click Continue.
Review the imported data in the table and fill out the required fields for each employee.
We save your progress as you go, so you can leave this page if needed.
Once you’ve added each new team member to the table, click Create team member profiles.
You’ll return to Onboarding, where you can view onboarding statuses and add team members who are paid to payroll.
We’ll email any team members you’ve selected to self-onboard.
Enter and manage contractor payment information directly in Gusto. Your changes save automatically as you go, so there’s no need to worry about losing your work.
Things to keep in mind before you pay
The summary bar at the top updates in real time as you enter data, showing contractors paid, total hours worked, and total payment amount.
Use Filter to narrow the contractor list by department or how recently they’ve been paid. Use Columns to show or hide specific payment fields.
If a field shows N/A, that input is not available for this row.
Ex: If a contractor does not have an hourly rate set up, their Hours field shows as N/A.
Some cells are locked. This is expected when those values cannot be changed.
Ex: Until the contractor has an hourly rate set up, their Hours field is locked.
If you accidentally enter a value, clear it before submitting. Changes save automatically and any entered values will be included in the payment run.
For one-time payments, admins can now enter an hourly amount and a flat amount on the same payment. For example, you can enter regular hours and a one-off project fee.
Automated (recurring) payments still cannot combine hourly and flat amounts.
Type each contractor's hours or amounts straight into the Edit payments table. This works well when you pay a small number of contractors, or when the amounts change every time.
Web browser
To pay contractors manually in your web browser:
Click the Pay section.
Under More options, click Pay US contractors.
You’ll land on the Pay contractors page, on the Edit payments step (Step 1 of 2), where all your active contractors are listed with editable payment fields.
Enter payment information by clicking into the appropriate field for each contractor. Available fields depend on their pay type:
Hourly contractors: Enter hours (and rate, if applicable). You can also give Bonus payments to hourly contractors.
Fixed-rate contractors: Enter a fixed payment amount.
All contractors: You can also add Reimbursements, Tips, Cash tips, an Invoice, and a Memo.
Your changes save automatically — a Last saved timestamp at the bottom left of the page confirms everything is up to date.
To bring in payment data instead of typing it in, click Import payment data in the top right of the table. You can import a CSV file or upload contractor invoices. For the steps, see Pay by uploading a CSV file or Pay by uploading invoices.
When you’re ready, click Review summary.
On the Review and submit page (Step 2 of 2), confirm the payment details look correct, then click Submit.
You’ll see a confirmation page with a payment summary. If you need to make any changes, click Cancel one or more payments before the debit date.
Mobile app
To pay contractors manually in the Gusto mobile app:
Open the Gusto mobile app and sign in.
On the Payroll tab, tap See more options.
Select Pay a US contractor.
All your active contractors are listed with editable payment fields. Enter payment information for a contractor by tapping Edit next to their name. Available fields depend on their pay type:
Hourly contractors: Enter hours (and rate, if applicable). You can also give Bonus payments to hourly contractors.
Fixed-rate contractors: Enter a fixed payment amount.
All contractors: You can also add Reimbursements, an Invoice number, Tips, and a Memo.
Tap Done once you’ve added a contractor’s pay details.
To import payment data from a CSV file instead, tap the three-dots icon and select Import payment data. For the steps, see Pay by uploading a CSV file.
When you’re ready, tap Review summary.
On the Review and submit screen (Step 2 of 2), confirm the payment details look correct, then tap Submit payments.
You’ll see a confirmation screen with a payment summary. If you need to make any changes, tap Cancel one or more payments before the debit date.
Quickly upload US contractor payment information using Smart Import. Upload a CSV file and we’ll match your data to your contractors automatically — no reformatting needed.
Web browser
To pay contractors by uploading a CSV file in your web browser:
Click the Pay section.
Under More options, click Pay US contractors.
On the Pay contractors page, click Import payment data in the top right of the table.
Click Download CSV template to get a pre-filled file with your active contractors already listed, then fill in your payment data.
You can open the template in Google Sheets, fill it out, and export it as a CSV when you’re ready.
Or, create your own CSV file using the column reference in Column descriptions.
Once your CSV is ready, click Upload, or drop your file into the box.
Depending on how closely your file matches our system, one of two things will happen:
Automatic match: If we can match all your data right away, you’ll go straight to the Review step — no extra steps needed.
Manual match: If we cannot match everything automatically, you’ll be guided through a column matching step, a row matching step, or both, before reaching Review. Once you make a manual match, we’ll remember it for future uploads.
In the Review step, confirm everything looks right, then click Import.
Check the table to confirm your payment data has been applied. If it does not appear right away, wait a moment and refresh the page.
Mobile app
To pay contractors by uploading a CSV file in the Gusto mobile app:
Open your Gusto mobile app and sign in.
On the Payroll tab, tap See more options.
Select Pay a US contractor.
Scroll down to the list of contractors. Tap the three-dots icon and select Import payment data.
Tap Download CSV template to get a pre-filled file with your active contractors already listed, then fill in your payment data.
You can open the template in Google Sheets, fill it out, and export it as a CSV when you’re ready.
Or, create your own CSV file using the column reference in Column descriptions below.
Once your CSV is ready, select Upload and continue.
Depending on how closely your file matches our system, one of two things will happen:
Automatic match: If we can match all your data right away, you’ll go straight to the Review step — no extra steps needed.
Manual match: If we cannot match everything automatically, you’ll be guided through a column matching step, a row matching step, or both, before reaching Review. Once you make a manual match, we’ll remember it for future uploads.
In the Review step, confirm everything looks right, then select Import.
Check the table to confirm your payment data has been applied. If it does not appear right away, wait a moment and refresh the page.
Things to keep in mind
Column headers don’t have to match exactly — Smart Import will try to recognize common variations automatically. If it can’t, you’ll have the option to match them manually.
hours and bonus apply to hourly contractors. fixed_amount applies to fixed-rate contractors. Mixing these will result in an error on review.
Positive numbers only. Decimals are fine.
Upload your contractors' invoices and Gusto fills in the payment details for you. Gusto reads each invoice, tries to match it to a contractor on your team, and adds the amounts to their payment. You review and confirm before the amounts are saved.
Uploading an invoice replaces any pay amounts you already entered for that contractor in this payment, so upload invoices before you make manual edits.
Web browser
To upload contractor invoices in your web browser:
Click the Pay section.
Under More options, click Pay US contractors.
You’ll land on the Pay contractors page, on the Edit payments step (Step 1 of 2). Your contractors are listed in a table there.
Find a contractor you have an invoice for, then click their cell in the Invoices column.
A drawer opens on the right side of your screen. Select Upload an invoice.
Choose the invoice files you want to upload, then submit. You can upload up to 10 files at a time, including invoices for your other contractors. Each file must be a PDF, JPG, or PNG, and 10 MB or smaller.
Wait while Gusto reads your invoices and tries to match each one to a contractor.
Depending on how well Gusto reads and matches them, one of two things happens:
Amounts captured correctly: You go straight to the review step.
Some invoices need attention: You go to a corrections page first, where you can fix the details before you continue.
In the review step, check the amounts that will be imported, then confirm. Gusto shows how many invoices imported successfully.
Check the table to confirm the amounts have been applied. If they do not appear right away, wait a moment and refresh the page.
Mobile app
To upload contractor invoices in the Gusto mobile app:
Open the Gusto mobile app and sign in.
On the Payroll tab, tap See more options.
Select Pay a US contractor.
Scroll to a contractor you have an invoice for, then tap Edit.
Scroll down to the Others section. Next to Invoices, tap Add.
On the next screen, select Upload an invoice.
Choose the invoice files you want to upload, then submit. You can upload up to 10 files at a time, including invoices for your other contractors. Each file must be a PDF, JPG, or PNG, and 10 MB or smaller.
Wait while Gusto reads your invoices and tries to match each one to a contractor.
Depending on how well Gusto reads and matches them, one of two things happens:
Amounts captured correctly: You go straight to the review step.
Some invoices need attention: You go to a corrections page first, where you can fix the details before you continue.
In the review step, check the amounts that will be imported, then tap Save. The payment appears at the bottom of the contractor’s page.
Tap Done.
Correct an invoice that needs attention
Gusto flags an invoice for review when it cannot confidently match the invoice to a contractor, or when the invoice currency does not match the contractor's payment currency. When the currency does not match, Gusto leaves the currency field blank until you confirm it.
Every invoice you uploaded is listed on the corrections page, with a status showing whether Gusto matched it successfully. On this page you can:
Select an invoice to preview it and edit its details, including the invoice number, total amount, currency, and matched contractor.
Search for the correct contractor by name.
Remove an invoice you do not want to import.
When you finish, submit your corrections to move to the review step.
What to know about uploading invoices
You can upload up to 10 invoice files at a time. Each file must be a PDF, JPG, or PNG, and 10 MB or smaller.
If you upload more than one invoice for the same contractor, Gusto adds the amounts together and combines the invoice numbers into one entry.
If you upload an invoice for a contractor who is not part of this payment, Gusto adds them so the invoice can be imported.
Gusto uses AI to read and match invoices. Always check the amounts and the matched contractor before you confirm.
Uploading an invoice does not send a payment. You still review and submit the payment as usual.
Gusto cannot read invoices that a contractor emails to you. You upload invoices directly in Gusto.
Uploading contractor invoices is separate from Gusto Money Bill Pay and invoicing. It only brings a contractor's invoice details into their payment in Gusto.
Each column on the Edit payments step corresponds to a specific payment field. Fields available to each contractor depend on their pay type. If you’re uploading payments via CSV, see the CSV column reference below — CSV column names are different from the on-screen labels.
Edit payments columns
Contractors: The contractor’s name and, if applicable, their business name.
Rate: The contractor’s pay rate, pulled from their profile. To update their rate, click the contractor’s name to open their profile.
Hours: Hours worked for the payment period. For hourly contractors only. Enter hours as a decimal — for example, 1 hour 15 minutes = 1.25.
Fixed amount: The payment amount for fixed-rate contractors. Shows N/A for hourly contractors.
Bonus: A one-time bonus payment. For hourly contractors only.
Reimbursements: Expense reimbursement amount. Not taxed. Applies to any contractor type.
Tips: Tip amounts you are paying the contractor through Gusto.
Cash tips: Tips the contractor already received directly, recorded here for reporting. Gusto does not pay this amount out.
Invoices: The invoice tied to the payment. Click the cell to upload an invoice and have Gusto pull the amounts from it, or to add, edit, or delete an invoice yourself. Optional, but recommended for recordkeeping.
Memo: A note on the payment, visible to the contractor. Optional.
Payment method: Defaults to the contractor’s chosen method. Click the dropdown to switch between Direct deposit and Check for this payment.
Total pay: The total payment amount for the contractor, calculated from all applicable fields.
CSV upload columns
Use these column names when building or formatting your own CSV file. See Pay by uploading a CSV file above for upload instructions.
Column
Descriptions
first_name
Individual contractor’s first name
last_name
Individual contractor’s last name
ssn/ein
Last 4 digits of the contractor’s SSN (individuals) or EIN (businesses). Helps with more accurate matching.
business_name
Business contractor’s company name. If present, the row is treated as a business contractor.
note
Payment memo or note
hours
Hours worked. For hourly contractors only.
fixed_amount
Fixed payment amount. For fixed-rate contractors only.
reimbursement
Reimbursement amount
bonus
Bonus amount. For hourly contractors only.
invoice_number
Invoice number for the payment
You can adjust which columns are visible to focus on what’s most relevant for a given payment run.
To hide a column, click Columns above the table and deselect it.
To show a hidden column, click Columns and reselect it.
Use Filter to narrow the contractor list by department or by how recently a contractor has been paid.
Note: We’re still rolling automated payments for US contractors out. If you do not see it yet, check back in a few weeks.
Create one or more automated payments for your US contractors in Gusto. If your contractors use Gusto to track their time, you still need to manually sync their hours to one-time payments.
Use these steps to set up an automated payment. Once you set it up, we’ll pay your contractors on the schedule you choose.
Web browser
To set up an automated payment in your web browser:
Go to Pay.
On the right, click Pay a US contractor. If you do not see the option right away, it may be under See more options.
Under Payday, click Set up automated payment.
Select the contractors you’d like to add to the automated payment.
Click Continue.
Give the automated payment a nickname.
Choose your payment frequency — how often you’ll pay the contractors. Choose from:
Every week
Every other week
Twice per month
Monthly
Select the first debit date for the automated payment.
Click Preview paydays to view future pay dates.
Note: Bank debits may not show in your company’s bank account until the day after the future debit date. We still start the bank transaction on the future debit date, so you’ll need to have all the required funds in your bank account on that day.
Click Save and continue.
Enter and review the payment details for each contractor. Click Add Memo to add a note the contractor can see.
Click Continue.
Review the summary and individual payment details. Click Turn on payment.
Mobile app
To set up an automated payment in the Gusto mobile app:
Open the Gusto mobile app and sign in.
On the Payroll tab, tap See more options.
Select Pay a US contractor.
Tap Set up automated payment.
Select the contractors you’d like to add to the automated payment.
Tap Continue.
Give the automated payment a nickname.
Choose your payment frequency — how often you’ll pay the contractors. Choose from:
Every week
Every other week
Twice per month
Monthly
Select the first debit date for the automated payment.
Tap Preview paydays to see future pay dates.
Note: Bank debits may not show in your company’s bank account until the day after the future debit date. We still start the bank transaction on the future debit date, so you’ll need to have all the required funds in your bank account on that day.
Tap Save and continue.
Enter and review the payment details for each contractor. Tap Add Memo to add a note the contractor can see.
Tap Continue.
Review the summary and individual payment details. Tap Turn on payment.
After you create an automated payment, the system sets it to active. See below to learn how to change this setting or manage other parts of the automated payment.
After you set up automated payments, you can view, edit, or delete them at any time.
Web browser
To manage automated payments in your web browser:
Go to Pay.
On the right, click Pay a US contractor. If you do not see the option right away, it may be under See more options.
Under Payday, click Set up automated payment. This will take you to already-active automated payments and give you the option to create new ones.
Under the Active column, use the toggle to turn a schedule on or off.
Click the Actions menu (three dots) to:
Edit an automated payment — including who’s included, the debit date, and the payment frequency.
Preview payments.
Delete the automated payment — after deletion, no new payments will be created.
Mobile app
To manage automated payments in the Gusto mobile app:
Open the Gusto mobile app and sign in.
On the Payroll tab, tap See more options.
Select Pay a US contractor.
Tap Set up automated payment.
Scroll to the right to see the Active column. Use the toggle to turn a schedule on or off.
In the far-right column, tap the Actions menu (three dots) to:
Edit an automated payment — including who’s included, the debit date, and the payment frequency.
Preview payments.
Delete the automated payment — after deletion, no new payments will be created.
We may turn off automated payments if there are issues with your company or contractor’s account. If this happens, we’ll send you an email.
Why automated payments turn off or fail
Account verification: We may still be verifying the company or contractor bank account details.
Company bank account issues: Incorrect bank account information or not enough funds in the account.
Contractor or payment issues: Missing or unverified company or contractor information.
You can record contractor payments made outside of Gusto so they still appear in your records and year-end 1099 forms. This helps make sure your contractor’s 1099 reflects all payments made during the year.
Important reminders
We charge the standard monthly contractor fee (based on your plan) in any month you enter a historical payment.
If you add multiple historical payments for the same contractor in one month, you’ll only pay one contractor fee for that month.
You must enter historical payments before our end-of-year deadline in early January. We’ll send reminders as the deadline approaches.
When non-Gusto contractor payments do (and do not) create a 1099-NEC
Entering historical payments on their own does not automatically trigger a 1099 filing. We will generate and file a 1099-NEC for historical contractor payments only if your account is considered active for the tax year.
What counts as “active” for 1099 filings?
Before the end-of-year deadline, your company must have processed at least one of the following through Gusto:
A standard contractor payment, or
A regular or off-cycle payroll for W-2 employees
Important: If you run any employee payroll, we consider your account active for filing purposes. In that case, we will generate 1099s for contractors who only have historical payments on file.
Additional 1099 rules to know
Historical payments alone will not create filings unless your account meets the activity requirement above.
We file 1099s only if your company has a signed Form 8655 on file and you met the activity requirement during the tax year.
If you add a payment for a prior year after a 1099 was filed, you must generate a corrected Form 1099-NEC. If we did not file taxes for the prior year, you’ll need to file a new 1099 outside of Gusto.
Add a historical non-Gusto payment for a contractor
To record a non-Gusto contractor payment made in the past:
Sign in to Gusto in the web or in the mobile app.
Add or rehire the contractor in Gusto if they are not already active.
Go to Pay.
In the mobile app: On the Payroll tab, tap See more options.
Select Pay US contractors.
To record a payment paid before today's date (a historical payment), select Record a non-Gusto payment. Since the date is in the past and the payment has already been made, you can record the payment for tax purposes, but we will not move any money.
If you do not see the button or are using our legacy view, under Payment method for the contractor, select Historical Payment.
Next to the contractor’s name, under Total amount, select Enter Payment.
Enter details:
Hours worked
Wages or other earnings
Optional: Add a Memo explaining the payment.
Select Continue.
Review the summary. If everything looks correct, select Submit payments.
Note: If you’re entering a payment for a prior year and a Form 1099 was already filed, you must generate a corrected 1099-NEC.
View or change a non-Gusto contractor payment made in the past
Web browser
To view or change a non-Gusto contractor payment made in the past in your web browser:
Go to Pay.
In the top-right corner, click View pay history.
Click US contractors.
Select the payday to view, cancel, or adjust the historical payment.
Mobile app
To view or change a non-Gusto contractor payment made in the past in the Gusto mobile app:
Open the Gusto mobile app and sign in.
On the Payroll tab, tap View pay history.
Select the Contractors tab.
Select the payday to view, cancel, or adjust the historical payment.
You can change or cancel some US contractor payments in Gusto on your own. In some cases, we may need to help. If the payment has not been processed, you will only have the option to cancel. To make changes, you’ll need to cancel and rerun it. If the payment has been processed, but not yet deposited to the contractor’s bank account, you can cancel or change it.
If the contractor has already received the payment
You need to work with them directly to recover the funds. We cannot reverse payments. If you recover funds from a contractor, we’ll update the reporting in Gusto.
Refund timeline
If you cancel a payment, funds are typically returned to your account within a few business days.
Change or cancel a US contractor payment in Gusto
Web browser
To change or cancel a US contractor payment in your web browser:
Go to Pay.
In the top-right corner, click View pay history.
Click US contractors.
For payments you can change without our help, it will say This payment can still be adjusted.
Click the payment for the contractor.
Find Adjustments and click Make an adjustment.
Tell us what you need to change:
A contractor was paid more than once
You need to reverse the payment
A contractor was overpaid or underpaid
The wrong bank account number was entered
We used the wrong payment method (direct deposit vs. check)
Something else (If you choose this option, click Contact us so we can walk you through it)
Follow the rest of the steps.
Mobile app
To change or cancel a US contractor payment in the Gusto mobile app:
Open the Gusto mobile app and sign in.
In the Payroll tab, tap View pay history.
Select the Contractors tab.
If it's a payment you can change without our help, it will say This payment can still be cancelled.
Tap the pay date.
If the payment can be cancelled, you'll have the option to tap Cancel payment.
If this payment can be adjusted, you'll have the option to tap Make an adjustment.
Tell us what you need to change:
A contractor was paid more than once
You need to reverse the payment
A contractor was overpaid or underpaid
The wrong bank account number was entered
We used the wrong payment method (direct deposit vs. check)
Something else (If you choose this option, click Contact us so we can walk you through it)
Follow the rest of the steps.
Use the sections below to update a contractor’s pay rate or type, or to change their work country if they move outside the US.
Web browser
To change a contractor’s pay in your web browser:
Go to People.
Click the contractor’s name to view their profile.
Go to the Work tab.
In the Compensation card, click Edit.
Choose whether to set an hourly rate (optional). Whether or not they have an hourly rate, you can also pay the contractor a flat amount at any time.
Click Save.
Mobile app
To change a contractor’s pay in the Gusto mobile app:
Open the Gusto mobile app and sign in.
Go to People.
Select the contractor's name.
Tap the menu near the top-left of the screen.
Select Work.
In the Compensation card, tap Edit.
Choose whether to set an hourly rate (optional). Whether or not they have an hourly rate, you can also pay the contractor a flat amount at any time.
Tap Save.
If a contractor moves outside the US, you can update their profile to reflect their new country.
Note: You cannot change contractors to other worker types. If you do, you’ll get an error.
Web browser
To change a US contractor to a non-US contractor in your web browser:
Go to People.
Click the contractor’s name to open their profile.
Go to the Work tab.
Next to Work, click Edit.
Confirm the worker type is contractor and review the other basic details.
Select the country where the contractor will work.
Click Save and continue.
Complete the onboarding process (you’ve already finished the first five steps).
Mobile app
To change a US contractor to a non-US contractor in the Gusto mobile app:
Open the Gusto mobile app and sign in.
Go to People.
Find the contractor and tap their name.
To filter your team members by worker type, tap the three dots icon. Tap Filter. Scroll down and select the checkbox for Contractor. Tap Apply.
Next to Work, tap Edit.
Tap change worker type or country.
Confirm the worker type is contractor and review the other basic details.
Select the country where the contractor will work.
Tap Save and continue.
Complete the onboarding process (you’ve already finished the first five steps).
Go to a different article to learn how to dismiss or rehire contractors.
Direct deposits usually arrive in your team’s bank accounts by 5pm local time on payday. Team members can view their payment statements in Gusto on the check date but not before. You can print payment statements early if needed.
If you think there’s a delay with a payment, work through these steps:
1. Check if the payment was submitted on time
Go to Pay.
In the mobile app, this is the Payroll tab.
At the top of the page, click View pay history.
Select US contractors.
Select the payday link.
If the payment was submitted after the deadline, the deposit will be delayed by one or more business days.
2. Check for requests or issues
Look at your Home page to-dos for any requests from Gusto.
If we asked for information, submit it. Payments process within a few business days once we approve.
If we cannot debit funds from your company bank account, we’ll retry before processing. Details will be on your Home page and in your email.
3. Verify direct deposit setup
Make sure the contractor’s payment method is set to Direct Deposit. If it’s set to Check, you need to give them a physical check.
Why a contractor’s payment may have changed to check: We switch a contractor’s payment to check when your bank blocks us from withdrawing funds from your company account. This often happens right after you add or change a bank account, since many banks need you to approve us as a payee before we can pull funds.
Gusto does not mail checks for contractor payments — you print and hand out contractor checks yourself. If a payment already switched to Check, print the check or pay that contractor directly for this pay run.
To keep future payments on direct deposit: Contact your bank and approve us to debit your account. Once your bank removes the block, cancel the check payments and resubmit them as direct deposit.
Confirm their bank account details are correct.
If they updated or changed their bank account: Check the old account first. If inaccessible, contact us for the ACH trace ID to track the payment. If we can recover the funds, we’ll resend them to the new account (it may take a few days).
If they deleted their bank account: You’ll need to add the new account and reach out to us to resend.
To contact us, sign in to your Gusto account and click the help icon in the top-right corner of the page.
4. Check with the bank
Ask the contractor to check their account or contact their bank to see if the deposit is pending.
5. Contact Gusto if needed
Reach out to us if you still cannot confirm the payment status.
To contact us, sign in to your Gusto account and click the help icon in the top-right corner of the page.
This plan is no longer offered. Gusto closed the contractor-only plan on October 1, 2026. New customers cannot sign up for it, and you cannot move to it from another plan.
If your company is already on this plan, nothing changes. You keep the plan and the features below. Everything in this section is here for companies that still have the plan.
You can pay contractors on any Gusto plan. The rest of this article covers how.
What the plan includes
Pay unlimited US contractors.
Send 4-day Automated Clearing House (ACH) direct deposits.
Generate 1099-NECs at year-end.
Let contractors onboard themselves.
Report new hires to your state, if your state requires it.
Send international contractor payments, after you add at least one US contractor.
What the plan does not include
State-required contractor withholding
What the plan costs
Companies on this plan pay a $35 monthly base fee plus $6 per contractor, per month. You are only charged in a month when you pay a contractor.
To pay W-2 employees, you need to move to the Simple, Plus, or Premium plan. You cannot move back to the contractor-only plan afterward.
Stop automatic $0 tax filings
While your company has no W-2 employees, we keep filing $0 payroll tax returns for you. We do this so your open federal and state tax accounts do not get late or failure-to-file penalties.
To stop these filings, contact us. Sign in to your Gusto account and click the help icon 
in the top-right corner of the page.
Keep in mind: if you turn off filings while your state tax accounts stay open, the agency may still expect returns from you. We recommend you close your state withholding accounts with each agency and tell the IRS you no longer have W-2 employees.