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Switch to Gusto from a PEO

A PEO (Professional Employer Organization) is an organization that has a co-employer relationship with a business. PEOs typically file and pay payroll taxes for a business using the PEO's own Employer Identification Numbers (EINs) and account numbers.

  • Note: CPEO's are treated differently than PEO's in the eyes of the IRS and Gusto is unable to support a mid-year switch from a CPEO at this time.

When you switch from a PEO to Gusto, it's always a fresh start. If your past payrolls were processed with the PEO's EIN and account numbers, you will not have to enter historical payrolls when onboarding with us.  

What to obtain

You must register for your own EIN and state tax accounts if you do not already have these in place. If you were a registered employer prior to joining the PEO, you may need to contact the state and/or local agencies to reactivate your old EINs. This is necessary to complete the setup process with Gusto.

When to switch

If the PEO used their own EIN and state tax account numbers to process your payroll, you can switch over to Gusto at any time (this can vary depending on the requirements of the states in which you have payroll). The smoothest transition is typically at the beginning of a new quarter or new year after you have obtained your own EIN and state tax accounts needed for payroll. 

Note: If the PEO used some or all of your company's own tax EINs for payroll, you can only switch over to Gusto at the beginning of a new quarter. This will prevent two quarterly filings from being submitted to tax agencies on behalf of your business (one from the PEO and one from Gusto), which is not allowed by the IRS and most state and local agencies.

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