Cancel your company's Gusto account (for admins)
Admins with the right permissions can cancel their company's Gusto plan at any time. If you've canceled before, you may be able to reactivate your account.
Important: Read the information below before you cancel — it explains what happens next.
If someone other than Gusto sends your invoice or bill, work with that provider to cancel your account.
We bill retroactively, so you'll get a final invoice the month after you cancel. This invoice includes any tax filing fees that apply.
You can't cancel your account while a payroll is in progress. A payroll is in progress when you've submitted it and the check date is today or later. Once the last check date passes, you can cancel.
Expand the sections below to learn more. Use CMD + F (Mac) or CTRL + F (Windows) to search for words in this article.
Before you cancel your Gusto account, review the key areas below so you know what to expect.
After you cancel, you and other admins can still view company forms, reports, employee information, and past payrolls. Employees and contractors can still sign in to see their paystubs and forms.
We bill retroactively, so your final invoice arrives the month after you cancel. If you cancel after the fifth of the month — or if you ran payroll that month — we'll charge you for the full month.
Note: If you cancel on or before the fifth and don't run payroll that month, click the help icon
in the top-right corner to contact us about a refund.
If you choose to have us pay and file your taxes after you cancel, these fees apply:
Federal forms: $100 flat fee
State forms: $100 per state
W-2 or 1099: $5 per form
Due to compliance rules, we usually can't delete accounts that have bank transactions. In those cases, you'll need to go through the cancellation process to close your account.
If you created a Gusto account but never used it, we may be able to delete it. To contact us, sign in to your Gusto account and click the help icon in the top-right corner of the page.
When you cancel, we'll ask how you want to handle your company's remaining tax payments and filings. If you're not sure which option is right for your business, we recommend working with an accountant or your new payroll provider.
Switching to a new payroll provider? If you selected "I'm switching to a new payroll provider or solution" as your reason for leaving, you don't need to make a tax election. We'll automatically refund your outstanding tax balance. Your new provider will handle all future tax payments and filings.
If you're not switching to a new payroll provider, choose one of the following:
Yes — have Gusto pay and file: We'll pay your outstanding taxes and file all quarterly and year-end returns on your behalf. Fees apply: $100 federal, $100 per state, $5 per form.
No — I'll handle it myself: We'll refund any overpaid taxes. You'll be responsible for all outstanding tax payments and filings after you cancel.
Important: Tax filing elections apply to all filings. You cannot ask us to submit some filings but not others. We do not mark forms as final — you'll need to work directly with the agency for that.
How filings work after you cancel
Federal filings
Form W-2s and 1099s:
We file your company's final W-2s and 1099s with the Social Security Administration (SSA) at the end of the tax year, unless you choose otherwise when you cancel.
Form 941:
We file Form 941 for any quarter where your company has wages to report.
If your company has no wages to report and you canceled for one of these reasons, we won't file a $0 wage return for that quarter:
The company closed or went out of business
Another business acquired the company
The company no longer has employees to pay
If we stop filing Form 941 in these cases, the IRS may treat your returns as missing and send you notices.
To avoid or resolve these notices, contact the IRS directly.
If your company no longer owes payroll taxes, work with the IRS to formally close your business's tax account.
State filings
How we handle state filings depends on your cancellation choices and your prior wage activity in each state.
If you choose not to have us continue filing for you, we'll stop all filings starting in the quarter your cancellation takes effect.
If you choose to have us continue filing, we'll file returns through the end of the year. However, if we've already filed $0 returns for a state agency for eight consecutive quarters, we'll stop filing.
Example: If you cancel in Q2 and we've already filed six quarters of $0 returns, we'll file $0 returns for Q2 and Q3 (reaching eight quarters total). We won't file a $0 return for Q4.
Many states automatically close tax accounts after eight quarters with no wages. If this happens, your payroll tax returns might be rejected. We'll notify you if we can no longer file returns.
States that require annual returns before the usual due date:
Some states ask you to file an annual return shortly after closing your account. In those cases, your company needs to file outside of Gusto. We only generate end-of-year returns after the year officially ends.
Reactivating your account or changing your filing elections within the same calendar year
After you cancel, you can contact us to change your filing elections or reactivate your account. To contact us, sign in to your Gusto account and click the help icon in the top-right corner of the page.
Important: Refunds only apply when you reactivate your account or change your filing elections to not file within the same calendar year.
Refund timelines
Reactivated accounts: We usually issue refunds within 2–3 business days after reactivation. We send funds to the verified bank account on file in Gusto.
Still-canceled accounts: We usually issue refunds within 2–3 business days after you change your filing elections to “not file.” We send funds to the verified bank account on file in Gusto.
If no verified bank account is on file, we'll send the refund to the bank account used for the original debit.
If your company has an integrated Workers’ Compensation policy through Gusto, contact our partner NEXT Insurance to cancel it. Email [email protected] with your company name so they can send you the cancellation form quickly.
If we manage your company's benefits, contact us before you cancel to let us know how you plan to handle them going forward.
If your company uses an integrated 401(k) plan, contact your 401(k) provider directly to let them know you're switching providers or closing your business.
If you've canceled and asked us to process your quarterly and yearly filings, contact your Colorado local tax agencies to let them know your business has closed or no longer operates there.
If your company still has a presence in Colorado, confirm with the agency whether you need to keep filing and paying monthly local taxes.
File and pay Colorado local taxes directly with the agency. We don't support filing or paying these taxes after you cancel.
If your business or certain employees are exempt from state unemployment taxes, you may owe additional FUTA taxes at the end of the year.
If you choose to have us pay outstanding taxes, we'll collect and pay any FUTA amounts owed through a year-end tax reconciliation payroll.
If you choose to handle payments outside of Gusto, we'll refund any FUTA taxes collected through payroll. You'll be responsible for paying the full amount owed directly to the agency.
When you cancel, you can buy payroll closure services from SimpleClosure and add the cost to your final Gusto invoice.
These services can't be canceled or refunded. SimpleClosure manages their own services — for questions, email [email protected].
Before you cancel, review these key points to make sure your account and benefits are handled correctly.
What to know before you cancel:
If we manage your company's benefits, contact us first to confirm how you'll handle them going forward. To contact us, sign in to your Gusto account and click the help icon
in the top-right corner of the page.Review the What to know before you cancel section of this article.
Depending on your account setup, you may need to take extra steps before, during, or after cancellation.
You can't cancel your account while a payroll is in progress. A payroll is in progress when you've submitted it and the check date is today or later. Once the last check date passes, you can cancel.
If your business is seasonal or you plan to temporarily stop running payroll, keep your account active so we continue to file for you. There's no option to pause your subscription.
You'll still have access to your account and all historical records after cancellation.
Once you've reviewed everything above, follow these steps to cancel your account:
For the smoothest cancellation experience, contact us first. Click the help icon (?) in the top-right corner of the page to get in touch.
In the bottom-left corner of the page, click your company name.
On the page that opens, go to Plan & billing.
Under Gusto billing, click Cancel account.
If you don’t see this option, you may not have permission to cancel the company’s plan. Contact the primary admin for help.
Select your reason for canceling and provide any feedback. You may see more prompts based on your reason.
If your business is closing, we partner with SimpleClosure to help with dissolution. You can purchase payroll closure services directly from them — the cost will appear on your final invoice.
Click Continue.
Choose how you want Gusto to handle your outstanding taxes:
Switching to a new payroll provider? Skip this step. Gusto automatically refunds your outstanding tax balance. Your new provider handles all filing. No fees apply.
For all other cancellations, pick one option:
Yes — Gusto pays your taxes and files all remaining forms. Fees:
Federal forms: $100 flat fee
State forms: $100 per state
W-2 or 1099: $5 per form
No — Gusto refunds your tax balance to your bank account. You handle payments and filing yourself. No fees apply.
Click Save & continue.
You may need to confirm your decision before moving forward. Canceling a payroll subscription has a big impact, and we want to make sure you're set up for success.
Confirm your decision by typing your company name exactly as shown above the text box. If you have trouble, try copying and pasting it.
Check all acknowledgement boxes, then click Cancel account.
If you've already told us how you plan to handle your benefits, no further action is needed. If not, start the process in your account or reply to our email.
If your company has paid Colorado local taxes, review the Colorado local taxes section below.
Your cancellation takes effect immediately. You'll keep access to your account and records, but your final invoice will cover the full month of service.
We appreciate your time with Gusto and value your feedback. If you’d like, leave a comment on this article to share why you canceled.
Colorado local taxes
If you've canceled and asked us to process your quarterly and yearly filings, contact your Colorado local tax agencies to let them know your business has closed or no longer operates there.
If your company still has a presence in Colorado, confirm with the agency whether you need to keep filing and paying monthly local taxes.
File and pay Colorado local taxes directly with the agency. We don't support filing or paying these taxes after you cancel.
If your Gusto account is billed through an accountant or partner who manages your payroll, benefits, or HR, contact them directly to cancel. Only they can complete the cancellation on your behalf.
Q: Can I pause my Gusto subscription?
A: No. There’s no option to pause your subscription. If your business is seasonal or you plan to temporarily stop running payroll, keep your account active so we continue to file for you.