This article is for employers setting up Gusto for the first time.
Use this guide to ensure a smooth onboarding process. After you add email addresses, employees and contractors must set up their own Gusto accounts so you can pay them.
If you are an employee, see this article for help onboarding to Gusto.
Note: Gusto does not support all services required for government payroll.
To contact us, sign in to your Gusto account and click the help icon in the top-right corner of the page.
To get started, create your free account. Then sign in on the web or in the Gusto mobile app.
Your onboarding steps depend on your business type and who you pay.
Choose from:
Myself: As a W-2 employee
Employees in the US: People you employ directly who work in the US
Non-US employees: Employees who do not live in the US — new customers (joined on or after May 1, 2026): Gusto now refers EOR requests directly to Remote.
Contractors in the US: People or businesses you work with who are under contract for a specific project, who live in the US
Non-US contractors: Contractors who do not live in the US
Vendors: Businesses or people that supply goods or ongoing services, often paid through invoices
Select Continue.
Answer questions about payroll, your team, and other details about your company.
Select Continue between questions.
We’ll recommend a plan, add-ons, and benefits and insurance. Choose Edit next to each recommendation to make changes.
Check the acknowledgement box.
Select Start with this package.
Note: Depending on how you answer the questions in Step 2, you may not see some of the following steps.
Choose whether to add another admin to help set up payroll.
Select Continue.
We’ll use these details if we need to send your company mail for tax purposes. You can add a PO Box as your mailing address, but you'll still need to add a physical address as your business address.
Enter your company’s business address.
Add your company phone number.
Select if the mailing address is the same as the business address.
If not, enter the mailing address.
Select Continue.
Pro Tip: If you registered a new business, find your mailing address on Form SS-4 (line 4).
Enter these federal tax details during setup:
Federal Employer Identification Number (FEIN)
Never use a Social Security number (SSN). The IRS will reject your filings.
Company type (e.g., Sole Proprietorship, C-Corp)
Legal entity name (must match your IRS records)
For partnerships, this is usually the first and last name.
Doing Business As (DBA) or trade name (may differ from legal name)
Federal filing form the IRS assigned to your company (Form 941 or 944)
The address the IRS has for your company
This can be the same as the business address or a different address.
Select Continue.
Pro Tip: Go to the IRS website to learn where to find your lost or forgotten EIN. You can find your deposit schedule on Form CP-136.
Choose to verify and link your checking account with Plaid (recommended), OR
You can verify instantly with your banking login.
Verify manually.
Enter the routing and account numbers from a check or online banking. We’ll then send small test deposits to verify your account.
Check the acknowledgement box.
Select Continue twice.
Choose your direct deposit speed from Next-day, 2-day, or 4-day.
Select Continue.
After we get some additional details about who you pay, we’ll recommend a schedule for you. Options include: weekly, biweekly, semi-monthly, or monthly.
Compliance tip: Check state laws for required pay periods.
For hourly workers, leave at least 4 business days between the end of the pay period and payday. This gives you time to review hours and submit payroll on time.
You cannot set a pay schedule for contractor-only accounts.
If you do not see a recommendation or need to change your pay schedule later, go to this article to learn more.
Select Edit schedule to make any changes, then choose Save and continue.
Answer questions about your worker type, work location, job title, compensation, and more.
Select Save and continue between pages.
When you’re finished, select Add yourself to payroll.
Enter personal information, like your Social Security number and home address.
Next to Set up payroll, select Continue.
Select Let’s do it to complete other tasks, like:
Adding team members
Sharing state tax details
Signing documents
Sign Form 8655 during setup to authorize Gusto to file and pay payroll taxes on your behalf. Enter the signer’s name, SSN, and email.
Verifying your bank account after test transactions
Filing reminder
We do not start to file returns (even $0 returns) until we process payroll for that quarter (check date in the quarter). You must file missing $0 returns directly with the agency.
Example: You join Gusto in Q3 2025, but do not process payroll wages (and related taxes) until Q4 2025. We’ll file for Q4 but not Q3.
We may request additional documents when you set up your account. We do this to follow banking and financial regulations, confirm your identity, and keep your account secure.
Important: If you do not respond to these requests on your Home page, you cannot finish onboarding or process payroll.
Once you submit the documents, our team will review them within 1 business day. If we need more details, we’ll follow up with additional questions.
We may ask for one or more of these documents:
Photo ID of the company signatory
Upload a photo of the person who signs for your company. Use their driver's license or ID card. Take the photo with a smartphone or camera.
IRS Document CP575 or Letter 147-C
Confirms your company name and FEIN match IRS records. Call the IRS Business & Specialty Tax Line at (800) 829-4933 (7am – 7pm local time, Monday – Friday) and request a copy of your FEIN.
IRS 501(c)(3) form
Proves your company has non-profit tax exemption status. Request this form by calling the IRS Business & Specialty Tax line at (800) 829-4933.
Recent bank statement or a screenshot from online banking. Must show:
Last four digits of the account number
Company name
Recent transactions
Current date
Articles of Incorporation/Organization
Shows your company is registered and in good standing with your state. Request this from your state's Secretary of State office.
Business or contractor license
Confirms your company has a license with local agencies. Contact those agencies directly for copies.
Utility bill. Must include:
Company name
Company address
Recent date
Employee onboarding completion
All employees must finish onboarding (including adding their SSN, date of birth, and address). We cannot finalize your account until all team members complete their setup.
Q: Why do I need to provide my Social Security Number (SSN)?
A: We need your SSN to verify your identity and your employees’ identities. We also use it to prepare tax documents.
Q: Why must I use a checking account to run payroll?
A: You must run payroll through a checking account. Savings accounts often limit the number of monthly transfers, so you cannot use them for payroll.
If you’re switching from a PEO or CPEO, learn what you need to do before switching to Gusto.
A Professional Employer Organization (PEO) is a company that acts as the official employer for your employees. When you join a PEO:
You enter a co-employment relationship. This means you and the PEO share employer responsibilities.
The PEO becomes the official employer for tax and payroll purposes.
The PEO files and pays your payroll taxes. They use their own EIN and account numbers.
When you switch from a PEO to Gusto, you start fresh. The PEO filed your payrolls under their EIN. This means you do not need to enter historical payrolls when you onboard with Gusto.
Learn more about the pros and cons of PEOs in our blog.
The IRS certifies some PEOs as Certified Professional Employer Organizations (CPEOs). This certification lets your wages carry over when you switch to a new provider.
The IRS treats CPEOs differently from regular PEOs. We only support CPEO transitions at the start of the year.
You need your own FEIN and state tax accounts. You may have had these before you joined the PEO. If so, contact your state or local agencies to reactivate them. You need these account numbers to set up payroll in Gusto.
When you can switch depends on how your PEO handled your payroll:
If the PEO used its own EIN and tax accounts: You can switch to Gusto at any time. State rules may affect when you can switch.
If the PEO used your company’s EIN and tax accounts: You can only switch at the start of a new quarter.
Why? This prevents you from filing quarterly reports twice (once from the PEO and once from Gusto). The IRS and most states do not allow duplicate filings.
Pro Tip: We recommend switching at the start of a new quarter or year. Wait until you have your EIN and state accounts ready. This makes switching easier.
You can use Gusto to pay only 1099 contractors without adding W-2 employees. This setup is best if your business works only with contractors.
Important: You cannot use Gusto for contractor payments if you're already using another payroll service.
With a contractor-only account, you can:
Pay unlimited domestic contractors.
Send 4-day Automated Clearing House (ACH) direct deposits.
Generate 1099-NECs at year-end.
Let contractors self-onboard.
Report new hires to your state (if your state requires this).
Send international contractor payments (you must first add at least one domestic contractor).
Contractor-only accounts do not support:
State-required contractor withholdings
To create your contractor-only payments account:
Sign Form 8655. This form lets Gusto file returns for you.
You can only have one active Form 8655 at a time. This means no other payroll company or accountant can file forms for you while you use Gusto.
New customers: 6 months of $0 base fee + $6 per contractor, per month.
After 6 months: $35/month base fee + $6 per contractor, per month. You only pay this fee when you pay contractors.
W-2 employees: You’ll need to choose one of Gusto’s standard plans (Simple, Plus, or Premium).
When you set up payroll for your business, you must meet federal and state requirements. Use this checklist to stay compliant.
New hires must complete certain forms to verify tax and work eligibility.
Form W-4: Employees use this form to tell you how much federal income tax to withhold from their paychecks.
Form I-9: Employees use this form to prove they are authorized to work in the U.S. You must review an acceptable ID (such as a passport) as outlined in the I-9 instructions.
Keep these forms in your records. Gusto also stores them electronically for you.
Employers must report new employees to the state where they work. States use this data to track debts like child support.
File the report by your state’s deadline (usually within 20 days of hire). You can choose to let Gusto file these reports for you.
Most states require businesses to carry Workers’ Compensation Insurance. This insurance protects your employees if they get injured or sick on the job. It also protects your business from related costs.
Depending on local rules, you can buy coverage from a private insurance carrier or through your state’s program.
Every business must display certain labor law posters. The requirements vary by location (city, county, and state).
Use the Department of Labor’s Poster Advisor Tool to find the posters you need. You can print them online or buy them from vendors like the Labor Law Poster Store.
Employers must follow laws that protect workers. These can cover:
Minimum wage requirements
Wage garnishments
Termination rules
Contractor vs. employee classification
Helpful resources
If you choose to provide health insurance, you must meet Affordable Care Act (ACA) regulations.
If you manage benefits with Gusto, we help with compliance by:
Managing pre-tax payroll deductions
Providing a 1095-C to eligible companies
Giving new employees the ACA Marketplace Notice
Storing your Section 125 document in your account
Aligning payroll with your insurance carrier’s requirements
When you set up payroll, we recommend a default pay schedule. You can accept it or change it. Recommendations are based on the types of employees you pay.
Payday rules
Your team always gets paid on a weekday. This applies whether you use checks or direct deposit. If payday falls on a weekend or holiday, we’ll pay your team on the business day before.