We only charge you a monthly per-contractor fee ($6 or $12 based on your plan) for the months you pay the contractor or report a historical payment. This means you’re not charged for them just because they’re active; you’re only charged when you pay them.
Important: Before you dismiss a contractor, make sure you’ve paid them any outstanding payments that need to be reported on a 1099. After you dismiss them, if you need to pay them again, you need to rehire them.
When you dismiss a contractor:
Their profile will become inactive in Gusto, but not deleted. You can still view their profile under Dismissed.
You will not be able to pay them. To pay them again, you need to rehire them.
Contractors will not be emailed about being dismissed.
Contractors can still sign in to Gusto to view their past payments and documents.
To dismiss a contractor:
Go to People.
Find the contractor and click their name. To search contractors only, click the filter icon on the right, select Contractors, and click Apply.
Go to Work.
Scroll down to their Work details and click Dismiss.
Enter an end date.
Click Save.
To dismiss multiple contractors at once:
Go to People.
Click the names of the contractors you need to dismiss.
Note: If you select an employee at the same time, you may not be able to dismiss everyone at once.
Click Actions.
Click Dismiss team members.
You can cancel the dismissal details and retain selected contractors’ current work contract, or you can rehire them at a future date with a new work contract. Their employment info will stay in your account to reference later.
Enter an End date. This date records the final day all selected contractors’ work contracts will end. You can still make changes to this date later.
(Optional) Add dismissal notes. Only admins will see these notes. It will be applied to all selected members.
Click Save and continue.
Review what happens between now and the last day of all selected members.
Click Dismiss # members.
After their last day, the contractor will be moved from Active to Dismissed.
To view a dismissed contractor:
Go to People.
Go to Dismissed.
Find the contractor and click their name. From here, you can see their full profile.
To pay a contractor again, you need to rehire them before submitting the payment.
Note: If a contractor has changed their type from individual to business, or vice versa, instead of rehiring the old profile, add them again with their new business type.
To rehire and pay a dismissed contractor (with the same contractor type):
Go to People.
Go to Dismissed.
Find the contractor and click their name.
Scroll down to Work and click Rehire.
Enter a start date.
Click Save.
On their start date, the contractor will become active (instead of dismissed) in Gusto under People. Once they’re active, you can pay them by going to Pay and then clicking Pay a contractor.
Note:
You can only dismiss a contractor a second time after you’ve processed a payment or reported a historical payment.
We only charge you a monthly per-contractor fee for the months you pay a contractor or report a historical payment. This means you’re not being charged for them just because they’re active; you’re only charged when you pay them.
To change a contractor to an employee, go to change worker types.