Teammates with more than one Gusto account can switch between profiles. They just need to use the same personal email for all profiles.
After you complete this switch, you'll see two separate pay-history tables — one for the old role and one for the new role — instead of one combined view.
If someone is paid as both an employee and a contractor in the same year, they need a W-2 for employee payments and a 1099 for contractor payments. Make sure their payments are recorded under the correct profile in Gusto.
After you complete this switch, you'll see two separate pay-history tables — one for the old role and one for the new role — instead of one combined view.
Use the dropdowns below to learn more. Use CMD + F or CTRL + F to find words in the article.
Dismiss the US employee profile in Gusto.
They'll be removed from future payroll in Gusto, and;
After their dismissal date, they'll be considered inactive—you're only charged for the months an employee was active (even if partially).
Note: Because we bill in arrears (for the month prior), you'll typically still see an employee charge on the invoice that comes immediately after someone is dismissed.
Add the person as a US contractor.
You're only charged the monthly per-contractor price ($6, or $12 based on plan type) in the months you pay the contractor.
To change a US employee to a contractor based outside the US:
Dismiss the US employee profile in Gusto.
They'll be removed from future payroll in Gusto, and;
After their dismissal date, they'll be considered inactive—you're only charged for the months an employee was active (even if partially).
Heads up: Because we bill in arrears (for the month prior), you'll typically still see an employee charge on the invoice that comes immediately after someone is dismissed.
To change a US contractor to a contractor based outside the US:
Go to People.
Use search or filter to find the contractor and click their name.
Make sure you're in the Worksection, and scroll to the Work header (card).
Next to Work, click Edit.
In the banner titled "Need to change the worker type or country", click change worker type or country.
Review the contractor's existing details for accuracy (ex. name, worker type, email, etc).
Click the Country dropdown to change their country of work.
Click Save and continue, then complete the prompts about the role and start date.
Click Save and continue.
Enter their payment type and details.
Click Save and continue.
Review all the information, and when you're ready click Save and continue to next task.
Confirm the person's email, we'll invite them to self-onboard as a non-US contractor. Click Continue.
Choose their Gusto features, and click Save and continue.
Review the timeline with next steps, and click Send invitation.
Sending the invitation will save these dates. You can always change their start date from their profile, and we’ll update the rest automatically.
Important:
Only individual contractors can be converted. Business contractors need to be dismissed and then added as new employees.
Offer letters and background checks cannot be sent if you're using the steps below to change employment type.
If you need to send either, fully dismiss the contractor and add them as an employee.
Once you change a contractor to an employee using the steps below, you can no longer send them contractor payments.
Make sure to process any final contractor payments before converting them to an employee.
Only individual contractors can be converted (not business contractors).
Go to People.
To view their profile, find the US contractor, and click their name.
In Work, find the Work section and click Edit.
In the gray box, click change worker type or country.
Under Worker type, select Employee.
If you do not see this option (we're still rolling this out), fully dismiss the contractor, and add them as an employee.
Confirm or change the country.
If you're hiring globally, learn how to add employees outside the US here.
Confirm or re-enter their personal email.
This email addres lets them sign in to Gusto and receive personal info.
The email address cannot be the same as another employee's email.
Click Save and continue.
Enter new work information, like:
Where they'll work from
Work state
Job title
Department
Manager
Enter the contractor end date and start day as an employee for your company.
Click Save and continue.
Skip to Step 8 (add compensation details) in these instructions to complete onboarding.
If you're hiring globally, learn how to add employees outside the US here.
Error message help
If you see an error saying "the SSN already exists," check if there’s another employee profile with the same SSN as the person you're trying to add.
You should always consult a tax professional when correcting wages and payments related to misclassified workers. There are many factors to consider (e.g., tax implications, how payments are sent and recouped, etc).
Reverse payments made to the incorrect employment type
If you cannot reverse the payments, contact us from the Help.
Correct previous year tax filings—as needed
Change the team member's employment type in Gusto
Report missed payments in the correct profile
For US employees:
If they still need their payment: You can run off-cycle payrolls—be sure to adjust the check date to when they were actually paid.
If they already have their payment: Report the payments differently, as a non-gusto payroll.
For US contractors:
If they still need their payment: Learn how to pay them.
If they already have their payment: Record historical payments for 1099 purposes.