This article is for US contractors setting up their Gusto account.
After a business adds you as a US contractor in Gusto, you’ll get an email asking for personal details so you can get paid. Some details may already appear for you.
For non-US contractors, go to a new article to learn about your onboarding experience.
You’ll need your tax and banking info before you begin.
To set up your account:
A business has to add you as a US contractor in Gusto.
Pro Tip: If you already have a Gusto account with another company, they can add you with the same email. You can then switch between profiles.
Click the link in the welcome email to start.
If you’re asked to sign in but have not set a password, use the Forgot password option to create one.
If you cannot find the email, check your spam folder. If you still cannot find it, ask the business to make sure they added your personal email address in Gusto. After that, you should be able to sign in.
Follow the prompts and enter any required info, like:
Your contractor type: Individual or Business
For individuals: You need a valid Social Security number (SSN) or Individual Taxpayer Identification Number (ITIN) for the W-9.
For business contractors: You need a valid Federal Employer Identification Number (FEIN) for the W-9.
Your individual name or business name (based on your contractor type)
A work address in the US (for year-end tax forms)
A US bank account (if being paid by direct deposit)
You might also need to sign the business’s forms.
If you need to update any info later, find out how here.
Once your account is set up, you can manage your payment info, view your documents, and more.
In Gusto, you can:
View your contractor details
Switch your payment method to direct deposit or check
And more
Learn how to update other personal info.
Gusto files Form 1099-NEC with the IRS and any required states for all U.S. contractors paid through Gusto in the calendar year.
We report all contractor earnings in Box 1 as non-employee compensation.
Contractors can view their 1099 in Gusto by late January.
We file Form 1099-NEC even below the $2,000 threshold so contractors can file taxes quickly and accurately.
If you're an admin and do not want us to file a 1099-NEC for someone, update your Gusto account and let us know to stop the filing.
Gusto does not currently support the items below. If they apply, they must be handled outside Gusto.
Local 1099-NEC filings
We do not file 1099-NEC forms to local tax agencies.
Contractor tax withholding
We do not support backup withholding for contractors.
We do not support state-required withholding for nonresident or higher-paid contractors. Some states require employers to withhold when paying nonresident or certain independent contractors:
California: Withhold 7% of gross payments when paying a nonresident more than $1,500 in a year for services in CA.
North Carolina: Withhold 4% when paying a nonresident more than $1,500 in a year.
Indiana: Withhold 1.2% on services and 0.3% on materials when paying a nonresident more than $1,000 in a year.
Minnesota: Withhold 8% (or 9.85% if no SSN) when paying self-employed nonresident earns at least $50,000 for construction work.
Pennsylvania: Withhold on payments over $5,000 in a year for services in PA. Withholding is optional below $5,000.
New Jersey: Withhold 7% from payments to independent construction contractors.
South Carolina: Withhold 2% on contracts over $10,000 with nonresidents, unless they're registered and give proof.
Non-US contractor (international) withholding or reporting
We do not support this in Gusto.
Excess golden parachute payments
We do not support reporting golden parachute payments on Form 1099-NEC. The IRS requires these to be reported in box 3 of Form 1099-NEC. Talk to a tax professional to report these payments. You can also find one in our partner directory.
If any of the above apply, the contracted business should provide you with the necessary documentation.
Below are simplified summaries of how Gusto fills out (or does not fill out) each box—learn more in the detailed IRS guidelines for filling out Form 1099-NEC.
Keep in mind: Gusto reports all earnings as non-employee compensation in Box 1 of the 1099-NEC we’ve prepared.
Box 1: Non-employee compensation—this includes all compensation paid to the contractor, such as fees, commissions, prizes, and awards for services performed. As a reminder, Gusto reports all non-employee compensation in this box, regardless of the $2,000 IRS reporting threshold.
Box 2: Gusto does not currently support this, so the box will be left blank.
Box 3: Gusto does not currently support this, so the box will be left blank.
Box 4: Federal income tax withheld during the year—Gusto does not currently support this, so the box will be left blank.
Box 5: State tax withheld during the year—Gusto does not currently support this, so the box will be left blank.
Box 6: The state abbreviation and state withholding account number (if applicable) of the company that's paying and using the services of a contractor. This would only need to be reported if state income tax was withheld.
Gusto will list the applicable state abbreviation(s).
Box 7: State income paid to the contractor for the year.
Starting in tax year 2025, a new tax rule allows independent contractors to deduct up to $25,000 in qualified tips from their gross income. This change may lower income taxes for contractors who earn tips.
Important: We do not collect or track tip income for contractors. If a contractor earned tips in 2025, they must report this information themselves when filing taxes.
Step 1: Check if the tips qualify
Before using this deduction, confirm the tips meet the IRS rules.
Tips are considered qualified tips only if they:
Are voluntarily given by customers or clients
Have no penalty if a customer does not tip
Are set by the customer, not the business
Come from work in an approved tipped occupation. See the Treasury’s list of approved occupations.
Step 2: Gather the right information
For tax year 2025, companies were not required to track or report contractor tips.
When preparing personal contractor taxes, contractors may need:
A record of the qualified tips earned in 2025
The Treasury Tipped Occupation Code (TTOC) for the job
Important tax reminder
Even if some tips can be deducted for income tax, contractors may still owe self-employment tax on those tips.
Learn more
To see other tax changes from the One Big Beautiful Bill, check out our related Help Center article.