Switch your employee to hourly, salaried, or commission

If your employee's classification is changing, you should update this in Gusto using the instructions below.

If you need information on how to change an employee to a contractor, rather than updating their employee-classification, check out this article on converting employees and contractors.

Change your employee's classification

  1. Click the People section and select Team members.
  2. Click your employee’s name.
  3. Navigate to the Job & Pay tab.
  4. Click Edit next to the Compensation section—if you don't see this section, you may not have the required admin permissions. Reach out to the primary admin on the account to update your permissions.
  5. Next to Employee Type, select one of the below–check out this resource for more info on classifying your employee:
    • Salary/No Overtime
    • Salary/Eligible for Overtime
    • Paid by the Hour. 
    • Commission only/No overtime
    • Commission only/Eligible for overtime
  6. Update the compensation rate or default hours per pay period if applicable.
  7. Click Save.

Important: If you're using multiple pay schedules, there may be a gap or overlap in the employee's hours for this payroll.