Gusto Cashout overview

Qualification for Cashout is based on both employer and employee eligibility. Once an employer becomes eligible and Cashout is activated for the company, employees are screened for eligibility.

Employer eligibility for Cashout

Some examples of criteria for employer eligibility include:

• Company has a work location in a supported state
  • Cashout is not available in the following states: AZ, ND, NJ, VT, and WV
• Company has at least 2 active employees
• Company has processed at least one regular payroll with Gusto

Employee eligibility for Cashout

Gusto evaluates employees on an individual basis for eligibility. A few examples of employee eligibility criteria:

• Employee lives and works in a supported state
  • Cashout is not available in the following states: AZ, ND, NJ, VT, and WV
• Employee is an active, W-2 employee
• Employee is over 18 years old
• Employee has been continuously employed for 30 days since reported hire date
• Employee is paid via direct deposit
• Employee has passed personal information check
• Employee's net pay must be at or above $100 in the last two weeks
  • If the company has a monthly pay schedule, the employee's net pay in the last four weeks must be at or above $200.

Please note: this is not an exhaustive list of employer and employee eligibility criteria. Gusto may use additional factors to evaluate eligibility for Cashout.

For privacy and regulatory reasons, information about an employee’s Cashout eligibility or Cashout history can only be discussed with that employee and cannot be discussed with administrators, employers, or managers within a company.

Gusto Cashout was built to work directly with the Gusto spending account, so Cashout loans deposited to a Gusto spending account are completely free.² Employees with an active Gusto spending account and debit card can access Cashout at no cost.

Employees who request to have a Cashout deposited to an external bank account will pay a small fee.² Depending on the loan amount and loan duration, the fee will either be $5 or 36% APR of the loan amount, whichever fee amount is lower. The fee amount is calculated and communicated to the employee before submitting a Cashout request, so the employee can determine if they’d like to proceed with the request and associated fee.

For employers, Cashout is offered at no cost. Employers don’t have to worry about funding or facilitating any aspect of Cashout—just run payroll as usual.

An employee’s available Cashout amount is calculated using several criteria, including:

• The employee’s history of previous Cashout loans
  • A first-time Cashout user can request up to 40% of their estimated accrued net wages, up to $200. Once they repay their first Cashout loan, they become eligible to request 40% of their estimated accrued net wages, up to $500.⁵
• The employee’s annual calculated wage
• The average of their last two regular direct deposit paychecks
• How far they are into the current pay period
  • The available Cashout amount accrues daily as the employee moves further into the current pay period, until they reach their Cashout cap. Example: on the first day of a new pay period, an employee’s available Cashout amount may be lower than it would be on the fifth day.
• The status of the current payroll

Since the criteria depend on pay periods and payroll statuses, employees may see their available amount change day-to-day.

Cashout funds deposited to a Gusto spending account are available within a few minutes after the loan is requested.

Cashout funds deposited to an external bank account can take 1-3 business days to be made available. 

• A Cashout submitted by 4pm PT should be deposited in the afternoon of the following business day, by 5pm local time. The exact timing depends on the employee’s receiving bank.
• Requests submitted after 4pm PT will process the following business day and should be deposited to the employee’s bank account the business day after that. Bank holidays can impact these timelines.

Employees can review Cashout history in the Cashout section of either the Wallet dashboard or the Gusto Wallet mobile app.

Cashouts are short-term loans requested by an employee and serviced by Gusto. Cashouts are intended to be repaid through the employee’s regular, direct deposit paycheck.

As an alternative to payroll repayment, employees have the option to schedule repayment for a Cashout balance using the online payment portal in their Wallet dashboard or the Gusto Wallet mobile app. The online payment portal gives employees the ability to repay a Cashout loan before the due date, schedule a payment plan that works for them, and more.

Although Cashouts are designed to be repaid through payroll, there are times in which a Cashout repayment may not be collected as expected through an employee’s direct deposit on the expected due date. If this happens, Gusto will automatically attempt to collect the outstanding balance from any direct deposit paycheck that’s paid out in the 16 days following the original due date.

If a past due loan isn’t repaid within 16 days of the original due date, the employee will be unenrolled from Cashout and Gusto will work with the employee directly to collect the outstanding Cashout balance.

Eligible Cashout employees can be unenrolled and/or permanently disqualified from the Cashout program. Below are some reasons that could cause unenrollment or permanent disqualification.

Unenrollment:

• The employee or employer moves to a non-supported state
  • Cashout is not available in the following states: AZ, ND, NJ, VT, and WV
• The employee or employer no longer has an active Gusto account
• The employee has an unpaid Cashout balance for more than 16 days
• The employee no longer receives direct deposit
• The employee’s default payment method changes to check

Permanent disqualification:

• The employee has an unpaid Cashout balance for more than 60 days
• Gusto reserves the right to disqualify individual employees or employers at their discretion⁶

This is not an exhaustive list of unenrollment and disqualification criteria, as Gusto may use additional factors to evaluate disqualification for Cashout.

For privacy and regulatory reasons, information about an employee’s Cashout status can only be discussed with that individual and cannot be discussed with administrators, employers, or managers within a company.

Cashout can be managed on-the-go from the Gusto Wallet mobile app, available in the App Store® and Google Play® store.⁵ Employees can request a Cashout, review their Cashout history, schedule a payment, review paystubs, and more.