This article helps admins add new employees in Gusto. Before you start, you’ll need to have Gusto admin permissions.
You can add US-based employees to Gusto from the People page of your admin account.
For non-US employees, Gusto partners with Remote for Employer of Record (EOR) services. New EOR customers (joined on or after May 1, 2026) will onboard directly with Remote.
Note: Gusto cannot tell you whether a worker should be classified as a W-2 employee or a 1099 contractor. For help with worker classification, talk to an HR expert or visit the Internal Revenue Service (IRS) website.
Expand the sections to learn more about Gusto's hiring toolkit, adding employees, handling remote US workers, and more. Use CMD + F (or CTRL + F) to search for words in the article.
But first, watch this video if you need tips on hiring employees in new states. Your Gusto experience may look different from what is shown in this video.
Go to the Hiring page to view all the features we offer in the hiring toolkit:
Other helpful resources
Small business hiring budget calculator: Learn more about how to use it in this blog post.
Independent contractor or employee: Why worker classification matters
When you’re adding an employee to Gusto, it’s important to choose the right process for the situation:
If you’re adding employees for the first time during account setup: Reference this article.
If you’re converting a contractor to an employee (or vice versa): Dismiss them from their previous role, then follow the steps below to rehire them in their new role.
If you’re sending offer letters or requesting background checks: Follow the steps in the Send an offer letter and/or background check section.
If you’re adding a regular employee: Follow the steps below.
If you’re rehiring a previously dismissed employee: Reference this article.
If someone is part of your team but not getting paid in Gusto: Follow the steps in the Add an unpaid team member to Gusto article.
To add an employee to Gusto:
Go to People.
Click Add person.
If you need to add multiple employees at once, click Add multiple employees and follow the steps in the Add multiple employees at once section.
Enter the new employee's info:
Full name
Preferred first name (optional): We’ll use this name to refer to this person in communications where their legal first name is not required (like in the offer letter, onboarding emails, and org chart).
Worker type
Country
Personal email: If the new employee does not have an email, this field may be optional if you’re not sending them an offer letter or background check request through Gusto. You must use an email address that’s not associated with another employee at your company.
Hiring options: If your plan offers this, you can send an offer letter or request a background check here. Learn more in the Send an offer letter and/or background check section.
Click Save and continue.
Fill out the employee’s work info:
Work location (address)
Work state
Job title (optional): Select one or scroll to the bottom of the list and click Create a new job title.
Department: Select one or scroll to the bottom of the list and click Create a new department.
Manager (optional): If this is the first direct report for a new manager, leave this field blank for now. You can later add the direct report to the new manager’s profile.
Start date: If you have benefits, this date also determines your employee’s effective date for health coverage based on the waiting period you selected during onboarding.
Click Save and continue.
Add compensation details:
Employee type (e.g., salary, hourly, overtime-eligible): We do not currently support paying employees by piece rate, like per visit, per bundle, or per package.
Compensation amount
Employment status: Determines their benefits eligibility if you offer benefits through Gusto.
Pay schedule
Any special tax exemption status, if applicable
Click Save and continue.
Review the new employee’s info. If corrections or updates are needed, click Edit to change an employee’s work information.
Once complete, save your work:
Add [name] and exit: You'll return to People, where you can view the new employee’s status and checklist under Onboarding.
Save and continue to next task: You'll go to the Add to payroll task on their onboarding checklist.
After you add the new employee to payroll, we’ll email them an invitation to set up their account and complete their onboarding tasks. If you offer benefits with Gusto, we’ll automatically invite them to enroll in benefits once their new hire waiting period is complete.
We’ll assign each employee a unique identifier, their Gusto employee ID. This 6-character alphanumeric ID (e.g., 5G9934) is securely generated and randomly assigned. This helps with running payroll using CSV files and record-keeping.
You can add multiple US-based W-2 employees at once in two ways:
By uploading a CSV spreadsheet (template), OR
By entering the employees’ info directly into Gusto
You cannot send offer letters and background checks in bulk. If you use Gusto Recruiting, hire your candidates from the Hiring page, where you can see Gusto Recruiting details.
Uploading a spreadsheet is one way to add multiple employees at once. Once you upload the spreadsheet, we’ll prompt you to fill out a table with more hiring information.
If you want to upload your data using a spreadsheet, you can fill out this template or set it up on your own.
If you set up your own, here are the column labels to include in Row 1. Required fields are marked with an asterisk (*).
Legal first name*
Last name*
Middle initial
Preferred first name
Start date (MM/DD/YYYY or YYYY/MM/DD)*
Job title
If you have more data fields to add, you can enter them directly into Gusto after uploading the spreadsheet.
To upload the spreadsheet to Gusto:
Go to People.
Click Add person.
On the right, choose Add multiple employees.
Click Upload CSV.
Either drag and drop your CSV file or click Upload to select the file from your computer.
Click Continue.
We’ll automatically match your spreadsheet’s columns to Gusto’s data fields. Review each category.
To change how a field is mapped, click the field under the Gusto column and select the correct field. If you choose Unmatched, that column will not be imported.
On the next page, you can add data to any columns that cannot be matched.
Once your categories match, click Continue.
Review the imported data in the table and fill out the required fields for each employee.
We save your progress as you go, so you can leave this page if needed.
Once you’ve added each new employee to the table, click Create employee profiles.
You’ll return to Onboarding, where you can view onboarding statuses and add each new employee to payroll.
We’ll email any employees you’ve selected to self-onboard.
Another way you can add employees in bulk is by entering them directly into the table in Gusto.
To add multiple employees without a spreadsheet:
Go to People.
Click Add person.
On the right, choose Add multiple employees.
Fill out a row for each new team member. Required columns are marked with an asterisk (*).
You can copy and paste from a spreadsheet directly into the table.
We save your progress as you go, so you can leave this page if needed.
Once you’ve added each new employee to the table, click Create employee profiles.
You’ll return to Onboarding, where you can view onboarding statuses and add each new employee to payroll.
We’ll email any employees you’ve selected to self-onboard.
When you add someone to Gusto as a candidate, you can send them an offer letter and/or run a background check (if your plan includes this).
If you do not want the new hire to receive an offer letter or a background check, use the steps in the Add an employee to Gusto section instead.
To send a candidate an offer letter, start the process in Gusto. We’ll email the letter to them right away, and once they sign, you’ll get a notification to add them to payroll.
To create and send an offer letter:
Go to People.
Click Add person.
Enter the new team member’s info:
Full name
Preferred first name (optional): We’ll use this name to refer to this person in communications where their legal first name is not required (like in the offer letter, onboarding emails, and org chart).
Worker type
Country
Personal email
Hiring options: Select Send an offer letter. After you complete the next few steps, we’ll prompt you to create or edit an offer letter template.
Click Save and continue.
Fill out the employee’s work info:
Work location (address)
Work state
Job title (optional): Select one or scroll to the bottom of the list and click Create a new job title.
Department: Select one or scroll to the bottom of the list and click Create a new department.
Manager (optional): If this is the first direct report for a new manager, leave this field blank for now. You can later add the direct report to the new manager’s profile.
Start date
Click Save and continue.
Add their compensation details:
Employee type (e.g., salary, hourly, overtime-eligible): We do not currently support paying employees by piece rate, like per visit, per bundle, or per package.
Compensation amount
Employment status: Determines their benefits eligibility, if you offer benefits with Gusto
Any special tax exemption status, if applicable
Pay schedule
Click Continue to offer letter.
Select an existing template or click Create new offer template.
Enter an expiration date for the letter.
Manager and Job title: You must complete these fields if the offer letter includes them.
Click Preview to view what the letter will look like with this employee’s details filled out.
You can edit the offer letter directly if you want to customize it for this employee. Place your cursor where you’d like to make a change, then start typing.
Insert Smart Text: Use this if you want to add a field that will automatically populate with the employee’s info. Place your cursor where you want the text to go, then click Insert Smart Text and select a field to add.
Click Save and continue.
If you need to make any changes, click Edit.
Optional: Add a note to go along with the offer letter.
Click Send offer to [name].
To view, update, or rescind offers, go to Hiring. Next to Offer letters, click See details.
If the candidate accepts the offer and self-onboards, Form I-9 will be created automatically.
You’ll need to set up background checks for your company before you start running background checks on candidates.
To run a background check:
Go to People.
Click Add person.
Enter the new employee’s info:
Full name
Preferred first name (optional): We’ll use this name to refer to this person in communications where their legal first name is not required (like in the offer letter, onboarding emails, and org chart).
Worker type
Country
Personal email
Hiring options: Select Run a background check. Many states require a background check request to include a conditional offer letter.
Click Save and continue.
Fill out the employee’s work info:
Work location (address)
Work state
Job title (optional): Select one or scroll to the bottom of the list and click Create a new job title.
Start date
Department: Select one or scroll to the bottom of the list and click Create a new department.
Manager (optional): If this is the first direct report for a new manager, leave this field blank for now. You can later add the direct report to the new manager’s profile.
Click Save and continue.
Add their compensation details:
Employee type (e.g., salary, hourly, overtime-eligible). We do not currently support paying employees by piece rate, like per visit, per bundle, or per package.
Compensation amount
Employment status: Determines their benefits eligibility if you offer benefits with Gusto
Any special tax exemption status, if applicable
Click Save and continue.
We’ll show your company’s default background package. Click Edit to change it for this candidate.
Click Save and continue.
If you need to make any changes, click Edit.
Save your work and send the background check request:
Add [name] and exit: This sends the background check request to the candidate’s email and returns you to People, where you can view the check status and onboarding checklist under Onboarding.
Add [name] and set up for payroll: This sends the background check request to the candidate’s email and takes you to the Add to payroll task on their onboarding checklist.
The candidate will get an email right away asking them to review their info and agree to a background check. The check will start once they give permission.
Before you start:
Make sure you’ve already set up background checks for your company.
You can create an offer letter template ahead of time or while following the steps below.
To send an offer letter and run a background check:
Go to People.
Click Add person.
Enter the new team member’s info:
Full name
Preferred first name (optional): We’ll use this name to refer to this person in communications where their legal first name is not required (like in the offer letter, onboarding emails, and org chart).
Worker type
Country
Personal email
Hiring options: Select Send an offer letter and Run a background check. After you complete the next few steps, we’ll prompt you to create or edit an offer letter template.
Click Save and continue.
Fill out the employee’s work info:
Work location (address)
Work state
Job title (optional): Select one or scroll to the bottom of the list and click Create a new job title.
Department: Select one or scroll to the bottom of the list and click Create a new department.
Manager (optional): If this is the first direct report for a new manager, leave this field blank for now. You can later add the direct report to the new manager’s profile.
Start date
Click Save and continue.
Add their compensation details:
Employee type (e.g., salary, hourly, overtime-eligible). We do not currently support paying employees by piece rate, like per visit, per bundle, or per package.
Compensation amount
Employment status: Determines their benefits eligibility if you offer benefits with Gusto
Pay schedule
Any special tax exemption status, if applicable
Click Continue to offer letter.
Select an existing template or click Create new offer template.
Enter an expiration date for the letter.
Manager and Job title: You must complete the manager and job title fields if the offer letter includes them.
Click Preview to view what the letter will look like with this employee’s details filled out.
You can edit the offer letter directly if you want to customize it for this employee. Place your cursor where you’d like to make a change, then start typing.
Insert Smart Text: Use this if you want to add a field that will automatically populate with the employee’s info. Place your cursor where you want the text to go, then click Insert Smart Text and select a field to add.
Click Save and continue.
We’ll show your company’s default background package. Click Edit to change it for this candidate.
Click Save and continue.
If you need to make any changes, click Edit.
Optional: Add a note to go along with the offer letter and background check request.
Click Send offer to [name].
We’ll send the offer letter to the candidate’s email right away. After they sign it, we’ll email them again to approve the background check. The check will start once they agree to it.
To track a candidate’s background check progress:
Go to Hiring.
Next to Background checks, click See details.
Their status will update when they sign the offer letter and begin their background check. Once they give permission for the check and provide their personal information, the status will say “Background check in progress,” and you’ll see an estimated turnaround time. We’ll let you know when it’s done.
You can keep onboarding the candidate while the background check is happening. Go to People and click the ⋮ menu next to their name. Then, open their onboarding checklist.
To view, update, or rescind offers, go to Hiring. Next to Offer letters, click See details.
The work location you enter in Gusto for a new hire depends on several factors: where your employee lives and works, how long they’ll stay in a state, if the states have reciprocity, and other factors.
These rules can feel confusing, but we’re here to help.
In most cases, you need to withhold taxes in the state where your employee physically works, either their resident or non-resident state.
Resident state: This is your employee’s permanent home address.
Non-resident state: This is where your employee works for a short time or commutes to work, but it’s not their permanent home.
If your employee works in multiple states, use this guidance to enter the correct work address in Gusto so that unemployment insurance is sent to the correct state.
The main rule is that taxes are owed in the state where the work is performed. When you hire a remote employee in a new state, you usually need to register in that state and the state where your business is located. Make sure you understand the tax rules in both states.
Each employee’s work address should match where they physically work (there are some rare exceptions). Most employees live and work in the same state.
State laws are different. If your employee works in a different state, check that state’s employment tax laws to determine if you need to pay taxes to both the home and work state.
Some states have special rules, like the Convenience of Employer (COE) rule, that can affect taxes. If you’re unsure, always talk to a legal or tax advisor.
Make sure your employee’s home address is correct.
Make sure your employee’s work address matches where they’re actually working.
If they work in more than one state, use this guidance to enter the correct work address in Gusto so the correct state gets unemployment insurance.
If they work from home, select that option when adding their work address.
To edit the work address, go to Settings, then Company, and add the new address.
Important: If you add a work location in a new state, register for payroll taxes in that state first. If you don’t, you might not be able to run payroll.
If the state requires income and unemployment tax registration, you’ll need to register for both. Go to this State Tax Registration article to get started.
Taxes are usually owed to the state where the work happens. But if the states have a reciprocal agreement, the employee may only need to pay income taxes to their home state. This can affect how you handle income tax withholding.
To withhold and pay income taxes to your employee’s home state, you must register for a withholding account there.
To do this:
Check if the states have a reciprocal agreement here.
Follow the steps in this article to set up reciprocity.
This article also explains how to register to do business in a new state.
If the two states do not have reciprocity, we’ll withhold income and unemployment taxes based on the work state. This means we only withhold income tax from the non-resident state.
We currently do not support flexible (variable) “courtesy” withholding. We have safeguards in place to make sure we calculate and withhold the correct taxes based on the employee’s work address during each pay period.
For states with a reciprocal agreement, we’ll factor in the employee’s home address once you set up reciprocity.
Note: We support courtesy withholding for employees who work in Idaho and live in Washington or Wyoming.
When you hire a remote employee, you need to follow the pay and labor laws in the state where they live and work — even if your business is in another state.
Here are important things to check for every out-of-state employee:
Minimum wage: Pay at or above the highest minimum wage.
Learn how to change pay in Gusto.
Overtime: Learn when you’ll need to pay overtime and the rate (typically 1.5x the regular rate).
State and local tax laws vary, and some employees don’t qualify.
Pay frequency: Check how often you must pay employees in their state.
Some states only allow certain schedules (like weekly or monthly), and the rules may depend on the type of job.
If your regular schedule is not allowed, follow the rules in the employee’s state. Learn how to set pay schedules in Gusto.
E-Verify: If a remote employee lives in a state that requires e-Verify (for some or all employers), you’ll need to complete it.
Final paycheck: States have their own laws for final pay, mainly how and when it’s sent. The rules may change depending on whether the employee quits or is terminated.
Meal and rest breaks: States require certain paid or unpaid breaks. Make sure employees know the rules and get the breaks they’re owed. Learn how to set up meal breaks in Gusto.
Disability insurance: Some states require you to withhold money for state disability insurance. We handle this in California, New Jersey, Rhode Island, and Hawaii. If the employee works in New York, you can have us withhold payments, but you’ll need to send the payments to the agency yourself. Go to the “State Disability Insurance (SDI)” section of this article to learn more.
Paid Family Medical Leave (PFML): Some states require employers or employees to contribute. Learn which states and how Gusto handles it.
Workers’ Compensation Insurance: Rules vary by state, industry, and company size. Check out our blog to learn about workers’ compensation and review state-by-state requirements. When you’re ready, learn how to set this up in Gusto.
Additional forms you may need:
State Form W-4 (if required)
Non-resident certificate (for employees working in one state and living in another)
Currently, we do not support employees living in US territories (like Puerto Rico or the U.S. Virgin Islands).
We’re working on support for employees in some non-US countries (like Canada).
We support US employees with all the following:
A valid Social Security Number (SSN): Not an ITIN, which, if entered, may impact our ability to file W-2s and other payroll tax returns.
A work address in the US
A home address in the US
A bank account in the US if being paid through direct deposit
If the contractor’s mailing address differs from the location where the work was performed, and you need a 1099 for the work state, we can help resolve this. To contact us, sign in to your Gusto account and click the help icon in the top-right corner of the page.
Hiring a remote contractor is usually simpler than hiring a remote employee, but misclassifying them can lead to serious tax penalties. Before hiring a new team member, check out our blog article on the difference between employees and contractors.
Once you’ve hired a remote contractor, you can pay them easily through Gusto.
We support paying contractors in several countries. Check out the list of countries we support.
Seasonal employees work for your business during specific times of the year. They might work during busy seasons like holidays, summer, or harvest time.
Consider creating a seasonal pay schedule
If your seasonal employees will be paid on a different schedule than your regular employees, you may want to consider setting up a separate pay schedule for seasonal workers. This helps you manage different employee groups. To create a different pay schedule for seasonal employees, do the following:
Click Pay.
Select Settings.
Scroll to Pay Schedules.
Click Manage.
Suggested: Click By Employee.
Click Continue.
Click Add Pay Schedule.
Name the schedule (for example: “Seasonal Team”).
Select the pay schedule from the dropdown.
Important: Make sure that you pay your employees as often as is required by the state they are in. Learn more here about each state’s requirements for pay frequency.
Fill in the remaining settings (varies based on schedule selected).
Tip: You can preview the new pay schedule to make sure the settings give you the desired result.
Click Save.
Choose the right employee type
Most employers with seasonal workers set up their seasonal workers as regular employees in Gusto. If you need help determining how to classify your employees? Premium customers—and customers who add these paid add-ons to Simple or Plus—can access Priority support and HR Services (powered by Mineral).
To add a seasonal employee to Gusto:
Optional: When you fill in the details about their role, you can create a new job title that’s unique for your seasonal team members (optional).
Fill in their pay information.
Seasonal employees who are paid based on hours worked and are eligible for overtime may be classified as FLSA non-exempt with the job type "Hourly Eligible for Overtime." This allows you to control the hours entered in payroll, effectively managing part-time, overtime pay, and/or seasonal work schedules.
If you need help determining how to classify your employees? Premium customers—and customers who add these paid add-ons to Simple or Plus—can access Priority support and HR Services (powered by Mineral).
Fill in the amount they’ll be paid.
Make sure you pay your employees enough to meet minimum wage requirements in their city and/or state. Learn more here.
Determine their benefits eligibility
Read here to confirm their eligibility for benefits.
Complete their setup and invite them to use Gusto
Invite the seasonal employee to complete their personal information in Gusto.
Set up compliant time tracking.
Time Tracking customers: Assign time off policies that comply with the state where they are working. Invite the employee to track their time in Gusto.
Not a Gusto Time Tracking customer? Be sure to pay your seasonal employees for any hours considered overtime in the state where they are working. You can find state requirements here.
Check the box for Gusto to report the employee as a new hire. New Hire Reporting to the state is required even for newly hired seasonal workers. On their first day, you’ll be prompted to complete their Form I-9.
E-Verify: If a seasonal employee is in a state that requires e-Verify (for some or all employers), you’ll need to complete it. Learn more here.
Deactivate seasonal employees
Follow the steps in this article to dismiss a seasonal employee. This stops all payroll processing so you won’t have to skip the employee on each payroll. Gusto will not charge you for inactive employees.
Gusto will still generate W-2s for seasonal employees that worked for you during the year even if they are no longer active employees.
Clean up pay schedules
Remove or deactivate seasonal pay schedules you do not need. This keeps your account organized.
You can reuse schedules next season.
Q: Can I reuse the same pay schedule next year?
A: Yes. Keep seasonal pay schedules and reactivate them when needed. You may need to preview to make sure that the dates align with your expectations for the new year.
Q: Will deactivated employees still cost money?
A: No. Gusto only charges for active employees.
Q: How do I bring back seasonal workers?
A: Reactivate their employee profile when the new season starts. Follow the steps in this article to rehire a seasonal employee.
Important: We generate a W-2 for a dismissed employee only if you ran at least one real payroll in Gusto during the tax year. If you only entered historical payroll and never ran payroll in Gusto, we cannot generate a W-2.
Note: If you’re rehiring a dismissed employee, reference this article instead for instructions.
To make sure all W-2s include the correct year-to-date information, you must report any payrolls processed outside of Gusto (like paper checks, another payroll system, or manually) for both dismissed and current employees.
If you never added a dismissed employee to Gusto, you’ll need to add them now before reporting their payrolls.
To add a previously dismissed employee to Gusto for W-2 reporting:
Go to People.
Next to Add person, click the [icon] dropdown.
Choose Add former employee.
Enter the dismissed employee’s details. You’ll need to get this information from the dismissed employee:
First name and middle initial
Last name
Social security number (SSN)
Birthdate
Home address
Work address
Start date
Last employed date
Click Save.
The employee will now appear in the Dismissed employees list.
If you receive the error message “SSN already in use,” this means the employee is already in Gusto. Go to the Dismissed tab under People to find their profile.
Go to Pay to report all missing payrolls processed outside Gusto.
If your company offers health benefits through Gusto, new hires receive an invitation to enroll during onboarding.
If your company offers health insurance through Gusto (including via broker integration), we’ll automatically invite eligible new hires to enroll in benefits during onboarding.
We’ll show each employee their first day of health insurance based on your company’s waiting period for new hires.
Admins cannot enroll or waive benefits on behalf of employees.
If you hire someone around the same time your company starts open enrollment, we handle their enrollment separately.
We give each new hire a personal enrollment window, even if your company-wide open enrollment has already started or ended.
You can track the new hire’s enrollment status by viewing their employee profile.
New hires do not appear in your company’s list of open enrollment participants.
You can submit your company’s benefits application even if some new hires have not chosen their plans yet.
If we manage your benefits and you have a new employee joining your team, you can estimate their monthly benefits cost in your Gusto admin account.
To estimate a new employee’s benefits cost:
Go to Benefits.
Click Estimate new employee cost.
Enter the employee’s personal information:
First name
Last name
Birthday
Click Get Estimate.
The estimate is available for two weeks. If it expires, you can regenerate it at any time by repeating these steps.
We'll estimate the employee’s monthly premium cost based on their date of birth. The summary provides a range of monthly premium costs based on the benefits and plans you offer and if the employee has dependents.
If you’d like to see the premiums of each plan, click Download Cost Breakdown (PDF). The PDF includes the employee, spouse, and child costs for each plan that you offer.
Assumptions and methodology: Estimated costs are used for illustrative purposes only—actual costs will vary. The estimated cost assumes that any child dependent is younger than 18 and any spouse is the same age as the employee. For more detailed pricing, contact your insurance carrier.
Once you’ve hired an employee, the next step is to invite them to Gusto so they can start onboarding.
To invite a new employee to Gusto and complete onboarding:
Click People.
Click Onboarding.
Find the new hire’s name.
In the Actions column, click the three dots.
Select View checklist.
Next to the task Invite [Name] to Gusto, click Start.
You’ll see a checkbox labeled Invite this team member to enter their own details online. Use this checkbox to choose how your new hire will get set up with your company.
If this box is checked: We’ll send an invitation to the employee. They’ll enter their personal, tax, and payment details themselves. You’ll get a notification when they finish, and you can review everything before approving.
If this box is not checked: You'll need to enter their personal info, payment method, and tax withholding details.
Click Continue.
On this page you'll set up how your new hire will be welcomed, what documents they'll receive, how they'll track time how they'll complete required training.
Contact details
Email: Confirm the new hire's email address. This is where we'll send the new hire's invitation and onboarding documents. Select Edit to update it.
Welcome options: You can send a welcome email with details about their first day.
You can also have your team sign a digital card to share.
If the start date is more than a week away, we’ll send the card one week before.
If the start date is less than a week away, we’ll send the card right away.
To opt out, uncheck the box.
Documents
We automatically include common onboarding forms. Review them before sending.
Federal Form W-4 (employee tax withholding)
Direct Deposit Authorization
Any custom documents you added
You may need to collect some documents outside of Gusto, depending on your settings and the employee's location. This may include:
State Form W-4 (required in some states)
Non-resident certificate (if the employee lives and works in different states)
Any additional custom documents you require
Employment eligibility (Form I-9): Click Edit to select how you want us to handle the employee’s Form I-9.
With Premium verification, your new hire can complete Form I-9 remotely. If this is shown as an option, select the info icon to learn more. If you've set a location policy for a specific office, it applies by default. To change the verification method, click Edit.
Time & Attendance (if applicable)
If your company uses Gusto’s time tracking or time off policies, you can add the new hire to a policy.
Time tracking: This applies to hourly employees or those eligible for overtime. Selecting this will invite the new hire to track their time in Gusto. Managers and admins can review and approve their hours.
Time off policies: Select + Assign policies to add the employee to a time off accrual policy. You can also do this later in the employee's profile.
Scheduling: If your company uses scheduling groups, you can assign your new hire to a group (optional).
New hire report
Let us know whether you’d like us to file the new hire report for this employee. See New hire reporting: What it is and when Gusto files for you to learn more about what employees need to be reported and requirements by state.
States require new hires to be reported to the state where the new employee works within 7-20 days of hire (depending on each state’s rules). We can file the report to the employee’s state on your behalf for no additional cost. This helps your business stay compliant with state employment laws and avoid penalties.
Here's what to select under File a new hire report:
Select Yes if your employee: was hired by your company in the last 20 days and was not previously reported to the state as a new hire, either by you or another payroll service provider. (Gusto will file your new hire report within a few days of this selection regardless of the hire date you enter.)
Select No if your employee has been working for you for more than 20 days, or was previously reported to the state as a new hire by either you or another payroll service provider.
If you already hired the employee and you still need to send the new hire report, or you need to refile it with updated information, we can help. To contact us, sign in to your Gusto account and click the help icon in the top-right corner of the page.
Harassment prevention training
Select the course that matches your employee's role, or select to handle training on your own. To learn more about the courses, click View course details.
To send the invitation:
Click Save and continue.
Review the employee’s onboarding timeline.
Click Send invitation.
You’ll return to the onboarding checklist, where you can complete any remaining tasks.
These steps are not handled automatically by Gusto, but they are required when you hire a new employee.
Confirm worker classification: Confirm whether the worker is an employee or contractor.
If the worker is an employee, confirm whether they are exempt or non-exempt from overtime.
Complete E-Verify (if required): Some states require employers to use E-Verify when hiring new employees.
States that currently require E-Verify for some or all employers include: Alabama, Arizona, Colorado, Florida, Georgia, Idaho, Indiana, Louisiana, Michigan, Minnesota, Mississippi, Missouri, Nebraska, North Carolina, Oklahoma, Pennsylvania, South Carolina, Tennessee, Texas, Utah, Virginia, and West Virginia.
Provide required notices and posters: Share required state and federal notices. Post required workplace posters or provide them electronically.
Set pay correctly: Make sure employee pay meets all legal requirements:
Minimum wage: Pay at or above the highest federal, state, or local minimum wage. You can always update their pay in Gusto.
Overtime: Pay overtime when required (usually 1.5× the regular rate). Learn more about how we calculate overtime.
Pay frequency: Follow state rules for how often employees must be paid. If your company’s default pay schedule is not allowed in the employee’s state, update their pay schedule Gusto.
Know final paycheck rules in the employee’s work state. States have their own rules for when final pay must be sent, whether the employee quit or was terminated.
Follow meal and rest break laws: Some states require paid or unpaid meal and rest breaks—you can set these up in Gusto. Make sure employees know the rules and receive required breaks.
Set up required disability insurance and programs: Depending on the state, you may need to handle some or all of the management.
We handle state disability insurance in California, New Jersey, Rhode Island, and Hawaii.
For New York, we calculate withholdings, but you must send payments to the state.
Paid Family and Medical Leave (PFML): Some states require employer or employee contributions. We handle PFML differently depending on the state.
Workers’ compensation insurance: Requirements vary by state, industry, and company size. You must have coverage before the employee starts work.
Check our blog to learn about your state's requirements, then learn how to set up workers' compensation in Gusto.
Get permission for electronic pay (if required): Some states require you to get employee permission before paying employees by direct deposit or providing electronic paystubs. We do not collect this permission for you. You must collect and store it yourself when required.
Special requirement for Oregon employers: If you hire employees in Oregon, you must teach them how to read their pay statement information. To meet this requirement, send employees this Gusto Help Center article during onboarding: View and understand your paystub and track your pay.
Need more help? Gusto’s HR Services connects you with certified HR Experts and a large HR Resource Center so you can navigate hiring, policies, and compliance with confidence.
If an employee did not get a welcome email, make sure you’ve invited them to Gusto. If you’ve invited them and they still haven’t gotten an email, you can resend it from your Gusto admin account.
Note: If the employee is already active or has started self-onboarding and are having trouble signing in, share these troubleshooting steps.
To resend the welcome email:
Go to People.
Go to Onboarding.
Find the employee's name and click the actions menu.
Click Send a reminder.
To update the email of an employee who is not yet active and resend the invitation:
Go to People.
Go to Onboarding.
Find the employee's name and click the actions menu.
Click View checklist.
Find the task called "Invite [name] to Gusto" and click the actions menu.
Choose Update information.
Update the employee's email and save it. This will resend the welcome email to the employee's updated email.
Gusto will prompt you to run a new hire payroll when an employee’s start date is before a payroll you already processed. Use the guidance below to decide whether to dismiss the prompt or run the payroll.
Gusto flags pay that may be missing if you added the employee after their start date and after you already ran payroll for that period.
Example:
You run payroll on 10/28 for the period 10/15–10/30.
You add a new employee on 10/29, and they work 10/29–10/30.
You will see a new hire payroll prompt for those two days.
Use this when the employee did not start on the date in Gusto and was already paid correctly for their first days.
What to do
Dismiss the new hire payroll prompt.
Update the hire date on the employee’s profile to the actual first day of work.
Use this when the employee did start on the hire date in Gusto and their first days were not paid.
Steps to run the new hire payroll:
Open the new hire payroll prompt in Pay.
Review all advanced settings. Click Edit to change any of them. Double-check with an HR expert for specific guidance to avoid issues with records or tax filings. Here's some info about your options:
Pay types
Hours and earnings: Enter what each team member makes before taxes, just like a regular payroll.
A net pay amount: Enter what each team member will take home after taxes. You might use this for lump sum payments, like bonuses or severance
Deductions and contributions
Deductions and contributions are handled in regular payrolls, so they likely won’t need to be included now. These can include custom benefits, deductions, or garnishments.
Don't include (most common).
Important: We cannot turn off 401(k) deductions and contributions due to the requirements of most plans including the Gusto 401(k) powered by Guideline and integrated 401(k)s with Betterment, Vestwell, and other partners.
For 401(k) plans managed outside of Gusto, you can update team members’ elections before running this payroll.
Include: We'll make all your normal benefit deductions and contributions.
If your benefits are managed by Gusto, your standard benefits will not automatically be applied unless you choose them to be included.
Tax rate
IRS’s required flat rate of 22%: This is only applicable to federal taxes. State income taxes will be taxed at a rate based on each team member’s state.
Same as regular wages: We’ll combine regular and extra wages, and withhold taxes at a weekly rate. Your team members will get higher take-home pay now, but may owe more when they file their tax returns
Select which rate to apply to these added wages: The rate of the regular pay schedule is applied by default.
Click Continue.
Enter hours or earnings for the missed days.
Review taxes and totals.
Submit the payroll.
Important: Taxes are paid based on when the employee actually got paid, not based on when they worked. For this scenario, you do not need to amend historical tax returns or W-2s.
Q: When will I see the prompt?
A: You will see it when an employee’s start date falls inside a past pay period that you already processed.
Q: What if I'm not sure which case applies?
Check the employee’s actual first day worked and compare it to the hire date in Gusto and the last payroll you ran.
If the start date in Gusto was too early and the employee was already paid correctly, dismiss the prompt and fix the hire date.
If pay is missing for the first days, run the new hire payroll.