This article is for Company admins with benefits permissions who need to cancel or transfer their company’s benefits.
You can cancel benefits directly in your Gusto account. Cancel or transfer your benefits before you close your Gusto account.
There are two ways to cancel your group’s benefits:
You can ask us to cancel one or more benefits with the carriers for a future date.
You can move your benefits to a different broker.
Medical is a base benefit with Gusto. If you plan to cancel medical coverage or you have a new broker, we can no longer manage your other company benefits (like dental, vision, or life).
Carrier requirements
Once you submit your request, our operations team will submit your cancellation directly to the carrier on your behalf. We cannot guarantee cancellation dates because carriers set their own requirements. Carriers typically take 2 to 4 weeks to review and confirm cancellations.
Carriers typically invoice in advance. You may receive bills and pay for coverage that extends months past your requested cancellation date. The carrier will refund you directly after they process the cancellation.
Company admins with benefits permissions can submit their cancellation request directly in their Gusto account.
To submit a cancellation request for company benefits:
Go to Benefits.
Click on the benefit you want to cancel.
You can cancel these Gusto benefits: Medical, dental, vision, life, disability, health FSA (flexible spending account), dependent care FSA, HSA (Health Savings Account), or commuter.
Scroll to the bottom and click Cancel some or all coverage.
The page will ask you why you’re canceling.
If you have a new broker, consider connecting your new broker with Gusto through our Broker Integration before you cancel.
Tell us how to handle each benefit.
Keep with Gusto: Choose this if you only want to cancel some of your benefits. For example, you can cancel dental and vision but keep medical.
Transfer to new broker: You have a new broker who will take over management of the benefit. Gusto will coordinate the handoff but won't cancel coverage with the carrier, your new broker can handle that directly.
Cancel coverage: You want Gusto to cancel the coverage with the carrier.
Choose the cancellation date.
Cancellations: Pick a date from the dropdown. These are the only dates your carrier allows. Carriers set cancellation dates based on your billing cycle and their processing requirements. We cannot process cancellations for past dates.
Transfers to new broker: Choose a date when your new broker takes over or has taken over management of the benefit.
Review your choices and click Confirm cancellation.
You’ll receive two emails from us after you submit: a submission confirmation and then another once the carriers confirm the cancellations.
Broker transfers will receive one confirmation email.
After you submit your cancellation, you’ll need to complete a few tasks and watch for important communications from carriers.
When you cancel coverage with carriers:
Notify your employees that their benefits will no longer be in effect on the effective date. Employees who have coverage will get cancellation letters directly from the carriers.
Watch for the company's copy of the cancellation letter in the mail.
Carriers typically invoice in advance. You may receive bills and pay for coverage that extends months past your requested cancellation date. The carrier will refund you directly after they process the cancellation.
We recommend you turn off autopay with the carrier to prevent automatic withdrawals for coverage periods after your cancellation date.
We may need to make benefit adjustments. If we process adjustments, we’ll tell you which employees this affects, the amount due or owed, and the amount we’ll need to debit for any related taxes.
You can pay employees who are owed money, or get back an amount the company is owed from employees, by working with your new payroll provider to set up payments or deductions.
Learn more about Federal COBRA and state continuation.
When you transfer your benefits to another broker:
Confirm your new broker will handle:
Paycheck deductions
We recommend running a benefit report in your Gusto account for current deduction information to reference in the future.
New hire processing
Carrier insurance changes
Coverage termination