Payroll, benefits, HR and more.
- Payroll
- Benefits
- Team Management
- Accounting & Integrations
- Employees & Contractors
- Account Setup & Maintenance
- State Registration & Compliance

Convert employees and contractors
To convert someone from an employee to contractor, follow these steps:
- Dismiss your employee in Gusto. This will remove the person from future payrolls and future Gusto invoices.
- Add the person as a contractor. They'll only appear on your Gusto invoice during calendar months that you pay them.
To convert someone from a contractor to an employee, follow these steps:
- Make your contractor inactive.
- Hire the person as an employee. This will add them to your payroll.
This process will ensure that the person is generated both a W-2 and a 1099 if they're paid as both an employee and contractor during one calendar year.
Payroll, benefits, HR and more.