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Switch your employee to hourly or salaried

If your hourly employee is changing to a salaried employee (or vice versa), update this in Gusto.

  1. Click the People tab.
  2. Click your employee’s name.
  3. Navigate to the Job & Pay tab.
  4. Click Edit next to the Compensation section.
  5. Next to Employee Type, select Salary/No Overtime, Salary/Eligible for Overtime, or Paid by the Hour. Check out this resource for more info on classifying your employee.
  6. Update the compensation rate or default hours per pay period if applicable.
  7. Click Save.

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

While you can't schedule this change for a future date, if there is a gap between the employee's old and new pay schedules, process an off-cycle payroll for the in-between dates with the prorated amount. If there is an overlap, you will need to edit the pay on the employee's next regular payroll with the reduced prorated amount.

Payroll, benefits, HR and more.