Dismissals cannot be reversed or canceled, so make sure that you want to end the employee's employment and remove them from future payrolls. Their info will stay in CleanCloud Payroll for your records, taxes, and possible rehiring.
The information below is the same for both employees who voluntarily leave, or who are terminated.
Deductions
Externally managed benefits: Automatically apply to the dismissal payroll.
Benefits managed by Gusto: The dismissal payroll will always include one pay-period's worth of deductions automatically.
Important: Gusto cannot prorate deductions.
Example: An employee is dismissed on 1/15/18 and benefits continue through 2/01/18, our system will not capture the remaining deductions the employee owes for the second half of the month.
If you'd like to apply additional deductions, you'll need to process the final payroll as an off-cycle payroll and choose to apply deductions.
Dismiss A W2 Employee
Go to Settings → Users → Manage User Accounts.
Find the Employee you choose to dismiss, and click Terminate Via Gusto.
If you need to dismiss an employee that never started with your company, or a duplicate employee who was accidentally added twice, contact us through the Help section of your account.
Enter the Employee's Last Day.
Select how you will pay the Employee their Final Pay Check.
We recommend running a Dismissal Payroll. Make sure you meet your state’s requirements about employees’ final payment (deadline to pay, unused PTO, etc).
Click Submit & Continue.
Review the dismissal timeline and expectations and dismiss the employee (or schedule a future dismissal).
Review the Offboarding Checklist.
Click Run Dismissal Payroll.
Dismiss A 1099 Contractor
(WORKING WITH LC TO SEE IF THIS IS POSSIBLE)
What to expect when you dismiss a contractor
You will not be able to pay them.
They'll be considered inactive.
Contractors will not be emailed about being dismissed
Contractors can still sign in to Gusto to view their payments and access documents.
Dismiss a contractor
Go to the People section.
Search for the contractor's name.
You can see a list of all contractors by clicking the filter icon, selecting contractors only, and then clicking Apply.
Click your contractor's name.
From the “Work” section, scroll to the “Work” card, and click x Dismiss.
Enter an end date.
Click Save.
To dismiss or rehire a contractor, follow the steps outlined here.
Let us know if the employee chose to leave.
We will not report this anywhere, but we’ll record it for you in case you need to use it later.
Select a reason for dismissal (optional).
We will not report this anywhere, but we’ll record it for you in case you need to use it later.
Enter their personal email address (optional)—this is the email they’ll use to sign in to Gusto later for W-2 forms.
Enter any dismissal notes (optional).
Only admins with the required permissions will see these notes.
Click Save & continue.
Review the dismissal C and expectations and dismiss the employee (or schedule a future dismissal).
If everything looks good, click Dismiss employee.
Once dismissed, work through the offboarding checklist—you can complete the checklist at a later time from the Offboarding tab on the employee's profile.
We understand this can be a sensitive matter. Once you've entered the dismissal details, no notifications will be sent to employees regarding their status change.
If the dismissal needs to be removed for any reason, contact us through the Help section of your account.