How to Cancel Gusto Payroll in 2026

Gusto charges $40-80/month base + $6-12 per employee. Cancelling isn't as simple as clicking a button — you have legal payroll obligations to handle first. Skip a step and you could face IRS penalties.

Before You Cancel: Required Steps

1. Run final payroll for all employees including any outstanding wages, PTO payouts, and bonuses
2. Issue final paychecks — most states require final pay within 72 hours of termination (some require same-day)
3. File final tax forms — Gusto can handle this if you cancel through their proper process
4. Generate and distribute W-2s (if cancelling before year-end) or ensure Gusto will still send them in January
5. Download all payroll records — you're required to keep payroll records for 3-7 years depending on the document
6. Cancel any Gusto benefits (health insurance, 401k) separately — these have their own timelines

How to Cancel Gusto

1. Log in to Gusto
2. Go to Settings → Company
3. Click Cancel Gusto Account
4. Gusto will walk you through required final steps (payroll, taxes, etc.)
5. Confirm cancellation

For complex situations (mid-year cancellation, outstanding tax obligations), contact Gusto support at support@gusto.com or call 1-800-936-0383.

Cheaper Alternatives to Gusto

• OnPay: $40/month + $6/person — similar features, slightly cheaper for small teams
• Patriot Payroll: $17/month + $4/person — budget option for basic payroll needs
• Square Payroll: $35/month + $6/person — great if you already use Square for POS
• Wave Payroll: $20/month + $6/person — the cheapest mainstream option
• QuickBooks Payroll: $45/month + $6/person — best if already using QuickBooks
• Homebase Payroll: $39/month + $6/person — includes free time tracking and scheduling

If You're Closing Your Business

Cancelling Gusto because you're closing the business? Extra steps:

• File final state unemployment tax returns
• File Form 941 (final) — mark it as "final return"
• File Form 940 (final) for federal unemployment
• Send W-2s to all employees who worked that year
• Keep all records for at least 4 years after the final tax filing