How to Cancel Payroll Subscriptions in 2026

Updated February 2026 · 8 min read

Payroll subscriptions are some of the most expensive SaaS tools small businesses use — $40-500+/month depending on employee count. Whether you're switching providers, closing the business, or going to a simpler solution, here's how to cancel without tax disasters.

💰 What You're Paying

• Gusto: $40/month + $6/employee ($112/mo for 12 employees = $1,344/year)
• QuickBooks Payroll: $45-$125/month + $6/employee
• ADP Run: ~$59/month + $4/employee (pricing varies, not transparent)
• Justworks: $59/month + $49/employee (PEO model = much higher)
• Paychex: Custom pricing, typically $39-200+/month base

⏰ Critical: When to Cancel

• Best time: End of a quarter (March 31, June 30, Sept 30, Dec 31) — cleanest tax filing transition
• Worst time: Mid-quarter — creates split-quarter filings, massive headache
• After running final payroll — make sure all wages, taxes, and W-2s are processed
• NEVER cancel before year-end tax filings — W-2s, 1099s, and annual returns must be filed first

Cancel Gusto

1. Run your final payroll and confirm all taxes are filed
2. Go to Settings → Company → Cancel Account
3. Gusto will walk you through the closure checklist
4. Download all reports: W-2s, 940s, 941s, state filings
5. Gusto files your final quarterly tax return automatically
6. After cancellation, you retain read-only access to reports for 7 years

Cancel QuickBooks Payroll

1. Log in to QuickBooks Online
2. Go to Settings (gear icon) → Account and Settings → Billing & Subscription
3. Click "Cancel" next to Payroll (note: this only cancels payroll, not QuickBooks itself)
4. If you want to cancel all of QuickBooks: Settings → Cancel subscription
5. Download all payroll reports, tax forms, and employee records first
6. QuickBooks does NOT file final tax returns after cancellation — you must file them yourself or with your new provider

Cancel ADP Run

1. Call 1-800-225-5237 (phone only — no online cancellation)
2. Provide your company code and admin credentials
3. Request cancellation with 30 days notice (standard requirement)
4. Ask them to file your final quarterly tax return
5. Download all reports from the ADP portal before your account closes
6. Get written confirmation with your cancellation date

Cancel Justworks (PEO)

1. Contact your Justworks account manager directly
2. Justworks is a PEO (Professional Employer Organization) — they're the "employer of record"
3. Transitioning off a PEO is complex: you need your own state unemployment accounts, workers' comp policy, and benefits plan
4. Give 60+ days notice for smooth transition
5. Justworks will handle the employee transition paperwork
6. Benefits (health, dental, vision) end when you leave — have replacement coverage ready

📋 Universal Cancellation Checklist

• ✅ Run final payroll and confirm all employees are paid
• ✅ File final quarterly tax returns (941, state unemployment)
• ✅ Download everything: W-2s, 1099s, 940, 941s, state filings, employee records
• ✅ Get copies of all tax ID numbers (federal EIN, state withholding, state unemployment)
• ✅ Set up new payroll before canceling old one (overlap by at least 1 pay period)
• ✅ Transfer employee data to new provider (names, SSNs, YTD earnings, tax elections)
• ✅ Notify employees about any changes to direct deposit or benefits
• ✅ Cancel automatic tax payments if your old provider had authorization
• ✅ Update IRS authorized representative (Form 8655) if applicable

🔄 Cheaper Alternatives

• Wave Payroll ($40/mo + $6/employee) — simple, good for small teams
• OnPay ($40/mo + $6/employee) — flat pricing, no hidden fees
• Square Payroll ($35/mo + $6/contractor) — great for contractor-heavy businesses
• Homebase ($20/mo) — payroll + scheduling + time tracking in one
• DIY via IRS EFTPS — if you're solo or 1099-only, file taxes directly (free but time-intensive)