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Dismiss and rehire US employees (for admins)

Updated 09/25/2025 12:43:04 PM by brynn.flaig@gusto.com
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Summary

This article explains how admins can dismiss or rehire employees in Gusto. It covers how dismissals affect payroll, benefits, and compliance, along with step-by-step instructions to dismiss, pay, or rehire employees. You’ll also learn about timelines, notifications, and important state law requirements.

Content

Admins with the right permissions can dismiss (terminate) or rehire employees directly in Gusto. If you do not see the option to dismiss, contact the primary admin on your account.

Dismissing an employee affects payroll, benefits, and compliance. This article explains what happens, what notifications are sent, and what laws may apply.

If you need to:

  • Run a dismissal payroll: See our dismissal payroll article.
  • Cancel your Gusto account if no employees remain: See our cancel your account article.
  • Dismiss or rehire a contractor: See our dismiss or rehire contractors article.
Dismissing an employee: What to expect

Click the dropdowns to learn more.

Pay schedules

If an employee is the last person on a pay schedule, move them to another active schedule before dismissal. Once dismissed, Gusto automatically removes unused pay schedules.

If you dismiss the last person on a pay schedule before moving them to another active pay schedule, that pay schedule cannot be deleted. 

Benefits managed by Gusto
  • Gusto notifies insurance carriers when you dismiss an employee. Coverage usually ends at the end of the month, but timing depends on the policy, contract, and carrier.
    • Employee dismissals can take up to two weeks to get confirmation from the carrier.
  • We send the employee a COBRA Election Notice 3 days after dismissal, letting them know about their continuation options. If they were the last employee on your plan, the carrier may cancel the policy, including COBRA coverage.
  • Gusto keeps payroll history for taxes and W-2s, but the employee is removed from future payrolls.
Time tracking
  • Dismissed employees’ time tracking hours move to an off-cycle pay period labeled “off-cycle.” You can find this on your time tracking dashboard or in the dropdown above your team's timesheets.
  • Admins and managers can still review, edit, and approve these hours.
    • Admins can sync the dismissed workers' timesheets to a dismissal payroll by selecting Sync hours to payroll and Sync hours and go to payroll.
    • Managers can review hours, but will not see anything about the dismissal.
  • Employees can view and confirm their timesheet until their last day. After their last day passes, Gusto shows any changes to their timesheet.
Employee email access

Encourage employees to use a personal email* for their Gusto account. This ensures lifetime access to paystubs and W-2s after dismissal.

If they use a work email, ask them to update it before their last day.

*Gusto may contact dismissed employees about COBRA or state continuation coverage if they lose company-sponsored health insurance. Gusto may also contact them if other required notices or benefit issues come up. To support this, Gusto may share an employee’s email address with trusted third parties who help send COBRA, state continuation, or other benefit information. You can review Gusto’s Terms of Service to learn more about when data may be shared.

Health insurance carriers may also send employees a notice when their coverage ends. This notice confirms the coverage start and end dates. If employees contact their carrier directly and the carrier has a processed future termination date on file, the employee has the right to get that information.

If employees have life insurance through Gusto, they will get an email explaining their options to continue or port their life insurance coverage.

Paid Time Off (PTO) laws

Some states require you to pay out unused PTO when an employee is dismissed. Others only require you to follow your written PTO policy. Some states have no requirements.

In dismissal payrolls, you can choose to pay out any remaining hours.

Final paycheck rules (timing and payment method)

Some states require faster final payments after dismissal. Rules may differ for quits vs. terminations. If you do not pay the departing employees in within the time limit specified by the law, you could face penalties.

Check your state's Department of Labor (or equivalent) to confirm its regulations regarding final paycheck timing and method.

By default, dismissal payrolls use a check payment (company-issued). You can switch to direct deposit after confirming you've reviewed your state’s final paycheck laws. To do this, click the icon next to the payment method and change it to Direct deposit.

Notifications sent to employees

These expectations apply if your employee’s dismissal date is today or in the future. If you need to backdate a dismissal, see the "Backdated dismissals" section below.

  • If you only use payroll
    • No dismissal email is sent.
  • If you use payroll + health insurance (managed by Gusto)
    • Employees get a notice about COBRA or state continuation options*. Emails are sent 3 business days after dismissal.
    • If COBRA is managed by BASIC, the employee receives a mailed notice instead.
    • *Health insurance carriers may also send employees a notice when their coverage ends. This notice confirms the coverage start and end dates. If employees contact their carrier directly and the carrier has a processed future termination date on file, the employee has the right to get that information.
  • If you use payroll + health + life insurance (managed by Gusto)
    • In addition to all notifications above that apply, employees also get a life insurance continuation email one day after coverage ends.
  • AP Intego, Guideline, commuter benefits, FSA, and HSA
    • These services do not send automatic notifications when you dismiss an employee. If an employee starts a 401(k) rollover with Guideline, Guideline will contact them directly.
  • Expense submissions
    • If an employee with a scheduled dismissal tries to submit an expense, they'll see this message: "Employee expense could not be saved: Offboarding employees cannot create new expenses. Please contact your manager or payroll admin to process any new expenses."
Backdated dismissals

You can enter a dismissal date in the past in Gusto. If you do not see the option, message us from the Image in your account.

Employees get the same notification listed in the "Notifications to employees" section, except COBRA notices are sent one business day after you enter the backdated dismissal.

Note: Insurance carriers may charge fees for backdated changes. Notifying carriers in advance about dismissals, enrollments, and qualifying life events is the industry standard, and it ensures that coverage begins and ends correctly.

Agency requirements for Separation Notifications

Some states require separation notices or service letters that detail the reason for the separation. These letters help demonstrate that the reason for the dismissal was not discriminatory. 

Gusto does not provide or send separation notices or service letters. Check your state labor department for details. 

Premium and Plus customers with the Priority support add-on can contact Mineral HR Experts to get help.

Garnishments

If the employee has a garnishment, you must notify the collecting agency. Some states require extra forms. Learn more in our dismissal payroll article. 

Deceased employees

In the unfortunate event that an employee passes away:

  • You can dismiss them in Gusto.
  • Work with an HR professional (like Mineral HR) or legal counsel to handle their final pay.
  • If benefits are involved, message us from the Image in your account.
  • Gusto will still file their W-2 if you remain a customer (more info from the IRS).
Dismiss an employee

Important: Dismissals cannot be undone. Make sure you want to end the employee’s employment and remove them from future payrolls before moving forward. Their info will remain in Gusto for records, taxes, and possible rehiring.

  • If the employee is going on leave of absence, skip them in payroll instead of dismissing.
  • The steps below apply to both employees who resign and employees who are terminated.

Deductions on the final payroll

  • Externally managed benefits: Apply automatically.
  • Gusto-managed benefits: One full pay period of deductions will always apply.
    • ⚠️ Gusto cannot prorate deductions after. Example: If an employee is dismissed on January 15 and benefits continue through February 1, we will not capture the remaining deductions the employee owes for the second half of the month.
    • To apply additional deductions, process the final pay as an off-cycle payroll, and choose to apply them.
  • Severance pay: If marked as severance, 401(k) deductions (externally managed or integrated) will not apply.

Steps to dismiss an employee

Employees who were paid through Gusto can be dismissed but not fully deleted. Gusto must be compliant in maintaining its payment records.

  1. Sign in to Gusto.
  2. In the left menu, click People.
  3. Click the employee’s name, not the checkbox.
  4. Under Information, click Work.
  5. Find the Work section and click Dismiss. 
  6. Enter the employee’s last day.
  7. Indicate if the employee chose to leave. We will not report this anywhere, but we’ll save it for your records.
    • Keeping track of reasons that employees leave the company can be very important later on.
    • For involuntary dismissals, employees can file for unemployment, COBRA/continuation of health insurance, and/or assert unlawful termination.
  8. (Optional) Select a reason for dismissal.
  9. (Optional) Enter the employee’s personal email address so they can sign in later for W-2s and paystubs.
  10. (Optional) Add dismissal notes. Only admins with the right permissions will see these notes.
  11. Click Save & continue.
  12. Review the dismissal timeline and expectations.
  13. Click Dismiss employee.
  14. Complete the offboarding checklist (now or later in the Offboarding tab).

What to expect:

  • We will not send any notifications to your employee about the dismissal. However, employees with an upcoming dismissal date who submit an expense will see this message: "Employee expense could not be saved: Offboarding employees cannot create new expenses. Please contact your manager or payroll admin to process any new expenses."
  • Your employee will know they’ve been dismissed if they sign into their Gusto account after their last day.

Special cases:

  1. To dismiss an employee who never started or was entered twice by mistake, message us from the Image in your account.
  2. If you need to remove a dismissal for any other reason, message us from the Image in your account.
Dismissal paycheck requirements by state

When an employee is dismissed, every state has its own rules about:

  • When you must issue a final paycheck.
  • Whether unused PTO must be paid.

Important: In some states, late payments can lead to penalties, damages, or even criminal consequences. Always review your state’s Department of Labor website.

If you have specific questions about a termination, work with an employment attorney.

See the table in this article for details by state.

Table last revised January 15, 2025.

State

Dismissal paycheck deadline(s)

Requirements for paying out unused vacation  Additional information
Alabama
  • No statute
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
Alaska
  • If the employee leaves involuntarily: Within 3 working days.
  • If the employee leaves voluntarily: Next scheduled payday, that's at least 3 days after the employee gives notice.
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
Arizona
  • If the employee leaves involuntarily: Within 7 working days or the next scheduled payday, whichever is sooner.
  • If the employee leaves voluntarily: Next regular payday.
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
Arkansas
  • You're required to pay the employee by the next scheduled payday.
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
California
  • If the employee leaves involuntarily: Immediately.
  • If the employee leaves voluntarily: Immediately if they give at least 72 hours of notice. The payment is due within 72 hours if no notice was given.
  • Yes
  • Employers are required to pay employees any accrued, unused vacation time upon termination.
Colorado
  • If the employee leaves involuntarily: Immediately, with some exceptions.
  • If the employee leaves voluntarily: Next regular payday.
  • Yes
  • Earned vacation time is considered wages required to be paid out upon termination.
Connecticut
  • If the employee leaves involuntarily: Next business day.
  • If the employee leaves voluntarily: Next scheduled payday.
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
Delaware
  • You're required to pay the employee on the next scheduled payday, or within 3 business days, whichever is later.
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
Florida
  • No statute
  • No
  • No state statute addresses payment of accrued vacation on termination.
Georgia
  • No statute
  • No 
  • No state statute addresses payment of accrued vacation on termination.
Hawaii
  • If the employee leaves involuntarily: You're required to pay the employee on their last day.
  • If the employee leaves voluntarily: Next scheduled payday, unless the employee gives at least one pay period’s notice of intention to quit, then you're required to pay the employee on their last day.
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
Idaho
  • If the employee leaves involuntarily: Next scheduled payday or within 10 business days, whichever is sooner.
    • If the employee makes a written request for earlier payment, within 48 hours (excluding weekends and holidays) of receiving the request.
  • If the employee leaves voluntarily: Next scheduled payday or within 10 business days, whichever is sooner.
    • If the employee makes a written request for earlier payment, within 48 hours (excluding weekends and holidays) of receiving the request.
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
Illinois
  • If the employee leaves involuntarily: Immediately if possible, but no later than the next scheduled payday.
  • If the employee leaves voluntarily: Immediately if possible, but no later than the next scheduled payday.
  • Yes
  • An Illinois company cannot put into place a company policy that does not pay out PTO upon termination.
Indiana
  • You're required to pay the employee by the next scheduled payday.
  • Yes (unless otherwise stated)
  • Accrued vacation pay is considered a form of compensation. An employee may be entitled to accrued unused vacation time if they've met any certain conditions of a company policy or employment contract. 
Iowa
  • You're required to pay the employee on or before the company's next regular payday.
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
Kansas
  • You're required to pay the employee on or before the company’s next scheduled payday.
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
Kentucky
  • You're required to pay the employee on the next scheduled payday, or within 14 days, whichever is later.
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
Louisiana
  • You're required to pay the employee on the next scheduled payday or within 15 days, whichever is sooner.
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
Maine
  • If you have more than 10 employees, you're required to pay the employee on or before the company's next regular payday.
  • Yes
  • You're required to pay out all unused PTO with their final paycheck.
Maryland
  • If the employee leaves involuntarily: Next scheduled payday.
  • If the employee leaves voluntarily: Next scheduled payday.
  • Yes (unless otherwise stated)
  • Employers are required to pay employees any accrued, unused vacation time upon termination unless the employer's written policy states that vacation time will be forfeited upon termination.
Massachusetts
  • If the employee leaves involuntarily: You're required to pay the employee on their last day.
  • If the employee leaves voluntarily: Next scheduled payday. 
  • Yes
  • Employers are required to pay employees any accrued, unused vacation time upon termination.
Michigan
  • You're required to pay the employee on or before the company’s next scheduled payday.
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
Minnesota
  • If the employee leaves involuntarily: You're required to pay the employee within 24 hours of their demand for wages.
  • If the employee leaves voluntarily: You're required to pay the employee by the next scheduled payday that's more than 5 days and less than 20 days from their last day.
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
Mississippi
  • No statute
  • No 
  • No state statute addresses payment of accrued vacation on termination.
Missouri
  • If the employee leaves involuntarily: You're required to pay the employee on their last day.
  • If the employee leaves voluntarily: Next scheduled payday.
  • No
  • Employers are not required to pay employees for earned, unused vacation upon termination.
Montana
  • If the employee leaves involuntarily: Immediately, unless you have a pre-existing written policy that extends the timing of final payment. The written policy cannot exceed the next scheduled payday or 15 days, whichever is earlier.
  • If the employee leaves voluntarily: Next scheduled payday or 15 days, whichever is earlier.
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
Nebraska
  • You're required to pay the employee on the company's next regular payday or within two weeks, whichever is sooner.
  • Yes
  • All earned and unused vacation and PTO benefits must be paid to the employee with their final wages.

Nevada

  • If the employee leaves involuntarily: Immediately.
  • If the employee leaves voluntarily: You must pay on either the next regular payday or within seven days after they resign (whichever is earlier).  
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
New Hampshire
  • If the employee leaves involuntarily: Within 72 hours. 
  • If the employee leaves voluntarily: Next scheduled payday. If the employee gives at least one pay period’s notice, then within 72 hours.
  • No
  • You can pay out unused PTO if you'd like, but you are not required to.
New Jersey
  • If the employee leaves involuntarily: Next scheduled payday.
  • If the employee leaves voluntarily: Next scheduled payday.
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
New Mexico

 

  • If the employee leaves involuntarily: You're required to pay them within 5 days of their last day.
  • If the employee leaves voluntarily: You're required to pay them on or before the company's next regular payday.
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
New York
  • You're required to pay the employee by the next scheduled payday.
  • Yes
  • An employer must pay the employee for accrued unused vacation if there's no written forfeit policy. 
North Carolina
  • You're required to pay the employee by the next scheduled payday.
  • Yes
  • An employer must pay the employee for accrued unused vacation if there's no written forfeit policy.
North Dakota
  • You're required to pay the employee by the next scheduled payday.
  • Yes, in most cases
  • Must pay accrued time off unless employee is leaving voluntary and all of the following apply:
    • Employee has been employed for less than 1 year.
    • Policy states that there's a limitation of pay of accrued time off.
    • The employee gave the employer less than 5 days verbal or written notice.
Ohio
  • You're required to pay the employee by the next scheduled payday. 
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
Oklahoma
  • You're required to pay the employee by the next scheduled payday.
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
Oregon

 

  • If the employee leaves involuntarily: You're required to pay them by the end of the next business day.
  • If the employee leaves voluntarily: You're required to pay them on their last day if they quit with at least 48 hours' notice, unless that day is a weekend or holiday. In that case, their check is due on the next business day. If the employee quits with less than 48 hours' notice, then you’re required to pay them on the next scheduled payday or within 5 business days, whichever comes first.
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. 
Pennsylvania

 

  • You're required to pay the employee by the next scheduled payday.
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
Rhode Island

 

  • You're required to pay the employee by the next scheduled payday. 
  • Sometimes
  • If the employee has been working for the company for more than one year, you're required to pay out all unused PTO with their final paycheck.
  • If the employee has been working for the company for less than one year, you are not required to pay out unused PTO. 
South Carolina
  • If the employee leaves involuntarily: Next scheduled payday, but not to exceed 30 days.
  • If the employee leaves voluntarily: Next scheduled payday, but not to exceed 30 days.
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
South Dakota
  • If the employee leaves involuntarily: Next scheduled payday.
  • If the employee leaves voluntarily: Next scheduled payday.
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
Tennessee
  • If the employee leaves involuntarily: Next scheduled payday or within 21 days, whichever is later.
  • If the employee leaves voluntarily: Next scheduled payday or within 21 days, whichever is later.
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
Texas
  • If the employee leaves involuntarily: Within 6 calendar days.
  • If the employee leaves voluntarily: Next scheduled payday.
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
Utah
  • If the employee leaves involuntarily: Within 24 hours.
    • There are some exceptions for commissions for a sales agent.
  • If the employee leaves voluntarily: Next scheduled payday.
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination. 
Vermont
  • If the employee leaves involuntarily: Within 72 hours.
  • If the employee leaves voluntarily: Next scheduled payday.
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
Virginia
  • You're required to pay the employee by the next scheduled payday. 
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
Washington
  • If the employee leaves involuntarily: Next scheduled payday.
  • If the employee leaves voluntarily: Next scheduled payday.
  • There are some exceptions for specific industries.
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
Washington DC

 

  • If the employee leaves involuntarily: You're required to pay them the day after their last day.

  • If the employee leaves voluntarily: You're required to pay them on or before the company's next regular payday or within 7 days of their last day, whichever is sooner.

  • Yes (unless otherwise stated)
  • You're required to pay out all unused PTO with their final paycheck unless your company has a written policy that indicates unused PTO will not be paid out when an employee leaves the company.
West Virginia
  • You're required to pay the employee by the next scheduled payday.
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
Wisconsin
  • You're required to pay the employee by the next scheduled payday.
  • Yes (unless otherwise stated)
  • You're required to pay out unused PTO if your company's PTO policy does not include a written PTO forfeit policy. If your PTO policy includes forfeiture, then  you are not required to pay out unused PTO.
Wyoming
  • You're required to pay the employee by the next scheduled payday. 
  • No (unless otherwise stated)
  • An employer’s policy or employee contract governs whether earned, unused vacation is paid upon termination.
Furloughs and leaves of absence

What a furlough means

Furlough is when you place an employee on a temporary, unpaid leave due to a downturn in business or off-season, but you want them to come back in the future. This is different than an employee requesting a leave of absence for personal or medical reasons.

Furlough an employee in Gusto

Furlough and leaves of absence are handled the same way through Gusto. Do not dismiss the employee. Instead, skip them on payroll until they come back to work.

Important: Skipping an employee on payroll does not remove the per-employee charge on your invoice.

Furloughed employees who have benefits with Gusto

Placing an employee on furlough does not end their benefits. However, carriers’ rules differ—to stay compliant, reach out to your carrier to find out how long an employee can keep their health benefits while they're not actively working.

Once an employee comes back to work and is paid again through payroll, we’ll apply catch-up deductions to cover any missed benefits contributions. When an employee is on furlough or leave, you need to pay the entire health insurance premium to the carrier. This means that you also need to cover the employee’s part of the premium until they come back to work.

Dismiss or lay off an employee

If an employee will not be coming back to work, you can dismiss them.

Change dismissal details or cancel the dismissal

When you can make changes

You can change an employee’s dismissal details up until the original dismissal date passes.

  • After the dismissal date, you can still edit some details—but only if the employee has not been paid since dismissal.
  • If you cannot change the date or details yourself, message us from the Image in your account.

Change dismissal details or cancel the dismissal

  1. Sign in to Gusto.
  2. In the left menu, click People.
  3. Click the employee’s name, not the checkbox.
  4. Under Information, click Work.
  5. Find the Work section.
    • Admins with the right permissions can click Cancel to remove the planned dismissal.
  6. In the gray Pending box, click Edit and update the information you need to change.
  7. Click Save.
Pay a dismissed employee

When you dismiss an employee, you can choose to pay severance in the dismissal payroll (find the dismissal payroll in the Offboarding tab).

If you already ran the dismissal payroll but still need to pay severance—or another type of earning—run an off-cycle payroll.

Pay a dismissed employee (after you've run the dismissal payroll)

You must have the right admin permissions to run this payroll.

  1. Sign in to Gusto.
  2. In the left menu, click People.
  3. Click the Dismissed tab.
  4. Click the employee’s name.
  5. Under Information, click Pay.
  6. Scroll to the Recent paystubs section.
  7. Click Run off-cycle payroll.
  8. Click + Other Earnings.
  9. Enter the work period.
  10. Enter the payment date.
  11. Choose how deductions and contributions should be handled. 
  12. Review or edit tax withholding rates.
  13. In the Hours and additional earnings section, click + Other Earnings. 
  14. Scroll down and enter the severance amount in the Severance field. This option only shows if the employee has been dismissed.
    • Severance pay will not count toward an employee’s 401(k) if the plan is managed outside of Gusto or through an integrated provider.
  15. (Optional) Click Add Personal Note to include a message about severance on the paystub.
  16. Click Save & Continue.
  17. Click Submit Payroll.
Rehire a dismissed employee

Admins with the right permissions can rehire dismissed employees in Gusto. If you do not see the rehire option, ask your company’s primary admin to help.

Important reminders

  • Gusto does not require a new I-9 for rehired employees.
  • The rehire date will replace the employee’s original hire date.
  • Gusto does not support sending new hire or offer letters to rehired employees.
  • If rehired in the same year, the employee will receive one W-2 for all wages.
  • Rehires cannot be canceled. If you rehire by mistake, you’ll need to dismiss the employee again.
  • You cannot rehire someone as a contractor. Instead, add them as a contractor.
  • To convert a contractor into an employee, follow the steps in this article.

Rehire an employee

  1. Sign in to Gusto.
  2. In the left menu, click People.
  3. Click the Dismissed tab.
  4. Click the employee’s name, not the checkbox.
  5. Under Information, click Work.
  6. Find the Work section, and under Dismissal details, click + Rehire.
    • If the employee worked at your company before you joined Gusto, click Get started to enter their info.
  7. Enter the rehire date.
  8. Choose the employee’s employment status from the dropdown.
  9. Select the employee’s work location.
  10. Choose whether you want Gusto to file a new hire report.
  11. Click Rehire Employee.

What happens after a rehire

The employee can sign in to their existing Gusto account (using the personal email in their profile) to confirm or update their information.

On the rehire date, Gusto will mark them as active and add them back to payroll.

If you rehire someone who left before your company joined Gusto, you’ll need to enter a few extra details during rehire.

Change a rehire date

If you need to change the rehire date, message us from the Image in your account.

*It’s our policy to guarantee lifetime access of payroll information to all users, subject to compliance with our Terms of Service.

Keywords: dismiss furlough change date dismissal compliance rehire remove delete termination terminate terminated reactivate account duplicate layoff lay laid off deceased employee passed away off payroll inactive inactivate terminate view former day offboard final

Related Solutions

  • Change employment type—employee to contractor, contractor to employee
  • Employee benefits eligibility classification
  • Furlough employees
  • Run a dismissal payroll
  • View and complete offboarding checklists
Solution ID
110807134100000
Last Modified Date
09/25/2025 12:43:04 PM
Attributes
Gusto Attributes
  • Role: Employers; Accountants/Partners
  • Category: People
  • Plan type: Core; Complete; Concierge
  • Who brokers my benefits?: A third party; Gusto
Taxonomy
  • Employers and admins > People > Dismissals
Collections
  • Admins
  • External
  • Support Agent

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