Cancel your company benefits with Gusto

Medical is a base benefit with Gusto. If you have a new broker, or intend to cancel medical, Gusto will no longer be able to manage your ancillary (such as dental/vision or life) coverage.

Carrier requirements

Once submitted, our operations team will submit your cancellation directly to the carrier on your behalf. Cancellation dates are not guaranteed due to carrier requirements. Carriers can take up 2-4 weeks to process cancellation requests.

Carriers typically invoice in advance, meaning that you may receive and/or pay for months after your requested cancellation date. The carrier will refund you directly after the cancellation is processed on their end. 

1. Sign in to your Gusto admin account.
   • Only admins accounts can submit cancellations.
2. Click on the Benefits section.
3. Click into the benefit you are looking to cancel.
   • The following benefits managed by Gusto can be canceled: medical, dental, vision, life, disability, health FSA, dependent care FSA, HSA, or commuter.
4. Scroll to the bottom of the page and click Cancel some or all coverage.
5. You'll be directed to tell us why you’re canceling.
   • If you have found a new broker, before canceling, consider connecting your new broker with Gusto through our Broker Integration.
6. Tell us how to handle each benefit.
   
   • Keep with Gusto: This is if you are only requesting to cancel some of your benefits.
   • Transfer to new broker: You have found a new broker that is going to take over management of the benefit.
   • Cancel coverage: You want Gusto to cancel the coverage with the carrier.
7. Tell us by which date.
   • Cancellations: Pick a date from the dropdown. These dates are the only dates eligible based on your carriers. Retroactive cancellations are not allowed.
   • Transfers to new broker: Choose a date that your new broker is or has formally taken over management of the benefit.
8. Review your choices and hit Confirm cancellation.
9. You will receive two emails from us after you submit: a submission confirmation and then another once carriers have confirmed cancellations. 
   • Broker transfers will receive one confirmation email.

If you submit benefit cancellation(s):

1. Notify your employees that they will no longer have benefits on the effective date. Enrolled employees will get cancellation letters directly from the carriers.
2. Keep an eye out for the company copy of the cancellation letter in the mail.
3. Carriers typically invoice in advance, meaning that you may receive and/or pay for months after your requested cancellation date. The carrier will refund you directly after the cancellation is processed on their end.
4. We recommend turning off any forms of autopay you might be enrolled in to help prevent unnecessary withdraws.
5. Benefit adjustments may be required. If we process adjustments, we’ll let you know who the impacted employees were, the amount due or owed, and the amount Gusto will need to debit for any associated taxes.
   • You can pay employees who are owed money, or recoup an amount the company is owed from employees, by working with your new payroll provider to set up payments and/or deductions.
6. Learn more about Federal COBRA and state continuation.

If you transfer your benefits to another broker, confirm your new broker will handle:

1. Paycheck deductions
   • We recommend running a benefit report in your Gusto account for current deduction information to reference in the future.
2. New hire processing
3. Carrier insurance changes
4. Coverage termination