Switch from Paychex to Gusto, step by step

This is the step-by-step move. Weighing whether to switch at all? Our Paychex vs. Gusto comparison covers pricing, features and where Paychex shines. Gusto is the payroll product we use and recommend.

What to export from Paychex first

Download these while you still have full access, and keep them in one folder. You’ll want them for Gusto setup, your CPA and your records.

• For Gusto’s import (Paychex Flex): a Profile PDF for each employee (People List, then Profile, then Download Profile) and the Employee Earnings Record (Analytics & Reports, then View All Reports, then Payroll Top Reports). Gusto lists Paychex import as beta, so it may not be available for every account.¹
• Filed tax returns and tax payment history for this year. Ask your Paychex rep where your filed 941s and state returns live in Analytics & Reports.
• Year-to-date totals for every person paid this year, including people who left.
• Employee info: addresses, pay rates and deductions to re-enter in Gusto.

Timing around paydays and quarter ends

• The check date decides the quarter. A pay period ending Dec 31 that pays on Jan 8 is a 2027 payroll.³ Decide which provider runs it before you set your Gusto first check date.
• One filer per quarter. Gusto files from the quarter of its first check date. Paychex files the quarters before that.⁴
• Easiest starts: the first payday of a quarter, and best of all the first payday of January. Mid-quarter works too; it just means a few more numbers.
• Mid-year switch? Gusto files the full year’s W-2s, so keep Paychex’s year-to-date reports and proof of this year’s tax payments handy.⁴

Giving notice or cancelling, without overlap

• Read your agreement first. Paychex’s own switching guide says to review the terms of your current service, notes there may be a charge for ending a contract early, and suggests calling the company and speaking with a representative.²
• Call your Paychex rep with three questions: how much notice they need, which returns and W-2s they’ll file for your last quarter and year, and how long you’ll keep access to reports.
• Line it up with a quarter or year end. Paychex says these can be more convenient because of filing deadlines.²
• Order of operations: last Paychex payroll, first Gusto payroll, then end the service once Paychex’s final filings are done and saved.

How Gusto setup works

1. Tell Gusto who you pay. Employees, contractors, and yourself if you’re on payroll.⁵
2. Company and federal tax info. Legal name and FEIN exactly as the IRS has them, company type, Form 941 or 944, and your deposit schedule.⁵
3. Connect your bank. Verified instantly or with small test deposits.⁵
4. Pay schedule and first check date. Pick your first Gusto payday, ideally the first one after your last Paychex payroll.
5. State tax details. Withholding and unemployment account numbers and your current rates for each state.⁶
6. Bring over earlier Paychex payrolls, if you’re switching mid-year. Gusto can read two Paychex reports and fill in your history during onboarding. Upload separate reports for each quarter. It doesn’t set up deductions, so add those yourself.¹ Switching with a January first payday? There’s usually nothing to bring over.³
7. Invite your team. Everyone adds their own W-4 and bank account by email invite.⁷
8. Sign Form 8655 and run your first payroll. Form 8655 lets Gusto file and pay payroll taxes for you.⁵

Your Paychex-to-Gusto step list

1. Pick your first Gusto check date. The first payday of January is the cleanest. The Switch Planner works backward from it.
2. Download your Paychex reports from the list above.
3. Open Gusto through our referral link and work through setup at your own pace.
4. Invite your team a week or two before the first Gusto payday.
5. Run your last payroll on Paychex, then get written confirmation of which returns and W-2s Paychex will file.
6. Run your first payroll on Gusto.
7. Cancel Paychex once its final filings are done and you’ve saved copies. Here’s how to cancel Paychex.

Prefer a tick-box version? The switching checklist saves your progress. Switching at the turn of the year? See switch payroll before January 1.

Every business is a little different, so check with your CPA for your situation. Good CPAs love a clean switch, and they’re on your team.

Your next step

Two moves, in this order. First, let the free Switch Planner turn your team, states and paydays into a dated plan. Then open Gusto when you’re ready. You won’t be doing it alone, and we’ll help you get every step right.

FAQ: moving from Paychex to Gusto