Switch from Square Payroll to Gusto, step by step

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

What to export from Square Payroll 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.

• Payroll reports: in Square Payroll, open Payroll history, choose View all, then Download reports. Grab Paycheck Details, Employee Totals, Company Totals and paystubs. Downloads work from a computer.¹
• Tax forms: Staff, then Payroll, then Tax forms, for federal and state filings, W-2s and 1099s.¹
• Year-to-date totals for every person paid this year, including people who left. Employee Totals is a handy one for this.
• 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.⁴ 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. Square Payroll files the quarters before that.⁵
• 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 Square Payroll’s year-to-date reports and proof of this year’s tax payments handy.⁵

Giving notice or cancelling, without overlap

• Ask Square support first. Confirm which quarterly returns and W-2s Square will file for the period it ran, and get the answer in writing.
• Unsubscribe last. In Square Dashboard: Settings, then Account & Settings, then Pricing & subscriptions, then Unsubscribe from Payroll. Closing it can’t be reversed, so download everything first.²
• Pause isn’t a switch tool. Square lets you pause payroll for up to nine months and keeps filing while paused, but it’s meant for a break, not for paying people somewhere else.²
• Order of operations: last Square payroll, first Gusto payroll, then unsubscribe once Square’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.⁶
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.⁶
3. Connect your bank. Verified instantly or with small test deposits.⁶
4. Pay schedule and first check date. Pick your first Gusto payday, ideally the first one after your last Square Payroll payroll.
5. State tax details. Withholding and unemployment account numbers and your current rates for each state.⁷
6. Enter earlier Square Payroll payrolls, if you’re switching mid-year. Gusto asks for quarter-to-date totals from the last pay stub of each finished quarter, plus every pay stub in the current quarter, for current and former employees. This step is only available during onboarding.⁴ Switching with a January first payday? There’s usually nothing to enter.
7. Invite your team. Everyone adds their own W-4 and bank account by email invite.⁸
8. Sign Form 8655 and run your first payroll. Form 8655 lets Gusto file and pay payroll taxes for you.⁶

Your Square Payroll-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 Square Payroll 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 Square Payroll, then get written confirmation of which returns and W-2s Square Payroll will file.
6. Run your first payroll on Gusto.
7. Cancel Square Payroll once its final filings are done and you’ve saved copies. Here’s how to cancel Square Payroll.

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 Square Payroll to Gusto