Heads up: We earn a referral reward if you sign up for Gusto through our link. Independent, not affiliated with Gusto. Not tax advice. How we make money
$100 Visa gift card from Gusto when you sign up through our link by Jan 31, 2027 and run a paid payroll. From Gusto, not us. How it works · Terms
☰
Should I switch? Take the quizSwitch guidesToolsGuidesSwitch plannerCost calculatorSwitching checklistFirst-hire checklistS-corp salary calculatorHire-your-kids calculator
Year-end switch

Switch payroll before January 1

By Payroll Dad · Last verified Nov 2026We earn a referral reward if you sign up through our link. How we make money · How we evaluate

$100 Visa gift card from Gusto when you switch or sign up through our link (by Jan 31, 2027)

The fine print, in plain words: sign up for Gusto payroll through our link by Jan 31, 2027 and run at least one paid payroll. Gusto sends the card within 30 days of your first paid payroll invoice, and your account has to be open when it goes out. The gift card comes from Gusto, not from us, and we don’t add a bonus of our own. Read Gusto’s terms.

Get the $100 gift card on Gusto’s website →

Why a January first payday is the cleanest switch there is, plus a relaxed November-to-December timeline you can follow from your kitchen table.

Dad’s short answer

Switching payroll with a first payday in January is the cleanest move you can make. Your current provider closes out 2026, Gusto starts 2027 fresh, and there’s almost nothing to re-type.

  • Your first Gusto check date in Q1 means Gusto asks only for that quarter’s pay stubs, and there are none if Gusto runs your first January payday.1
  • One provider files each quarter, so your current provider handles Q4 2026 and the 2026 W-2s.2
  • November and December give you room to set things up at an easy pace.

Why year end is such a natural time to switch

Payroll runs on quarters and calendar years. When you change providers in the middle of one, the new provider has to pick up the year-to-date numbers so the W-2s come out right. When you change at the turn of the year, the old year stays whole with the old provider and the new year starts whole with the new one.

  • Fewer numbers to move. The check date, the day people actually get paid, decides which quarter a payroll counts in.1 A first Gusto check date in January keeps the whole of 2026 with your current provider.
  • One W-2 per person. After a mid-year switch Gusto files the full year’s W-2s, so it needs everything from earlier in the year.2 At year end, each provider files its own year.
  • Fresh state rates. New state unemployment rate notices usually arrive between November and March, so a January start means entering next year’s rate once.3
  • A good habit, ready for growth. Starting a new year on a payroll setup you like is one of those small wins that pays off every payday after.

Gusto is the payroll product we use and recommend. The same calendar logic works for any switch, though.

A November to December timeline

Dates below assume your first Gusto payday lands in January 2027. Friendly heads-ups, not a race.

Early November: Run the Switch Planner. Open your Gusto account through our link. Opening early is fine: Gusto doesn’t file returns until it runs a payroll with a check date in that quarter.4
Mid-November: Download your reports from your current provider: payroll register, year-to-date totals by employee, the 941s and state returns filed this year, and tax payment history. Grab your federal and state account numbers while you’re there.
Before Thanksgiving (Nov 26): Enter company info in Gusto: legal name and FEIN as the IRS has them, federal filing form and deposit schedule, and your bank account, verified instantly or with small test deposits.4
Early December: Add your team. Each person gets an email invite and fills in their own details, W-4 and bank account.5 Add contractors too. Sign Form 8655 so Gusto can file and pay payroll taxes for you.4
Mid-December: Tell your current provider your plan in writing. Ask it to confirm it will file your Q4 2026 941, Form 940, state Q4 returns and 2026 W-2s. If you have a contract, check its notice terms now.
Late December: Run your last 2026 payroll the usual way. Heads-up: Dec 25 and Jan 1 both fall on Fridays this year. When a payday lands on a bank holiday, Gusto pays your team the business day before.4
January: Approve your first Gusto payroll. After the first tax deposit, peek at EFTPS to see it land. You’re still the employer, and it’s nice to see.6
By Feb 1, 2027: Your current provider delivers the 2026 W-2s and files the Q4 941 and Form 940 (Jan 31 is a Sunday, so the date rolls to Monday).78 Once those are filed and downloaded, wrap things up with them.

The switch, step by step

  1. Pick your first Gusto check date. The first payday of January is the classic choice. Work backward from it with the planner.
  2. Download your year from your current provider. Registers, YTD totals, filed returns, tax payments, employee details. Keep the PDFs in one folder.
  3. Open Gusto through our referral link. Tell Gusto who you pay, add your company, federal and state tax details and your bank.4
  4. Set your pay schedule. Choose how often you pay and your first check date. Paying hourly folks? Gusto suggests leaving at least 4 business days between the end of a pay period and payday.4
  5. Invite your team. People add their own bank details and W-4. Direct deposit info doesn’t carry over from your old provider.9
  6. Run your last 2026 payroll on your current provider. Then confirm in writing who files what.
  7. Run your first Gusto payroll in January. Then cancel the old service once its 2026 filings are done and saved.

Want this with your own dates, states and team size filled in? The Switch Planner builds it in about a minute. Prefer a tick-box list? Try the switching checklist. More background lives in our guide to switching payroll providers at year end. Can’t wait for January? See switching payroll mid-year.

Moving from a specific provider?

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

Do I have to switch before January 1?

No. You can switch any time. January is simply the tidiest start, because Gusto only needs the current quarter’s pay stubs when your first Gusto check date is in Q1, and there are none if Gusto runs your first January payday.

Who files my 2026 W-2s if Gusto starts in January?

Your current provider files 2026, including the Q4 941 and the 2026 W-2s. Gusto starts with 2027. Get that in writing from your current provider before you cancel anything.

Is it too late in November or December?

Not at all. Gusto doesn’t file any returns, even $0 ones, until it runs a payroll with a check date in that quarter, so opening your account now and finishing setup at your own pace is fine.

Is this tax advice?

No. It’s how payroll switches work, with sources. 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.

Sources, checked Nov 2, 2026

Every number on this page comes from one of these pages. Prices change; if a vendor updates its page, theirs wins.

  1. Gusto Help Center: Enter previous payrolls during account setup
  2. Gusto Help Center: Payroll tax responsibilities when switching to Gusto
  3. Gusto Help Center: State unemployment insurance (SUI) tax
  4. Gusto Help Center: Gusto onboarding guide for employers
  5. Gusto Help Center: Add new employees to Gusto
  6. IRS: Outsourcing payroll duties
  7. IRS: General Instructions for Forms W-2 and W-3 (2026)
  8. IRS: Employment tax due dates
  9. Gusto Help Center: Pay your team by direct deposit