To remove an employee or contractor from Heard Payroll, you’ll need to first dismiss them from Gusto.
How to dismiss an employee
Please note that dismissals cannot be reversed, so make sure that you want to end the employee's employment and remove them from future payrolls.
We recommend reading Gusto’s overview of dismissal payrolls to learn about compliance regulations, like final pay and PTO, before processing the dismissal payroll.
- Sign in to your Gusto account
- Click the People section.
- Click on the employee's name (green link), not the checkbox.
- From the Work tab, find the “Work” section.
- Under the start date, click Dismiss.
- To dismiss or rehire a contractor, follow the steps outlined here.
- If you need to dismiss an employee that never started with your company, or a duplicate employee who was accidentally added twice, contact us through the Help section of your account.
- Enter the employee’s last day.
- Let us know if the employee chose to leave.
- We will not report this anywhere, but we’ll record it for you in case you need to use it later.
- Select a reason for dismissal (optional).
- We will not report this anywhere, but we’ll record it for you in case you need to use it later.
- Enter their personal email address (optional)—this is the email they’ll use to sign in to Gusto later for W-2 forms.
- Enter any dismissal notes (optional).
- Only admins with the required permissions will see these notes.
- Click Save & continue.
- Review the dismissal timeline and expectations and dismiss the employee (or schedule a future dismissal).
- If everything looks good, click Dismiss employee.
- Once dismissed, work through the offboarding checklist—you can complete the checklist at a later time from the Offboarding tab on the employee's profile.
Dismiss and rehire contractors
You're only charged the monthly per-contractor price ($6 per contractor) in the months you pay the contractor. When you're done paying a contractor, you can dismiss them. To pay a contractor once dismissed, rehire them first, then submit the payment.
- Sign in to your Gusto account
- Go to the People section.
- Navigate to the Dismissed tab
- Click your contractor's name.
- From the “Work” section, scroll to the “Work” card, and click x Dismiss.
- Enter an end date.
- Click Save.
To pay a contractor once dismissed, rehire them first, then submit the payment.
When will the seat count in my Heard Payroll subscription be updated?
Once you’ve dismissed an employee or contractor in Gusto, the employee will automatically be marked as Inactive in Heard Payroll under Employees & Contractors > Inactive.
The seat count on your Heard Payroll subscription is not immediately reflected. The seat number is updated automatically once a month, on the 2nd of each month, to reflect the subscription update. The seat number is based on the number of active employees plus the number of contractors paid in the prior month.
Your Payroll subscription invoice is generated on the 3rd of the month with the updated seat count.