Contents

Overview

1. Employer Profile Setup

2. Employee Profile Setup

3. Back to Employer Profile Setup

Overview

Please follow the steps below before your Business Insight Call with your Onboarding Accountant. If you run into trouble with these steps, go ahead and mark the checkbox as complete on your call scheduling dashboard module, and your Onboarding Accountant will help you resolve the issues during the Business Insight Call.

Please ignore any Gusto prompts to sign up for workers comp, health insurance, sick/vacation time tracking, and state tax setup. These will be reviewed during your Business Insight Call with your Onboarding Accountant.

If you already have a Gusto account tied to the EIN of the LLC we are helping you with, please ignore the following instructions and mark the check box complete on your dashboard. Your Onboarding Accountant will help you on your Training Call.

You will set up TWO profiles in Gusto: one for yourself as an employer and one for yourself as an employee. Make sure you set up TWO different profiles in Gusto before your initial training call. This might seem strange, but you are the employee of the company you own, so you need a profile for each version of yourself. Be sure to head back to your employer profile after completing your employee profile for the additional steps listed in section 3 below.

Important Note: Any outstanding state tax set-up for payroll will be completed by Collective, including registering your business, entering tax account numbers into Gusto, etc. If for any reason we need you as the Owner to complete a task, we will reach out to you directly.

1. Employer Profile Setup

  1. Check your email for two invites from Gusto. One is for your owner/admin profile. The other is for your employee profile.

  2. Start with the owner/admin profile invite first. You can find it by searching for an email subject that contains "has invited you to"

  3. Click accept and build your login.

  4. Click to continue with the setup steps.

  5. Add your LLC's checking account in step 6. This checking account needs to be opened with your LLC's EIN. Gusto uses Plaid to add and verify bank accounts. If Plaid is not working, look for the manual setup link on the far right of the screen. CHASE ACCOUNT HOLDERS: Click here to learn why Chase replaces your checking account number with a virtual account number.

  6. Verify your bank account in step 9. Most members verify using Plaid as part of step 6. If Plaid was not available and you chose the manual verification method, then enter the micro-deposits in step 9. To use the manual method you might have to attempt the Plaid method to make the manual method link appear.

  7. Sign documents in step 8. The first few pages are building the electronic signature, the last few are applying that signature to the forms. Put "Owner" when it asks for your title.

  8. Now that your Employer Profile is mostly set up, please continue to set up your Employee Profile in the section below.

2. Employee Profile Setup

  1. While logged into your Employer Profile, click the drop-down on the top right of your screen where it says, Admin. Click the option to switch to the employee profile. You will now enter the flow to set up the employee profile. Click here to read more about switching between profiles.

  2. *Please DO NOT use the IRS tax calculator on this page.* When you get to the Federal tax setup section please enter "single" in the top drop-down, leave the second drop down as is, and leave all the amounts at $0. Yes, you read that correctly - enter “single” and "0" even if you are married or file differently on your personal income tax return*.

  3. If you have a State tax setup section, enter "single" in any drop-downs, 0 if it asks about allowances and $0 on any dollar sections. Again, what you enter for your W4 withholdings for your LLC will not impact your filing status for your personal income tax return.

  4. Make sure to enter your personal checking account as this is your employee profile.

  5. Now that your Employee profile is set up, please go back to your Employer Profile for final setup steps in the section below.

3. Back to Employer Profile Setup

  1. "Review & Approve" Box. On your Gusto dashboard, you will see a section titled “Things To Do,” look for a “Review & Approve” box. Click it, scroll to the bottom of each page, and click to continue to the next page. This information is everything you entered in the previous Employee Profile Setup section, so it shouldn't be any surprises. On the second page, you will see it adds a radio button for "Yes, Submit New Hire Report". Please leave that as "Yes".

  2. "Approve I-9" Box. Under “Things To Do,” look for an "Approve I-9" box. Click it, and follow the prompts. You won't be uploading any images, only typing in document numbers as you are the employee and employer. The easiest option is to click both the "Driver License" and "Social Security Card" radio buttons. Don't worry you don't physically need your social security card, you just must know the social security number. On the next screen follow the prompts. The issuing authority for your driver's license is the state in which you reside and see on your driver's license. For your social security card, the issuing authority is the United States, the document number is your social security number, and there is no expiration date. On the last page, you will enter your name for the signature, Owner as your title, click the check box to authorize, and then click the button sign.

*To maximize the tax benefits of being an S Corp, we recommend selecting "single" and "0" for your federal and state tax setup in Gusto. Entering “single” and “0” tells Gusto to withhold the maximum amount for federal and state income tax. Withholding the maximum is beneficial to you because your exact tax liability for the year is not known until your individual tax return is prepared. By withholding more money during payroll, you minimize the risk of incurring penalties for underpayment of tax. If it turns out that you withheld too much, you will get a refund after your individual income tax return is filed. You are NOT breaking the law or “lying” by entering “single” and “0” during payroll setup. Choosing your withholdings is separate from electing your filing status. When it comes time to file your individual tax return, rest assured it will reflect your correct filing status.

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