Payroll Overview & Getting Started at Collective

Note: Payroll Features Are Available Only for S Corp Tier Members
Payroll functionality — including adding and managing 401(k) deductions — is currently available only for members on Collective’s S Corp tier. If you are on the LLC tier, payroll is not included in your plan.

Overview
Collective partners with Gusto to provide seamless payroll services for S Corp members through Gusto's Embedded Payroll (GEP) platform. This guide walks you through the complete payroll setup process.

Before You Begin Running Payroll at Collective

1. Payroll setup becomes available only after all of the following requirements are met:
2. Business Activation: Your business is activated on the Collective platform
3. EIN Registration: Your business has an EIN (Employer Identification Number)
4. State Registration: Your business is registered in the state where you want to run payroll
   1. This includes business entity registration as an LLC with the Secretary of State
   2. Your payroll tax registration will be handled by Collective after you run your first payroll
5. S Corp Election: You have completed S Corp election with the IRS (required if joining as an LLC electing S Corp status)
6. Bank Account Connected: You have connected a business bank account to Collective

Once these steps are complete, you can begin the payroll setup process.

Step 1: What to Expect - Your Payroll Setup Roadmap

When you're ready to set up payroll, you'll navigate to the Payroll section in your Collective dashboard. You'll see a clear, guided setup experience that walks you through each step in order. The interface shows your progress with a step-by-step tracker, so you always know where you are and what's coming next.

What You'll See

What to Expect

Agreeing to Terms of Service: Before you can proceed with setup, you'll need to review and accept Gusto's Terms of Service. This agreement:

• Allows Collective to securely share your payroll and business information with Gusto
• Authorizes Gusto to deliver payroll services on your behalf
• Enables the integration between Collective and Gusto for seamless payroll management
• Is required to access the payroll setup and features

Once you agree to Gusto’s terms by checking the box, click "Start Setup," and you'll enter the guided payroll experience.

Once you’ve completed these steps, continue to Payroll Setup Steps at Collective, Part I: Payroll Migration and Gusto Onboarding.

Disclaimer: The information contained in this document is provided for informational purposes only and should not be construed as legal, financial, or tax advice. It is not intended to be a substitute for obtaining legal, accounting, or other financial advice from an appropriate and/or licensed  adviser, or for the purpose of avoiding U.S. Federal, state or local tax payments and penalties.