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
This article continues from Payroll Setup Steps at Collective. After completing onboarding in Gusto and signing all required payroll forms, the remaining steps involve account approval and, if applicable, the completion of payroll migration. The following sections outline exactly what happens next, what you’ll see in your dashboard, and how you will know when payroll is ready to run.
What Happens Next:
Account Approval and Getting Ready to Run Payroll
After you've completed all onboarding steps and signed all required forms, there are a few final steps before you can run your first payroll. The timeline varies depending on your specific situation.
Step 1: Account Approval
After you finish payroll setup, our payroll partner, Gusto, reviews your company. Every new company goes through this review before it can run payroll. In most cases it takes up to 2 business days, and sometimes only a few minutes. Until it’s complete, you won’t be able to run, skip, or create an off-cycle payroll. Gusto will email you when your company is approved. If your first pay date passes during the review, your first payroll moves to the next scheduled pay date. If Gusto asks for more information, or the review takes longer than 2 business days, reach out to your Collective team.
Step 2: Payroll Migration Completion (If Applicable)
If you indicated you've run payroll before in Step 3:
Your account setup is complete, but you cannot run payroll until the migration process finishes. This is critical to ensure accurate year-to-date tax calculations.
Migration timeline:
- Typical duration: 1-2 weeks from when you authorize access to your previous provider
- Timeline depends on:
- Complexity of your payroll history
- Number of quarters to migrate
- Any discrepancies that need resolution
During migration:
- You'll see a message: "Payroll migration in progress. You will receive an email when it’s ready to run."
- Your payroll calendar may show upcoming dates, but you won't be able to submit payroll runs yet
- All other features are accessible (you can review settings, add employees/contractors, etc.)
Communication during migration:
- If questions arise: Collective support will reach out to you via the messaging center in your Collective dashboard
- Check your messaging center regularly during the migration period
- Respond promptly to any requests for clarification or additional documentation
- Common requests:
- Confirmation of tax liability status (what's been paid vs. what Gusto needs to pay)
- Clarification on specific pay stubs or quarterly totals
- Verification of benefit deductions or special circumstances
How you'll know migration is complete:
- You'll receive an email: "Payroll transfer complete - you're ready to run payroll"
- Your Collective dashboard will update to enable you to run payroll
- The migration status message will disappear from your Gusto account
- You'll be able to submit payroll runs according to your schedule
Once you’ve completed these steps, continue to Running Payroll at Collective.
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.