Gusto is a cloud-based payroll software-as-a-service (SaaS) that streamlines payroll, benefits, and human resources (HR) management. It helps businesses with processing payroll, calculating and filing payroll taxes, and more. Starting at $45/employee/month, users can automate unlimited payroll runs, manage benefits, and pay taxes electronically. It’s best for businesses with fewer than 100 employees.
Gusto Pros and Cons
Very intuitive and straightforward interface
Occasional system glitches
Seamlessly integrates with accounting and time tracking apps
Steep pricing scheme
Reports are detailed, clear, and concise
Who Gusto Is Best For
- Small and startup businesses: Gusto offers payroll packages that include all the features a small business needs, including tax support, 1099 forms, and payments. On top of that, it also streamlines benefits management, provides direct access to HR experts, and more.
- Accountants and bookkeepers: Gusto provides support to accountants, bookkeepers, and their clients in growing their firm.
Gusto pricing varies based on three plans: Core ($39 base fee + $6/user/month), Complete ($39 base fee + $12/user/month), and Concierge ($149 base fee + $12/user/month). The main difference between the plans is access to premium features, such as time tracking, time off requests, employee directory and surveys, and HR resource center.
Gusto offers add-on services at an extra cost. These include college savings ($18/month minimum + $6/participant/month), health savings account ($2.50/participant/month), 401(k) retirement (starts at $39/month + $8/participant), and more. To view the complete list of add-ons, those interested may visit its website.
Core is a user-friendly payroll for small teams who need a simple and straightforward system. It offers solutions for full-service payroll, employee self-service and profiles, and paid time off (PTO) policies as well as functionalities for health benefits administration and workers’ compensation administration.
The Complete plan offers a payroll package that’s inclusive of all the features in the Core plan plus additional features for employee offers and onboarding, simple time tracking, employee directory and surveys, and time-off requests.
This plan has all the aforementioned features in the Core and Complete packages. Concierge, however, offers certified HR professionals that provide actionable feedback, employee relations advising, HR compliance help, and unlimited certified pros phone and messaging support. Moreover, the plan also includes an HR resource center with HR templates, harassment prevention training, custom employee handbook, and more.
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Simple payroll, HR, and benefits for small businesses
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Gusto handles all of the basic payroll processes and tax compliance that any business may need, such as running payroll each pay period, calculating deductions and net pay, and remitting payroll taxes. It provides new hire onboarding and reports new hires to the state. Here are some of Gusto’s most notable features.
Gusto has several features that are designed to make payroll easier. Users can automate their payroll so that employees receive their paychecks at regular intervals via direct deposit. They may also run an “autopilot” payroll, wherein Gusto will process and deposit paychecks every regular pay period automatically. Administrators can run unlimited payrolls without paying extra.
Employee Benefits and Insurance
Users can purchase medical, vision, and dental plans, as well as life and disability insurance for their employees, set up 401(k) retirement plans, or create college tuition savings plans. Health and commuter benefits are currently available in 27 states and territories while the college savings plans are offered in all 50 states.
Gusto calculates, files, and pays federal, state, and local income taxes automatically―all through the online system. It does not offer a tax accuracy guarantee, but according to the terms, if users will get penalized for errors, Gusto will pay.
This feature enables users to manage PTOs, such as sick days or vacation leaves. Users can allocate a number of days to each employee or accrue PTO days over time. In addition, Gusto integrates with Homebase—an attendance and time tracking software. This enables managers to track employee worked hours, overtime, and leave accruals accurately.
Which Payroll Provider Is Right for You?
Most Helpful Gusto Reviews
Users who gave Gusto reviews love that it is user-friendly and easy to use even for beginners and people who are not too proficient in using payroll management software. They also appreciate the accurate tax computations. Meanwhile, other users reported occasional glitches in the system.
Very easy to use and navigate
“Our company uses Gusto to manage payroll and it’s so easy to use. Its interface is very straightforward and allows us to update employees’ personal information, allowances, and other payroll details quickly. It also sends out monthly surveys to all employees and asks for feedback about how the company is doing. It’s a great way to anonymously let leadership know how employees feel about the company in general and in specific departments.”
Occasional system glitches
“Gusto can be glitchy when uploading hourly employee pay data. It can also be glitchy when updating pay rates during a pay cycle. You also can’t get too detailed when building time off policies.”
—Brittany Ann Martin
Gusto Frequently Asked Questions (FAQs)
How does Gusto ensure correct tax computations?
When the annual federal and state tax returns are filed, the IRS will determine the tax liability of an employee. To give employees proper tax returns, employers must input the numbers as accurately as possible to avoid any undue penalties for their employees. If there is a clerical error on Gusto’s part, the user administrator should contact Gusto through its support page.
Does Gusto offer payroll in my state?
Gusto offers payroll in all 50 states in the United States.
Can I integrate Gusto with my accounting app?
Gusto is designed to work with accounting software, such as QuickBooks, Xero, and FreshBooks, in addition to other third-party apps, including When I Work, Ximble, Receipt Bank, Homebase, and more.
Our Top Payroll Software Picks
If you aren’t sure if Gusto is right for you, this article on the Best Payroll Software is a review of our top seven choices. Our team looked at a variety of solutions and narrowed down our recommendations based on price, features, and ease of use.