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Gusto is a cloud-based payroll processing and human resources management platform designed for small and medium businesses. It gets high marks for its easy-to-use interface, transparent pricing, and its many tools that make tasks like hiring, onboarding, and project management easier, though the platform isn't perfect. Read on to learn if Gusto is the best payroll service provider for your business.
Pricing:
Simple: $40 per month, plus $6 per person
Plus: $80 per month, plus $12 per person
Contractor-Only: $35 per month, plus $6 per person
Premium: Contact a Gusto rep for Premium plan pricing
Gusto is best for startups and small- to medium-sized businesses that don't have a full payroll or HR department. Its three-tier subscription model allows businesses to add features to address the needs of a growing team.
The Simple plan is best for businesses with just a few employees who work in the same place. But if your team is expanding rapidly, or you have a large number of employees working remotely or in different locations, the Plus or Premium plans may be worth the extra cost. You'll get access to multistate pay runs, remote time tracking with geolocation, and advanced HR tools.
Gusto has a huge variety of payroll and HR tools that are particularly helpful for small and medium businesses as they grow.
Gusto is a top-rated payment processing platform that provides manual and automated payroll runs for salaried and hourly employees in all 50 states. Its basic plan allows for single-state payroll processing, but if you need multistate payroll processing, you'll need to upgrade to the Plus plan.
When you set up payroll, you'll choose a schedule that you can easily adjust. Gusto requires at least two days for direct deposit under its Simple plan, but for next-day direct deposit, you'll need to upgrade to its Plus plan.
All three tiers allow an unlimited number of payroll runs. You won't be charged extra, for example, if you have multiple payroll schedules or you run an off-cycle payroll.
Running payroll manually is pretty straightforward. You'll review hours and earnings and then input any paid time off for the pay period. Once you've completed those two steps, Gusto brings you to a screen where you review and submit payroll. You can also easily make adjustments, like changing an employee's pay or adding a paid company holiday.
You can also automate payroll using Gusto's Autopilot® feature. If you choose this option, Gusto will automatically run payroll for you one day before your deadline. Though it also offers payroll processing for independent contractors, Gusto's Autopilot® payroll feature doesn't support contractor payments. You'll also need to enter payment for any commission-only employees before the automated payroll processes, as their base salary will be set to $0.
Gusto automatically files W-2s and 1099s on your behalf and sends an electronic copy of these forms to employees and contractors. It will automatically calculate, file, and pay all federal, state, and local payroll taxes. It can also automatically report any new hires to the government on your behalf. When you log into the platform as an employer, you'll be able to view a list of forms Gusto has submitted for your business, as well as upcoming filings.
Gusto offers handy employee portals that allow workers to log in to view their pay stubs and W-2 forms and update personal information. Employees get lifetime access to the portal, so they can access their documents even after they've parted ways with the company. You can also add U.S.-based contractors, so they can view their pay history and 1099 forms.
You can use Gusto to manage basic tasks, like reviewing time-off requests and reviewing timesheets, but the platform also has several advanced time-tracking features through its Plus and Premium plans.
For example, Gusto offers geolocation so you can set up authorized workspaces for employees to clock in and out. Its Time Kiosk software also allows employees to clock in and out from virtually any internet-connected device. Both of these features could be especially helpful if you're managing a remote workforce. The time that's reported from the device will then automatically sync with payroll.
One potential hiccup is that if you're using Autopilot® and Gusto's time-tracking tool, managers won't be able to review and approve hours before payroll processes. The hours the employee enters will override their default hours listed in Gusto. For example, if an hourly employee whose default hours total 40 hours a week, but the time-tracking tool shows they worked 35 hours or 45 hours in a week, their supervisor wouldn't be able to review the hours or sign off before payroll is processed. For this reason, Gusto doesn't recommend using Autopilot with its time-tracking feature.
You can also use Gusto's time-tracking tool to help with project management. Both salaried and hourly employees can track their time by project. Seeing how teams are spending their time can help you identify productivity issues or projects that may be off track, so you can make adjustments as necessary.
Gusto can also create reports to show you workforce costing on a per-project basis. You can see not just how much projects are costing you in terms of salary and wages, but also when you factor in expenses like taxes, health benefits, and 401(k) matching contributions. It also integrates with third-party accounting software, like Quickbooks Online and Xero.
When you're a small business owner and your team is rapidly growing, it can get overwhelming to keep up with hiring on top of all your other day-to-day tasks. Gusto's Plus and Premium plans have several advanced hiring tools that can make recruiting and onboarding employees easier.
For example, you can create customizable job posts that are syndicated to widely viewed job boards and track candidates through a centralized applicant tracking system. You can add any employee to hiring teams for each opening, so everyone can rate and comment on applicants and collaborate on the process.
Both upgraded plans also have helpful HR tools. You can create a customizable onboarding checklist for new hires, as well as an employee directory and org chart. Gusto also offers performance review tracking to help you stay up to date with existing employees.
Many business owners aren't prepared to navigate the complexities of administering health benefits or a 401(k) plan. Gusto can help you create a customized benefits package for your staff.
Gusto can help you choose your health, dental, and vision plans through its licensed brokers. It also handles payroll deductions for your health plan, provides administrative and compliance support, and manages COBRA insurers for past employees who opt to remain on your health plan upon separation. Note, though, that Gusto only offers health benefits in 38 states and the District of Columbia.
You can also set up a 401(k) plan through one of Gusto's many providers. If you already have a 401(k), you can set up payroll deductions through Gusto.
Gusto offers integrations with a huge number of third-party software. You can connect Gusto with popular small-business tools like Asana, Dropbox, Google Workspace, Microsoft 365, QuickBooks, Salesforce, and Slack, just to name a few.
Gusto has live humans available for customer support via phone in its Denver and San Francisco offices. Hours are Monday through Friday from 8 a.m. to 8 p.m. Eastern time. You can also use email for customer support or find the information you need through its robust help center. If you choose its Premium plan, you'll also have a dedicated customer success manager.
Gusto has three pricing tiers, with additional services and support for businesses that upgrade beyond its Simple plan. It also has a separate plan for businesses with a contractor-only workforce.
Plan | Price | Features |
---|---|---|
Simple | $40 per month, plus $6 per person | Unlimited single-state payroll runsAutomatic W-2 and 1099 filingEmployee portals with lifetime accessBasic hiring tools, including offer letter template and onboarding checklistHealth, dental, and vision administration (not available in all states) 401(k) benefits administration Payroll and time off reports |
Plus | $80 per month, plus $12 per person | Everything that the Simple plan offers, plus:Unlimited multistate pay runsNext-day direct depositAdvanced hiring tools, like a centralized applicant tracking system and syndication to popular job posting boardsEmployee directory and org chartTime tracking tools, including mobile clock-in and clock-outProject-tracking tools |
Premium | Contact a Gusto representative for pricing | Everything that the Plus plan offers, plus:Access to a dedicated customer success manager certified HR experts, and priority customer supportCompliance alertsFull-service payroll migration and account setupHealth insurance broker integration |
Contractor-only | $35 per month, plus $6 per contractor | Unlimited contractor payments in all 50 statesFour-day direct deposit1099-NEC filing and distribution at the end of the yearNew hire reporting if your state requires itInternational contractor payments feature is available as an add-on |
Customers on business review website G2.com give Gusto 4.5 out of 5 stars, with the most common point of praise being ease of use. The platform uses conversational language instead of accounting jargon to help you assess the needs of your business. Its colorful illustrations and easy-to-use dashboards make the often tedious tasks of navigating payroll and employee benefits seem -- dare we say it -- fun.
You can also send, sign, and store documents online and access them at any time using your Gusto account. It's also easy for employees to use the self-service portal. That could be a time-saver because they can access, say, tax documents on their own, without the need for a staffer to process the request.
One drawback is that there's no mobile app for employers, though Gusto is accessible through your laptop, phone, or tablet. Employees can access their accounts, along with various financial tools, using the Gusto Wallet mobile app.
Gusto has a lot of benefits for small business owners.
Gusto gives you the option to automate payroll and doesn't charge extra for off-cycle pay runs, so you won't pay a fee if you're doing a special payroll to deposit bonuses, commissions, or severance pay.
The Simple plan gets you unlimited same-state pay runs, but for multistate payroll, you'll need to upgrade to the Plus or Premium plan. Gusto also files and sends tax forms like W-2s and 1099s for you. In addition, you can enable automatic payroll tax management for free.
Gusto has a robust offering of time-tracking tools that allow for automatic time tracking for remote employees and PTO scheduling and approval. The tool that allows you to track employee's time by project and break down the costs when you account for pay and benefits is especially helpful for managers seeking to identify pain points and better evaluate work assignments.
Many payment processing companies require you to request a quote or demo, but Gusto is transparent about its pricing. It lists how much you'll pay for its plans each month, plus the additional per-person amount. (Its Premium plan, which is customizable based on your business's needs, requires you to speak with a rep for pricing, though.) All services are provided on a month-to-month basis, so you won't be locked into an annual contract.
Gusto has some drawbacks, too, though.
Gusto's Simple plan offers two-day direct deposit, while its Plus and Premium plans offer next-day direct deposit.
Gusto's pricing is competitive for smaller teams, but at the Plus level, its $12-per-person monthly charge could get expensive. You'd pay $680 per month for a team of 50 under Gusto's Plus plan. But payroll and related services would only cost $405 each month for a team of the same size under QuickBooks Payroll Core + Essentials Plan.
Gusto only offers health benefits (including medical, dental, and vision insurance, health savings accounts (HSAs), flexible spending accounts (FSAs), and life and disability insurance) in 38 states and the District of Columbia.
As of this writing, health benefits are not available in Alabama, Alaska, Hawaii, Louisiana, Mississippi, Montana, Nebraska, North Dakota, Rhode Island, South Dakota, West Virginia, and Wyoming. Gusto's website says it's "working hard to expand coverage to other states soon."
Gusto offers one of the best user experiences we've seen in a payroll software. It also has one of the most extensive HR help center libraries around.
Its pricing is competitive, but it isn't the cheapest out there, particularly if you have a large team and you're on a Pro plan. But it's more transparent than many of its peers, considering that many payroll and HR management platforms don't post upfront pricing on their websites. Unlike some payroll software providers -- such as QuickBooks Pro and Paycor -- there's no free trial, though you can cancel Gusto at any time.
Also, direct deposit takes anywhere from one to four days with Gusto, depending on what plan you have. Some Gusto competitors, like QuickBooks Payroll and Roll by ADP, offer same-day direct deposit processing.
To start using Gusto, you'll simply need to set up an account using your work email and provide a few details about your company, like the number of people you'll be paying and whether they're W-2 employees or independent contractors. You'll then provide your company's federal tax information and bank account number before you pick a plan.
It's important to compare your options if you're looking for a tool to manage payroll, HR tasks, or employee benefits. Here are some situations where Gusto might be a good fit:
Gusto is a strong pick for startup owners who need to set up payroll and employee benefits, but it's also a good option for more established businesses with small and medium-sized teams, particularly those seeking to grow. The platform's clean interface is extremely easy to navigate. The three-tier plan allows you to add more sophisticated hiring and HR tools as your team expands.
The Plus and Premium plans can handle payroll for all 50 states, while the Simple plan will only process payroll for a single state.
Yes, although not with Gusto's AutoPilot feature; it must be done manually.
Yes, your employees will be able to access both current and historical pay stubs, with former employees being able to access their pay stubs as well. Employees can also access their W-2s.
Pricing varies based on the size of your team and which plan you choose. For a team of 10, Gusto's Simple plan would cost you $100 a month, or $1,200 over a year. You'd pay $200 a month, or $2,400 a year for a time of the same size with the Plus plan.
Gusto is best for startups and businesses with small to medium teams that want HR support, as well as payroll services.
Gusto lets you create an account and set up payroll for free with no commitment. You'll be charged, though, when payroll processes.
No, Gusto is frequently praised for being easy for employers to set up, even if they've never managed payroll before. The platform's self-service portal also makes it easy for employees to log in and find information about their pay and benefits without human assistance.
Gusto doesn't offer same-day payroll processing or a mobile app for running payroll. It also doesn't offer health benefits in 12 states, though it says it's working to expand coverage. Cheaper alternatives may be available if you have a large staff, given the $12 per person charge for the Plus plan.
Some popular alternatives to Gusto include QuickBooks Payroll, Square Payroll, Paychex, ADP, and Rippling.
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