Overview
Gusto is a comprehensive cloud-based payroll and HR platform designed specifically for small to medium-sized businesses. It automates payroll processing, tax filings, benefits administration, workers' compensation, time tracking, and employee onboarding. Gusto is renowned for its exceptional user experience, making complex payroll and compliance tasks simple for business owners without dedicated HR staff. The platform handles federal, state, and local tax calculations and filings automatically.
Pros & Cons
Pros
- ✓Extremely user-friendly interface designed for non-HR professionals, with minimal learning curve
- ✓Comprehensive full-service payroll with automatic tax calculations, filings, and year-end forms
- ✓Excellent benefits administration including health insurance, 401(k), commuter benefits, and HSAs
- ✓Outstanding customer support with responsive team available via phone, email, and chat
- ✓Seamless integrations with popular accounting software like QuickBooks and Xero
- ✓Transparent pricing with no hidden fees, making budgeting predictable for small businesses
Cons
- ✗Limited scalability for large enterprises (optimized for companies under 500 employees)
- ✗Fewer advanced HR features compared to enterprise HRIS platforms (no advanced analytics)
- ✗International payroll not supported (US-only), limiting global expansion capabilities
- ✗Time tracking features are basic compared to dedicated time tracking solutions
- ✗Reporting capabilities are somewhat limited for data-driven organizations
Who Should Use This?
Best For
- →Small businesses (1-200 employees) seeking simple, reliable payroll automation
- →Startups and growing companies without dedicated HR or payroll staff
- →Organizations prioritizing ease of use and excellent customer support
- →Companies offering comprehensive benefits and needing integrated benefits administration
- →Businesses using QuickBooks or Xero looking for seamless accounting integration
Not Ideal For
- →Large enterprises with 500+ employees requiring advanced HRIS capabilities
- →International companies needing multi-country payroll support
- →Organizations requiring complex, customizable reporting and analytics
- →Businesses with highly complex payroll scenarios (union rules, complex shift differentials)
- →Companies needing advanced performance management or talent development tools
Key Features
Implementation
Gusto implementation is remarkably quick and straightforward, typically taking 1-2 weeks from signup to first payroll run. The setup process includes company information entry (1-2 hours), employee data import (2-4 hours), bank account verification (2-3 days), benefits setup if needed (3-5 days), and first payroll test run. Gusto provides guided onboarding, video tutorials, and live support to ensure smooth implementation.
Get Pricing for Gusto
Compare quotes, see demos, and get personalized recommendations
Quick Info
Gusto offers three transparent pricing tiers: Simple ($40/month base + $6 per person), Plus ($80/month base + $12 per person), and Premium (custom pricing, typically $150/month base + $18-20 per person). For example, a 50-person company on the Plus plan would pay $680/month ($8,160 annually). All plans include full-service payroll, tax filings, and employee self-service. Premium adds HR support, compliance alerts, and dedicated support.
📋 Implementation Guide
Step-by-step guide to implementing Payroll software
View Guide BelowOpen Full Guide PageImplementing Payroll Software
Critical guide to implementing payroll software without disrupting employee payments.
Implementation Steps
Understand all payroll requirements and plan transition timing.
Key Tips:
- Review all federal, state, and local tax requirements
- Document current payroll process and frequency
- Identify all deductions (benefits, garnishments, etc.)
- Plan go-live date (start of quarter preferred)
- Notify employees of upcoming changes
- Get buy-in from finance/accounting team
Common Mistakes to Avoid
- ×Not running parallel processing - too risky to go straight to live
- ×Choosing end-of-year for go-live - tax reporting nightmare
- ×Missing obscure deductions or garnishments
- ×Not verifying bank account numbers - payments go to wrong accounts
- ×Insufficient testing of tax calculations - penalties are severe
- ×Not having a rollback plan - leaves you stranded if issues occur
Best Practices
- Always start at beginning of quarter for clean tax reporting
- Run at least 2 parallel payrolls before going live
- Over-communicate with employees about changes
- Keep old payroll system active for 1 quarter after cutover
- Create detailed audit reports comparing old vs new
- Have your accountant review configuration before go-live
- Build in buffer time - process payroll 2 days early at first
- Document everything for compliance and audit purposes
Frequently Asked Questions About Gusto
Common questions about Gusto, including pricing, features, integrations, and who should use it.