Gusto Ratings At a Glance
As far as payroll software goes, Gusto is a solid contender. Gusto offers a good mix of features and has built a strong, positive reputation amongst HR professionals across industries.
Our experts gave Gusto Payroll an overall rating of 4.4 out of 5 stars based on the following:
What is Gusto?
Gusto is a full-service payroll and HR platform designed to grow with U.S.-based startups and small businesses.
All Gusto accounts come with your choice of automated or manual payroll for employees and contractors in all 50 U.S. states, employee or contractor self-service profiles, the option for two- or four-day direct deposit, employee onboarding and benefits administration.
Featured Partners
1
Rippling
Yes
Yes
$35/month plus $8 PEPM
2
OnPay
Yes
Yes
$40 per month + $6 per user
3
Paychex Flex
Yes
Yes
$39-plus per month, depending on company size and needs (6 month free offer)
4
Gusto
Yes
Yes
$40 per month plus $6 per user
How Gusto Works
To begin using the Gusto platform, you start by entering all the relevant company data, including tax information, benefits, bank account details and any third-party apps you want to integrate into the software.
Next, Gusto provides a brief questionnaire that will help you decide on which of its three plans is the best fit for your business needs. Once that step is complete, you’ll add employee information, such as pay rate, direct deposit details and any withholdings, into Gusto. This is the most tedious part of the setup process.
While the initial setup can be time-intensive, depending on the number of employees, once all the information is recorded, the software’s automations take over and help streamline the process. After that point, you’ll simply need to input employee hours weekly or biweekly and Gusto will run payroll.
What Sets Gusto Apart
Gusto has at least two standout features from its competitors, namely, the ability to pay a variety of employee types as well as tools to support their financial goals.
Domestic and International Contractor Payments
With the rise of the gig economy, companies often hire full-time W-2 employees as well as independent contractors both domestically and internationally. Gusto’s payroll has the flexibility to support the various pay rates and schedules for different types of workers in your organization.
Financial Wellness With Gusto Wallet App
Gusto’s Wallet app is a mobile app to keep track of payment history, hours worked and more. All plans include access to the Wallet app, though the level of functionality depends on the plan you choose. Using the Gusto Wallet app, full-time employees can:
- View a breakdown of each paycheck.
- Set up high-yield savings accounts to grow their earnings beyond their paychecks.
- Split up their paychecks among different accounts to help employees make progress toward savings goals.
- Set up to five personalized financial goals.
- Manage time off requests.
- Clock in and out and view hours worked (in Premium and Plus plans only).
We tried out the Gusto Wallet app on an Android smartphone to see what it’s like from an employee’s perspective. The interface is intuitive and split into four different sections: the home screen, time off, pay and the employee profile.
The home screen displays what appears to be news or to-do items such as “Your payday is today” and “Tax documents.”
In the pay tab, we didn’t see a financial goals tool, and when trying to set up the paycheck splitter, the “add bank account” button wasn’t responsive. However, under the paycheck splitter setting, we were able to see the option of depositing a dollar amount or percentage of a paycheck into any given account.
In the employee profile section, we could easily change personal information, but only the admin can change things such as job title and compensation.
Gusto Features
Gusto’s core features include payroll, benefits administration, time tracking, tax compliance, onboarding, analytics and reporting and employee self-service.
Payroll
Running employee payroll through Gusto is simple and flexible to your company’s needs. You can set a salary or hourly wage in an employee’s profile and set up payroll on autopilot to let Gusto run payroll for you automatically on the schedule you set.
We found the process of setting up a payroll schedule pretty easy. You simply choose a schedule—Gusto automatically suggests one for you—and confirm state tax details based on where employees are located.
When running payroll manually, Gusto takes you through three steps. First, you check hours and earnings for all employees. The next step prompts you to enter any paid time off that employees took during the pay period. This is also where you can approve or deny pending time-off requests. From there, Gusto lets you preview the payroll run in the third step before submitting payroll. Upon submitting, Gusto confirms that you’ve successfully submitted payroll.
For contractor payments, whether domestic or international, the pay rates and pay amounts don’t automatically populate as they do with W-2 workers, so it’s a bit more time-consuming, as you have to enter this information manually. Otherwise, it’s quite simple. Just click “submit,” and that’s it.
If you pay anyone by check, you have to manually print checks Gusto generates. It doesn’t have an option to automatically print and mail physical paychecks.
Tax Filing
Gusto takes care of calculating and filing payroll taxes for you and your employees, and it keeps a record of pay stubs accessible to employees through their online profiles. Employees also get an email each payday letting them know their money’s coming in.
Gusto files employee W-4s and contractor W-9s as part of their profile setup, and it creates and distributes W-2 and 1099 forms each January for tax returns. You can also elect to have Gusto automatically file a new hire report in an employee’s state when you hire them.
Recruiting and Onboarding
Gusto has its own native applicant tracking tool available to Gusto Plus and Premium customers, but if you choose the Simple plan, you can integrate an external ATS, such as JazzHR or Greenhouse.
Gusto helps get new employees onboarded quickly, whether they are working in person or remotely. Features including background checks and benefit enrollment are paired with cloud-based services such as e-signatures and state tax registration to create a streamlined onboarding experience.
It was easy to manually add an employee or independent contractor by entering their name, email address and other crucial information. The platform offers a checkbox option to invite the added employee or contractor to fill out the rest of the information themselves. Though this process was straightforward, entering several people manually could get tedious for companies with high hiring volume.
Gusto software incorporates plenty of personalization components as well, helping to acclimate new hires and integrate them into the team. From sending digital offer letters to setting birthday reminders, the platform allows you to connect with employees even from a distance.
It was very easy to create an offer letter template that you can reuse to save time. First, you give your template a name. We named our template after a specific title a company might hire for, such as “Sales Development Manager.” In the next step, you customize the offer letter with built-in fields that change according to the new employee’s name, compensation and other variables. Finally, you add the company signature to make it official.
When a new employee signs their offer letter, Gusto facilitates the rest of the onboarding process to ensure they get properly set up for their new job even before day one. It even provides the option to send a digital welcome card to help the new employee feel welcomed.
Benefits Administration
When navigating to the benefits part of Gusto’s platform, we like that it recommends benefits such as health, commuter, life insurance and retirement plans:
- Health benefits: Purchase group health, dental and vision insurance plans through Gusto, and administer benefits on the platform. Employees will be able to opt in or out of benefits through the platform, as well. You can also administer flexible spending accounts and health savings accounts.
- Wellness benefits: You have the option of adding custom benefits, such as housing or wellness stipends to your employees’ paychecks, and Gusto will automatically track and tax them accordingly.
- Commuter: Manage a commuter stipend or company car perks.
- Life insurance: Purchase employee life insurance plans through Gusto and administer benefits on the platform. Employees can opt in or out of the benefit through the platform.
- Retirement: Administer a variety of retirement plans, such as Traditional and Roth 401(k).
Gusto goes beyond the standard benefits that HR platforms offer with its college savings, financial wellness and charity matching benefits:
- College savings: Gusto partners with Gradvisor to administer a 529 college savings plan in which employees make post-tax contributions to build up savings for college tuition.
- Financial wellness: The Gusto Wallet app provides more than just a self-service portal for employees to view their pay stubs. Employees can also split up their paychecks into different accounts or cash cards and see how they spend each paycheck. Employees also have access to high-interest-yielding savings accounts.
- Charitable giving: Gusto helps employees automate charitable giving by deducting donations directly from their paychecks and donating to a chosen charity. Employers can choose to match any percentage of employee donations to make their contributions go further, and you can set per-employee match limits.
We tried adding a gym wellness benefit, and it was simple to set up in Gusto. We just had to give the benefit a name, enter how much the employee should contribute from each paycheck and how much you as the employer contribute to the benefit for each pay period. When adding employees to the benefit, though, we had to enter the deduction amounts each time, making it potentially time-consuming.
As the admin, you can see an overview of any active benefits your company offers. This overview shows the benefit’s terms and details as well as the number of eligible and enrolled employees.
However, we noticed when navigating to the benefits section of an employee’s profile or generating a benefits enrollment report, their benefits didn’t show up, but they do show up from the employee’s point of view when navigating to their profile.
Time Tools
The time tools module within Gusto contains time off management and time-tracking tools. In the time management section, Gusto suggests common time off policies including paid time off, sick leave and holiday paid leave. Otherwise, you can create your own time off policy. Whether you choose an existing policy or create a new one, Gusto guides you through the same step-by-step process that entails:
- Choosing the type of policy it is—paid time off, sick leave or holiday paid leave
- Giving the policy a name
- Selecting which employees the new policy should apply to
Your new policy then appears in the time off dashboard. We found time off policies easy to set up, and we like that Gusto suggests time off policies to include.
From the employee perspective, we were able to view accrued and used time off in the web browser version of Gusto. To initiate a time off request in the browser, you have to choose from 12 different time-off types, such as bereavement, sick leave, parental leave and other types before entering the dates requested and an optional memo. It was easier to request time off in the Gusto Wallet app, as we didn’t have to choose the time-off type first.
However, we weren’t able to see the time off requests on the admin side. The main dashboard displayed pending time off requests for review but clicking on that to-do item brought us to the main time off page in the platform. Time off management features might work better in the Plus or Premium plans.
Gusto’s Plus and Premium plans come with time tracking tools for payroll or project tracking, so employees and contractors can track their hours using the Gusto Wallet app. Their hours then sync up with payroll, making it easy to run payroll tied to an hourly rate. Though these features are available to Gusto Plus or Premium customers only, customers opting for Simple can integrate with several external time tracking tools such as Deputy, Homebase and QuickBooks Time.
Reporting
Gusto includes a reports library for the categories of time tracking, contractors, payroll and more. Otherwise, it’s easy to create your own report related to either employee information or payroll by selecting what variables to include.
Employee Self-Service
Gusto allows employees to access and manage their own information by offering individual profile accounts. Users can download the Gusto mobile app, or sign in from the web, to view payday data, edit tax details, see available PTO and even clock in and out right on their phone. In addition, the platform shares income insights and personal tax documents such as W-2s.
Testing Gusto out from the employee’s point of view, we were able to easily update our personal details, view and enroll in benefits and more.
Compliance
Gusto helps you stay compliant with local labor laws with its labor law poster store. You can print labor law posters to post for on-site employees or send e-notices to remote employees. The service keeps you updated and automatically alerts employees of any changes to the law to keep you compliant. It costs $10 per month for up to five employees, plus $1 per additional employee per month.
Gusto also has built-in ACA, COBRA, HIPAA and ERISA compliance for benefits administration.
Gusto Pricing and Plans
Gusto offers three plans for companies looking to manage payroll for both full-time employees and contractors.
- Simple: The Simple plan is ideal for startups and small businesses that operate in one state and just need to cover basic HR functions.
- Plus: Gusto’s Plus package is a great choice if your business hires in more than one U.S. state and needs more dedicated support to effectively manage HR.
- Premium: Gusto’s top tier offers the most support and automation to keep HR running efficiently for your small to midsized business (SMB).
For those looking to manage only contractors, Gusto has a Contractor plan that’s $6 per month per person.
No matter which plan you choose, you can always switch to a different Gusto plan or cancel any time if your business changes.
| Plan | Pricing | Features |
|---|---|---|
|
Simple
|
$40 per month + $6 per person paid
|
|
|
Plus
|
$60 per month + $9 per person paid
|
Everything in the Simple plan plus:
|
|
Premium
|
Custom based on your business size
|
Everything in the Plus plan plus:
|
For more information about Gusto’s pricing: Gusto Pricing Plans Guide
Additional Features Worth Noting
Gusto comes with a few more perks that make the platform versatile and attractive to companies—and employees—across industries.
Expense Management
Gusto enables HR teams to pay employees one-off, reimbursable expenses for things such as work-from-home stipends or travel expenses.
From the employee side, it’s very easy to initiate an expense reimbursement request. Employees can upload a receipt and add a memo, so it’s clear what the payment is for.
As the admin, you can see outstanding expense reimbursement requests on the dashboard. When clicking into the expenses module, you can approve or deny requests individually or in bulk to save time. Upon approval, the payment automatically gets disbursed to the employee in their next paycheck.
Admin can also make use of Gusto’s default expense categories or create their own. Default categories include “Car and Mileage,” “Meals and Entertainment” and many more.
Integrations
Gusto integrates simply with the most popular accounting software, including QuickBooks, FreshBooks and Xero, as well as with hundreds of other business apps and software you might already use for hour tracking, record-keeping, employee training or performance reviews.
In addition to smooth integration, your Gusto account could get you discounts on some popular apps. For example, at the time of this writing, it’s offering three months free to restaurant scheduling software 7shifts, 25% off Breezy HR plans and many more.
Additional Admins
You can give access to your company’s Gusto administration to an employee within your company or someone outside your company. So, anyone you hire for HR, accounting or bookkeeping can get the information they need without going through you.
Gusto Customer Service and Support
Gusto customers can contact customer support via chat, email or phone. Gusto’s phone support is only available Monday through Friday from 7 a.m. to 6 p.m. MT. Customers on the Premium plan get access to priority support, meaning they can skip the queue when they call, but there is no 24/7 phone support available.
Gusto Safety and Security
Gusto prides itself on its security features. Gusto’s tech teams regularly test its software to prevent problems and outages and it has an on-site security team ready to take action in case any issues arise.
Gusto uses industry-standard encryption to keep data secure, plus it monitors your account and will alert you when it suspects any fraudulent activity has taken place.
Gusto Alternatives and How They Compare
| Gusto | ADP Run | Paychex Flex | OnPay | |
|---|---|---|---|---|
|
Forbes Advisor Rating
|
 |
|
|
|
|
Starting Price
|
$40 per month plus $6 per user, per month
|
$59 per month plus per user rate plus fees for add-on features
|
$39 per month plus $5 per user, per month
|
$40 per month plus $6 rate per user, per month
|
|
U.S. Payroll
|
Yes
|
Yes
|
Yes
|
Yes
|
|
Global Payroll
|
Contractor only
|
Add-on or via integration
|
No
|
No
|
|
Onboarding
|
Yes
|
Yes
|
Yes
|
Yes
|
|
Tax Filing
|
Yes
|
Yes
|
Payroll tax included, W-2 and 1099 filing cost extra
|
Yes
|
|
Benefits Administration
|
Yes
|
Add-on
|
Add-on
|
Yes
|
|
Time Tracking
|
Yes
|
Add-on
|
Add-on
|
Via integration
|
|
Expense Management
|
Yes
|
Via integration
|
No
|
No
|
|
Workflow Automations
|
No
|
Yes
|
Yes
|
Yes
|
|
Mobile Apps
|
Limited to Wallet app, iOS and Android
|
iOS and Android
|
iOS and Android
|
iOS only
|
|
Reporting and Analytics
|
Yes
|
Yes
|
Pro plan only
|
Yes
|
|
Third-party Integrations
|
Yes
|
Yes
|
Yes
|
Yes
|
|
Error-free Guarantee
|
No
|
No
|
No
|
Yes
|
|
Customer Support
|
Phone, chat, email, service levels vary by plan
|
Phone
|
Phone, help ticket form
|
Phone, chat, email
|
|
Learn More
|
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Read Reviews
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Gusto vs. ADP RUN
ADP’s small business solution, RUN, caters to companies with fewer than 50 employees. Plans can be customized to fit your needs and come with features such as automatic tax filing and reports, easy employee payroll and available add-ons for marketing and legal assistance. ADP’s pricing structure is more complex than Gusto, and the additional costs can increase quickly, with extra fees for benefits administration and time tracking.
For a more detailed comparison, check out: Gusto vs. ADP
Gusto vs. Paychex Flex
Paychex Flex is made for small businesses that need a simple, easy-to-use payroll software solution that doesn’t include extra bells and whistles. The platform offers three customizable plans, integrations with accounting software and a self-service employee portal, so employees can view their pay stubs and tax forms. Being more bare-bones than Gusto means Paychex Flex charges extra for things such as W-2 and 1099 filing and time tracking.
See a more detailed comparison here: Gusto vs. Paychex
Gusto vs. OnPay
OnPay is an all-in-one payroll and HR solution that is designed specifically for small businesses. The platform differentiates itself by providing an error-free tax guarantee and robust benefits administration features. While OnPay does offer straightforward, comprehensive pricing, the plans are not customizable, so it won’t work for businesses that need more flexibility in choosing which features they want or need.
See how Gusto stacks up against other providers: 7 Top Gusto Competitors & Alternatives.
Featured Partners
1
Rippling
Yes
Yes
$35/month plus $8 PEPM
2
OnPay
Yes
Yes
$40 per month + $6 per user
3
Paychex Flex
Yes
Yes
$39-plus per month, depending on company size and needs (6 month free offer)
4
Gusto
Yes
Yes
$40 per month plus $6 per user
Our Expert Opinion
Gusto is a great choice for startups and small businesses that want to focus on automated, compliant payroll and build out from there to include solutions for benefits, time tracking and more.
Ease of Use
We tested Gusto’s Simple plan features using the Google Chrome browser on a Windows laptop and the Gusto Wallet app on an Android mobile device. Our ability to test the features was limited, as they required entering real bank account information and signing into external accounts.
Based on what we were able to play with in the platform, Gusto guides you through payroll and benefits management in a way that makes these processes less overwhelming. You can be sure you’re doing things in the right order without missing a step.
However, the downside we noticed is that payroll and adding new team members, in particular, require a lot of manual data entry upfront. In addition, customization of reporting, templates and dashboard is limited.
Is Gusto Right for Me?
Gusto is designed with dynamic startups and growing small businesses in mind. It was born out of a need in the market for payroll solutions that included businesses with heavy contractor-based workforces, and it’s still one of the best solutions around for that type of business.
Gusto Is Best For:
- Small businesses that employ a mix of full-time employees and independent contractors, whether domestically or abroad
- Small businesses that want the flexibility to choose plans and add-ons that match their current needs
Gusto Is Not Recommended For:
- Companies that hire W-2 employees outside of the U.S.
- Companies that need robust performance management and employee engagement tools
Payroll Solutions Tailored To Your Business Goals
Frequently Asked Questions (FAQs)
Which payroll software is best?
The best payroll software for your company depends on your business size and needs. Top payroll services for small businesses include ADP RUN, Paychex Flex and Gusto. Get the detailed breakdown of the best payroll software.
What is Gusto good for?
Gusto is a payroll and HR platform suited for startups and small businesses that employ a mix of employees and contractors and want to automate HR tasks as much as possible.
Is Gusto a reputable company?
Gusto is the brand name for the platform operated by the company ZenPayroll, Inc. It has an A+ rating with the Better Business Bureau (BBB), although neither Gusto nor ZenPayroll is accredited with the organization, which is a paid service. It launched as ZenPayroll in California in 2012 as part of the startup incubator Y Combinator, and it’s been available in all 50 states since 2015. It’s been backed by reputable investors valued at $9.5 billion as of August 2021.
Does Gusto have an app?
Gusto has an employee-facing mobile app called Gusto Wallet. Employees can use Gusto Wallet to manage their profiles, view pay information and insights and access Gusto’s other financial tools. The app is available on Android and Apple devices.
Does Gusto integrate with QuickBooks?
Gusto syncs payroll, taxes and wages data directly to QuickBooks to make accounting even easier.
Does Gusto have time tracking?
Yes, but only on the Plus and Premium plans. On those plans, both hourly and salaried nonexempt employees can track their hours. For additional options, check out the best time tracking software.
Does Gusto offer health insurance?
Gusto is not a health insurance company but can help you manage your employee health insurance benefits. You can offer the same health insurance you offer now with Gusto, or Gusto can act as your broker to find you new options.
Does Gusto offer workers’ compensation?
Gusto allows you to easily enroll in workers’ compensation insurance through its platform through an integration with NEXT Insurance. For more options, browse our roundup of best workers’ compensation insurance providers.
