Gusto is a payroll service designed to help small and medium-sized businesses manage employee payments and HR tasks all in one platform. It offers automated payroll processing, tax calculations, and compliance support.
Its user-friendly interface and integration with popular business tools make it a reliable choice for managing payroll efficiently.
Beyond payroll, Gusto provides helpful features like benefits management and employee self-service through a dedicated app. It also offers HR tools that simplify hiring and compliance.
These additional options make it more than just a payroll system. Gusto appeals to businesses looking to streamline multiple tasks in one place.
It’s a good option for businesses that want simple, all-in-one software with solid support and easy setup. This review will cover how Gusto works, its main features, pricing, and whether it fits a business needing payroll and HR solutions.
Key Takeways
- Gusto simplifies payroll with automation and tax compliance support.
- It offers integrated HR and benefits management tools.
- The platform is easy to use and connects with common business software.
Key Features of Gusto Payroll
Gusto Payroll offers several features designed to simplify payroll management for businesses of all sizes. It handles payroll runs efficiently and manages tax filings automatically.
Employees have easy self-service options, and both employers and workers have mobile access. These features help ensure accuracy, compliance, and convenience in payroll operations.
Unlimited Payroll Runs
Gusto allows businesses to process unlimited payroll runs each month without extra charges. This means companies can pay employees as often as needed, whether weekly, biweekly, or on a custom schedule.
This flexibility supports different employee types, including salaried, hourly, and contractors. Each payroll run includes automatic calculations for wages, deductions, and benefits.
Employers receive accurate pay stubs that employees can access digitally. Gusto also offers next-day direct deposit, helping employees get paid faster when payroll is submitted on time.
This reduces delays and keeps payroll on schedule every cycle.
Automatic Tax Filing
One key feature of Gusto Payroll is automatic tax filing. Gusto calculates and submits federal, state, and local payroll taxes on behalf of the employer.
This includes income tax withholdings, Social Security, Medicare, and unemployment taxes. The software tracks all deadlines and files taxes on time to help businesses avoid penalties.
It also generates necessary tax forms such as W-2s and 1099s for employees and contractors. This automation reduces administrative work and ensures payroll tax compliance without manual input.
Employee Self-Service Tools
Gusto provides employees with a self-service portal called the Gusto Wallet. Through this tool, workers can view pay stubs, year-end tax documents, and benefits information anytime.
This reduces questions sent to HR or payroll staff and gives employees direct access to important documents. The portal also supports onboarding documents and e-signatures, streamlining hiring processes.
Compliance alerts help keep the team updated on changes that affect payroll or benefits. The employee self-service tools improve transparency and ease of use.
Mobile App Capabilities
Gusto’s mobile app extends payroll and HR functions to smartphones and tablets. Employers can run payroll, review employee information, and approve payments from anywhere.
Employees use the app to check pay stubs, tax forms, and benefits details. This on-the-go access improves user experience by allowing quick payroll management outside the office.
The app integrates the Gusto Wallet, making it simple for employees to manage their own payroll data securely. Mobile capabilities support remote work and modern business needs effectively.
Payroll Processing and Compliance
Gusto streamlines payroll processing by automating key tasks like tax calculations, filings, and deductions. It also offers tools to handle complex situations like multi-state payroll.
The platform integrates smoothly with popular accounting software. Compliance support is built in, helping businesses avoid costly mistakes.
Payroll Setup and Workflow
Gusto makes payroll setup straightforward by guiding users through employee information input, wage settings, and tax details. It automates paycheck creation and payroll runs, minimizing manual entries.
The workflow includes direct deposit, pay stub distribution, and payroll deductions for taxes and benefits. Its digital onboarding feature allows new hires to complete tax forms and personal data online.
Gusto also offers compliance alerts to help businesses stay up-to-date with changing payroll laws. Payroll can be run on a schedule or on demand, providing flexibility for different business needs.
Payroll Tax Calculations and Filing
Gusto automatically calculates federal, state, and local payroll taxes based on employee information and wages. It handles payroll tax withholdings, contributions, and deductions without user intervention.
Additionally, it generates and files tax forms like W-2s, 1099s, and quarterly tax reports. The platform manages state tax registration if a business expands to new states.
Users receive alerts for upcoming tax deadlines and any tax filing errors. This reduces the risk of penalties and ensures payroll tax compliance is maintained with minimal effort.
Multi-State and Global Payroll
Gusto supports multi-state payroll, allowing businesses to pay employees across different states while handling varied state tax rules and registrations automatically. It manages differing state tax rates and regulations for employees working remotely or relocating.
For businesses working with international contractors, Gusto facilitates global contractor payments, simplifying cross-border transactions. However, it currently focuses mostly on U.S.-based payroll compliance and may require additional services for fully global payroll processing.
Payroll Integrations
Gusto integrates with major accounting software such as QuickBooks, Xero, FreshBooks, and OnPay to streamline bookkeeping. These connections automatically sync payroll data with general ledgers, saving time and reducing errors.
In addition to accounting tools, Gusto connects with HR systems and time-tracking software. This integration helps keep payroll data accurate and up-to-date while supporting compliance with labor rules.
The software’s open API allows custom integrations to fit specific business needs.
Plans, Pricing, and Value
Gusto offers a range of plans designed to meet different business needs. Pricing varies by plan and the number of employees.
Options include payroll, benefits, and HR tools. Costs can increase with add-ons and specific services.
Simple, Plus, and Premium Plans
Gusto's main payroll service is divided into three plans: Simple, Plus, and Premium. The Simple Plan covers basic payroll and benefits administration and is suitable for small businesses with straightforward needs.
The Plus Plan adds extras like time tracking and employee directory features, helping midsize businesses manage HR more efficiently. The Premium Plan includes advanced HR tools, such as dedicated customer support and compliance assistance.
Each plan charges a base monthly fee plus a per-employee fee. Pricing is mid-range compared to competitors, balancing cost with a strong feature set.
All plans include unlimited payroll runs.
Contractor Only Option
Gusto offers a specific plan targeted at businesses that only employ contractors. This Contractor-Only Plan provides a cost-effective solution that covers payments and tax filings without the added HR and benefits tools found in other plans.
It fits businesses that don’t have full-time employees or want to keep payroll simple for gig workers. This plan allows unlimited contractor payments for a flat fee per contractor each month.
It is often cheaper than the standard plans and is designed for ease, focusing on essential payroll functions without extras.
Hidden Fees and Cost Considerations
While Gusto publishes clear pricing for its base plans, additional costs can arise. Optional benefits like health insurance or 401(k) plans involve extra fees.
Some services, including workers’ compensation or premium HR support, may also add to the total monthly cost. Gusto does not currently offer a traditional free trial for its payroll plans, so some users may rely on promotional discounts.
Businesses should review all potential add-ons carefully to avoid surprises and ensure the total cost matches their budget and needs.
HR Tools and Employee Management
Gusto offers a range of human resource tools designed to simplify employee management. It helps businesses handle hiring, onboarding, tracking applicants, and monitoring employee performance.
These features reduce manual work and keep processes organized and compliant.
Onboarding and Hiring
Gusto streamlines onboarding with digital checklists and e-signature tools. New hires can complete important forms online before their first day, such as tax documents and direct deposit details.
This automation helps reduce errors and saves time for HR teams. The platform also provides onboarding checklists that help managers track tasks like equipment setup and training schedules.
These tools ensure no steps are missed during the onboarding process. For hiring, Gusto supports internal task management but does not deeply specialize in complex hiring workflows.
However, it integrates well with payroll and benefits, keeping employee information consistent across systems.
Performance Management
Gusto includes basic performance management features. Managers can set goals and track progress for individual employees directly within the system.
The platform allows for scheduled performance reviews, helping businesses maintain regular feedback cycles. While it lacks advanced talent management capabilities, Gusto’s tools are enough for small to medium businesses that want to keep performance discussions organized without extra software.
It also stores review documents and notes for easy reference.
Applicant Tracking and Job Posting
Gusto provides simple applicant tracking for small businesses. It allows employers to post jobs on major platforms and track candidate status through an easy-to-use dashboard.
The system centralizes resumes and communication, which helps hiring managers avoid lost information. However, it doesn’t offer advanced recruitment analytics or deep customization that some dedicated applicant tracking systems provide.
Its job posting feature includes basic templates and scheduling options. The simplicity fits companies with straightforward hiring needs, especially those already using Gusto for payroll and benefits.
Time Tracking and Scheduling
Gusto offers tools to help businesses track employee hours, manage work schedules, and handle paid time off (PTO). These features support payroll accuracy and simplify managing employee time data.
Users can track hours worked, organize shifts, and process time-off requests efficiently.
Time Tracking Integration
Gusto’s time tracking allows employees to clock in and out through its mobile app or web interface. It records hours worked and supports logging time off.
This add-on costs $6 per employee each month on the basic plan. Businesses can also import hours from spreadsheets using Gusto’s CSV template, which helps when tracking outside the system.
However, some advanced time tracking features like geolocation or biometric clock-ins are not included. Time tracking data integrates seamlessly with payroll, reducing manual entry.
This streamlines wage calculations and helps avoid payroll errors due to missed hours.
Scheduling and PTO Management
Scheduling is available but limited in the base plans. It requires an extra fee and mostly suits small to mid-sized businesses looking to organize shifts.
Gusto supports PTO management by letting employees submit time-off requests directly within the app. Managers can approve or deny requests and track PTO balances.
This feature connects with payroll to ensure accurate deductions or accruals. The scheduling tools and PTO system help reduce time spent on manual calendar updates and PTO tracking.
However, businesses requiring complex scheduling might need third-party software integrations.
Timesheets and Time Kiosk
Gusto’s timesheets consolidate tracked hours for easier review before payroll runs. They can be edited or imported from external sources if needed.
The Time Kiosk feature lets multiple employees clock in or out from the same device, such as a tablet at a job site. This is helpful for teams working in the same location.
These features assist in maintaining accurate records without excessive paperwork. Timesheets can be exported, and combined time data flows directly into payroll calculations.
Benefits Administration
Gusto offers a centralized platform that helps businesses manage a range of employee benefits efficiently. It supports health insurance, retirement plans, and other perks.
All benefits are integrated with payroll and compliance features to reduce administrative work.
Health Insurance and Broker Integration
Gusto provides health insurance administration that includes managing employee enrollment, billing, and compliance requirements. It works with a network of health insurance brokers, enabling businesses to access competitive plans tailored to their needs.
The platform supports broker integration, allowing brokers to directly manage client health plans within Gusto. This feature simplifies plan selection and administration.
Employees can enroll in health insurance, health savings accounts (HSAs), and flexible spending accounts (FSAs) through an easy-to-use online portal. Gusto also handles government compliance and tax reporting for health insurance.
This reduces errors and ensures that businesses meet federal and state rules. Employee premiums and employer contributions are calculated and deducted automatically through payroll.
Retirement and Financial Benefits
Gusto includes management tools for 401(k) plans and other financial benefits. It simplifies plan setup, employee enrollment, and contribution tracking.
The platform integrates contributions seamlessly with payroll to ensure accuracy. The system supports employer matching and automatic enrollment features.
This encourages participation and helps businesses create attractive retirement packages. Beyond retirement, Gusto offers life and disability insurance options to protect employees.
These benefits are managed within the same platform. Administrators save time by handling all financial benefits in one place.
Commuter and Wellness Benefits
Gusto supports programs like commuter benefits, which help employees pay for transit, parking, or bike-sharing through pre-tax payroll deductions. Administering these benefits through Gusto is straightforward, reducing paper and manual tracking.
The platform also facilitates wellness benefits such as employee assistance programs and other perks that promote health and work-life balance. These benefits can be convenient add-ons that improve employee satisfaction without complex administration.
Customer Support and User Experience
Gusto offers a range of support options designed to help users navigate the platform efficiently. The user experience is built to be intuitive, making payroll and HR tasks straightforward.
Support teams assist when more help is needed. Gusto provides multiple ways to access customer support, including email, phone, and live chat.
These channels cover standard business hours, with priority support available for users on higher-tier plans. Priority support ensures faster response times and access to more experienced customer success managers.
Support staff are US-based and trained to address technical issues, payroll questions, and compliance concerns. This focus aims to reduce wait times and resolve problems quickly.
Users with complex needs benefit from dedicated help. Customer feedback shows that most users find Gusto’s customer service reliable and helpful.
Many highlight positive interactions with support teams, especially during setup and when handling payroll complexities. Reviewers frequently mention the friendly and knowledgeable nature of the support staff.
Some users, however, report occasional delays during busy periods. The platform's easy interface contributes to fewer user errors, further reducing the need for extensive support.
Setup Assistance and Resources
Gusto offers strong setup support to get users started quickly. New customers often receive guidance from the US-based sales and support teams during the onboarding phase.
This includes help with employee data entry, tax setup, and compliance forms. The platform also offers self-help resources such as detailed guides, videos, and FAQs.
These materials simplify learning and enable managers to handle many HR tasks independently.