Gusto has been recognized as the number one payroll company on G2 for Fall 2025, solidifying its position as a leading HR and payroll solution for small to medium-sized businesses. With over 400,000 businesses using the platform, Gusto has become synonymous with streamlined payroll processing and comprehensive HR management.
The platform stands out in a crowded market by offering an all-in-one solution that handles everything from employee payments to benefits administration. For businesses tired of juggling multiple systems, Gusto provides a unified dashboard that simplifies complex administrative tasks.
What Is Gusto?
Gusto is a cloud-based HR and payroll platform designed specifically for small to medium-sized businesses. Unlike traditional payroll providers that focus solely on cutting checks, Gusto integrates payroll with comprehensive HR tools, benefits administration, and compliance support.
The platform serves companies ranging from solopreneurs to businesses with hundreds of employees. Whether you're managing W-2 employees, 1099 contractors, or both, Gusto provides the infrastructure to pay your team accurately and on time.
Core Features That Set Gusto Apart
Automated Payroll Processing
The platform automates payroll processing with automatic calculations, direct deposits, and end-to-end tax filing. This automation reduces manual workload significantly and ensures compliance with federal and state regulations.
Key payroll capabilities include:
- Unlimited payroll runs per month at no extra charge
- Automatic tax calculations and withholdings
- Direct deposit payments to employees
- Same-day and instant pay options for faster payments
- Off-cycle payroll support without additional fees
Gusto allows you to make changes to payroll even after it's submitted, a flexibility that many competitors don't offer. This feature proves invaluable when last-minute adjustments are necessary.
Comprehensive Tax Management
One of Gusto's strongest selling points is its tax handling capabilities. The platform doesn't just calculate your taxes, it files them with the right government agencies every time you run payroll.
Tax features include:
- Automatic federal, state, and local tax filing
- W-2 and 1099 form generation and filing
- State tax registration assistance in all 50 states
- Continuous monitoring of tax law changes
- Year-end tax document preparation
The platform assumes full responsibility for tax compliance, significantly reducing the risk of penalties and missed deadlines that often plague small business owners.
Employee Benefits Administration
Gusto simplifies benefits management by offering integrated access to health insurance, 401(k) plans, and commuter benefits, all managed within the same platform.
Available benefits include:
- Health insurance (medical, dental, vision)
- 401(k) retirement plans with seamless payroll integration
- Workers' compensation insurance
- Life and disability insurance
- Health Savings Accounts (HSAs)
- Flexible Spending Accounts (FSAs)
- Commuter benefits for transportation costs
Because Gusto acts as a benefits broker, the administration comes at no extra cost for health insurance, though premiums and some add-on features require additional fees.
Time Tracking and Attendance
Gusto offers built-in time tracking so your employees can clock in and out seamlessly, integrating directly with your timesheets.
Time tracking features:
- Geolocation tracking for compliance
- Automatic syncing with payroll calculations
- PTO (paid time off) tracking and management
- Holiday scheduling
- Lunch and break monitoring
- Project-based time tracking
This integration eliminates double data entry and ensures that employee hours are accurately reflected in their paychecks.
HR Tools and Employee Onboarding
The platform provides essential HR functionality that extends beyond payroll processing.
HR capabilities include:
- Digital onboarding checklists
- Employee self-service portal
- Document storage and management
- I-9 and W-2 electronic filing
- Offer letter templates
- Background check integration through Checkr
- Performance review tools (in higher-tier plans)
New team members can use an intuitive employee self-service portal to enter their payroll details so they're ready to hit the ground running on day one.
AI Assistant - Gus
Gusto's artificial intelligence assistant, Gus, can chat with you, answer HR questions, view support articles and receive company-specific information. Gus can even perform tasks like pulling data reports and approving time off requests, saving administrators valuable time.
Pricing Structure: What You'll Actually Pay
Simple Plan - $49/Month + $6 Per Person
The Simple Plan is priced at $49 per month plus $6 per person and is tailored for new businesses and startups with employees in a single state.
What's included:
- Full-service payroll processing
- Employee self-service portal
- Basic hiring and onboarding tools
- Health insurance administration
- Automatic tax filing
- Basic support
Limitations:
- Single-state payroll only
- No built-in time tracking (available as add-on)
- Basic reporting capabilities
- Standard support response times
Plus Plan - $80/Month + $12 Per Person
The Plus Plan introduces time tracking and HR tools to support more complex payroll needs and enables businesses to manage payroll efficiently across multiple states.
What's included:
- Everything in Simple plan
- Multi-state payroll support
- Built-in time tracking with geolocation
- Next-day direct deposit
- Project tracking
- Team scheduling
- Expense reimbursement tools
- Custom admin permissions
- Advanced reporting
Key advantage:
This plan makes sense for growing businesses expanding beyond a single state or those needing robust time tracking without paying for add-ons.
Premium Plan - $135/Month + $16.50 Per Person (Starting Price)
Gusto's Premium Plan targets businesses with complex payroll requirements and provides dedicated support.
What's included:
- Everything in Plus plan
- Dedicated account manager
- Priority customer support
- Access to certified HR experts
- HR Resource Center
- Federal and state compliance alerts
- Performance review tools
- Employee surveys and engagement features
- Advanced analytics
Best for:
Companies with 50+ employees, multiple locations, or complex HR needs requiring expert guidance.
Contractor-Only Plan - $35/Month + $6 Per Contractor
This plan serves businesses that exclusively work with independent contractors and don't have W-2 employees.
Features include:
- Contractor payments
- 1099 form filing
- Payments to contractors in 120+ countries
- Basic support
Promotional offer:
The plan is free for the first 6 months, then switches to a $35/month base fee plus $6 per contractor.
Add-On Costs to Consider
While Gusto's base plans are competitively priced, several features come at additional cost:
- Time tracking (Simple plan only): $6 per employee per month
- Performance management module: $3 per employee per month
- Priority support: $30 per month + $3 per person
- HR resources access: $50 per month + $5 per person
- Health insurance broker integration: $6 per employee per month
- Workers' compensation: Variable pricing based on industry
- 401(k) plan administration: Integration fees apply
- HSAs and FSAs: Service fees vary
- Global contractor payments: Included, but EOR services cost more
Gusto Global's Employer of Record services cost $599 per employee per month through December 31, 2025, increasing to $699 after that date.
Integration Capabilities
Gusto connects effortlessly with popular accounting software, applicant tracking systems, benefits providers, time-tracking tools and other key platforms.
Major integrations include:
- Accounting: QuickBooks, Xero, FreshBooks, Sage
- Time tracking: Homebase, TSheets, Deputy
- Project management: Asana, Trello, Monday.com
- Expense management: Expensify, Receipt Bank
- Applicant tracking: Lever, Greenhouse
- Communication: Slack, Microsoft Teams
These integrations reduce double entry, improve data accuracy, and allow businesses to manage their workforce from a single platform without disrupting existing workflows.
User Experience and Interface
The cloud-hosted service doesn't require you to install or maintain any special software and you can access the system from any web browser, smartphone or tablet.
Dashboard highlights:
- Clean, intuitive design with minimal learning curve
- Important to-do items prominently displayed
- Upcoming payroll run dates clearly marked
- Compliance obligations and reminders
- Time-off requests requiring approval
- Quick access to employee records
Gusto's clean, well-organized dashboard makes it easy for finance teams to onboard quickly and navigate payroll, benefits, and HR functions with minimal training.
The mobile app (GustoWallet) allows employees to access pay stubs, tax forms, benefits information, and request time off from their smartphones.
Compliance and Security
Gusto takes compliance seriously, providing businesses with tools to stay on the right side of employment laws.
Compliance features:
- Automatic new hire reporting to state agencies
- Labor law posters and updates
- COBRA administration support
- ACA (Affordable Care Act) compliance tracking
- Multi-state payroll tax registration
- Real-time compliance alerts
Security measures:
- SOC 2 certification
- Data encryption in transit and at rest
- Regular security audits
- Two-factor authentication
- Role-based access controls
- Automatic data backups
Strengths: What Gusto Does Best
Exceptional User-Friendliness
The platform consistently receives praise for its intuitive design. Even users without payroll or HR experience can navigate the system confidently after minimal orientation.
All-in-One Solution
Rather than piecing together separate systems for payroll, benefits, HR, and time tracking, Gusto provides a unified platform. This consolidation saves time and reduces errors from manual data transfers.
Transparent Pricing
Unlike many competitors that require custom quotes and hide fees, Gusto publishes its pricing structure openly. Businesses know exactly what they'll pay based on employee count and plan selection.
Excellent for Small Businesses
Small and midsize businesses, particularly those with 2-50 employees, make up Gusto's core user base. The platform scales well as companies grow without requiring a complete system overhaul.
Strong Tax Compliance
The automatic tax filing and calculation features eliminate one of the most stressful aspects of running payroll. Gusto's guarantee of accurate tax filing provides peace of mind.
No Long-Term Contracts
Gusto doesn't lock customers into lengthy commitments. Businesses can cancel or change plans as needed without penalty.
Weaknesses: Where Gusto Falls Short
Customer Support Inconsistencies
A large portion of negative Gusto reviews focus on customer service quality, with some online commenters saying response times can drag on or be unpredictable.
During peak payroll periods, getting timely support can be challenging. This becomes particularly problematic when dealing with time-sensitive payroll issues.
Limited Health Insurance Availability
Health insurance coverage is only available in 38 states and Washington, D.C., leaving businesses in some states without this benefit option.
Add-On Costs Accumulate Quickly
Opting for all of Gusto's add-on features can increase your monthly per-employee cost quickly. What starts as an affordable base plan can become expensive once priority support, additional HR resources, and performance management tools are added.
Performance Management Features Lag
Gusto has fewer performance management features than other human resources solutions. Companies seeking robust employee development and performance tracking tools may find Gusto's offerings insufficient.
Mobile App Issues
Many negative reviews about Gusto's mobile app come from employees who say they have issues doing simple tasks, like signing in and clocking in and out, with most problems having to do with long loading times.
Learning Curve for Advanced Features
Additional features may require more time for users to master, especially for those transitioning from the Simple Plan.
Who Should Choose Gusto?
Ideal Use Cases
Startups and small businesses (2-50 employees): Gusto's pricing and feature set align perfectly with small business needs. The Simple plan provides everything necessary to run compliant payroll without overwhelming new business owners.
Service-based businesses: Companies in consulting, marketing agencies, law firms, and professional services benefit from Gusto's straightforward approach to payroll and benefits.
Multi-state employers: The Plus and Premium plans handle the complexity of multi-state payroll compliance seamlessly, eliminating the need for separate state registrations and tax filings.
Businesses wanting HR integration: As the best payroll software for HR integration, Gusto offers built-in tools for human resources that handle employee payroll and benefits administration from a single interface.
Companies with contractors: The platform handles both W-2 employees and 1099 contractors equally well, making it suitable for businesses with mixed workforce models.
When Gusto Might Not Be the Best Fit
Large enterprises (100+ employees): While Gusto can scale, very large companies with complex organizational structures might find enterprise-focused solutions like ADP or Paychex more suitable.
Businesses requiring advanced performance management: Companies prioritizing employee development tools, comprehensive performance reviews, and detailed succession planning should consider HR-focused platforms.
International businesses with extensive global needs: While Gusto Global exists, the steep pricing for international employees makes alternatives like Deel or Remote more cost-effective for globally distributed teams.
Companies in states without health insurance coverage: If health insurance administration through Gusto is a priority, verify coverage availability in your state first.
Comparison With Competitors
Gusto vs. QuickBooks Payroll
QuickBooks Payroll integrates more deeply with QuickBooks accounting software but lacks Gusto's comprehensive HR features. Gusto offers better benefits administration and onboarding tools, while QuickBooks provides faster same-day direct deposit options.
Gusto vs. ADP
ADP serves larger enterprises better with more scalable solutions and international capabilities. However, Gusto beats ADP on user-friendliness, transparency in pricing, and overall value for small businesses.
Gusto vs. Paychex
Paychex offers similar features but often at higher price points with less transparent pricing. Gusto's interface is generally considered more modern and easier to navigate.
Gusto vs. Rippling
Rippling provides more extensive IT management features, including device management and app provisioning. Gusto focuses more narrowly on payroll and HR but offers better value for businesses not needing those additional capabilities.
Real User Feedback
Gusto stands out with a 4.6/5 overall rating from over 4,000 users, earning praise for its direct deposit functionality, payroll reporting, and automated tax filing.
Common positive feedback themes include:
- Significant time savings on payroll processing
- Reduced stress around tax compliance
- Helpful employee self-service features
- Smooth onboarding experiences
- Reliable direct deposit functionality
Common complaints center on:
- Inconsistent customer support quality
- Mobile app performance issues
- Surprise costs from add-on features
- Limited customization options for complex organizational structures
Implementation and Getting Started
Setting up Gusto is relatively straightforward compared to enterprise payroll systems.
Typical timeline:
- Day 1: Create account, select plan, enter company details
- Days 2-3: Add employee information, set up tax accounts
- Days 4-5: Configure benefits, time tracking, and integrations
- Week 2: Run first payroll with Gusto support
The platform can be implemented in less than a week, and an interactive demo lets you test the software before signing up.
For businesses with 10+ employees, Gusto's dedicated team will import all data securely, reducing setup burden on the business owner.
Customer Support Options
Support varies by plan:
Simple Plan:
- Email support
- Help center articles
- Community forums
- Chat support during business hours
Plus Plan:
- All Simple plan support
- Priority support available as add-on
- Faster response times with priority add-on
Premium Plan:
- Dedicated account manager
- Priority phone and chat support
- Access to certified HR professionals
- Proactive compliance guidance
- HR Resource Center access
Recent Updates and Future Direction
Recent Gusto enhancements include:
- Introduction of Gus AI assistant for automated support
- Expanded state coverage for health insurance
- Enhanced mobile app functionality (ongoing improvements)
- Improved reporting and analytics capabilities
- Streamlined global contractor payment options
Starting October 15, 2025, Gusto discontinued the priority support and HR resources bundle for Plus plan users, offering them as separate add-ons instead.
Final Verdict: Is Gusto Worth It?
Gusto excels as an all-in-one payroll and HR solution for small to medium-sized businesses. Its combination of user-friendly design, comprehensive features, and transparent pricing makes it a strong contender in the payroll software market.
Choose Gusto if you:
- Run a small to medium-sized business (2-100 employees)
- Want to consolidate payroll, benefits, and HR in one platform
- Value ease of use over extensive customization
- Need reliable tax filing and compliance support
- Prefer transparent, predictable pricing
- Work with both employees and contractors
Consider alternatives if you:
- Operate a large enterprise with complex needs
- Require extensive performance management tools
- Need robust international hiring capabilities at scale
- Prioritize immediate customer support responses
- Operate in a state without Gusto health insurance coverage
For most small businesses, particularly those feeling overwhelmed by payroll and HR administration, Gusto delivers exceptional value. The software helps finance professionals maintain payroll accuracy, minimize manual input, and speed up the month-end close.
The platform's ability to handle payroll, taxes, benefits, and basic HR functions from a single dashboard eliminates the need for multiple vendors and reduces administrative burden significantly. While not perfect—particularly regarding customer support consistency and add-on costs—Gusto remains one of the best choices for businesses seeking a comprehensive, user-friendly payroll and HR solution.
Bottom Line: Gusto offers small to medium-sized businesses a powerful, intuitive platform that simplifies payroll and HR management. With competitive pricing, strong tax compliance, and excellent integration capabilities, it's a smart investment for growing companies that want to focus on their business rather than administrative tasks. Just be mindful of add-on costs and customer support limitations when making your decision.
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