Gusto Review 2024: Best Payroll Software?

Gusto is one of the leading payroll software providers, but is it still the best choice today?

When Gusto first launched in 2011, it quickly gained traction as a simple, easy-to-use solution for small businesses struggling with the tedious tasks of payroll processing, tax filings, and compliance. 

However, the payroll and human resources software market has grown tremendously in the past decade, with new competitors offering innovative features and competitive pricing.

As Gusto approaches its second decade, business owners may ask: Is Gusto’s simple, no-nonsense approach still worth it, or have newer options surpassed it by delivering more advanced functionality? 

In this comprehensive Gusto Review, we will take an in-depth look under the hood to evaluate Gusto’s latest offerings and compare them directly to top alternatives on the market.

We help you determine if Gusto is still the leading payroll software and the right choice for you!

Gusto Pros & Cons

When considering a payroll solution, it’s essential to weigh Gusto’s pros and cons against your specific needs and preferences to make the right decision.

Gusto Pros

• Streamlines payroll processes: Gusto automates complex payroll calculations, tax filings, and compliance adherence, saving you valuable time and minimizing the risk of errors.
• Prioritizes employee experience: Employees will appreciate Gusto’s intuitive self-service portal for accessing pay information, updating personal details, and enrolling in benefits.
• Provides valuable add-ons: Gusto’s suite of integrated tools, including time tracking, HR support, and financial wellness resources, offers additional support for managing your business.

Gusto Cons

• Cost may scale unfavorably: Pricing is tied to the size of your team. For larger businesses, Gusto might become less cost-effective compared to some alternatives.
• Ideal for straightforward payroll: Businesses with highly complex payroll requirements, such as extensive international operations, might find more specialized platforms better equipped to handle their needs.
• Potential for limited support: Depending on your plan, you may not have access to immediate customer support. Consider response times if this is a critical factor for your business.

Quick Verdict – Is Gusto Worth the Money?

Gusto is worth it, especially for small and growing businesses!

What sets Gusto apart is its ability to simplify the entire payroll process. From personal experience, the difference is night and day. You’re not just buying software; you’re reclaiming time.

Time previously spent on tedious, mundane payroll tasks can now be devoted to areas of your business that need your attention more. Plus, the employee self-service portal is a game-changer, reducing questions for HR and empowering your team to manage their own details.

Now, you may be thinking, “All these features must come at a steep price.” Here’s the surprise—Gusto offers competitive pricing plans that fit a range of budgets. Considering the time you save and the simplicity of compliance, Gusto isn’t just an expense; it’s worth the investment in streamlining your business operations.

Customer support response times may be longer on the entry-level plan. However, Gusto’s intuitive design minimizes the need for frequent support help.

If you need a reliable and scalable payroll solution for your business that prioritizes both employer and employee experience, get Gusto today!

Who is Gusto for?

You’ll love Gusto if:

• You’re a small business owner drowning in paperwork. If you’ve been manually handling payroll and feeling swamped, Gusto automates these processes, freeing up your time to focus on growing your business.
• You value employee autonomy and satisfaction. With Gusto, your team can access their pay stubs and tax documents and even adjust their withholdings through an intuitive self-service portal. This transparency and control can significantly boost team morale.
• You’re concerned about staying compliant with taxes but aren’t a tax expert. Gusto calculates and makes filing payroll taxes easy. It automatically tracks changing tax laws to help keep your business compliant without you needing to become a tax code scholar.

You won’t love Gusto if:

• You have a minimal budget. While Gusto’s value justifies the cost for most, some budget-focused payroll solutions are on the market.
• You have incredibly specialized payroll needs. Businesses with a significant international workforce or highly complex pay structures might benefit from tailored enterprise-level solutions.
• You require immediate 24/7 customer support. Response times on Gusto’s more basic plans may not always be instantaneous.

What is Gusto?

Gusto is a cloud-based payroll solution tailored for small to medium-sized businesses seeking a streamlined way to manage payroll, benefits, and HR tasks. It’s designed to take the headache from payroll processing and tax compliance with automated tools and features that make life easier for business owners and their teams.

What is the key benefit of having Gusto?

Gusto saves you time and ensures peace of mind.  It automates all the tedious and complex aspects of payroll – tax calculations, deductions, and filings – while offering a user-friendly experience for you and your employees.

How does Gusto work?

• Seamless payroll management: Enter your team’s hours, and Gusto handles the rest, including deductions, taxes, and direct deposits.
• Simplified benefits administration: Offer health insurance, retirement savings, and other benefits directly within the platform.
• HR support: Gusto provides helpful tools for hiring, onboarding, and managing employee data.

How is it different from competitors?

While there are many payroll services, Gusto stands out for its focus on user experience and customer support. Unlike some competitors that might offer complex systems requiring extensive training, Gusto prides itself on being intuitive and easy to use, even for those without a background in finance or HR.

Moreover, Gusto offers personalized customer service and a wealth of resources aimed specifically at helping small businesses grow. This combination of simplicity, effectiveness, and dedicated support sets Gusto apart in a crowded market.

Reasons I Recommend Gusto to Everyone

#1) Manage Payroll with Ease

Gusto transforms payroll from a headache into a simple, automated task. It calculates everything flawlessly.

I don’t have to worry about ever messing up a paycheck or forgetting a tax filing deadline. I used to spend hours every pay period crunching numbers – now it’s done in a few clicks, and I have confidence that everything’s accurate.

#2) Employee Empowerment

Gusto isn’t just about making my life easier; it simplifies things for my employees. They have their own dashboard where they can access their pay stubs, adjust deductions, or enroll in benefits.

This reduces the number of questions I have to field, saving time for everyone, and my team feels more in control of their information.

#3) Support When You Need It

Even with Gusto’s intuitive design, there have been a few times when I needed a little help. Their support team is both friendly and knowledgeable.

They answer quickly; I’ve never had a problem they couldn’t resolve. This level of service offers incredible peace of mind, especially during hectic times like the end of the tax year.

What You Might Not Like About Gusto

#1) Scalability of Pricing

Gusto’s per-employee pricing model ensures a fair cost for smaller businesses. However, larger enterprises should carefully project future expense management. Sometimes, platforms with flat-rate pricing structures might offer more long-term cost predictability.

#2) Potential Limitations for Specialized Needs

Gusto excels at streamlining standard payroll processes and HR tasks. Businesses with highly complex payroll situations, such as those involving extensive international operations or very niche industry requirements, should carefully evaluate whether Gusto’s feature set fully accommodates their specific workflows.

Gusto Pricing

Gusto’s pricing starts with the Simple Plan, which offers a straightforward solution for your payroll needs. This plan provides a comprehensive set of automatic payroll features and benefits integrations for $40 per month, plus an additional $6 per month for each person.

This structure ensures you’re only paying for the services you need, making it a cost-effective option for small to medium-sized businesses to streamline their payroll processes without breaking the bank.

Gusto: Key Features Breakdown

Let’s break down the key features of Gusto and delve into the details of each feature:

Full-Service Payroll

Gusto’s full-service payroll is an all-encompassing solution that automates payroll. This includes calculating paychecks, deducting taxes, filing government documents, and even handling year-end tax forms like W-2s and 1099s for you. It’s designed to take the complexity out of payroll, ensuring everything runs smoothly without requiring constant oversight.

Its seamless integration and finance automation capabilities set Gusto’s full-service payroll apart. Unlike traditional payroll systems that might require manual input for each step, Gusto’s system is intuitive, guiding you through setup and beyond with minimal effort. It automatically updates tax rates and regulations, ensuring compliance without you having to keep track of legislative changes. This feature positions Gusto as not just a tool but a comprehensive payroll partner that adapts to your needs.

Implementing Gusto’s full-service payroll transformed how payroll is managed. Previously, running payroll was fraught with stress, double-checking numbers, and worrying about compliance. Now, it’s a matter of a few clicks. 

The time saved every month is substantial, allowing focus on strategic work areas rather than administrative tasks. Moreover, the peace of mind knowing that everything is taken care of correctly and in compliance with the latest laws is invaluable.

The transition to Gusto’s full-service payroll has streamlined operations and brought a new level of efficiency and confidence in managing payroll responsibilities.

Employee and Health Benefits

Gusto offers a centralized platform for finding health insurance plans, establishing retirement savings accounts (like 401ks), and administering other benefits for your employees. You can easily enroll employees in plans, manage deductions directly through payroll, and access helpful compliance information.

Benefits administration can be incredibly complex. Gusto makes it easy by offering a health insurance broker integration with top providers, giving you the tools to manage everything effectively. Their streamlined approach eliminates the need to work with multiple systems or handle benefits-related paperwork manually.

I used to dread dealing with benefits, but Gusto has made it far more manageable. Their clear step-by-step guides for setting up plans have been a lifesaver.

Plus, the fact that your people can enroll and manage their own benefits through their dashboards saves me tremendous time and ensures accuracy.

Human Resources (HR)

Gusto’s HR feature goes beyond payroll basics to offer a comprehensive suite of tools to manage your team more effectively. This includes everything from easy onboarding of new hires to managing benefits and ensuring compliance with labor laws. The platform provides customizable offer letters, digital signature capabilities for essential documents, and a centralized place for managing employee information and documents.

What sets Gusto apart in HR is how it integrates these HR functions directly with payroll. This integration means that when you onboard a new team member or change benefits, the adjustments automatically reflect in payroll without additional steps. This seamless connection between HR and payroll is a standout feature because it eliminates redundant tasks and reduces the chance of errors, making HR processes as smooth as possible.

Gusto has been incredibly helpful in centralizing and organizing my HR tasks. The employee self-service tools for time-off requests have been beneficial, cutting down on back-and-forth emails and giving me visibility into team schedules. Plus, knowing I can contact their HR experts for guidance on tricky questions provides incredible peace of mind.

Time and Attendance

Gusto’s Time and Attendance feature is a digital clock for your team to punch in and out, directly integrated into the payroll system. This tool doesn’t just track hours; it offers a seamless transition of work hours into payroll, ensuring accurate paychecks every time. With options for both mobile and web, employees can clock in from anywhere, accommodating remote, in-office, and hybrid work setups.

Unlike standalone time-tracking tools, Gusto’s built-in feature eliminates the need for manual entry or third-party integrations. This synergy between time tracking and payroll minimizes errors and saves significant time each pay period. The feature supports multiple time tracking methods, including GPS tracking for on-the-move employees, making it versatile for various business types.

If you’ve ever been bogged down by the tedium of calculating hours, chasing down timesheets, or correcting payroll errors, you’ll find this feature a game-changer. Imagine transitioning from a world where payroll prep was a full-day affair to one where it’s just a few clicks.

This shift can free up weekly hours, allowing more focus on growing your business or improving your work-life balance. The peace of mind from knowing your team is paid accurately and on time, without the manual headache, is invaluable.

Hiring and Onboarding Tools

Gusto provides a range of features to simplify finding and welcoming new team members. Create job postings, manage applications, customize offer letters, facilitate new hire paperwork, and set up employee profiles – all within a single platform.

Hiring and onboarding can be incredibly time-consuming, especially for smaller businesses. Gusto streamlines the process, ensuring a smooth transition for new hires while saving you hours of administrative work. This lets you focus on finding the perfect candidate and providing them with a fantastic onboarding experience.

Gusto’s tools have entirely transformed my hiring processes. Managing everything from applications to offer letters in one place is incredibly convenient. I also appreciate that I can quickly adapt their templates to fit my company’s specific needs, making the process more professional.

Talent and Team Management Tools

Gusto goes beyond payroll and benefits with features that streamline onboarding, employee data management, and performance reviews.  You’ll find tools for creating custom offer letters, tracking new hire paperwork, maintaining a centralized employee directory, and conducting streamlined performance reviews.

These tools help elevate your HR resource center beyond just the administrative basics.  Gusto gives you a solid foundation for fostering a positive employee experience from pre-hire to performance evaluation. Consolidating many basic HR tasks into one platform helps maintain organization and consistency throughout your employee lifecycle.

While not as robust as a dedicated HRIS platform, Gusto’s tools have been a lifesaver for my growing team. The streamlined onboarding process is beneficial – it creates a professional first impression for new employees and takes tasks off your plate.

Insights and Reporting

Gusto’s Insights and Reporting feature provides a comprehensive view of your payroll, employee benefits, and HR data. It lets you quickly generate reports on payroll expenses, benefits enrollment, employee demographics, and more. These tools are designed to be user-friendly, allowing you to access and understand your company’s data without needing a background in data analysis.

Unlike other systems where reporting can be complex and cumbersome, Gusto’s reporting tools are intuitive and integrated directly with your payroll and HR information. This seamless integration ensures you’re always working with the most current data, providing an accurate snapshot of your company’s financial and operational health.

Gusto’s reports have given me invaluable clarity and helped me make better data-driven decisions. I especially appreciate their clean visual presentation – it’s easy to spot significant trends at a glance, even without a background in complex data analysis. This will save you hours and make presenting information to your team or investors much easier.

Worker’s Compensation

Gusto integrates with top-rated worker’s compensation insurance providers to streamline the process of obtaining and managing coverage for your employees. They help you calculate premiums, simplify payments, and ensure compliance.

What sets Gusto apart is integrating worker’s compensation insurance into the payroll process. This seamless approach means premiums are calculated based on actual payroll data, ensuring accuracy and eliminating the guesswork typically involved in estimating annual salaries. Moreover, this pay-as-you-go model improves cash flow management by spreading costs yearly rather than requiring large lump-sum payments.

The first time you use this feature, you’ll be struck by the simple process. Instead of dedicating hours to understanding regulations, filling out forms, and calculating premiums, you’re guided through a streamlined, automated process.

Knowing you’re adequately covered and compliant saves time and provides peace of mind. Managing this crucial aspect of your business automation so easily can lift a significant weight off your shoulders, allowing you to focus more on growing your business and less on administrative red tape.

Customer Support

Gusto offers responsive support through several phone, email, and live chat channels. The support team is known for its friendly and knowledgeable approach. Depending on your Gusto plan, you might have access to priority support for faster resolutions.

Excellent customer support is essential in payroll. Gusto’s team truly understands the importance of timely and accurate assistance with sensitive questions and time-critical issues. Their expertise helps ensure you won’t feel stranded if you need help.

The few times I’ve needed to reach out, their team has been prompt and helpful. They’ve guided me through complex tax questions and even helped me navigate new features.

This has been invaluable, offering peace of mind and saving time I would have otherwise spent figuring things out alone.

Integrations

Gusto plays nicely with a wide range of popular business software. You can streamline your operations by linking Gusto to your accounting solutions (like QuickBooks), timekeeping platforms, point-of-sale systems, full-service payroll migration, and HR tools.

Integrations eliminate the need to transfer data between different systems manually. This saves you time, reduces the potential for errors, and gives you a more holistic view of your business data across platforms.

Gusto’s integrations have dramatically improved my workflow. I particularly appreciate the integration with my timekeeping software. Employee hours automatically flow into Gusto’s process payroll, eliminating the need for double entry and ensuring accurate calculations.

FAQs about Gusto

What types of businesses is Gusto payroll suited for?

Gusto is an excellent choice for small to medium-sized businesses, especially those prioritizing ease of use and streamlined HR features. Its scalable pricing model means it can grow with your company.

Does Gusto offer support for contractors?

Yes, Gusto allows you to pay both employees and contractors.  You can easily manage their information, send payments, and generate necessary tax forms.

Is Gusto secure?

Gusto takes data security seriously. They employ multiple layers of protection, including encryption and regular security audits, to safeguard your sensitive payroll and employee information.

Does Gusto support business operations with remote employees or contractors?

Yes! Gusto makes it easy to manage payroll for remote workers and contractors, regardless of their location. You can run payroll for employees in all 50 states, ensuring compliance and simplifying your tax processes.

Does Gusto support business operations with remote employees or contractors outside the US?

Gusto’s core payroll and HR features are explicitly designed for US-based employees and contractors. However, they offer a separate solution called Gusto Global (in partnership with Remote). This platform is designed to handle the complexities of paying teams in multiple countries.

What is Gusto Global?

Gusto Global is built in partnership with Remote, a leading international payroll and compliance expert. This solution allows you to leverage Gusto’s familiar interface while accessing the tools needed to pay and manage a global team.

Final Verdict – to Buy Gusto or Not to Buy Gusto?

I strongly recommend Gusto to most small- to medium-sized businesses seeking a user-friendly and comprehensive payroll and HR solution.  Here’s why:

• Ease of use: Gusto’s intuitive design takes the guesswork out of payroll, whether you’re a seasoned business owner or a first-timer.
• Employee empowerment: Your team will appreciate the convenience of using the self-service portal to access pay information and manage benefits.
• Time savings: Automating tedious calculations and tax filings frees up valuable time to focus on growing your business.
• Addressing concerns: While Gusto’s pricing scalability might be a consideration for larger enterprises, the value for the cost is undeniable for most businesses.

Ready to ditch payroll headaches? Give Gusto a try and learn how to automate your business effectively!

Their user-friendly platform and excellent support could be the perfect solution for streamlining payroll and HR processes.

Of course, every business has unique needs. If Gusto isn’t quite the best solution for you, stay tuned for my upcoming guide to exploring top Gusto alternatives.

Gusto Alternatives

If $40 is too much for you to stomach or need a different solution, you might like one of these alternatives.

#1) QuickBooks

QuickBooks stands out primarily for its robust accounting features, making it an ideal choice for those who need a comprehensive financial management system beyond payroll. Unlike Gusto, which focuses on payroll and HR services, QuickBooks offers in-depth accounting tools, including invoicing, expense tracking, and financial reporting.

This makes QuickBooks superior for businesses that prioritize accounting functionalities alongside payroll. However, for those specifically looking for advanced HR features and benefits administration, Gusto might be the better fit. QuickBooks is best suited for small—to medium-sized businesses that require robust accounting software with integrated payroll capabilities.

#2) ADP

ADP is a powerhouse in payroll and HR solutions, catering to businesses of all sizes, from small startups to large enterprises. The key difference between ADP and Gusto lies in their scalability and range of services.

ADP offers a more extensive suite of HR services and global payroll capabilities, making it suitable for larger organizations or those planning significant growth. In contrast, smaller businesses often prefer Gusto for its simplicity and ease of use. While ADP’s comprehensive features are great for complex operations, they can come at a higher cost and may be more than a small business needs.

#3) Rippling

Rippling excels in its ability to manage not just payroll and HR but also IT functions within a single platform. This includes computer and device management, something Gusto does not offer. Rippling presents a compelling case for businesses looking for a holistic solution that extends beyond HR and payroll.

However, this added functionality comes with a learning curve and potentially higher costs, making Gusto a more straightforward and budget-friendly option for those focused solely on payroll and basic HR tasks. Rippling is ideal for tech-savvy businesses that value the integration of HR processes with IT management.

#4) Paychex

Paychex is another well-established provider offering various payroll, HR, and benefits outsourcing services. It caters to small and large businesses and has scalability similar to ADP. The key difference between Paychex and Gusto lies in Paychex’s more extensive customer service options and the ability to assign a dedicated payroll specialist to your account.

This can be a significant advantage for businesses that prefer personalized support. However, for smaller businesses or those with more straightforward needs, Gusto’s more streamlined and cost-effective approach might be more appealing.

#5) OnPay

OnPay is particularly well-suited for small businesses and nonprofits seeking an easy-to-use payroll solution without unnecessary frills. It offers a simple pricing structure and comprehensive payroll functionalities, similar to Gusto.

However, it differs in its specialized offerings for specific industries, such as agriculture, restaurants, and nonprofits, offering features tailored to these sectors. If your business falls into one of these categories, OnPay could provide superior value over Gusto. Otherwise, Gusto’s broader HR features might be more beneficial for general use.

#6) Justworks

Justworks is a Professional Employer Organization (PEO) that provides payroll, compliance, HR, and benefits under a co-employment model. This means Justworks becomes your employees’ employer of record, offering access to better benefits rates and simplifying compliance.

This is a significant departure from Gusto’s service model, where you maintain complete control. Justworks is ideal for small businesses looking to offload HR responsibilities and gain access to high-quality benefits. In contrast, Gusto is better suited for those wanting to keep HR in-house with a robust support system.

#7) Zenefits

Zenefits focuses more on HR, providing a wide array of tools for managing your workforce, from hiring to retirement. While it offers payroll functionality, its strength lies in its comprehensive HR platform, which includes performance management and time tracking.

If your business needs a strong HRIS with integrated payroll, Zenefits could be a better fit than Gusto. However, Gusto might still be the preferred choice for businesses looking for a more payroll-focused solution with competitive HR capabilities.

#8) Patriot

Patriot Software offers a straightforward payroll solution targeted at small businesses, emphasizing affordability and simplicity. Its highly competitive pricing model makes it a more cost-effective choice for very small businesses or those just starting out.

While Gusto provides a broader range of HR and benefits features, Patriot focuses on doing payroll well and keeping costs low. This makes Patriot an attractive option for those prioritizing budget over breadth of services.

#9) SurePayroll

Like Patriot, SurePayroll targets small businesses and focuses on simplicity and affordability. It distinguishes itself with specialized services for household employers and a variety of niche industries.

If you’re looking for a payroll service that caters specifically to the nuances of your industry or need payroll for a nanny or other household employee, SurePayroll might offer solutions more tailored to your needs than Gusto. However, Gusto would be better for more comprehensive HR and benefits administration.

#10) BambooHR

BambooHR is best known for its human resources information system (HRIS), providing a solid foundation for all HR activities. While it integrates with various payroll providers, it does not offer its own payroll solution.

This positions BambooHR as a complement to payroll services rather than a direct competitor to Gusto. Businesses that want a top-tier HRIS with the flexibility to choose their payroll provider might find BambooHR an ideal solution, using it alongside Gusto or another payroll service for a complete HR and payroll system.