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Gusto Payroll Software Review
Table of Contents
- Gusto's platform is intuitive for both payroll processing and HR tasks.
- The system helps businesses stay compliant with local, state and federal tax laws.
- Built-in recruiting tools make it easy to find, hire and onboard new employees.
- Higher-tier plans may be costly for small businesses on a budget.
- Gusto does not provide same-day direct deposit.
- Some customers report concerns about inconsistent support quality.
Running payroll is one of the most important and complex tasks for small businesses and startups. Gusto simplifies the process with a market-leading, full-service payroll platform used by more than 400,000 companies. Its software is easy to navigate, and a convenient mobile app lets employers run payroll on the go. The system supports automated or manual payroll across the U.S. and in dozens of other countries for both employees and independent contractors.
Beyond payroll, Gusto includes robust HR tools and employee-focused benefits, such as spending and savings accounts with personal debit cards. These features help small businesses deliver an employee experience that rivals larger companies.
Gusto Payroll Software Editor's Rating:
9.2 / 10
- Pricing
- 9
- Features
- 9.8
- Usability
- 9.2
- Employee self-service
- 9.2
- Customer service
- 9
Why Gusto Is Best for Added HR Services
Small businesses often need more than just accurate payroll — they also need HR support to manage people, policies and compliance. Gusto excels at both, making it our choice for the best payroll service with added HR functions.
The platform runs payroll efficiently, manages tax payments in line with local, state and federal laws, and handles benefits administration, PTO tracking and new-hire onboarding. It also includes team management and reporting tools that grow more robust with higher plan tiers. Add-ons like tax-advantaged spending accounts let you further tailor the system, so you get a complete HR solution that covers nearly every part of the employee experience. At the same time, if you only need payroll, Gusto performs that task seamlessly.
Editor’s note: Looking for the right payroll software for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs.
With the Premium package, business owners also gain access to certified HR experts, a full HR resource center and HR compliance alerts for federal and state regulations. For small businesses without dedicated HR staff, these extras are especially valuable.
Usability
Ease of use is one of Gusto’s biggest advantages. Its central dashboard is straightforward, intuitive and beginner-friendly, so even first-time users can get started quickly.
When you log in, Gusto displays a to-do list with important updates and activities. Running payroll is simple: enter employee hours, vacation or sick days, bonuses, commissions and reimbursements (such as mileage reimbursements), then submit payroll for immediate confirmation.
Adding new workers takes only basic details — name, email and pay rate — and employees can complete setup themselves through Gusto’s self-onboarding feature. All team members, including part-time staff and contractors, can log in to review pay stubs and year-end tax forms. These lifetime accounts remain accessible even if employees leave the company.
Gusto also offers a mobile app that enhances usability. Employees can track pay, manage benefits, clock in and out, and access work documents. The app even includes financial wellness tools, such as setting savings goals, transferring money to savings accounts, using a spending account with a debit card and exploring budgeting tools.
Gusto Features
Because Gusto understands how closely payroll tasks and human resources responsibilities are linked, you’ll find features covering virtually all aspects of HR.
Full-service payroll | Gusto lets you run unlimited payrolls each month for both employees and contractors. The platform handles calculations automatically, making payday simple and stress-free. |
|---|---|
Payroll tax management | To keep you compliant, Gusto calculates and files your local, state and federal payroll taxes. The system also manages year-end tax forms for your team. |
Integrations | Gusto connects with dozens of popular third-party apps, helping you sync payroll and HR data across your existing business tools. |
HR support | With the Premium plan — or as an add-on — you can access certified HR experts who guide you through compliance questions and people-management challenges. |
Benefits management | You can administer health insurance at no cost and add other benefits like workers’ compensation, 401(k) plans and pre-tax savings options such as HSAs and FSAs. |
Hiring and onboarding | Gusto supports job postings and includes a built-in applicant tracking system. Once you hire, the platform’s onboarding tools streamline setup for new employees. |
Time tracking | The software includes time-tracking and shift scheduling tools, plus Gusto’s Time Kiosk feature for on-site clock-ins. |
Mobile app | Employees can use Gusto’s mobile app to track pay, manage benefits and access financial wellness tools anywhere. Employers can also use the app to run payroll and manage HR tasks on the go. |
Full-Service Payroll
As a full-service payroll provider, Gusto includes a wide range of features small businesses will find especially valuable. For example:
- Unlimited payroll: You can run unlimited payroll cycles each month at no extra cost, giving you the flexibility to pay employees on different schedules rather than syncing everyone together. We like that Gusto provides this payroll frequency benefit for free, unlike many competitors.
- Multiple payment methods: Gusto supports multiple payment methods, including direct deposit and direct deposit alternatives like printed checks and prepaid debit cards. Every plan also covers multiple pay rates and schedules, along with basic time-off policies, requests and approvals.
- AutoPilot: Gusto’s AutoPilot feature is a convenient way to automatically run payroll each period without having to input anything extra. While some rivals, such as Paychex, also offer recurring payroll, Gusto’s AutoPilot feature is exceptionally simple and easy to use.
- EOR services: Gusto Global is Gusto’s employer of record (EOR) service, which lets businesses hire, pay and manage full-time salaried employees in 12 countries: Australia, Brazil, Canada, Germany, India, Ireland, Mexico, the Netherlands, the Philippines, Portugal, the United Kingdom and Spain. EOR pricing starts at $699 per employee per month.
It’s worth noting that Gusto’s lowest-tier plan doesn’t include multi-state payroll or next-day direct deposit, and we were disappointed to see that same-day direct deposit isn’t available at all.
Payroll Tax Management
In addition to running payroll, Gusto manages all your payroll tax obligations. The platform automatically calculates, files and pays local, state and federal payroll taxes, reducing the risk of costly errors. At year-end, Gusto also generates and delivers W-2 and 1099 payroll forms to employees and contractors.
Gusto’s Simple plan supports single-state payroll tax filing, while the Plus and Premium plans cover multi-state filing. If your business expands to a new state, Gusto can even handle the tax registration process for an additional fee.
Integrations
Gusto integrates with more than 130 third-party platforms, including many of the best accounting software solutions such as QuickBooks Online and Xero, as well as other top tools like Clover and Expensify. These integrations also include tools for expense management, hiring and onboarding, analytics, learning management, performance management and compliance.
The platform also connects with everyday business tools such as Microsoft 365, Shopify and Slack, making it easy to streamline operations by linking the software you already use directly with Gusto.
In addition to third-party integrations, Gusto provides in-house connections for job postings, candidate tracking, California State Tax registration, background checks (via Checkr), expense management, performance tracking, workforce costing and time tracking.
HR Support
Gusto shines when it comes to easing the burden of HR responsibilities. The platform includes tools such as an employee handbook builder, HR policy templates, document storage and offer letter templates. Higher-tier plans expand the toolkit with organizational charts, performance and compensation management features, software and email provisioning and de-provisioning, and custom e-signatures. These are the kinds of resources often found in top HR software, but Gusto delivers them as part of its all-in-one solution.
We were impressed that the Premium plan connects businesses with certified HR professionals who can provide guidance on a wide range of people-management issues. For companies not ready to hire an in-house HR person, this support is a valuable alternative. We also like Gusto’s compliance hub, currently available in California and New York (with more states to be added), which helps managers stay on top of complex state regulations with proactive alerts and guidance — a major advantage for busy business owners.
Benefits Management
To complement its HR services, Gusto makes it easy to administer benefits directly through the platform. Employers can offer dental, vision and health insurance at no extra software cost, with premiums paid separately and all benefits syncing seamlessly to payroll. A comprehensive benefits package is crucial for helping you attract and retain top talent.
That said, we were disappointed to see that certain benefits are available only as add-ons. These include 401(k) plans, life and disability insurance, FSAs and HSAs, access to licensed benefits advisors, and workers’ compensation management.
Hiring and Onboarding
Gusto provides a range of helpful tools for the hiring and recruitment process as well as employee onboarding. You can create custom checklists for new hires, share documents securely for e-signatures and store all completed forms safely within your Gusto account. The platform also supports employee self-onboarding and, in higher-tier plans, customizable offer letter templates.
Impressively, Gusto can even assist with recruitment by guiding you through the process of creating job postings with ready-made job description templates. You can track applicants through Gusto’s built-in applicant tracking system or integrate with third-party systems you already use. Thanks to its other integrations, new employees can be set up seamlessly with tools like Slack and Zoom. We also like that Gusto supports automated feedback requests, performance reviews, learning and development tools, and even personalized employee communications.
Time Tracking
Gusto’s built-in time tracking features make it easy to monitor employees’ work hours. Employees can clock in and out via a web browser or the Gusto app, and the Time Kiosk feature allows any tablet to serve as a time clock. We like that geofenced worksites help track where employees are working, and built-in shift scheduling ensures managers can cover all open shifts. For businesses with an existing time tracking setup, Gusto connects seamlessly with many of the best time and attendance systems, so you can manage everything in one place.
Mobile app
We love that the Gusto mobile app offers a robust set of tools for both employers and employees. Business owners and payroll administrators can run payroll on the go, review and approve hours and time-off requests, onboard new hires and manage team information in one place. The layout is intuitive and user-friendly, making it a convenient option for managers on the move.
Employees can use the app to view and manage paychecks, track hours, request PTO, access documents and enroll in benefits. Gusto Wallet adds even more flexibility with features like Early Pay and cash advances between paychecks.
Gusto Costs
We like that all three main Gusto plans include unlimited payroll runs and tax services, and allow you to pay W-2 employees, 1099 contractors and freelancers. However, the plans vary in the added HR services they include. There’s also a contractor-only plan and a plan designed for solopreneurs.
Here’s a breakdown:
Plan | Pricing | Features |
|---|---|---|
Simple | $49 per month, plus $6 per person, per month |
|
Plus | $80 per month, plus $12 per person, per month | Everything in Simple, plus:
|
Premium | $180 per month, plus $22 per person, per month | Everything in Plus, plus:
|
Contractor Only | $35 per month, plus $6 per person, per month |
|
Solo | $49 per month, plus $6 per person, per month |
|
Additional pricing notes:
- No contracts: We love that there are no contracts with Gusto. Regardless of which plan you choose, you pay for the service on a month-to-month basis and can cancel at any time. It’s also worth noting that you won’t be charged until you run your first payroll, which is beneficial for startups facing the inevitable setup costs incurred with any new business venture.
- Customize with paid add-ons: There’s an array of add-ons available, making Gusto uniquely customizable. For example, if the Plus plan suits your business but you want more HR guidance, you can add a Priority Support and HR Resources add-on for $8 per employee, per month.
Gusto Setup
Gusto is a cloud-based platform, so there’s no software to download or update. You can access it directly in your browser, and it’s mobile-friendly for use on any smartphone or tablet. The interface is straightforward, with dedicated tabs for running payroll, time tracking, custom-built reports (based on templates) and compliance.
The first time you log in, Gusto walks you through setup step by step. This includes entering your company address, adding employees, setting up federal and state taxes, linking and verifying your business bank account, and configuring your payroll schedule.
If you’re switching from another payroll provider, Gusto provides guidance on how and when to transfer your data. For first-time setups, the platform offers an online guide to help you get started quickly.
Gusto Customer Service
- Support channels: Gusto representatives are available by phone, email and chat Monday through Friday, from 6 a.m. to 6 p.m. MST.
- Premium support: Premium plan subscribers receive priority support, which includes direct phone and email access with faster response times. They also benefit from a dedicated service advisor and hands-on help transferring payroll data during setup.
- Enhanced support: Customers on lower-tier plans can purchase the Priority Support add-on for $30 per month plus $3 per person. They can also add the HR Resources package for $50 per month plus $5 per person, which provides access to certified HR experts. However, these add-ons may be cost-prohibitive for small businesses, especially those on the Simple plan.
- Online resources: For self-service, Gusto offers a comprehensive resource library with guides on using the payroll system and managing a small business. The searchable database includes how-to articles, tax forms, compliance data and an app directory.
Gusto Drawbacks
Gusto is a strong payroll and HR platform, but there are a few potential downsides to consider:
- No same-day deposits: Unlike some competitors, Gusto does not offer same-day direct deposit, which may be a drawback for businesses with cash flow concerns. If that’s important to you, consider QuickBooks Payroll, which does offer this option, as we explain in our QuickBooks Payroll review.
- Higher-tier pricing: While the Simple plan is competitively priced, Plus and Premium levels can be costly, particularly when you’re adding on additional paid services. Businesses on a tighter budget may want to read our review of OnPay Payroll, which provides strong payroll support and essential HR tools at a lower price point.
- Add-on costs for benefits: Options like 401(k) plans, workers’ compensation, FSAs and life insurance are available only as paid add-ons, which can increase total expenses. If you need bundled benefits, Paychex may be a better fit. Our detailed Paychex Payroll review has more information.
- Customer support concerns: Although Gusto has an A rating with the BBB, customer reviews are mixed, with some users citing slow responses and limited support hours. If you need round-the-clock help, Paychex offers 24/7 support. Read our Gusto vs. Paychex comparison to evaluate these platforms side by side.
Methodology
To identify the best payroll services, we evaluated each platform’s payroll features, ease of use, pricing, customer support, integrations, HR tools and implementation. Our research process included attending live demos with vendor representatives, which gave us hands-on experience with the software and an understanding of how the platforms function in practice. We also contacted customer service teams directly to assess responsiveness and support quality.
To select the best payroll service for HR added tools specifically, we compared providers on the breadth and depth of their HR offerings, including onboarding, benefits management, performance tracking and employee engagement features. Gusto stood out for its strong combination of payroll processing and integrated HR tools, making it a well-rounded option for businesses that want more than just payroll support.
Gusto FAQs
Overall Value
We recommend Gusto for …
- Small businesses or startups looking for a full-service payroll provider.
- Companies in need of additional HR services on top of payroll processing.
- Business owners who want to pay employees in addition to U.S.-based and international contractors.
We don’t recommend Gusto for …
- Large companies or those expecting rapid growth and enterprise-level needs.
- Businesses looking for a payroll plan with fully bundled benefits administration.
- Employers that require 24/7 customer support.
Erin Donaghue contributed to this review.
