Gusto Review: The Gold Standard for SMB Payroll

Our Full Review

Gusto has become the default recommendation for small business payroll for good reason: it just works. After testing dozens of payroll platforms, Gusto remains the one we'd recommend to a friend starting their first business. With over 300,000 businesses relying on it, Gusto has proven it can handle the complexities of US payroll while keeping the interface simple enough for non-finance folks.

Who Should Use Gusto?

Gusto shines for specific company profiles:

• Small businesses (1-100 employees) who want payroll that doesn't require a finance degree or full-time payroll administrator
• Startups and tech companies that need to onboard employees quickly and correctly, with modern employee self-service expectations
• Companies with contractors who want 1099 management in the same system without paying extra per contractor
• Businesses offering benefits who want a one-stop-shop for health, 401(k), and other benefits without juggling multiple vendor portals
• Growing companies (10-50 employees) who've outgrown basic payroll services like QuickBooks Payroll but aren't ready for enterprise solutions
• Remote-first companies with employees across multiple states (Gusto handles multi-state payroll tax compliance automatically)

Who Should Look Elsewhere?

Gusto isn't for everyone. Skip it if you:

• Have 100+ employees — you'll likely save money with Paychex or ADP, and need more robust reporting anyway
• Need international payroll — Gusto is US-only (look at Remote or Deel instead)
• Have complex HRIS needs — for org charts, performance reviews, and advanced HR workflows, pair Gusto with BambooHR or use an all-in-one like Rippling
• Need deep integration with your HRIS — if you're committed to another HRIS platform, adding Gusto creates data sync headaches
• Want the absolute cheapest option — basic payroll services from your bank or QuickBooks will be cheaper (but you get what you pay for)

Payroll Features: Where Gusto Excels

Gusto's core payroll functionality is where it truly shines. The platform handles everything you'd expect from a modern payroll system:

Core Payroll Capabilities

• Unlimited payroll runs — run as many as you need with no extra charge. Great for commission-based teams or off-cycle bonuses.
• Automatic tax calculations and filings — federal, state, and local taxes calculated and filed automatically. This alone saves hours every pay period.
• Direct deposit — standard 2-4 day processing on Simple plan; next-day available on Plus tier
• Garnishments and deductions — handles child support, wage garnishments, student loans automatically once set up
• Year-end tax filings — W-2s and 1099s generated, printed, and filed. Employees can access their forms online 24/7.
• Multi-state compliance — if you have employees in different states, Gusto handles the different tax rates, filing requirements, and compliance rules

AutoPilot: Set-It-and-Forget-It Payroll

The AutoPilot feature deserves special mention. Once configured, payroll runs automatically on your schedule. Hours from time tracking sync automatically, taxes are calculated, and direct deposits process—all without you clicking a button. For businesses with predictable pay schedules, this is a game-changer.

You still get email notifications before each payroll run with the chance to make adjustments, but if everything's correct, you literally don't need to do anything. This is what modern payroll should look like.

Employee Onboarding and Self-Service

New hire onboarding in Gusto is surprisingly good for a payroll-first platform. When you add a new employee, they receive a personalized welcome email with a link to complete their own onboarding paperwork:

• I-9 verification with identity document upload
• W-4 tax withholding selection with helpful guidance
• Direct deposit setup with account verification
• Benefits enrollment if applicable
• Emergency contact information
• Digital offer letter signing (on Plus and Premium tiers)

No more chasing down paperwork or dealing with illegible handwriting on tax forms. Everything's digital, timestamped, and stored securely.

The employee self-service portal is clean and intuitive. Employees can:

• View current and past paystubs
• Download tax documents (W-2, 1099)
• Update direct deposit information
• Change tax withholding (W-4 updates)
• View and manage benefits
• Request time off (on Plus tier)
• Clock in/out (with time tracking add-on)

Benefits Administration

Gusto offers integrated benefits administration through partnerships with major insurance carriers. While not as comprehensive as a dedicated benefits platform, it's solid for small businesses:

Available Benefits

• Health insurance — medical, dental, and vision through partnerships with major carriers. Gusto helps with employee enrollment and premium deductions sync automatically with payroll.
• 401(k) retirement plans — powered by Guideline (Gusto's partner). Plans start at $49/month plus $8/participant. Modern, easy-to-use 401(k) that's far better than traditional providers.
• HSA and FSA accounts — health savings accounts and flexible spending accounts integrated into payroll
• Commuter benefits — pre-tax transit and parking benefits
• Workers' compensation insurance — available through partnership, with pay-as-you-go payments tied to payroll
• Life and disability insurance — available in some states

The benefits experience is solid but not best-in-class. Enrollment is straightforward, and the integration with payroll means deductions happen automatically. But if benefits administration is your primary need—especially for companies with 50+ employees or complex benefit structures—look at specialized platforms like Namely or the benefits modules in Rippling.

Time Tracking and PTO Management

The Plus tier ($80/month + $12/employee) adds time tracking and PTO management:

Time Tracking

• Web and mobile time clock
• GPS tracking for remote/field teams
• Photo verification option
• Automatic sync to payroll
• Overtime calculations
• Project/job tracking

It's functional but basic. If time tracking is critical to your business (construction, field services, hourly retail), dedicated solutions like Time Doctor or Hubstaff offer more features. But for straightforward hourly tracking that feeds into payroll, Gusto's built-in option eliminates another integration.

PTO Management

Gusto handles PTO tracking with accrual rules, requests, and approvals. Employees can request time off through their portal, managers approve/deny, and balances update automatically. Again, it's not as full-featured as dedicated PTO platforms, but for most small businesses, it's plenty.

Integration Ecosystem

Gusto plays reasonably well with other business tools. Key integrations include:

Accounting Software

• QuickBooks Online — syncs payroll data, journal entries, and expense tracking
• Xero — similar sync capabilities
• FreshBooks — basic payroll data sync

The accounting integrations work well. Payroll data flows into your general ledger automatically, eliminating manual data entry and reducing errors.

Time Tracking Tools

If you're using dedicated time tracking software, Gusto integrates with:

• Toggl Track
• Harvest
• TSheets (now QuickBooks Time)
• Deputy
• When I Work

HRIS and HR Tools

Gusto can integrate with:

• BambooHR — syncs employee data, though some duplication is inevitable
• Namely
• Zenefits

That said, if you're running a full HRIS, having Gusto as a separate payroll system creates some friction. This is where all-in-one solutions like Rippling have an advantage.

Pricing Breakdown: What You'll Actually Pay

Gusto offers three tiers. Here's what you get at each level:

Simple Plan: $40/month + $6/employee

Best for: Small businesses (1-20 employees) who just need payroll done right.

Includes:

• Unlimited payroll runs
• Automatic tax filing and payments
• Employee self-service portal
• New hire reporting
• Contractor payments (1099)
• Basic benefits administration
• Direct deposit (2-4 day processing)
• HR resource center (templates, guides)

Plus Plan: $80/month + $12/employee

Best for: Growing businesses (20-75 employees) who need more HR features and faster processing.

Everything in Simple, plus:

• Next-day direct deposit
• Time tracking and scheduling
• PTO management and requests
• Offer letter templates
• Employee directory
• Org chart (basic)
• Two-way sync with accounting software
• State new hire reporting

Premium Plan: Custom pricing (starts around $150/month base)

Best for: Established businesses (50-100 employees) who want white-glove support and compliance help.

Everything in Plus, plus:

• Dedicated support specialist
• Priority phone support
• Proactive compliance alerts
• HR consulting and guidance
• Advanced reporting
• Custom onboarding assistance
• Unlimited state registrations

Real-World Pricing Examples

10 employees on Simple: $40 + (10 × $6) = $100/month

25 employees on Plus: $80 + (25 × $12) = $380/month

50 employees on Plus: $80 + (50 × $12) = $680/month

At 50+ employees, the per-employee costs add up quickly. This is where enterprise payroll providers like Paychex or ADP often become more cost-effective, despite being less user-friendly.

How Gusto Compares to Competitors

Gusto vs BambooHR

Gusto vs BambooHR is a common comparison, but they're actually solving different problems:

• Gusto: Payroll-first with basic HR features. Best for companies where payroll accuracy and ease-of-use are the priority.
• BambooHR: HRIS-first with payroll add-on. Best for companies who need robust HR features (performance management, applicant tracking, org charts).

Many companies actually use both: Gusto for payroll, BambooHR for HR. They integrate, though not perfectly.

Gusto vs Rippling

Rippling is the all-in-one alternative that combines HR, payroll, and IT management. Gusto is simpler and cheaper; Rippling is more powerful but complex. If you need to manage app access, device management, and benefits administration in one platform, Rippling wins. If you just need great payroll, Gusto is the better choice.

Gusto vs Paychex/ADP

Traditional payroll giants like Paychex and ADP offer more enterprise features and better pricing at scale (100+ employees). But their interfaces feel like they're from 2005, and customer support is hit-or-miss. For small businesses, Gusto's modern UX and helpful support easily justify the slight price premium.

Customer Support and Implementation

One of Gusto's standout features is its customer support. Unlike many payroll providers who treat support as an afterthought, Gusto invests heavily here:

Support Channels

• Phone support — Available Monday-Friday during business hours (extended hours on payroll days). Real humans who understand payroll, not scripted call center agents.
• Email support — Response within a few hours, typically much faster for urgent payroll issues.
• Live chat — Available during business hours for quick questions.
• Help center — Extensive knowledge base with guides, videos, and troubleshooting articles.
• Dedicated specialist (Premium tier) — You get a named support person who knows your business.

Implementation Timeline

Getting started with Gusto is refreshingly quick:

• Day 1: Sign up, enter company info, connect bank account (30 minutes)
• Day 2-3: Add employees, invite them to complete onboarding (1-2 hours setup, employees complete on their own)
• Day 4-5: Review and verify everything, run test payroll
• Week 2: Run first live payroll

Most companies are up and running within 5-7 business days. If you're switching from another provider, Gusto's support team helps with data migration and timing the transition to align with pay periods.

Common Questions About Gusto

Is Gusto only for small businesses?

Gusto works best for companies with 1-100 employees. Beyond that, the per-employee pricing becomes expensive compared to enterprise payroll providers. That said, some companies with 100-200 employees still use Gusto because they value the UX and support.

Can I run payroll in multiple states?

Yes. Gusto handles multi-state payroll automatically, calculating the correct taxes for each employee's work location. This is one of Gusto's strengths—it makes multi-state compliance easy.

What about contractors (1099)?

Contractor payments are included at no extra charge. Add contractors to your account, run payments through Gusto, and they'll receive direct deposit. Gusto generates and files 1099s automatically at year-end.

Does Gusto work with my accounting software?

Gusto integrates with QuickBooks Online, Xero, and FreshBooks. Payroll data syncs automatically, reducing manual data entry. The integration isn't perfect (some mapping required initially), but it works well once configured.

What happens if I need help on payroll day?

Gusto extends support hours on common payroll days (Fridays, month-end). Phone and chat support are prioritized for urgent payroll issues. In our testing, we've never had trouble reaching someone quickly when needed.

Can I switch from another payroll provider?

Yes. Gusto's team helps with migration from other providers (ADP, Paychex, QuickBooks Payroll, etc.). They'll coordinate the transition to align with your pay period and help import employee data. Most migrations take 1-2 weeks.

The Bottom Line: Is Gusto Worth It?

Gusto isn't the cheapest payroll option, and it won't replace a full-featured HRIS platform. But for pure payroll? It's the best combination of simplicity, reliability, and features for small businesses.

You should choose Gusto if:

• You're a small business (1-100 employees) who wants payroll to "just work"
• You value modern UX and employee self-service
• You want automatic tax filing without worrying about compliance
• You need benefits administration in the same platform
• You're willing to pay a bit more for better software and support

Look elsewhere if:

• You have 100+ employees (cost becomes prohibitive)
• You need international payroll
• You want advanced HRIS features (performance management, succession planning)
• Price is your only consideration (basic payroll services are cheaper)

After extensive testing of payroll platforms, Gusto remains our top recommendation for small businesses. It transforms payroll from a dreaded monthly task into something that basically runs itself. If you're spending more than an hour on payroll each pay period, Gusto will save you time and headaches. If you've ever been hit with a tax penalty because you filed something wrong, Gusto will pay for itself.

Bottom line: For most small businesses, Gusto is worth every penny. It's the payroll platform we'd choose for our own business.