Running payroll, managing employee benefits, handling taxes, and keeping HR records organized can become a lot of work as a business grows. This is where
Gusto comes in.
Gusto is an online payroll, benefits, and HR platform designed to help businesses manage important employee-related tasks from one place. It can handle payroll processing, tax filings, employee onboarding, benefits, time tracking, and other HR activities.
In this guide, we’ll look at what
Gusto is, how it works, its main features, current pricing, pros and cons, and who may benefit from using it.
What Is Gusto?
Gusto is a cloud-based platform that combines payroll, employee benefits, and HR tools in one system. It is built mainly for small and growing businesses that want to reduce the amount of manual work involved in managing employees.
Instead of using separate software for payroll, employee information, benefits, and some HR tasks, businesses can manage many of these activities through
Gusto.
The platform supports features such as automated payroll, tax calculations and filings, employee onboarding, direct deposit, PTO management, benefits administration, time tracking, and employee self-service.
For businesses that are growing, having these functions connected can make everyday administration easier and reduce the need to move information between different systems.
How Does Gusto Work?
Gusto works by bringing payroll, HR, and benefits information into a centralized online platform.
After creating an account, a business can add employees or contractors, enter relevant company information, set up payroll, and choose the features it needs.
Once everything is configured, businesses can use
Gusto to run payroll, calculate and file payroll taxes, pay employees, manage employee information, and handle other HR tasks.
For example, payroll can be run manually when needed, while eligible users can also set payroll to run automatically each pay period using Gusto's AutoPilot feature.
Employees can also access their own information through Gusto's employee tools. They can view paystubs, manage certain personal information, request time off, and interact with benefits and other HR features depending on the plan.
Key Features of Gusto
Gusto offers a range of features designed around payroll, employee management, benefits, and HR administration.
1. Full-Service Payroll
Payroll is one of the main reasons businesses use
Gusto.
The platform can calculate payroll, handle tax filings and payments, generate W-2 and 1099 forms, support direct deposit, and provide payroll reports. It also supports multiple pay schedules and different payment options depending on the plan and add-ons selected.
For businesses that want to spend less time calculating payroll manually, these automated tools can make the process more straightforward.
2. Automated Tax Filing
Payroll taxes can be complicated, especially when a business has employees in different locations.
Gusto can automatically calculate, file, and pay federal, state, and local payroll taxes as part of its payroll services.
This can help businesses reduce repetitive administrative work while keeping payroll information organized.
3. Employee Onboarding
New employees can complete much of their onboarding online.
With
Gusto, employees can provide information such as contact details, banking information, and tax forms electronically. The platform also provides employee self-service tools for documents, paystubs, benefits, time off, and other information.
This gives businesses a more organized way to handle the paperwork that comes with hiring.
4. Employee Benefits
Gusto also provides benefits administration for businesses that want to offer benefits to their employees.
Depending on eligibility and location, businesses can use
Gusto for health benefits, retirement plans such as 401(k), workers' compensation, life and disability insurance, HSAs, FSAs, and other benefits.
Benefits deductions can also be connected to payroll, reducing the need for manual reconciliation.
5. Time Tracking and Attendance
Time tracking can be useful for businesses that pay employees based on hours worked.
Gusto offers time-tracking tools and integrations that can connect employee hours with payroll. Its Plus and Premium plans include time tracking, according to the current pricing information.
This can make it easier to move from recorded employee hours to payroll without entering the same information multiple times.
6. HR Management
Beyond payroll,
Gusto provides tools for managing different parts of the employee lifecycle.
Businesses can use the platform for employee information, onboarding, time off, performance management, employee surveys, and other HR activities depending on their plan.
This makes
Gusto more than just a payroll service.
7. Employee Self-Service
Another useful feature is employee self-service.
Employees can access paystubs, benefits information, time-off tools, expenses, and other HR information without having to ask an administrator for every update.
This can save time for both employees and business owners.
8. Accounting and Software Integrations
Gusto can connect with other business software, including accounting platforms such as QuickBooks, Xero, and FreshBooks.
These integrations can help businesses keep payroll and accounting workflows connected instead of entering the same information into multiple systems.
Gusto Pricing: How Much Does It Cost?
Gusto uses monthly pricing that combines a base fee with a per-person fee for its main plans. The pricing below reflects the current US pricing published by
Gusto and can change over time.
| Plan |
Monthly Price |
Best For |
| Contractor Only |
$0/mo promotional price + $6/person |
Businesses paying contractors only |
| Simple |
$49/mo + $6/person |
Small businesses with single-state payroll |
| Plus |
$80/mo + $12/person |
Businesses needing advanced payroll, benefits and time tracking |
| Premium |
$180/mo + $22/person |
Growing businesses needing advanced HR and dedicated support |
The Contractor Only plan is currently shown with a limited-time $0 monthly base price plus $6 per person.
Gusto says this plan is intended for businesses that have not hired W-2 employees.
The Simple plan includes single-state payroll, unlimited payroll runs, tax filings and payments, and basic PTO and holiday pay.
The Plus plan adds features such as multi-state payroll, next-day pay, and time tracking.
Premium is designed for businesses that need additional support and HR capabilities, including a dedicated Service Advisor, certified HR experts, performance and compensation management, custom reports, and priority support.
Important: Additional services such as workers' compensation, benefits, priority support, HR resources, and other tools can have separate costs.
How to Choose the Right Gusto Plan
Choosing a
Gusto plan largely depends on how your business manages employees and payroll.
Contractor-Based Business
If you only work with independent contractors and don't have W-2 employees, the Contractor Only plan may be relevant.
Small Business With Single-State Payroll
The Simple plan is designed for small businesses that need basic full-service payroll within one state.
Growing Business
If you need multi-state payroll, time tracking, benefits, and additional payroll capabilities, the Plus plan provides a broader set of tools.
Larger or More Complex HR Needs
Businesses looking for more advanced HR support, custom reporting, performance management, and dedicated assistance can consider Premium.
The best choice depends on the features your business actually needs, so it makes sense to compare the plans before signing up.
Pros of Gusto
- Payroll, HR, and benefits are available in one platform.
- Payroll taxes and filings can be automated.
- Employees have access to self-service tools.
- Benefits can be integrated with payroll.
- Supports accounting integrations.
- Offers multiple plans for different business needs.
- Provides mobile access and online payroll management.
Cons of Gusto
- Costs increase as the number of employees grows because of per-person pricing.
- Some advanced features require higher plans.
- Several optional services have additional fees.
- Some features and payroll capabilities depend on location and eligibility.
- Businesses with very complex HR requirements may need to compare Gusto with more specialized HR platforms.
Who Should Use Gusto?
Gusto can be useful for small and growing businesses that want payroll, employee management, benefits, and HR tools in one place.
It can be particularly useful for businesses that want to reduce manual payroll administration and give employees access to their own HR information.
It may also suit businesses that want to connect payroll with accounting software and gradually add HR or benefits features as the company grows.
Is Gusto Easy to Use?
One of the main ideas behind
Gusto is to simplify payroll and HR administration.
The platform provides online tools for payroll, employee information, onboarding, benefits, time tracking, and reporting. Employees can also manage many of their own tasks through self-service tools.
However, payroll software still requires accurate business and employee information. Businesses should take time to configure payroll correctly and review important settings before processing payments.
Gusto vs. Traditional Payroll Management
Traditional payroll management often involves spreadsheets, manual calculations, separate tax processes, and multiple systems.
With
Gusto, many of these tasks can be handled from a single platform. Payroll, tax filing, benefits, employee information, and related HR functions can work together.
The main benefit is convenience. Instead of managing several disconnected processes, businesses can bring more of their employee administration into one system.
Is Gusto Worth Using?
Whether
Gusto is worth using depends on the size of your business, the number of employees or contractors you manage, and the features you need.
For a small business that wants payroll, tax filing, employee self-service, benefits, and HR tools in one place,
Gusto offers a broad set of capabilities.
However, businesses should compare the total monthly cost, including employee fees and optional add-ons, against their actual requirements before choosing a plan.
Final Thoughts
Gusto brings payroll, benefits, and HR management together in one online platform. Its features cover everything from automated payroll and tax filing to employee onboarding, benefits, time tracking, and HR management.
The platform has several pricing options, allowing businesses to start with basic payroll and move toward more advanced HR features as their needs change.
If your main goal is to reduce manual payroll work and keep employee-related processes organized,
Gusto is a platform worth exploring.
Ready to Simplify Payroll and HR?
If you're looking for a platform that brings payroll, employee benefits, and HR tools together,
Gusto gives you several options to explore.
Review the available plans, compare the features, and choose the tools that match your business requirements.
Start exploring Gusto today and see how it can simplify your payroll and HR workflow.
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