Gusto Payroll Software Review for 2025
Gusto offers an intuitive, user-friendly interface with automated tax filings and integrated benefits management that simplifies payroll processes for small businesses.
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In this review, I'm going to share my analysis and evaluation from hands-on experience with Gusto. But first, if you're just beginning your search for the best payroll software, check out my picks of the best payroll software.
Gusto is among the most popular payroll software out there, but you need to better understand what's good and not so good about it. This in-depth Gusto review will walk you through the pros and cons, features, and functionality to help guide you to better understand its capabilities and suitability for your scenario.
Summary: Gusto
Gusto is a cloud-based payroll, benefits, and human resource management software solution specifically designed for small businesses in the United States. It provides a user-friendly platform to automate payroll runs, file payroll taxes, administer health insurance and other employee benefits, and manage HR processes. It is also commonly used by startups, small business owners, bookkeepers, and HR professionals to manage and simplify payroll, benefits, hiring, and HR compliance tasks.
Gusto helps businesses stay compliant with tax laws, offer competitive employee benefits, and manage HR tasks efficiently. Its top features include a simple, intuitive interface, automated payroll and benefits processes, and integration with popular accounting and time-tracking tools.
Gusto Pros
- Easy to use: Gusto has an intuitive interface that makes it simple for small businesses to manage payroll, even without prior payroll management experience.
- Employee self-service: Employees can access their own Gusto accounts to view pay stubs, tax documents, tax forms, and update personal information.
- Benefits administration: Gusto offers health insurance, 401(k) retirement plans, workers' comp, and other employee benefits that sync with payroll.
Gusto Cons
- Limited reporting options: Gusto’s payroll reports lacks some of the more advanced and customizable reporting features found in other payroll software.
- No internal time tracking: Gusto does not have a built-in time tracking tool, so businesses need to use a separate system or manually enter hours.
- Inconsistent customer support: Some users have reported long wait times and difficulty getting in touch with Gusto's customer support team when issues arise.
Gusto Expert Opinion
From my perspective, Gusto is a top choice for small to midsized businesses seeking an intuitive and comprehensive payroll solution. Its user-friendly design and transparent pricing make it easy to implement, allowing HR professionals to manage payroll, health insurance, 401(k), and workers' compensation all in one place. Gusto's built-in HR resource center, employee self-onboarding, and e-signature features effectively reduce administrative workload.
However, for very small businesses with fewer than five employees or large enterprises with more than 100 employees, Gusto might not be as ideal. Alternatives like SurePayroll offer more affordable basic payroll services, while ADP provides advanced features for larger enterprises. Although Gusto's reporting options are limited and it lacks built-in time tracking, its automated tax filing and comprehensive benefits integration make it a reliable option for SMBs.
On the other hand, for small businesses desiring a modern, user-friendly payroll platform that balances functionality and ease of use, Gusto is worth considering. Its transparent pricing and effective onboarding process are also beneficial for high-growth companies. In my opinion, Gusto delivers a compelling combination of functionality, usability, and value, making it a leading choice in the SMB payroll market.
Why Trust Our Software Reviews
We've been testing and reviewing payroll software since 2019. As HR experts ourselves, we know how critical and difficult it is to make the right decision when selecting software.
We invest in deep research to help our audience make better software purchasing decisions. We've tested more than 2,000 tools for different HR management use cases and written over 1,000 comprehensive software reviews. Learn how we stay transparent and our software review methodology.
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Rippling
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.8 -
Willo
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.8 -
ClearCompany
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Are You a Good Fit for Gusto?
Who Would Be a Good Fit for Gusto?
Gusto works well for small to midsized businesses with under 100 employees that want an easy-to-use platform to manage payroll, benefits, and basic HR tasks. It's a good choice for companies looking to offer health insurance and 401(k) plans, automate payroll taxes, and provide an intuitive self-service user experience to employees.
Who Would Be a Bad Fit for Gusto?
Large enterprises with over 100 employees that require advanced HR capabilities would not be an ideal fit for Gusto. Additionally, companies with established HR departments and existing HRIS solutions may find Gusto too basic. Businesses with highly complex payroll, union contracts, or multi-state compliance challenges are better off with other solutions. Gusto also lacks some expanded features like time tracking and performance management that some larger companies may need.
Best Use Cases for Gusto
- Small businesses: Gusto provides an affordable, user-friendly payroll solution with solid customer support that is ideal for small businesses.
- Startups: With its simple pricing model, modern user interface, and useful HR tools, Gusto is a great choice for tech-savvy startups that need to get payroll up and running quickly.
- Restaurants: Gusto offers restaurant-specific features to facilitate tip pooling, distribution, and automated reporting. This makes it one of the top payroll options for food service businesses.
- Nonprofits: Gusto waives the base fee for the first 10 employees, which makes it an economical payroll choice for budget-conscious nonprofits.
- Professional services: Gusto is a good fit for many professional services firms due to its automatic tax filing and support for multiple pay rates and schedules.
- Household employers: Gusto’s payroll option also handles W-2s and 1099s for those who employ nannies, housekeepers, and other household workers.
Worst Use Cases for Gusto
- Large enterprises: Gusto does not have some of the advanced payroll and HR features that large corporations typically need.
- High-growth companies: Businesses experiencing rapid employee growth may find Gusto's capabilities insufficient and its integration options too limited.
- Multi-state employers: Companies with employees in multiple states might find Gusto's options for state tax filings to be lacking compared to larger payroll providers.
- International companies: Since Gusto currently only supports payroll for employees based in the US, it is not a viable option for businesses with international operations.
- Finance departments: For companies with highly complex payroll, invoicing, or accounting needs, Gusto's financial reporting may be too basic.
- Manufacturing: Manufacturers often require more advanced features for time tracking, job costing, and employee scheduling than what Gusto provides.
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Rippling
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.8 -
Willo
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.8 -
ClearCompany
Visit WebsiteThis is an aggregated rating for this tool including ratings from Crozdesk users and ratings from other sites.4.6
Gusto Evaluation Summary
- Core Functionality: ⭐⭐⭐⭐⭐
- Standout Features: ⭐⭐⭐⭐
- Ease of Use: ⭐⭐⭐⭐⭐
- Onboarding: ⭐⭐⭐⭐
- Customer Support: ⭐⭐⭐⭐
- Integrations: ⭐⭐⭐⭐
- Customer Reviews: ⭐⭐⭐⭐
- Value for Money: ⭐⭐⭐⭐
Review Methodology
We're a team of software experts who obsess about the features and functionality of different platforms. We know how critical—yet difficult and confusing—software selection can be. We test and score software to find the best solutions, whatever the use case may be.
Using our objective, data-driven testing methodology, we've tested 300+ software. We dedicate ourselves to being objective in fully and fairly testing software, to get beyond the marketing fluff and truly understand the platform.
We've developed robust testing scenarios to use the software in the same way you will. We leverage our own first-hand, practical experience of the tools, complemented by interviews with users, experts, and software vendors.
How We Test & Score Payroll Software
We've spent years building, refining, and improving our software testing and scoring system for payroll solutions. The rubric is designed to capture the nuances of software selection, and what makes payroll software effective, focusing on critical aspects of the decision-making process.
Below, you can see exactly how our testing and scoring work across eight criteria. It allows us to provide an unbiased evaluation of the software based on core functionality, standout features, ease of use, onboarding, customer support, integrations, customer reviews, and value for money.
Core Functionality (25% of final scoring)
For payroll software, the core functionality we test and evaluate are:
- Payroll processing: Accurately calculates and processes employee payroll.
- Tax compliance: Handles federal, state, and local tax withholdings and filings.
- Direct deposit: Allows employees to receive their pay via direct deposit.
- Reporting: Generates payroll reports for analysis and record-keeping.
- Employee self-service: Provides a portal for employees to view pay stubs and update personal information.
- Deductions management: Handles pre-tax and post-tax deductions like benefits and garnishments.
Standout Features (20% of final scoring)
We evaluate uncommon, standout features that go above and beyond the core functionality defined and typically found in payroll software. A high score reflects specialized or unique features that make the product faster, more efficient, or offer additional value to the user.
Ease of Use (15% of final scoring)
We consider how quick and easy it is to execute the tasks defined in the core functionality using the payroll software. High-scoring software is well designed, intuitive to use, offers mobile apps, provides templates, and makes relatively complex tasks seem simple.
Onboarding (10% of final scoring)
We know how important rapid team adoption is for a new platform, so we evaluate how easy it is to learn and use the payroll software with minimal training. We evaluate how quickly a team member can get set up and start using the software with no experience. High-scoring software indicates little or no support is required.
Customer Support (10% of final scoring)
We review how quick and easy it is to get unstuck and find help by phone, live chat, or knowledge base. Payroll software that provides real-time support scores best, while chatbots score worst.
Integrations (10% of final scoring)
We evaluate how easy it is to integrate with other tools typically found in the tech stack to expand the functionality and utility of the software. Payroll software offering plentiful native integrations, 3rd party connections, and API access to build custom integrations score best.
Customer Reviews (10% of final scoring)
Beyond our own testing and evaluation, we consider the net promoter score from current and past customers. We review their likelihood, given the option, to choose the payroll software again for the core functionality. A high-scoring software reflects a high net promoter score from current or past customers.
Value for Money (10% of final scoring)
Lastly, in consideration of all the other criteria, we review the average price of entry-level plans against the core features and consider the value of the other evaluation criteria. Software that delivers more, for less, will score higher.
Through this comprehensive approach, focusing on core functionalities, standout features, usability, onboarding, customer support, value, and customer reviews, I aim to identify payroll software that not only meets but exceeds expectations, ensuring teams have the tools they need to succeed.
Gusto Review
Core Payroll Software Functionality
Full-service payroll: Gusto handles all payroll tasks, including calculating and filing federal, state, and local taxes. Payroll can be run on a flexible schedule.
Employee self-service: Workers can onboard themselves, access pay stubs, and update personal information through the Gusto employee portal. Gusto provides employee offer letters and e-signing of W-4 and I-9 forms.
Direct deposit: Gusto enables direct deposit payments to employee bank accounts. Additionally, employees can set up multiple deposit accounts and split their pay checks for easier financial management.
PTO tracking: Gusto makes it easy to set up custom paid time off policies. Through the software, employees can request time off and managers can approve it directly.
Reporting: Gusto provides a suite of reports to help with accounting, taxes, and analyzing labor costs. Individual reports can be customized and exported to simplify payment processing.
Payroll on autopilot: Gusto allows you to set payroll to run automatically each pay period. Salaried employees are paid the same amount while hourly employees are paid based on hours imported from timesheets.
Gusto Standout Features
Gusto Wallet: Gusto Wallet is a free employee financial app that integrates with Gusto payroll. It allows workers to access earned wages between paydays, save money directly from their pay checks, and track their cash flow.
HR Resource Center: Gusto provides an online HR resource center with templates for employee policies, job descriptions, performance reviews, and more. It also offers access to certified HR professionals for personalized guidance.
Ease of Use
I find Gusto to be one of the most user-friendly payroll systems on the market. The interface is clean, intuitive, and easy to navigate. Additionally, payroll and other tasks are clearly laid out step-by-step, with embedded help providing guidance as needed. Compared to other small business payroll software like QuickBooks Payroll or Patriot Payroll, Gusto requires very minimal training to get up and running.
Onboarding
When you sign up for Gusto, you are assigned a dedicated representative to help you get started. They begin by assessing your current payroll and HR processes. Then, they provide you with a customized onboarding checklist with clear steps to configure the system.
Throughout the process, your representative is available to answer questions, provide guidance, and even do screen-shares to walk you through the software. The Gusto resource center also provides how-to articles and videos. This personalized approach distinguishes Gusto from payroll software that takes more of a self-serve approach to onboarding.
Customer Support
Gusto provides support via phone, email, and live chat. Phone and chat support are available Monday through Friday from 6AM to 6PM Mountain Standard Time (MST). Email support is also available, but responses are typically provided during business hours.
The Gusto website features an advanced knowledge base with hundreds of articles and tutorials on how to use the software. Additionally, the Gusto system status page allows you to monitor any technical issues or scheduled maintenance that may impact the availability of the software.
Integrations
Gusto integrates natively with popular software such as QuickBooks, Xero, FreshBooks, TSheets, When I Work, Clover, Shopify, and Guideline 401(k).
Value for Money
Based on my research and experience assessing payroll software, I find Gusto pricing to be very competitive compared to other major providers.
Plans start at approximately $40/month for the base fee, plus $6/user/month, making it relatively cheaper than base plans from industry leaders like ADP and Paychex. Gusto's pricing plans include:
- Contractor: $35/month base fee, plus $6/user/month for basic contractor-only payment and 1099 management.
- Simple: $40/month base fee, plus $6/user/month for full-service payroll, employee self-service, health insurance administration, and workers' compensation administration.
- Plus: $60/month base fee, plus $9/user/month for everything in Simple, plus next-day direct deposit, time tracking, PTO approvals, project costing, and employee onboarding and surveys.
- Premium: Exclusive pricing with everything in the Plus plan, in addition to certified HR professionals, an HR resource center, dedicated support, and more.
For small businesses on a budget, Gusto's Simple plan provides excellent value with the key payroll and HR essentials. The Plus and Premium plans are pricier but still in line with upper-tier plans from competitors. Overall, Gusto delivers a lot of value across its plans.
Product Specifications
| Feature | Gusto Support |
| Full-service payroll | ✅ |
| Direct deposit | ✅ |
| Automatic tax filing | ✅ |
| Employee self-service portal | ✅ |
| PTO tracking | ✅ |
| Mobile app | ✅ |
| Reporting | ✅ |
| Accounting software integrations | ✅ |
| Time tracking integrations | ✅ |
| Benefits administration | ✅ |
| Workers' comp insurance | ✅ |
| Employee onboarding | ✅ |
| HR templates and guides | ✅ |
| Dedicated support representative | ✅ |
| Wage garnishment management | ✅ |
| Customizable payroll reports | ❌ |
| Job costing and labor allocation | ❌ |
| Professional HR advising | ❌ |
| Applicant tracking system | ❌ |
Gusto Alternatives
If you're looking for alternative payroll systems to Gusto, here are a few worth checking out:
Get free help from our HR software advisors to find your match.
Gusto Frequently Asked Questions
What is Gusto?
Gusto is a cloud-based platform that provides HR, payroll, and benefits management tools for small to medium-sized businesses. It allows companies to automate and streamline many of their core processes, from onboarding new hires to running payroll and administering health insurance and other benefits. Gusto aims to be an all-in-one solution that saves businesses time and ensures compliance.
Is there a mobile app for Gusto?
Yes, Gusto offers a mobile app for iOS and Android devices. The app allows employees to access their pay stubs, W-2s, and benefits information on the go. Administrators can also use the mobile app to run payroll, add new employees, and manage HR tasks. However, the mobile app has more limited functionality compared to the full web version of Gusto.
Is Gusto HIPAA compliant?
Yes, Gusto is HIPAA-compliant. It implements the privacy and security safeguards required by HIPAA when handling protected health information on behalf of its clients. This includes encrypting data both in transit and at rest, maintaining detailed access logs, and having strict controls over who can view sensitive information.
Is Gusto SOC 2 compliant?
Yes, Gusto is SOC 2 Type II compliant. This means it has passed an independent audit of its data security and privacy controls against the standards set by the AICPA. The SOC 2 report assures Gusto customers that the company has the appropriate safeguards in place to protect their sensitive data. Gusto makes its SOC 2 report available to clients under NDA.
Is Gusto secure?
Yes, security is a top priority for Gusto. The company uses industry-standard best practices to keep client and employee data safe, including:
- 256-bit SSL/TLS encryption for all data transmitted between users and Gusto
- Firewalls and network monitoring to protect against unauthorized access
- Strict access controls and audit logging of all data interactions
- Background checks and security training for all Gusto employees
Is Gusto FedRAMP certified?
No, Gusto is not currently FedRAMP certified. FedRAMP is a government-wide security assessment program required for cloud services used by federal agencies. At this time, Gusto has not undergone the FedRAMP certification process, so it is not an approved provider for federal government entities. However, Gusto does maintain robust security and compliance standards that meet the needs of most private-sector businesses.
Is Gusto GDPR compliant?
Yes, Gusto is fully GDPR compliant. It has updated its privacy policies and practices to meet the requirements of the EU’s General Data Protection Regulation. This includes providing tools for data access and deletion requests, maintaining records of processing activities, and appointing a Data Protection Officer. Gusto also relies on Standard Contractual Clauses for international data transfers out of the EU.
How do I contact Gusto support?
Gusto offers phone, email, and chat support. You can call Gusto’s dedicated support line at (800) 936-0383, Monday through Friday between 6 am and 5 pm Pacific Time. Email support is available at support@gusto.com, and live chat is accessible within the Gusto web and mobile apps during business hours. Support is provided at no additional cost to all Gusto subscribers.
Gusto Company Overview & History
Gusto is a cloud-based payroll, benefits, and human resource management software company based in San Francisco, California. Founded in 2011 as ZenPayroll, Gusto provides a full-service platform for small and medium-sized businesses to manage payroll processing, health insurance, 401(k) retirement plans, employee onboarding, and access to HR experts.
Gusto is a privately held company headquartered in San Francisco, with additional offices in Denver, New York City, and Seattle. The company serves thousands of businesses across the United States, with notable clients including Meetup, Warby Parker, Wieden+Kennedy, Allbirds, and the Golden State Warriors.
To date, Gusto has raised over $746 million in venture capital funding. The company reached a $1 billion valuation in 2015 and a $2 billion valuation in 2018. Gusto's last major funding round in 2021 raised $175 million and valued the company at approximately $10 billion. As a privately held company, Gusto does not have public stock information.
Gusto Major Milestones
- 2011: Founded as ZenPayroll in San Francisco by Joshua Reeves, Edward Kim, and Tomer London
- 2012: Launched first full-service payroll product
- 2014: Reached 10,000 customers
- 2015: Raised $50M Series B, valued at over $1 billion. Rebranded from ZenPayroll to Gusto
- 2016: Acquired Rentobo, a real estate management tool company
- 2018: Raised $140M Series C, valued at $2 billion. Annual recurring revenue surpassed $100 million
- 2019: Raised $200M Series D, valued at $3.8 billion
- 2021: Reached over 100,000 customers and 1,400 employees across 4 offices
Want to learn more about Gusto? Check out their site for additional information.
From $40/month + $6/user/month
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