Our Verdict
Gusto took payroll – historically a painful, error-prone process for small businesses – and made it genuinely simple. Automatic tax filing across all 50 states, same-day or next-day deposits, and employee self-service for pay stubs and W-2s are all included. The onboarding flow is the most approachable in the category. Where Rippling beats Gusto is on HR and IT complexity for larger organizations. Where Gusto wins is simplicity, customer support quality, and value for small businesses running straightforward US payroll.
Who Gusto Is Best For
- Small businesses with 2-50 US employees who need automatic tax filing and payroll runs without hiring a dedicated HR person
- Founders paying a mix of W-2 employees and 1099 contractors who want both managed cleanly inside one platform
- Growing companies that want health insurance, 401k, and workers comp tied directly into their payroll system
- First-time payroll software buyers who need strong onboarding support and an interface that does not assume prior HR knowledge
- Businesses in competitive hiring markets that want to offer polished employee self-onboarding and benefits access from day one
Who Should Look Elsewhere
- Companies with more than 100 employees needing complex HR workflows - Rippling scales better
- Businesses with significant international payroll needs - Gusto is US-focused for core payroll
- Organizations that need an integrated HR platform with IT and device management
- Very large enterprises with complex multi-entity structures - ADP or Workday handle that complexity
Features Breakdown
Full-Service Payroll
Gusto runs payroll for W-2 employees and 1099 contractors across all 50 US states. The payroll run process takes about 10 minutes once initial employee setup is complete – you review hours, approve deductions, and submit. Gusto handles federal, state, and local tax withholding, quarterly filings, and year-end W-2 and 1099 generation automatically. Multi-state payroll is supported with automatic compliance for each state’s specific tax and wage requirements.
Benefits Administration
Gusto acts as a licensed insurance broker in most states, allowing you to offer health, dental, and vision insurance directly through the platform. Employees select their coverage during onboarding through a self-service portal. Premium deductions sync automatically to payroll. For small businesses that want to offer competitive benefits without a dedicated HR manager, Gusto’s integrated benefits administration is one of its strongest practical advantages.
HR Tools
The HR module covers employee onboarding, document storage, PTO tracking, org charts, and offer letter templates. The Plus plan adds time tracking and the ability to manage teams across locations. For most small businesses, Gusto’s HR tools cover everyday needs: tracking employee milestones, managing PTO balances, storing signed documents, and maintaining an accessible employee directory. It’s not designed to replace dedicated HRIS platforms for complex organizations.
Contractor Payments
Gusto’s contractor-only plan ($6/contractor/month with no base fee) handles 1099 contractor payments, year-end 1099-NEC filing, and international payments to contractors in supported countries. The contractor plan is separate from the employee payroll plans and can be run independently. For businesses that work primarily with freelancers and contractors rather than W-2 employees, the contractor plan is an unusually affordable way to handle payments and compliance.
Gusto Pricing (Verified Apr-26)
Prices verified Apr-26. Always confirm on the vendor's site before purchasing.
| Plan | Type | Starting Price | Key Features |
|---|---|---|---|
| Simple | Small Teams | $40/mo + $6/person | Full-service payroll, tax filing, basic HR tools, employee self-service |
| Plus | Growing Businesses | $80/mo + $12/person | Time tracking, PTO management, org charts, next-day direct deposit |
| Premium | Full HR | Custom | Same-day deposits, HR resource center, priority support, compliance alerts |
| Contractor Only | Contractors | $6/contractor/mo | Unlimited contractor payments, 1099s, international payments |
What We Like
- Automatic multi-state tax filing and W-2/1099 generation - fully handled
- Employee self-service for pay stubs, tax documents, and benefits enrollment
- Benefits administration integrated with payroll - no manual sync between systems
- Contractor payments and 1099s included on the contractor plan
- Customer support reputation is unusually strong for payroll software
- 1-month free trial available - uncommon in the payroll category
Watch Out For
- US payroll only - international payroll requires a separate Gusto partner solution
- Per-person pricing adds up for larger teams
- More limited HR functionality compared to Rippling or BambooHR for complex organizations
- Same-day direct deposit is locked to the Premium plan
Frequently Asked Questions
Before You Buy — Know This
- Gusto's base fee is $40/month plus $6 per person for the Simple plan. A team of 10 costs $100/month. At 25 employees it's $190/month. Model out your actual cost at your current and projected headcount.
- Health insurance through Gusto is available in most states but not all. Verify carrier availability in your state before selecting Gusto as your benefits administrator.
- The 1-month free trial is a genuine offer - you can run actual payroll during the trial. Use it to test the onboarding experience and payroll run process before committing.
- Gusto integrates directly with QuickBooks, Xero, FreshBooks, and several time-tracking tools. If you're already using one of those, confirm the integration before purchasing.