Pros & Cons
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- Exceptional user experience
- Simple, clean operation
- Payroll process is flexible and understandable
- Excellent reporting tools
- Numerous integrated add-ons
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- Expensive
Gusto Specs
| 1099s | |
| HR Add-Ons | |
| Mobile Admin Access | App |
| Submits Federal, State, Local, and Payroll Taxes | |
| Time Tracking | |
| W-2s |
Gusto outshines other payroll services with its unique pairing of robust payroll and HR tools. A good choice for both novice and seasoned payroll managers in small businesses, it offers an exceptionally attractive and intuitive user interface. The latest version brings helpful AI features, employee expense management features, improvements to the mobile apps, a new edition for S-Corp businesses, and same-day and instant-pay capabilities, making the overall experience significantly better than before. Although Gusto is among the priciest payroll apps we've tested, its advanced tools and superb usability make it the product to beat for businesses that want the absolute best set of features available and plan to grow, edging out top competitors ADP RUN and QuickBooks Workforce. Gusto is worthy of our Editors' Choice award and stands out even further as a rare recipient of a full five-star rating.
Pricing: Costly, But Worth Every Dime
Gusto Solo is a new payroll product for S-Corp businesses that might be useful if you need to pay only yourself and some contractors. It costs $49 per month, plus $6 per person per month. This plan supports automatic tax filing, bill-pay, invoicing, self-pay, and Solo 401(k) and health benefits. I didn't test this version.
Gusto’s traditional payroll applications are among the most expensive I've tested, especially considering its per-worker fees. The entry-level Gusto Simple tier ($49 per month, plus $6 per worker per month) includes automated tax filings and unlimited payroll runs for a single state. Gusto Plus ($80 per month, plus $12 per worker per month) supports multi-state payroll. It also adds onboarding and time-tracking features.
Gusto Premium ($180 per month, plus $22 per month per employee) gets you a dedicated customer success manager and priority support, among other tools. Finally, a Contractor Only version ($35 per month, plus $6 per person per month) allows you to pay both US-based individuals and those residing in more than 120 countries (extra fees apply).
If you’re interested in Gusto, be sure to spend time calculating how much it’s going to cost before you commit. Many payroll features are paid add-ons or simply unavailable in some tiers, especially in the Simple version (such as time tracking and many HR tools). Some tax-advantaged benefits (such as HSAs and retirement savings) and HR tools incur per-employee fees even with the upper tiers.
OnPay is more affordable. You get robust payroll processing and some HR tools for $49 per month, plus $6 per employee per month. An expanded set of HR features adds $15 per month, plus $2 per employee per month. Some alternatives don't charge extra fees at all: Square Payroll ($35 per month, plus $6 per employee per month) and Patriot Software Full Service Payroll ($37 per month, plus $5 per worker per month) are the least expensive full-featured payroll sites I tested. You can get Patriot Software Basic Payroll ($17 per month, plus $4 per worker per month) for even less if you’re willing to submit payroll taxes and filings by yourself.
Gusto Money (powered by Melio), which is included with every plan, lets you connect your online bank accounts to Gusto so you can get a comprehensive view of your money. You can also create and send invoices, pay bills (transaction fees apply), and review and approve employee expenses. The new Gusto Money Dashboard helps ensure that you can fully fund your payroll on your scheduled dates by displaying your cash flow status and real-time account balances. If you wear many hats within your business, these tools could be quite useful.
Meanwhile, the new Payroll Bridge is a line of credit designed to help you meet payroll when cash flow is tight. This doesn't require a credit check, and you pay just one flat fee up front. You can spread repayments over four, eight, or 12 weeks. This tool is available through Parafin, and the funding comes from Celtic Bank. Gusto Money Plus ($19 per month) adds 25 free ACH payments per month, accounting integrations, batch payments, and approval workflows.
Interface and Ease of Use: Unbeatable on Multiple Fronts
You don't need an attractive, lively user experience to process payroll, but flexible, understandable tools are a must. Gusto is especially effective because it has both. I never got lost while working through its payroll processing tools or supporting features. In fact, I like Gusto's design better than any other small business payroll app I've tested (it's almost fun to use).
The site’s main dashboard is simple. It displays payments in progress and upcoming payrolls, recommendations for suggested actions (such as a reminder to run a dismissal payroll), and tasks by due date or priority.
Like competitors, Gusto walks you through the setup process, prompting you for information at each step, such as connections to integrated apps like Microsoft 365, pay schedules, payroll bank account information, and time-off requests and policies. Gusto is especially flexible about pay schedules; you can set them up by compensation type, department, and employee.
If you’ve been running payroll using another method, you need to provide details of your payroll history. Gusto specialists can help with this, as well as assist with the app's flexible data import capabilities, which let you bring in a spreadsheet of employee records, for example. I like how comprehensive the site is throughout the setup process, though Gusto charges extra for some services, such as state tax registration assistance. Patriot Software Payroll's Full-Service tier includes that option as part of its subscription price.
Aside from building simplicity into its design, Gusto provides tons of help files with easy-to-understand, step-by-step instructions. Unlimited chat, email, and phone support are available should you need additional assistance.
Employee Records: Everything You Need to Manage Workers
Employee records are the core of any payroll application. Gusto’s employee records display a common set of worker attributes, such as benefit assignments, contact information, compensation details, HR documents, and time-off use and accrual policies. Competitors add extras, too; ADP RUN’s Skills and Training module is an example. In Gusto’s case, it provides employee performance management features. You can assign access permissions to individual employees to limit which pages they can visit and what they can do on those pages.
Employee details appear on a central page that provides access to all employee payroll information. It displays the details you are most likely to need, including personal and tax-related information, job and pay details, and related documents. You can also set up employees’ subscriptions to connected apps (including Dropbox, FreshBooks, Microsoft 365, and Slack). You can specify any additional earnings that each payroll run should include. The site lets you add garnishments, one-time deductions, and recurring reimbursements. And it's possible to add custom fields of multiple types to employee profiles.
As for benefits, Gusto offers standard retirement plans through Guideline (which it recently acquired), as well as dental, disability, flexible savings accounts, health savings accounts, life insurance, medical, and vision coverage. You can use Gusto as your broker or keep your own broker and manage benefits through Gusto ($6 per month per eligible employee). You can set up payroll deductions for less common benefits, such as charitable giving with employer matches (fees apply), commuter benefits, and gym memberships.
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Running Payroll: Detail and Flexibility Throughout the Process
Gusto applies the same usability, depth, and design excellence to its payroll processing. Its pay run types are quite flexible. Besides bonus, off-cycle, and regular payrolls, you can run benefits correction payrolls and change, cancel, or reverse a recent payroll. You can also require payroll approval before they finalize. Direct deposit options are flexible, too. Gusto offers two- and four-day direct deposit, but charges an extra fee for next-day ($15 per month, plus $3 per month per person if you’re using the Simple plan), same-day ($90 per payroll), and instant ($100 per payroll) payroll. Dozens of new features make payroll easier, faster, safer, and more accessible. The software uses AI where it makes sense, such as for troubleshooting payroll before you submit it and making recommendations for benefits like medical insurance.
The Gusto Plus tier supports time tracking, scheduling (for an extra fee), and time sheets, but you can also bring hours in from any spreadsheet, use Gusto’s CSV template, or import from integrated applications, such as QuickBooks Time. Another option is Gusto's Time Kiosk software, which allows you to turn almost any internet-connected device into a time clock. You can, of course, enter hours manually.
Gusto has retired the old legacy view of the payroll hours page, which is good. It now uses the spreadsheet view exclusively, which shows all columns available by default, though you can hide, pin, reorder, or resize them so you don’t have to scroll horizontally as much.
Once you enter all of your hours and check to make sure everything is accurate (employee records open in a window that slides out, so you can consult them without losing your place in the payroll), Gusto displays a preview of your payroll. It tells you what Gusto will withdraw from your bank account and when, along with your total payroll and withdrawal amount. You can download the preview summary as a CSV or PDF file; tables show what gets taxed and debited, what your employees worked and will take home, and what your company will pay per employee. Gusto's new Assisted Payroll Prep identifies potential problems before you submit a payroll, such as missing entries and unusual amounts.
The page that appears after you submit a payroll repeats some of the information from the previous one, adds a few details, and includes some comparative charts. It provides a link to the Cash Requirements Summary, the Payroll Journal Report, and the Payroll Trend Report. You can also cancel the payroll here. Gusto handles the whole process quickly and well.
Reports: Thorough and Customizable Options for Key Data
Gusto’s deep detail and customization require a generous number of preformatted reports you can tailor to your needs. The site doesn't disappoint here. It offers almost three dozen templates that report on, for example, company contributions and employee deductions, contractor information and payments, federal and state tax filings, and time tracking hours. You can view your employees’ W-2 and W-3 forms, time-off requests, and payroll trends. Customization options are good (and easy to use), and you can schedule Gusto to deliver reports at specific frequencies.
The Payroll Journal report (an overview of payroll costs for a given date range) is exceptionally customizable because Gusto’s custom report tool powers it. You can drag and drop columns to the desired positions, filter the report, specify a date range, and then optionally save it as a template. Some reports appear in a new browser page, but you must download others as CSV, Excel, or PDF files.
Payroll managers can now also get answers to specific payroll data questions using ChatGPT, Claude, or Slack.
HR Tools: Robust Add-Ons, Many of Which Require Extra Fees
Gusto provides an exceptional set of HR tools that cover personnel concerns, including compliance, hiring, onboarding, and talent management (e.g., performance reviews and goal tracking). Many of the site’s HR tools, though, require extra fees—substantial ones, in a few cases.
Priority support costs $30 per month, plus $3 per person per month. Advanced HR guidance (including access to certified HR professionals and the HR Resource Center, where federal and state compliance alerts are posted) doesn't cost extra with a Premium plan. Simple and Plus subscribers can access these tools for $50 per month, plus $5 per worker per month. Workers’ compensation integration starts at $14 per month. Some apps, such as OnPay and Patriot Software, include this for free, though you still have to pay for the actual insurance policy. Other add-ons incur fees, such as Time & Attendance Plus, which costs $6 per worker per month for subscribers to the Simple plan.
Free HR tools across all versions include digital I-9s and W-4s, document storage, new-hire reporting, and offer letter templates. Plus and Premium subscribers get numerous other tools for free, such as an applicant tracking system, custom document e-signing, job postings, performance and compensation management, and talent acquisition.
Mobile Experience: The Dedicated Apps Gain Helpful New Features
Gusto's mobile app (available for Android and iOS) replaces the company’s former combination of Gusto Wallet for employees and mobile browser access for employers. I wasn't able to test the app because it doesn't support demo account access, but the company provided a comprehensive demo.
The app looks just as easy to use and aesthetically pleasing as the desktop version, and all the critical features are live. It allows employees to submit receipts from their phones and employers to access reports, tax tasks, and compliance dashboards. They now also include features such as compliance dashboards, tax tasks, and reporting tools.
What payroll managers can do on the app, though, is enough to make it worth logging in remotely. You can run regular and off-cycle payrolls from your phone, manage time sheets and move hours directly into payroll, onboard new employees and view and update employee information, and approve and process employee expenses. You get real-time alerts for payroll deadlines and changes, and support is available. Employees can access everything they could via the old Gusto Wallet, including benefits, job and pay information, payroll history, personal information, tax documents, and time tracking. The company will continue to roll out features in the coming months, like expense management and scheduling.
Gusto offers something that no competitors do: You can create an admin account on the mobile app and set up your company’s payroll for free. The company begins charging you only when you’re ready to run payroll.
Security: Is Gusto Safe to Use?
The company says it encrypts all data traveling between your browser and Gusto’s servers using TLS v1.2. It uses Amazon Web Services to host its databases, production servers, and supporting services. Gusto claims to regularly back up its data and production systems. The site supports multi-factor authentication, and Gusto proactively monitors customer accounts to help prevent fraudulent transactions.
Final Thoughts
(Credit: Gusto)
Gusto
Gusto is a premium-priced payroll platform that justifies its cost with best-in-class usability, powerful HR features, and continuous innovation, making it the top choice for growing small businesses.