Gusto for Small Business: Is It Actually Worth It?

If you're running a small business and trying to figure out payroll, you've probably heard of Gusto. It's one of the most recommended payroll platforms out there, trusted by over 400,000 businesses. But is it actually the right fit for your company?

I've dug into the pricing, features, and real user reviews to give you the straight answer. No marketing fluff—just what you need to know to decide if Gusto makes sense for your business.

What Is Gusto?

Gusto is a cloud-based payroll and HR platform designed specifically for small to medium-sized businesses. It handles payroll processing, tax filing, benefits administration, onboarding, and basic HR tasks all in one place.

The platform is known for its clean interface and ease of use. Most businesses can set up payroll in under 30 minutes, and the system automates the tedious stuff like tax calculations and filings in all 50 states. It integrates with over 180 apps including QuickBooks, Xero, and FreshBooks.

The standout feature is the AutoPilot function—set it once and payroll runs automatically on schedule. For salaried employees with consistent pay, this is a massive time saver.

Gusto Pricing Breakdown

Gusto offers four main pricing plans. Here's what you'll actually pay:

Simple Plan: $49/month + $6/person

This is the entry-level option, best for small businesses with straightforward payroll needs. You get:

The catch: You're limited to employees in one state only. If you have remote workers in multiple states, you'll need to upgrade.

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

This is where most growing businesses land. Everything in Simple, plus:

If you have employees scattered across different states (which is increasingly common with remote work), this is your minimum viable option.

Premium Plan: $180/month + $22/person

Built for scaling businesses with more complex needs. Adds:

This tier makes sense if you're pushing past 20-30 employees and need actual HR guidance, not just software.

Contractor Only Plan: $35/month + $6/contractor

If you're only paying 1099 contractors (no W-2 employees), this stripped-down plan handles contractor payments, 1099 forms, and four-day direct deposit. Freelance agencies and consulting firms can save money here.

For a deeper dive into the numbers, check out our complete Gusto pricing guide and Gusto cost breakdown.

What Gusto Does Well

Dead-Simple Payroll Processing

Gusto's payroll interface has minimal learning curve. The dashboard highlights upcoming tasks and sends email reminders so you don't miss deadlines. Even the base plan handles complex calculations like wage garnishments, holiday pay, and tip credits automatically.

Customers save an average of 4 hours per month on payroll tasks—that's 48 hours per year you're getting back.

Transparent Pricing (No Hidden Fees)

Unlike ADP and Paychex where you need custom quotes and fees pile up unexpectedly, Gusto publishes its pricing upfront. Month-to-month billing, no long-term contracts, free account setup. Cancel anytime without penalties.

Every plan includes unlimited payroll runs. They don't nickel-and-dime you for off-cycle payrolls or additional pay periods.

Solid Benefits Administration

For a small business, offering benefits can feel impossible. Gusto makes it manageable with:

The workers' comp integration is particularly useful—premiums adjust automatically based on actual payroll data, so you're not overpaying.

Gusto Wallet (Employee Perk)

Employees get access to the Gusto Wallet app, which lets them manage pay, split deposits between accounts, access funds up to 2 days early, and set savings goals. It's a small perk that makes your business look more modern and employee-focused.

Contractor Payments Made Easy

You can pay contractors in all 50 states, and Gusto handles 1099 filing. They also support global contractor payments in 100+ countries, though international payments carry service and foreign exchange fees.

Where Gusto Falls Short

Limited HR Depth

Gusto handles basic HR tasks well—onboarding, offer letters, employee handbooks, document storage. But if you need advanced recruiting, sophisticated performance management, or deep compliance tools for regulated industries, you'll outgrow it.

For businesses in construction, healthcare, or other compliance-heavy industries, Paychex or ADP might be better fits despite the higher price.

Customer Support Can Be Slow

This is Gusto's Achilles heel. Support hours are limited compared to competitors like Paychex (which offers 24/7 support). Email responses can take 2-5 business days. If you hit a payroll emergency the day before payday, you might be sweating.

The Premium plan gets priority support and a dedicated success manager, but that's a significant price jump just for better service.

Costs Add Up With Add-Ons

The base pricing looks clean, but watch out for extras:

That $49/month Simple plan can easily become $100+ once you enable the features you actually need.

No Same-Day Direct Deposit

Even on the highest tier, same-day deposits aren't available. You're looking at next-day (Plus and up) or four-day (Simple). For businesses that need maximum payroll flexibility, this is a limitation.

Single-State Limitation on Simple Plan

With remote work being the norm, the single-state restriction on the cheapest plan pushes many businesses to the $80/month Plus tier right out of the gate.

Who Should Use Gusto?

Gusto is ideal if you:

Gusto probably isn't right if you:

Gusto vs. The Competition

Wondering how Gusto stacks up against alternatives? Here's the quick version:

Gusto vs. ADP: ADP offers more robust compliance and scales better for large organizations, but pricing is opaque and add-ons pile up fast. For businesses under 50 employees, Gusto is typically cheaper and more transparent. See our full Gusto vs. ADP comparison.

Gusto vs. Paychex: Paychex has 24/7 support and deeper HR features, but the platform can feel dated. Gusto wins on user experience. Read our Gusto vs. Paychex breakdown.

Gusto vs. Justworks: Justworks is a full-service PEO (they become co-employers and handle everything). Better for businesses that want to completely offload HR, but more expensive. Check our Gusto vs. Justworks comparison.

Gusto vs. QuickBooks Payroll: If you're already in the QuickBooks ecosystem, their payroll add-on integrates seamlessly. But Gusto offers more comprehensive HR tools. See Gusto vs. QuickBooks Payroll.

Gusto vs. Rippling: Rippling is more powerful for growing teams that need IT and device management alongside HR. More complex setup, but better for scaling. Read our Gusto vs. Rippling review.

For a broader look at payroll options, check out our guide to payroll software for small business.

Real User Reviews: What People Actually Say

Gusto holds a 4.6/5 rating on G2 across thousands of reviews. Here's what keeps coming up:

The good:

The frustrations:

Overall sentiment: Great for straightforward small business payroll, but don't expect white-glove service if something goes wrong.

Getting Started With Gusto

Setup is straightforward. You'll need:

Gusto offers free account setup and migration assistance. The best time to switch is at the beginning of the year (January 1), but you can migrate any time—just give yourself at least two weeks lead time to avoid gaps in paying your team.

There's no free trial, but you can use the software free until you actually run your first payroll. This lets you explore the interface and get comfortable before committing.

The Bottom Line

Gusto is one of the best payroll solutions for small businesses that want automation, clean design, and fair pricing without enterprise complexity. It handles the core jobs—paying people, filing taxes, managing benefits—better than most alternatives in its price range.

The Simple plan at $49/month + $6/person is genuinely affordable for small teams. But realistically, many businesses will land on the Plus plan ($80/month + $12/person) once they factor in multi-state payroll and next-day deposits.

If you're under 50 employees and want payroll that just works, Gusto is hard to beat. If you're growing fast, operating in a compliance-heavy industry, or need deep HR capabilities, you might outgrow it—but it's a solid place to start.

Try Gusto free →

Want to see how Gusto compares to other options? Read our full Gusto reviews roundup or our in-depth Gusto review.