Gusto Reviews: An Honest Look at What Works and What Doesn't

If you're researching payroll software for your small business, you've probably seen Gusto mentioned everywhere. With over 400,000 companies using the platform, it's one of the most popular options out there. But is it actually worth it for your business?

I've spent time digging into Gusto's features, pricing, and real user feedback to give you a straight answer. Here's what you need to know before signing up.

What Is Gusto?

Gusto is a cloud-based payroll and HR platform built specifically for small to medium-sized businesses. It handles payroll processing, tax filings, benefits administration, onboarding, and time tracking-all from one dashboard.

The platform is known for being user-friendly, with a 4.7/5 satisfaction rating across major review sites. Most users can set up payroll in under 30 minutes, even without prior experience.

Beyond basic payroll, Gusto integrates with over 180 apps including accounting software, time tracking tools, and HR platforms. This means less manual data entry and fewer errors across your systems.

Gusto Pricing Breakdown

Gusto uses a base fee plus per-employee pricing model. Here's what each plan costs:

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

This is Gusto's entry-level option. It includes full-service single-state payroll, automatic tax filings, employee self-service, basic hiring tools, and onboarding. Best for small teams operating in one state who just need reliable payroll without the extras.

The Simple plan gives you 4-day direct deposit, meaning you need to submit payroll four business days before your check date. For a Friday payday, you'd need to run payroll by Monday at 4pm PT.

Plus Plan: $89/month + $13/employee

The most popular tier. You get everything in Simple plus multi-state payroll, next-day direct deposit, time tracking, PTO management, and advanced onboarding tools. This is where Gusto starts to shine for growing businesses.

Next-day direct deposit means you can run payroll on Wednesday for a Friday payday. This faster turnaround gives you more flexibility with cash flow management.

Premium Plan: $199/month + $24/employee

For businesses that need serious HR support. Includes everything in Plus plus a dedicated customer success manager, access to certified HR experts, compliance alerts, and an HR resource center with templates and handbooks.

The Premium plan also includes free health insurance broker integration (normally $6/employee/month on other plans), priority support, and full-service payroll migration assistance.

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

If you only pay contractors (no W-2 employees), this plan covers unlimited payments across all 50 states with four-day direct deposit. There's currently a promotion offering $0 base price for the first six months.

For a deeper look at what each tier includes, check out our complete Gusto pricing breakdown.

What Gusto Does Well

Dead-Simple Interface

Gusto's biggest strength is how easy it is to use. The dashboard is clean, with payroll actions accessible in two clicks or less. Even if you've never run payroll before, you won't feel lost. Menu items are well-organized: People, Pay, Time & Attendance, Benefits, and Taxes & Compliance.

The home dashboard displays important to-do items front and center-upcoming payroll runs, compliance obligations, and time-off requests that need approval. Everything you need to manage is visible at a glance.

Unlimited Payroll Runs

Every Gusto plan includes unlimited payroll runs at no extra cost. Need to run an off-cycle payroll for bonuses or corrections? No additional fees. This is a real advantage over competitors who charge per payroll run.

Many small businesses run into situations where they need to process special payments-year-end bonuses, commission adjustments, or corrections for missed hours. With Gusto, these situations don't trigger extra charges.

Automatic Tax Filing

Gusto handles federal, state, and local tax filings in all 50 states. They calculate, file, and pay your payroll taxes automatically. For most small business owners, this alone is worth the monthly fee-it eliminates the risk of missed filings and penalties.

The platform files Forms 941 (quarterly federal tax return), Form 940 (annual unemployment tax), W-2s, 1099s, and all applicable state and local forms. Tax payments are debited automatically from your company bank account on the required schedule.

Solid Benefits Administration

If you use Gusto as your health insurance broker, benefits administration comes at no extra cost beyond insurance premiums. They offer health, dental, vision, and retirement plans. If you prefer to keep your existing broker, it's $6/month per eligible employee (free on Premium).

Benefits sync directly with payroll, so deductions are handled automatically. Employees can enroll, view coverage details, and manage their benefits through the self-service portal.

AutoPilot Payroll

Once you've set everything up, you can enable AutoPilot to run payroll automatically on your schedule. Less time remembering to submit payroll, fewer missed deadlines.

AutoPilot works best for businesses where employee pay doesn't fluctuate much from period to period. If you have hourly workers with varying schedules, you'll still need to review and approve each run manually.

Employee Self-Service Portal

Employees can access pay stubs, tax documents (W-2s, 1099s), update personal information, view benefits, and manage direct deposit settings without HR assistance. This reduces administrative burden significantly.

The Gusto Wallet mobile app gives employees even more control. They can set up savings goals, split direct deposits between multiple accounts, and access their paychecks up to 2 days early when using Gusto's spending account.

Strong Onboarding Experience

New hire onboarding is streamlined with digital offer letters, e-signatures, and automated workflows. Employees can complete all paperwork remotely, including I-9 forms, W-4s, and state withholding forms.

Gusto also handles new hire reporting to state agencies automatically, ensuring you stay compliant from day one.

Where Gusto Falls Short

No Same-Day Direct Deposit

Unlike QuickBooks Payroll, Gusto doesn't offer same-day direct deposit. The fastest option is next-day deposit, and that's only available on Plus and Premium plans. The Simple plan gets 4-day direct deposit. If cash flow timing is critical for your business, this could be a dealbreaker.

For businesses that need to run emergency payroll or handle last-minute corrections, the lack of same-day processing creates complications. Some competitors offer instant payroll options that deposit funds within minutes.

Add-On Costs Stack Up

While base pricing looks competitive, extra features can add $10-$30 per employee per month. Benefits like 401(k) plans, workers' compensation, FSAs, and life insurance are all paid add-ons. A $49/month Simple plan can quickly become $100+ once you enable multiple features.

Time tracking on the Simple plan costs an additional $6/employee/month. Next-day direct deposit as an add-on costs $15/month + $3/employee. If you need these features, jumping to the Plus plan makes more financial sense.

Higher-Tier Plans Get Expensive

The Plus and Premium plans are noticeably pricier than competitors. If you're a 20-person company on Premium, you're looking at $199 + ($24 x 20) = $679/month before any add-ons. For comparison, OnPay charges a flat $40/month + $6/employee with all features included.

The cost difference becomes more pronounced as you scale. A 50-person team on Premium would pay $1,399/month, which puts Gusto into enterprise pricing territory without enterprise-level features.

No Master Search Bar

Minor gripe, but there's no universal search function. If you're looking for a specific setting or menu item, you'll need to navigate through the menus manually.

This becomes frustrating when you're trying to find a specific tax form, locate an employee's historical payroll data, or update a compliance setting buried in submenus.

Mobile App Is Employee-Only

The Gusto Wallet mobile app is for employees to view pay stubs and tax documents. There's no admin component-if you need to run payroll on the go, you'll use the mobile web version, which works but isn't as smooth as a dedicated app.

Competitors like ADP and Paychex offer full-featured mobile apps for administrators, allowing you to approve time-off requests, run payroll, and manage employee information from your phone.

Limited Performance Management Features

Gusto's performance review tools are basic compared to dedicated HR platforms. You can conduct simple reviews and set goals, but there's no 360-degree feedback, competency frameworks, or advanced analytics.

If performance management is a priority, you'll likely need to integrate a third-party tool or use a different platform altogether.

Customer Service: The Biggest Complaint

One of the most consistent criticisms from real Gusto users centers on customer service quality. While Gusto ranks highly for ease of use, support experiences tell a different story.

Long Wait Times

Multiple users report hold times exceeding 30 minutes when calling support. Some have waited over an hour during busy periods like tax season. Email responses can take 24-48 hours, which creates problems when you're facing payroll deadlines.

Gusto's support hours are limited to 6am-6pm Mountain Time, Monday through Friday. There's no weekend support, and no 24/7 emergency line for critical payroll issues.

Call Center Quality Issues

Several reviewers mention being cycled through multiple support representatives without resolution. The call center staff often lack the authority to make changes or fix issues beyond reading from help articles.

One user reported: "The call center has no authority to do anything other than read help articles to you. They refuse to connect you to anyone who can help."

Premium plan customers used to get a dedicated support team that knew their account history. That's changed to a call center model, even at the highest pricing tier. Previous "Concierge" customers report a significant decline in support quality.

Tax Issue Resolution Problems

When tax filing errors occur, getting them resolved can take weeks. Users report submitting tax notices to Gusto, only to receive slow responses that don't address the underlying problem.

One business owner described receiving an IRS notice about unpaid taxes caused by a Gusto processing error. After submitting the notice, they were told resolution would take 2-15 business days. The slow response timeline left them liable for penalties.

Another user reported that Gusto's system didn't properly reverse a payroll, adding it to the wrong quarter and triggering IRS penalties. Customer service took days to respond and offered no assistance with penalty reimbursement.

Tax Filing Accuracy Concerns

While automatic tax filing is Gusto's core value proposition, real users have reported several concerning issues:

Failed Filings

Tax filings can fail for multiple reasons: mismatched company information, incorrect tax account numbers, previous payroll provider still listed as reporting agent, or state agency verification issues.

When filings fail three times, Gusto requires you to file taxes manually outside the platform-defeating the purpose of paying for automatic tax filing in the first place.

Incorrect Tax Calculations

Some users report discrepancies between Gusto's tax calculations and what their accountants determine is correct. Issues include incorrect state tax withholdings, errors in unemployment insurance calculations, and problems with multi-state tax handling.

One reviewer noted: "They consistently provide inaccurate reporting for payroll and made an error on our tax documents causing us to spend more money for our outside accountant to straighten things out."

Tax Reconciliation Debits

Gusto runs "tax reconciliation payrolls" to correct tax discrepancies. These automatic debits from your company bank account can happen without much advance notice, creating cash flow issues.

Reconciliation debits occur when tax rates change, employee locations change, benefits adjustments affect taxes, or non-Gusto payrolls are added to the system. While these corrections are necessary, the communication and timing can catch business owners off guard.

State-Specific Limitations

Gusto doesn't support all local tax jurisdictions equally. For example, reviewers report that Portland Metro taxes aren't properly handled. California's Paid Family Leave benefits have caused issues for some users.

Some state-specific forms and requirements aren't fully automated, requiring manual intervention that undermines the "automatic" tax filing promise.

Direct Deposit Timing Issues

Several users complain about inconsistent direct deposit timing, especially around holidays:

Holiday Delays

When federal holidays fall on or near payday, employees may not receive their money until several days later. Users report employees not seeing paychecks until mid-day Friday, or even the following Tuesday after a holiday week.

Banks have until 5pm local time on payday to deposit funds, but the timing can vary significantly. This creates problems for employees who expect their money to be available first thing in the morning.

4-Day Processing on Simple Plan

The 4-day direct deposit requirement on the Simple plan means you need to submit payroll four business days before the check date. This can feel restrictive compared to competitors offering 2-day or next-day processing at lower price points.

For businesses with cash flow constraints, releasing funds four days early creates unnecessary financial pressure.

Benefits Administration Challenges

While Gusto offers benefits administration, real-world implementation reveals limitations:

Open Enrollment Problems

Multiple users report issues with open enrollment periods. Gusto has started enrollment without consulting the employer, with wrong rates, wrong dates, and incorrect coverage defaults.

One user described a situation where an employee intended to waive coverage because he was getting on his wife's plan. Customer service assured the user that coverage would be automatically waived if the employee took no action. Instead, Gusto automatically enrolled him in the previous year's plan, creating a billing and coverage mess.

Limited PTO Administration

Gusto's PTO tracking has limited flexibility. Some benefit plan types aren't fully supported, especially plans that aren't 100% employer-funded. The system can't handle complex accrual rules or carryover policies that many established businesses need.

FSA and HSA Issues

Users have reported confusion around limited-purpose FSA accounts and rollover rules. In one case, a user had $450 in an FSA that they believed would roll over based on plan documentation. After a year of trying to resolve the issue, Gusto claimed IRS rules prevented access to the funds, with no prior notice given.

Gusto vs. The Competition

How does Gusto stack up against alternatives? Here's the quick rundown:

Gusto vs. ADP

For small businesses under 50 employees, Gusto is typically cheaper and more transparent. ADP requires custom quotes and often charges for features Gusto includes by default. However, ADP may offer better pricing for companies with 100+ employees or complex multi-state needs. ADP also provides 24/7 support, which Gusto lacks. Read our full Gusto vs ADP comparison.

Gusto vs. QuickBooks Payroll

QuickBooks wins if you need same-day direct deposit or already use QuickBooks accounting (the integration is seamless). Gusto wins on HR features, benefits administration, and overall user experience. QuickBooks pricing starts lower but increases rapidly with add-ons. See our Gusto vs QuickBooks Payroll breakdown.

Gusto vs. Paychex

Paychex offers more bundled benefits out of the box and 24/7 access to HR professionals. But it feels dated compared to Gusto's modern interface, and setup takes days instead of minutes. Paychex pricing is less transparent, requiring custom quotes for most features. Compare them in our Gusto vs Paychex review.

Gusto vs. Rippling

Rippling is more powerful for fast-growing companies that need IT management alongside HR (device provisioning, app management, etc.). It supports 160+ countries for global payroll. But it's more complex and takes longer to onboard. Rippling's pricing is also higher. For pure small business payroll, Gusto is simpler. Check out Gusto vs Rippling.

Gusto vs. Justworks

Justworks is a PEO (Professional Employer Organization) that acts as a co-employer, handling everything from payroll to HR to compliance. It's better if you want to completely outsource HR. Gusto is better if you want control over your processes with good software support. Justworks typically costs more but provides more hands-on service. Full comparison: Gusto vs Justworks.

Gusto vs. OnPay

OnPay costs $40/month + $6/employee with all features included-no tiered pricing, no add-ons. For businesses that want predictable costs and straightforward payroll, OnPay offers better value. However, OnPay lacks Gusto's benefits administration capabilities and doesn't offer as many integrations. OnPay's interface is simpler but less modern.

Real User Reviews: The Good and Bad

Positive Reviews

Users who love Gusto typically praise the ease of setup, clean interface, and time savings. One reviewer said: "What used to take hours now takes seconds. I spend less time on payroll and more time on my business."

Small business owners with straightforward payroll needs (same pay every period, single state, no complex benefits) tend to have the best experiences. The platform "just works" for simple use cases.

Accountants and bookkeepers who manage multiple clients appreciate Gusto's partner dashboard, allowing them to handle payroll for several businesses from one interface.

Negative Reviews

Reddit users in r/Payroll have shared honest criticisms. One thread titled "Why I stopped using Gusto" highlighted major pain points:

Trustpilot reviews show a 2.7/5 rating with common complaints about unhelpful support staff, long resolution times, unexpected charges, unauthorized withdrawals, tax filing errors, and declining service quality over time.

BBB complaints reveal issues with incorrect payroll reversals, taxes paid to wrong quarters, FSA fund access problems, and slow response times when critical issues arise.

Company Size Matters

Businesses with 25+ employees report more problems. One reviewer noted: "Our company now is about 25 employees and we have seemingly outgrown Gusto's support. Previously with the concierge plan, we were assigned dedicated team of people that helped us. That was excellent, but it has all changed. Now, even with the premium plan, the support is a call center."

The sweet spot for Gusto appears to be businesses with 5-50 employees, straightforward payroll, and minimal complexity.

Setup and Implementation Experience

How Long Does Setup Take?

Most users report completing initial setup in under 30 minutes. You'll need:

Gusto verifies your business information, which typically takes 1-2 business days. Some users report approval within 4 hours.

Account Migration

Switching from another payroll provider requires uploading year-to-date payroll data to ensure accurate tax calculations. The Premium plan includes full-service migration assistance. On lower tiers, you'll handle data entry yourself.

The migration process can be tricky if your previous provider uses different pay period structures or benefit codes. Budget extra time for cleanup and verification.

Learning Curve

The interface is intuitive enough that most users can run their first payroll without training. However, understanding all the features-benefits administration, time tracking, compliance tools-takes longer.

Gusto's Help Center provides articles, videos, and guides, but some users find the documentation insufficient for complex scenarios.

Who Should Use Gusto?

Gusto is best for:

Gusto might not be right if:

Security and Compliance

Data Security

Gusto uses bank-level encryption (256-bit SSL) to protect sensitive payroll and personal data. They're SOC 2 Type II compliant and undergo regular third-party security audits.

Employee data is stored securely in the cloud with automatic backups. Access controls allow you to set custom admin permissions, limiting who can view sensitive information.

HIPAA Compliance

Gusto is HIPAA-compliant when handling protected health information on behalf of clients. This matters if you're administering health benefits through the platform.

Compliance Support

The Premium plan includes compliance alerts for changing regulations, access to certified HR experts, and an HR resource center with policy templates and employee handbooks.

However, Gusto doesn't provide legal advice. For complex compliance situations (FMLA, ADA accommodations, unionized workforces), you'll need external counsel.

Integrations and Ecosystem

Gusto integrates with over 180 business applications across several categories:

Accounting Software

Payroll data syncs automatically, eliminating double-entry and reducing errors during month-end close.

Time Tracking

Hours tracked in these apps flow directly into Gusto payroll, saving time and ensuring accurate payment.

Expense Management

Employee reimbursements sync with payroll for seamless processing.

HR and Recruiting

Candidate information flows into Gusto's onboarding workflows once you make a hire.

Point of Sale (POS)

Useful for restaurants and retail businesses that need to sync tip reporting with payroll.

Recent Changes Worth Noting

Gusto raised the Simple plan from $40 to $49/month-an increase of $108/year. This primarily affects small teams and seasonal employers who rely on lower-tier plans. It's still competitive, but the gap with alternatives like OnPay ($40/month) has widened.

On the plus side, Gusto now offers global Employer of Record (EOR) services at $599/employee/month for businesses hiring internationally. This puts them in competition with Remote and Deel for global workforce management. The EOR service is powered by Remote and available at a discounted rate through Gusto.

Gusto has also introduced new features like drag-and-drop shift scheduling, payroll transfer automation, unsynced timesheet alerts, and enhanced payroll approval workflows. These improvements are rolling out across all plan tiers.

Hidden Costs to Watch For

Beyond the base monthly fee, here are additional costs you might encounter:

401(k) Administration

Gusto partners with providers like Guideline and Human Interest for retirement plans. Administration fees vary but typically run $8-$12 per employee per month on top of Gusto's base cost.

Workers' Compensation Insurance

Available through AP Intego as a pay-as-you-go service. Costs vary by industry and state but add to your monthly expenses.

Health Insurance

If you use Gusto as your benefits broker, you pay insurance premiums directly. Gusto doesn't mark these up, but coordination fees may apply if you keep your existing broker ($6/employee/month on Simple and Plus plans).

Time Tracking Add-On

$6/employee/month on the Simple plan. Included free on Plus and Premium.

Next-Day Direct Deposit Add-On

$15/month + $3/employee if you're on the Simple plan and want faster processing. Again, this feature is included in Plus and Premium.

Failed Payroll Processing Fee

If your company bank account has insufficient funds when Gusto tries to debit payroll, you'll be charged a $100 processing fee. Your access to next-day and 2-day payroll speeds will also be suspended temporarily.

Tips for Getting the Most Out of Gusto

Use Instant Bank Verification

Connect your bank account through Plaid for real-time verification. This helps prevent errors and allows Gusto to alert you to issues (like insufficient funds) before they cause problems.

Enable AutoPilot Carefully

AutoPilot is great for businesses with consistent pay periods, but review each run before it processes if you have any hourly employees or variable compensation. One missed overtime hour or incorrect PTO deduction can create compliance issues.

Set Up Multiple Admin Users

Don't rely on a single admin account. Set up multiple users with appropriate permissions so payroll can be processed even if the primary admin is unavailable.

Review Tax Documents Quarterly

Don't wait until year-end to review your 941s and state tax forms. Check them quarterly in the Taxes & Compliance section to catch any discrepancies early.

Keep External Records

While Gusto stores historical payroll data, maintain your own backups of key reports (bank transactions, agency payments, payroll summaries) outside the platform. If you ever need to switch providers or handle an audit, having independent records is crucial.

Communicate with Employees

Make sure employees know that direct deposits can arrive anytime during the business day, up to 5pm local time. This manages expectations and reduces panicked messages when money doesn't appear first thing in the morning.

When to Consider Alternatives

Despite Gusto's strengths, certain situations call for different solutions:

If You Need Global Payroll

Gusto's EOR service works for international contractors and a limited number of countries for full employees, but dedicated global payroll platforms like Rippling, Remote, or Deel offer more comprehensive coverage and better compliance support.

If You Have Complex Union Requirements

Union payroll often involves complicated wage rules, multi-tiered benefits, and specific reporting requirements. Specialized payroll providers with union expertise will serve you better.

If You're in Construction

Construction payroll requires certified payroll reporting, prevailing wage tracking, union fringe benefits, and multi-state job costing. Platforms like Foundation or Vista designed for construction will handle these needs more effectively.

If You Need Deep Performance Management

Gusto's performance review tools are basic. If you want robust performance management with competency frameworks, 360-degree feedback, and succession planning, consider dedicated HR platforms like BambooHR, Namely, or 15Five.

If You're Scaling Rapidly

Once you cross 100+ employees or expand internationally, enterprise payroll solutions with dedicated account teams, custom integrations, and advanced reporting become more valuable. The premium you pay for ADP, Paychex, or Workday delivers more comprehensive service.

The Bottom Line

Gusto is genuinely one of the best payroll platforms for small businesses. The interface is clean, setup is fast, and automatic tax filing takes a huge burden off your plate. If you're currently doing payroll manually or using clunky legacy software, the switch to Gusto will feel like a breath of fresh air.

That said, it's not the cheapest option, especially once you start adding features. Run the numbers for your specific situation before committing. A 10-person company on the Plus plan with next-day deposit is looking at $219/month-reasonable, but not trivial.

The customer service issues reported by real users are concerning. If you anticipate needing frequent support-especially for tax issues or complex benefit situations-factor in potential frustration with long hold times and call center quality. The Premium plan's dedicated support used to be a strong selling point, but recent reports suggest even that tier has moved to a call center model.

For most small businesses that want payroll and basic HR in one place without the complexity of enterprise systems, Gusto delivers. It's not perfect, but it's one of the most balanced options in the market. The platform works best when your needs are straightforward: consistent pay periods, simple benefit plans, single or few states, and employees who don't require extensive customization.

If your situation involves more complexity-multi-state employees with different tax jurisdictions, union requirements, construction-specific reporting, or international payroll beyond contractors-you'll likely bump into Gusto's limitations quickly.

The bottom line: Gusto is an excellent choice for businesses with 5-50 employees, straightforward payroll needs, and a desire for modern software that mostly works without hand-holding. Just be prepared for potential customer service headaches if things go wrong, and budget for higher-tier plans if you need faster direct deposit or better support.

Try Gusto free (you can explore the software before running your first payroll) and see if it fits your workflow.

Frequently Asked Questions

Can I switch from another payroll provider to Gusto mid-year?

Yes. You'll need to provide year-to-date payroll data from your previous provider to ensure accurate tax calculations and W-2s at year-end. The Premium plan includes migration assistance; other plans require you to handle data entry yourself.

What happens if I miss a payroll deadline?

If you submit payroll late, Gusto may offer Instant Pay if eligible, which deposits funds within minutes (but not guaranteed for all payrolls). Otherwise, your employees will receive payment based on standard processing times from the new check date.

Does Gusto work with accountants?

Yes. Gusto offers a partner program for accountants and bookkeepers. They can access multiple client accounts from one dashboard, run payroll, and pull reports. Many accounting professionals prefer Gusto's interface and integrations.

Can I pay employees in different states?

Yes, but only on Plus and Premium plans. The Simple plan supports single-state payroll only. Gusto handles multi-state tax filings automatically once you upgrade.

What if Gusto makes a tax filing error?

Contact support immediately through your account. Upload any tax notices to the Taxes & Compliance section. Response times can take 2-15 business days. Gusto may not reimburse penalties caused by filing errors, so review your tax documents quarterly to catch issues early.

Can I cancel Gusto anytime?

Yes. Gusto doesn't require long-term contracts. You can cancel anytime, though you'll want to time it carefully to avoid disrupting payroll. Make sure you have year-end tax documents before canceling if you're switching providers.

Does Gusto offer workers' compensation insurance?

Yes, through their partner AP Intego. It's pay-as-you-go workers' comp based on actual payroll, which can save money compared to traditional annual premium policies. Availability varies by state.

How does Gusto handle tips for restaurant employees?

Gusto supports tip reporting and integrates with POS systems like Toast and Square. Employees can report tips through the platform, and Gusto automatically calculates tip credits and FICA tip credit reporting for your tax returns.

More Gusto Resources