Gusto Review: The Complete Guide to Pricing, Features, and Whether It's Right for You

Gusto is one of the most popular payroll and HR platforms for small businesses in the US. Over 400,000 businesses use it, and it consistently ranks at the top of G2's payroll software category. But is it right for your business?

I've dug into the pricing, features, limitations, and real user feedback to give you the full picture. Let's get into it.

What Is Gusto?

Gusto is a cloud-based payroll and HR platform designed primarily for small to medium-sized businesses (under 150 employees). It handles payroll processing, tax filing, benefits administration, and basic HR tasks from one dashboard.

The platform automates tax calculations and filings for federal, state, and local taxes-including W-2s, 1099s, 940s, and 941s. It's browser-based, so there's no software to install. You sign up, add your employees, and can run payroll almost immediately.

Gusto integrates with popular accounting tools like QuickBooks, Xero, and FreshBooks, plus time tracking apps like Homebase and Hubstaff. The company was founded in San Francisco and now serves hundreds of thousands of companies across the United States.

Gusto Pricing: What You'll Actually Pay

Gusto offers four main plans with transparent, straightforward pricing. Here's the breakdown:

Simple Plan - $40/month + $6/employee

This entry-level plan covers single-state payroll and the basics:

The catch: it's single-state only. If you have employees in multiple states, you'll need to upgrade.

Plus Plan - $80/month + $12/employee

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

Premium Plan - $180/month + $22/employee

For larger or more complex businesses. Includes everything in Plus, plus:

Note: Some sources list different pricing variations. The numbers above reflect current published rates, though Gusto occasionally offers promotional discounts for new customers.

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

If you only pay contractors (no W-2 employees), this stripped-down plan lets you:

Bonus: You can get a $0 base price for the first 6 months on this plan.

For a deeper dive into exactly what each tier costs, check out our Gusto pricing breakdown and Gusto cost analysis.

What Gusto Does Well

Dead-Simple Interface

Gusto's biggest selling point is ease of use. The interface is clean and intuitive-you don't need payroll experience to figure it out. Running payroll takes a few clicks. Employees can self-onboard, access pay stubs, update their info, and request PTO without bugging you.

The dashboard shows a to-do list of pending tasks, so you always know what needs attention. All your everyday payroll actions are accessible in two clicks or less from the main screen. The homepage highlights important reminders and upcoming tasks, which Gusto also sends via email to keep you on track.

Automated Tax Filing

Gusto automatically calculates and files your payroll taxes-federal, state, and local. It stays updated with changing tax laws, so you don't have to worry about compliance. The platform withholds the correct amounts, updates filings, and even pays the IRS on your behalf.

According to Gusto, customers save an average of 152 hours per year on tax and compliance work after switching to their platform. The system handles everything from quarterly filings to year-end forms without requiring manual intervention.

Unlimited Payroll Runs

Unlike some competitors, Gusto doesn't charge extra for off-cycle payrolls. Need to run a bonus payment or correct a mistake? No additional fees. This is a big deal if you have hourly workers with varying schedules or frequently pay bonuses.

You can also set up Autopilot for salaried employees, which automatically processes regular payroll without you having to manually run it each pay period.

Solid Benefits Administration

Gusto can handle health insurance, dental, vision, life insurance, FSAs, HSAs, and 401(k) plans. Benefits sync directly with payroll, so deductions happen automatically. You can work with Gusto's brokered plans or integrate your existing broker.

With Gusto as your broker, health insurance administration comes at no extra cost-you only pay the insurance premiums. If you want to keep your existing broker, there's a fee of $6 per eligible employee per month (free on Premium plan).

The platform offers over 9,000 health insurance plans from 30+ carriers, and licensed advisors help you find the right coverage for your team and budget. Gusto integrates with major 401(k) providers including Guideline, Human Interest, Betterment, and Vestwell, with automatic data synchronization that eliminates manual entry.

Workers' comp is also available as pay-as-you-go through a partner (AP Intego), so you're not paying large upfront premiums.

Flexible Pay Options

Gusto offers multiple direct deposit speeds: standard 2-day, next-day (Plus and Premium), same-day, and even instant pay where funds land in employee accounts within minutes. The faster options are great for managing cash flow or accommodating employees who need quick access to their money.

Employees can also split paychecks between multiple accounts and access helpful financial tools through the Gusto Wallet app.

Mobile App for Employers and Employees

Gusto recently upgraded its mobile app to include employer features, not just employee access. Business owners can now run regular and off-cycle payroll, review and approve timesheets, add new hires, view team information, and receive payroll alerts-all from their phone.

For employees, the Gusto Wallet app offers access to pay stubs, early pay (up to 2 days early), time tracking, PTO requests, benefits enrollment, and financial tools like savings goals and budgeting features.

R&D Tax Credits Built-In

Gusto offers integrated R&D tax credit services to help small businesses identify and claim thousands of dollars in research and development tax credits. Their proprietary software scans your payroll data to uncover eligible expenses, and qualified small businesses can offset up to $500,000 in payroll taxes annually.

Gusto customers using their R&D service claimed an average of $30,000 in credits, and the company has helped businesses uncover over $150 million in total tax credits. This is a feature most payroll platforms don't offer, making it a significant differentiator for tech startups and innovative businesses.

Where Gusto Falls Short

Customer Support Is Hit or Miss

This is the most common complaint I found in user reviews. Support response times can be slow-some users report waiting 2-5 days for responses, or even up to 24 hours per reply when having a conversation. When you do get help, it's often through AI chatbots or email rather than live agents.

Support hours are limited to business hours (7 AM - 6 PM MST, Monday-Friday), which is frustrating if you have a payroll emergency outside those windows. Multiple reviewers on Trustpilot, BBB, and other review sites specifically cite "unhelpful or poorly trained support staff and long resolution times."

Competitors like Paychex offer 24/7 support, so this is a real gap. While Premium plan customers get priority support and a dedicated customer success manager, businesses on lower tiers may struggle to get timely help.

No Global Payroll for Full-Time Employees

Gusto can pay contractors in 120+ countries, but full-time employee payroll is US-only. If you have international employees (not contractors), you'll need to look elsewhere or add Gusto Global (their Employer of Record service powered by Remote), which is a separate cost starting at $599 per employee per month.

Limited Customization and Reporting

Power users and larger teams may find Gusto's reporting too basic. Several reviewers note the reporting features feel disorganized and lack the depth available in platforms like ADP or Rippling. If you need highly customizable reports or advanced analytics, this might frustrate you.

Issues with PTO reporting and QuickBooks syncing have been mentioned in multiple reviews, with some businesses eventually outgrowing Gusto's capabilities as they scale.

Some Features Locked Behind Higher Tiers

Built-in time tracking, performance reviews, and next-day deposit require the Plus plan ($80/month base). If you're on Simple, you'll need to add time tracking as a paid add-on ($6 per employee per month) or integrate a separate tool. This can add up quickly for budget-conscious small businesses.

Can't Fix Individual Payroll Errors Easily

If you make a mistake during payroll processing, you typically have to cancel the entire payroll rather than correcting a single payment. This is clunky and time-consuming compared to more flexible competitors.

Benefits Enrollment Issues Reported

Some users have reported significant problems with benefits enrollment, including employees not being properly enrolled in health insurance plans even months after the effective date. These issues can leave employees unable to access care, though Gusto does work to resolve them when escalated.

Who Gusto Is Best For

Gusto works best for US-based small businesses with under 150 employees who want:

It's particularly strong for startups, small teams, and businesses without dedicated HR staff. The platform handles a lot of the complexity so you can focus on running your business. Tech companies and innovative businesses that qualify for R&D tax credits will find exceptional value in Gusto's integrated tax credit services.

Who Should Look Elsewhere

Gusto probably isn't the right fit if you:

Gusto vs. The Competition

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

Gusto vs. ADP: Gusto is more user-friendly and has transparent pricing. ADP offers more customization and 24/7 support but tends to nickel-and-dime you with add-on fees. For small businesses prioritizing ease of use, Gusto usually wins. See our full Gusto vs. ADP comparison.

Gusto vs. Paychex: Similar story-Gusto is simpler, Paychex is more feature-rich but complex. Paychex has better support options with 24/7 availability. Read the Gusto vs. Paychex breakdown.

Gusto vs. QuickBooks Payroll: If you're already all-in on QuickBooks for accounting, QB Payroll offers tighter integration. But Gusto's HR features and benefits administration are stronger. Here's our Gusto vs. QuickBooks Payroll comparison.

Gusto vs. Rippling: Rippling is more powerful-it combines HR, payroll, IT, and finance in one platform with deep automation. But it's more complex to set up and can be overkill for smaller teams. Rippling starts around $35/month + $8/employee. Check out the Gusto vs. Rippling comparison.

Gusto vs. Justworks: Justworks is a PEO (Professional Employer Organization), meaning they co-employ your workers and take on more liability and compliance. It's pricier ($59/employee/month) but handles more for you. See our Gusto vs. Justworks analysis.

For more options, check out our guide to the best payroll software for small businesses.

Getting Started With Gusto

Gusto doesn't offer a traditional free trial, but you can create an account and explore the platform for free until you run your first payroll. There are no contracts-you can switch or cancel anytime. Account setup is free, and you only pay for active employees.

The setup process is straightforward. You'll pick your plan, add company details, and invite employees to self-onboard through the mobile app or web browser. Employees complete their own tax withholding, direct deposit setup, and other personal information, reducing your administrative workload.

If you want to give Gusto a shot, you can sign up through our link here.

Frequently Asked Questions

Can I run payroll from my phone?

Yes. Gusto recently added employer features to their mobile app, allowing you to run regular and off-cycle payroll, approve timesheets, add new employees, and manage team information directly from your smartphone. This is available on both iOS and Android.

Does Gusto handle year-end tax forms?

Absolutely. Gusto automatically generates W-2s and 1099s for employees and contractors. Digital copies are free to send or print, and Gusto can mail physical copies for an additional fee.

What benefits can Gusto administer?

Gusto handles health insurance (medical, dental, vision), life insurance, disability insurance, FSAs, HSAs, 401(k) plans, workers' compensation, commuter benefits, and more. They work with over 30 carriers and offer more than 9,000 health insurance plans.

Is Gusto good for startups?

Yes, Gusto is excellent for startups. It's designed for small businesses with limited HR resources, offers affordable pricing, and includes features specifically valuable for startups like R&D tax credit services that can save thousands of dollars annually.

How long does it take to set up Gusto?

Most businesses can complete basic setup in under an hour. Employees can self-onboard online, which significantly reduces your setup time. You can typically run your first payroll within a day or two of signing up.

The Bottom Line

Gusto is one of the best payroll platforms for small US businesses that want simplicity over complexity. The interface is genuinely easy to use, tax filing is hands-off, and the pricing is straightforward. The addition of employer mobile app features and integrated R&D tax credit services makes it even more valuable for modern small businesses.

The trade-offs: customer support can be slow, there's no global payroll for full-time employees, and power users may outgrow the reporting and customization options. If those limitations don't apply to you, Gusto is a solid choice that will save you time and hassle on payroll and HR administration.

For most small businesses-especially those under 50 employees-Gusto strikes the right balance between functionality, ease of use, and cost. Just make sure you factor in potential support limitations when making your decision.

For more details on our experience with Gusto, read our full Gusto review and compilation of Gusto user reviews.

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