Is Gusto Legit? Here's What You Need to Know Before Signing Up

If you're searching "is Gusto legit," you're probably wondering whether this payroll company is trustworthy enough to handle your employees' paychecks and your tax filings. Fair question. Getting payroll wrong can mean IRS penalties, angry employees, and a massive headache.

Let me cut to the chase: Yes, Gusto is a legitimate payroll company. They've been in business since 2012, serve over 400,000 businesses, and are BBB accredited with an A rating. But "legit" and "right for you" are two different things. Let's dig into the details.

Gusto's Credentials: The Legitimacy Check

First, the basics that confirm Gusto is a real, established company:

• BBB Accredited: Gusto has been BBB accredited since March 2024 and holds an A rating. They're licensed by the California Department of Insurance (license #0K28399, valid through June 2027).
• Customer Base: Over 400,000 businesses use Gusto for payroll and HR.
• Industry Recognition: G2 ranks them #1 in payroll for Fall 2025. FastCompany named them the #1 Most Innovative Company in HR.
• Capterra Rating: 4.6 stars across 4,137+ reviews.

This isn't some fly-by-night operation. They're well-established and have legitimate credentials. But that doesn't mean they're perfect.

What Real Users Say About Gusto

Here's where it gets more nuanced. I dug through Trustpilot, G2, and BBB reviews to find the common themes.

The Good

• Easy to use: Users consistently praise Gusto's interface. One commenter mentioned setup took only an hour. Running payroll takes just a few clicks once you're set up.
• Good for small teams: G2 reviewers note it's "very reasonably priced for my small business with only a couple employees."
• Automation that works: The AutoPilot feature runs payroll automatically on schedule. Unlimited payroll runs are included in every plan.
• Contractor support: If you work with 1099 contractors, Gusto handles payments and tax forms well. Their contractor-only plan is $35/month + $6 per contractor.

The Bad

• Customer support frustrations: This is by far the most common complaint. On Trustpilot, users report that "support is not well trained and takes too long to resolve issues." Some say getting in touch with support "can be a frustrating experience."
• Problems when things go wrong: One reviewer summed it up: "Gusto is great while everything is great. Once there is an issue, they are absolutely clueless as to what to do."
• Tax filing errors: Some users report errors that led to penalties, incorrect tax setups, and issues with state-specific taxes. Portland Metro taxes, for example, aren't supported.
• Mixed Trustpilot score: While ZenBusiness notes that "80% of verified Gusto users" gave an excellent score, Trustpilot also shows a 2.4/5 average rating across 1,300+ reviews. There's clearly a split between satisfied customers and those who hit problems.

The pattern is clear: Gusto works great for straightforward payroll. But if you run into issues—tax complications, state-specific requirements, benefit errors—getting them resolved can be painful.

Gusto Pricing: What You'll Actually Pay

Let's talk real numbers. Gusto has four main pricing tiers:

*Gusto sometimes waives the base fee for the contractor-only plan as a promotional offer.

Note: Gusto raised their Simple plan from $40 to $49/month in March 2025. That's a $108/year increase—worth knowing if you're comparing older pricing info.

Hidden Costs to Watch For

The base pricing looks clean, but add-ons can stack up:

• Next-day direct deposit: $15/month + $3/person
• Priority support: $8/month per person
• State tax registration: Additional fees for each new state
• Benefits administration: Health insurance premiums billed separately
• 401(k), workers' comp, FSAs: All paid add-ons

A $49/month plan can easily become $100+/month once you add features. For more details, check out our Gusto pricing breakdown.

How Gusto Compares to Alternatives

Is Gusto the right choice for your business? Here's how it stacks up:

• vs. ADP: For small businesses under 50 employees, Gusto is typically cheaper and more transparent. ADP may offer better enterprise pricing for 100+ employees. See our Gusto vs ADP comparison.
• vs. QuickBooks Payroll: QuickBooks offers same-day direct deposit; Gusto doesn't. QuickBooks integrates better if you're already using QuickBooks for accounting. Read our Gusto vs QuickBooks Payroll breakdown.
• vs. Paychex: Paychex bundles benefits better but has dated interfaces and higher costs. We compare them in Gusto vs Paychex.
• vs. Rippling: Rippling offers more advanced HR automation but is overkill (and more expensive) for simple payroll needs. See Gusto vs Rippling.
• vs. Justworks: Justworks is a PEO (they become a co-employer). Better for companies wanting full HR outsourcing. Our Gusto vs Justworks guide explains the differences.

For more options, check out our guide to payroll software for small business.

Red Flags to Consider

Before you sign up, consider these potential issues:

1. Customer support limitations: Only Premium plan customers get extended support hours. Simple plan users are limited to basic business hours—and even then, getting help can be difficult.
2. Per-employee costs add up: At $6-$22 per employee per month, costs climb quickly. Business.org notes that "if you have more employees than five to ten, you'll get more HR features at a lower starting cost with a competitor."
3. No same-day deposits: Unlike QuickBooks Payroll, Gusto doesn't offer same-day direct deposit. The fastest you can get is next-day (which costs extra).
4. State tax complexity: Some reviewers report Gusto doesn't support specific local taxes. If you're in a state or city with unusual tax requirements, verify support before signing up.

Who Should Use Gusto?

Based on my research, Gusto makes the most sense for:

• Startups and small businesses (1-50 employees) who need straightforward payroll without complex requirements
• Contractor-heavy businesses who need to pay 1099 workers
• Single-state operations who don't need multi-state complexity (or can upgrade to Plus)
• Businesses wanting integrated HR tools like onboarding, PTO tracking, and benefits administration in one platform

Gusto probably isn't the best fit if you:

• Have 50+ employees (consider dedicated enterprise solutions)
• Need same-day direct deposit
• Have complex multi-state or international payroll needs
• Require hands-on customer support for tax issues

The Bottom Line: Is Gusto Worth It?

Gusto is absolutely a legitimate payroll company. They've been around for over a decade, serve hundreds of thousands of businesses, and have proper credentials and licensing.

The software itself is excellent—clean interface, good automation, solid features for small businesses. Where Gusto falls short is customer support. When things go wrong, resolving issues can be frustratingly slow.

If you have straightforward payroll needs and don't anticipate many support tickets, Gusto is a solid choice. The pricing is transparent, the platform is easy to use, and it handles the basics well.

If you expect complexity—unusual tax situations, frequent changes, or specific state requirements—consider whether Gusto's support limitations might become a problem.

Try Gusto and see if it works for your business. They don't lock you into contracts, so you can switch if it doesn't work out.

For a deeper dive into features and costs, read our full Gusto review or check out what other users are saying.