Gusto

What is Gusto?

Gusto is a modern payroll and people platform designed for small businesses that simplifies the complexity of paying employees, managing benefits, and staying compliant with employment regulations. AI-powered features automate tax filing, surface compliance risks, and guide employers through complex HR decisions with step-by-step recommendations. The platform handles payroll across all 50 US states with automatic tax calculations, filings, and year-end W-2 and 1099 generation.

Beyond payroll, Gusto delivers a comprehensive HR experience that growing companies need. The hiring and onboarding module provides customizable offer letters, digital document signing, and automated onboarding checklists. Benefits administration covers health insurance, retirement plans, commuter benefits, and workers compensation with AI-guided plan selection that matches company size and budget. The platform also manages PTO tracking, time and attendance, and employee surveys.

Gusto's embedded payroll API represents a newer dimension of the platform, allowing fintech companies and vertical SaaS providers to integrate payroll directly into their own products. For small business owners, Gusto replaces the need for a separate payroll provider, benefits broker, and basic HR software. The clean interface, transparent pricing, and responsive support team make it particularly popular with startups and small businesses that lack dedicated HR departments.

Key Features

• Full-service payroll with automatic tax calculations and filings
• AI-powered compliance alerts for federal, state, and local regulations
• Benefits administration for health, dental, vision, and retirement plans
• Hiring and onboarding with offer letters and digital document signing
• PTO tracking with customizable policies and auto-approval rules
• Time and attendance tracking with geolocation and shift management
• Workers compensation insurance with pay-as-you-go billing
• Employee self-service portal for pay stubs, tax forms, and benefits
• Year-end tax document generation including W-2s and 1099s
• Accountant access with journal entries and reporting integration

Pros & Cons

Pricing

Model: Subscription

Frequently Asked Questions

Is Gusto good for very small businesses?

Gusto is one of the best payroll solutions for businesses with 1-100 employees. The guided setup takes about 15 minutes, and the platform handles all tax calculations, filings, and year-end documents automatically. Many single-employee LLCs and small startups start with Gusto for their first hire.

Does Gusto handle contractor payments?

Yes, Gusto can pay both W-2 employees and 1099 contractors. It handles contractor payments, tracks contractor expenses, and generates 1099 forms at year-end. The Contractor-only plan starts at $35/month plus $6/person for businesses that only work with contractors.

How does Gusto handle benefits?

Gusto partners with insurance carriers to offer health, dental, vision, and retirement plans through the platform. The AI-guided benefits advisor recommends plans based on company size, budget, and employee demographics. Employees enroll through self-service, and premiums are automatically deducted during payroll.

Can Gusto replace BambooHR?

For businesses under 50 employees that primarily need payroll and basic HR, Gusto often suffices. BambooHR offers more advanced HR features like performance management, advanced analytics, and ATS capabilities. Growing companies often start with Gusto for payroll and add BambooHR as HR needs become more complex.