Gusto
AI-powered payroll, HR, and benefits platform designed for small and mid-size businesses
From $40/mo
What is Gusto?
Gusto was founded in 2011 (originally as ZenPayroll) and built its reputation by making payroll genuinely easy for small business owners who hated the complexity and compliance risk of running payroll themselves. Today it serves over 300,000 businesses with a platform that combines payroll, employee benefits, HR tools, and compliance management in a single interface that does not require an HR professional to operate.
The AI features in Gusto are practical and embedded in the workflows where they matter most. Gusto's AI-powered compliance alerts monitor tax law changes and payroll regulations, flagging when your setup may be out of compliance before problems arise. The platform's time tracking AI detects unusual patterns that may indicate errors. For HR, AI-assisted offer letter generation and onboarding checklists reduce the manual work of hiring. Gusto Wallet, the employee financial wellness app, uses personalization to suggest relevant financial tools to employees based on their usage patterns.
Gusto is US-only, which is both a limitation and a sign of depth — the compliance infrastructure for US federal, state, and local payroll is complex, and Gusto handles it exceptionally well. Plans start at $40/mo plus $6/employee/mo for Simple, scaling to $80/mo plus $12/employee/mo for Premium with dedicated HR support. There are cheaper payroll options (Patriot Payroll at $17/mo, Homebase at lower prices for shift workers), but Gusto's combination of payroll accuracy, benefits integration, and HR tools at its price point has very few direct competitors.
Key Features
- Automated full-service payroll with tax filing in all 50 states
- AI compliance monitoring for payroll tax law changes
- Employee benefits administration (health, dental, vision, 401k)
- Time tracking with AI anomaly detection
- AI-assisted offer letters and onboarding checklists
- Employee self-service portal and mobile app
- Gusto Wallet financial wellness tools for employees
- HR documents and e-signatures
- Contractor payments in 120+ countries
- Integrations with QuickBooks, Xero, FreshBooks, and 200+ apps
Pros & Cons
Pros
- Full-service payroll handles all federal, state, and local tax filings automatically
- Benefits administration is genuinely integrated, not just linked
- Excellent employee self-service experience reduces HR admin workload
- Compliance monitoring is best-in-class for SMB payroll
Cons
- US-only for full-service payroll (international limited to contractor payments)
- No free plan; pricing adds up quickly with employee count
- Advanced HR features require Plus or Premium plans at significant cost
- Customer support response times can be slow during tax season
Pricing
Model: Subscription
| Plan | Price | Key Limits |
|---|---|---|
| Simple | $40/mo + $6/employee/mo | Full-service payroll, basic HR, employee profiles |
| Plus | $60/mo + $9/employee/mo | Time tracking, PTO management, hiring tools, better reporting |
| Premium | $80/mo + $12/employee/mo | HR advisory access, priority support, compliance alerts, custom reports |
Frequently Asked Questions
- Does Gusto handle all payroll taxes automatically?
- Yes. Gusto's full-service payroll automatically calculates, withholds, and files all federal, state, and local payroll taxes on your behalf. This includes quarterly 941 filings, state unemployment taxes, W-2 distribution at year-end, and 1099 filing for contractors. Gusto assumes full responsibility for payroll tax accuracy.
- Can Gusto handle employee benefits?
- Yes. Gusto administers health, dental, vision, life insurance, short-term disability, HSA, FSA, and 401(k) benefits. Benefits are fully integrated with payroll so deductions calculate automatically. Gusto also has licensed brokers who can help small businesses access group health plans they could not otherwise access.
- Does Gusto have an affiliate program?
- Yes. Gusto offers an affiliate program that pays commissions on referred customers. The program is particularly popular with accountants and bookkeepers who refer their small business clients. Check the Gusto affiliate portal for current commission terms.
- How does Gusto compare to ADP?
- Gusto is designed for small and mid-size businesses and is significantly easier to use and more affordable than ADP at the SMB level. ADP has stronger enterprise capabilities, more global payroll support, and a longer track record at large scale. For businesses under 200 employees, Gusto typically wins on ease of use and value. For larger organizations, ADP's enterprise features may justify the additional complexity and cost.
- Is Gusto good for remote teams?
- Yes. Gusto handles multi-state payroll seamlessly, which is critical for remote teams with employees in different states. It also pays contractors in 120+ countries, making it practical for businesses with international contractors alongside US employees.