Gusto
8 comparisons available
About Gusto
Gusto is a cloud-based payroll, benefits, and HR platform founded in 2011 (originally ZenPayroll) by Joshua Reeves, Tomer London, and Edward Kim, headquartered in San Francisco. It serves over 300,000 small and medium-sized businesses primarily in the United States. Gusto has become the leading payroll solution for SMBs by making previously complex payroll processes simple — automatic tax calculations, W-2/1099 filing, direct deposit, and new hire onboarding are all handled automatically. Gusto's benefits administration covers health insurance (medical, dental, vision), 401(k) plans, commuter benefits, HSA/FSA accounts, and life insurance, with licensed advisors available to help employees choose plans. The HR tools include offer letters, onboarding checklists, employee self-service portal, time tracking, and compliance management. Gusto pricing is per-employee: Simple at $40/month base + $6/person, Plus at $80/month + $12/person, Premium at custom pricing. Gusto's strengths are its user-friendly interface, comprehensive tax compliance (files payroll taxes in all 50 states), and strong customer support. The company raised at a $9.5 billion valuation in 2021. It does not currently support international payroll — a limitation for globally distributed teams.
Frequently Asked Questions
How much does Gusto cost?
Gusto Simple is $40/month base + $6/month per person. Plus is $80/month base + $12/month per person (adds time tracking, next-day direct deposit, workforce costing). Premium is custom pricing (adds dedicated HR support, compliance alerts, performance tools). For a 10-person company: Simple = $100/month, Plus = $200/month. Gusto Contractor-Only is $6/month per contractor with no base fee.
Is Gusto good for small businesses?
Gusto is excellent for US-based small businesses (1–100 employees) that want an all-in-one payroll + benefits + HR solution without a dedicated HR team. The automatic tax filing across all 50 states eliminates a major compliance burden. The benefits administration (health insurance, 401k) is particularly valuable for SMBs that want to offer competitive benefits without an HR department. Limitations: no international payroll, and pricing gets expensive for larger teams.
Gusto vs QuickBooks Payroll: which is better?
Gusto is better as a standalone payroll + HR platform — its benefits administration, onboarding tools, and compliance features are more comprehensive. QuickBooks Payroll is better if you already use QuickBooks for accounting — the integration is seamless and reduces double data entry. For a business that uses QuickBooks and wants simple payroll, QuickBooks Payroll is the path of least resistance. For a business that wants Gusto's broader HR suite and doesn't use QuickBooks, Gusto wins.
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