Gusto Review

Gusto is a cloud-based payroll processing and human resources management platform designed for small and medium businesses. It gets high marks for its easy-to-use interface, transparent pricing, and its many tools that make tasks like hiring, onboarding, and project management easier, though the platform isn't perfect. Read on to learn if Gusto is the best payroll service provider for your business.

Gusto is best for startups and small- to medium-sized businesses that don't have a full payroll or HR department. Its three-tier subscription model allows businesses to add features to address the needs of a growing team.

The Simple plan is best for businesses with just a few employees who work in the same place. But if your team is expanding rapidly, or you have a large number of employees working remotely or in different locations, the Plus or Premium plans may be worth the extra cost. You'll get access to multistate pay runs, remote time tracking with geolocation, and advanced HR tools.

Gusto has a huge variety of payroll and HR tools that are particularly helpful for small and medium businesses as they grow.

Payroll processing

Gusto is a top-rated payment processing platform that provides manual and automated payroll runs for salaried and hourly employees in all 50 states. Its basic plan allows for single-state payroll processing, but if you need multistate payroll processing, you'll need to upgrade to the Plus plan.

When you set up payroll, you'll choose a schedule that you can easily adjust. Gusto requires at least two days for direct deposit under its Simple plan, but for next-day direct deposit, you'll need to upgrade to its Plus plan.

All three tiers allow an unlimited number of payroll runs. You won't be charged extra, for example, if you have multiple payroll schedules or you run an off-cycle payroll.

Running payroll manually is pretty straightforward. You'll review hours and earnings and then input any paid time off for the pay period. Once you've completed those two steps, Gusto brings you to a screen where you review and submit payroll. You can also easily make adjustments, like changing an employee's pay or adding a paid company holiday.

You can also automate payroll using Gusto's Autopilot® feature. If you choose this option, Gusto will automatically run payroll for you one day before your deadline. Though it also offers payroll processing for independent contractors, Gusto's Autopilot® payroll feature doesn't support contractor payments. You'll also need to enter payment for any commission-only employees before the automated payroll processes, as their base salary will be set to $0.

Automated tax filing

Gusto automatically files W-2s and 1099s on your behalf and sends an electronic copy of these forms to employees and contractors. It will automatically calculate, file, and pay all federal, state, and local payroll taxes. It can also automatically report any new hires to the government on your behalf. When you log into the platform as an employer, you'll be able to view a list of forms Gusto has submitted for your business, as well as upcoming filings.

Employee portals

Gusto offers handy employee portals that allow workers to log in to view their pay stubs and W-2 forms and update personal information. Employees get lifetime access to the portal, so they can access their documents even after they've parted ways with the company. You can also add U.S.-based contractors, so they can view their pay history and 1099 forms.

Time-tracking feature

You can use Gusto to manage basic tasks, like reviewing time-off requests and reviewing timesheets, but the platform also has several advanced time-tracking features through its Plus and Premium plans.

For example, Gusto offers geolocation so you can set up authorized workspaces for employees to clock in and out. Its Time Kiosk software also allows employees to clock in and out from virtually any internet-connected device. Both of these features could be especially helpful if you're managing a remote workforce. The time that's reported from the device will then automatically sync with payroll.

One potential hiccup is that if you're using Autopilot® and Gusto's time-tracking tool, managers won't be able to review and approve hours before payroll processes. The hours the employee enters will override their default hours listed in Gusto. For example, if an hourly employee whose default hours total 40 hours a week, but the time-tracking tool shows they worked 35 hours or 45 hours in a week, their supervisor wouldn't be able to review the hours or sign off before payroll is processed. For this reason, Gusto doesn't recommend using Autopilot with its time-tracking feature.

You can also use Gusto's time-tracking tool to help with project management. Both salaried and hourly employees can track their time by project. Seeing how teams are spending their time can help you identify productivity issues or projects that may be off track, so you can make adjustments as necessary.

Gusto can also create reports to show you workforce costing on a per-project basis. You can see not just how much projects are costing you in terms of salary and wages, but also when you factor in expenses like taxes, health benefits, and 401(k) matching contributions. It also integrates with third-party accounting software, like Quickbooks Online and Xero.

Hiring and onboarding tools

When you're a small business owner and your team is rapidly growing, it can get overwhelming to keep up with hiring on top of all your other day-to-day tasks. Gusto's Plus and Premium plans have several advanced hiring tools that can make recruiting and onboarding employees easier.

For example, you can create customizable job posts that are syndicated to widely viewed job boards and track candidates through a centralized applicant tracking system. You can add any employee to hiring teams for each opening, so everyone can rate and comment on applicants and collaborate on the process.

Both upgraded plans also have helpful HR tools. You can create a customizable onboarding checklist for new hires, as well as an employee directory and org chart. Gusto also offers performance review tracking to help you stay up to date with existing employees.

Benefits administration

Many business owners aren't prepared to navigate the complexities of administering health benefits or a 401(k) plan. Gusto can help you create a customized benefits package for your staff.

Gusto can help you choose your health, dental, and vision plans through its licensed brokers. It also handles payroll deductions for your health plan, provides administrative and compliance support, and manages COBRA insurers for past employees who opt to remain on your health plan upon separation. Note, though, that Gusto only offers health benefits in 38 states and the District of Columbia.

You can also set up a 401(k) plan through one of Gusto's many providers. If you already have a 401(k), you can set up payroll deductions through Gusto.

Third-party software integrations

Gusto offers integrations with a huge number of third-party software. You can connect Gusto with popular small-business tools like Asana, Dropbox, Google Workspace, Microsoft 365, QuickBooks, Salesforce, and Slack, just to name a few.