Gusto Review for Small Business Owners — Payroll & HR Made Simple
From payroll to benefits to tax compliance, Gusto gives small businesses the HR power of a big company — without the big price tag.
Overview: What is Gusto?
Gusto is an HR + payroll tool that helps small and medium businesses manage pay, benefits, onboarding, time tracking, and compliance—without needing to be an HR expert.
Instead of juggling multiple tools, Gusto brings everything into one dashboard:
- Payroll
- Benefits
- Hiring & onboarding
- Taxes & compliance
- Reporting
Feature Highlights (with Hook Points)
Payroll That Runs Itself
Pay your team in minutes — not hours.
• Automatic calculations for wages, deductions, and taxes.
• Handles state + federal filings on your behalf.
• Same-day or next-day direct deposit (in higher tiers).
Benefits Made Simple
Offer health insurance like the big guys — without the headache.
• Health, vision, dental, and 401(k) options.
• Employees pick their own plans.
• Attract & retain staff with professional benefits.
Taxes Filed Automatically
Avoid IRS penalties before they even happen.
• Gusto files taxes for you on time.
• Sends W2s and 1099s automatically.
• Keeps up with changing laws so you don’t have to.
Easy Onboarding & Hiring
New hires ready to go on day one.
• Digital offer letters & e-signatures.
• Store tax forms and employee docs.
• Automated onboarding checklists.
Employee Self-Service
Fewer questions for you, more independence for your team.
• Employees access pay stubs, PTO requests, benefits info.
• Staff can update their own info (address, bank, etc.).
• Cuts down “Can you resend my pay stub?” distractions.
Integrations That Save Time
No more double entry into QuickBooks or Xero.
• Syncs payroll & expenses into accounting tools.
• Works with 750+ apps (time tracking, scheduling, CRM).
Reports & Insights
See your cash flow at a glance.
• Profit/loss and payroll summaries in seconds.
• Always know where your money goes.
Pricing & What It Really Costs
| Plan | Price | What You Get | Action |
|---|---|---|---|
| Simple | ~$49/mo + $6/employee | Single-state payroll, self-service portals, basic time tracking. | |
| Plus | ~$80/mo + $12/employee | Multi-state payroll, advanced PTO/time tracking, performance tools. | |
| Premium | ~$180/mo + $22/employee | Priority support, HR experts, advanced compliance help. | |
| Contractor Only | ~$35/mo + $6/contractor | Pay freelancers only, no W2s. |
✅ Pros ⚠️ Cons
Pros
✔️ Easy to use — even for payroll beginners.
✔️ Saves hours per month with automation.
✔️ All-in-one: payroll, benefits, HR.
✔️ Helps stay compliant with tax rules.
Cons
❌ Price jumps as features/staff increase.
❌ Many advanced tools are locked to higher tiers.
❌ Some users report slow support.
❌ Same-day direct deposit only in higher plans.
Hidden Costs & Plan Traps
Multi-State Payroll
Fast Deposits
Priority Support
Per-Person Fees
Benefits
Contractor Plan
Compliance & Penalties Avoided
⚠️ Without payroll software, mistakes are costly:
• IRS penalties: $6B assessed in 2023 alone.
• Misclassified contractors = back taxes & fines.
• Missed deadlines = extra penalties.
• Wrong paychecks hurt employee trust.
✅ How Gusto Protects You:
• Auto tax filings (federal, state, local).
• W2s/1099s done for you.
• Built-in worker classification checks.
• Auto compliance updates as laws change.
Integration Angle (Ecosystem Fit)
Why It Matters: Your payroll & accounting should talk to each other.
Examples:
QuickBooks + Gusto: Payroll syncs instantly → no double entry.
Xero + Gusto: Employee costs appear in dashboards automatically.
FreshBooks + Gusto: Track billable hours → convert to payroll.
Other apps: Shopify, Slack, Google Workspace.
Employee Experience (Not Just Owner)
With Gusto, employees get:
- Self-service portals for pay/tax info.
- Power to update their own details.
- Transparency on deductions & PTO.
Mobile access — anywhere, anytime.
Trust & Social Proof
| Platform | Rating | What People Say |
|---|---|---|
| Capterra | ⭐⭐⭐⭐½ (4.6/5) | Easy to use, saves time. |
| G2 | ⭐⭐⭐⭐½ (4.4/5) | Great for SMBs, but costs can rise. |
| Trustpilot | ⭐⭐⭐⭐ (4.3/5) | Reliable payroll, mixed support reviews. |
Real-World Use Cases
- Plumber with 4 staff: Payroll in 5 minutes, W2s ready at year-end.
- Marketing agency with contractors: Employee payroll + auto 1099s for freelancers.
- Retail store with seasonal workers: Easy onboarding + automatic offboarding.
- Nonprofit with volunteers: Payroll + transparent reporting for funders.
Final
Stop wasting weekends on payroll and risking IRS penalties.