Gusto Review
Payroll + HR for growing US teams. Best for: US-based small businesses (1–100 employees).
Prices verified July 2026. We may earn a commission.
Gusto is the best payroll software for US-based small businesses. It automatically calculates and files federal and state payroll taxes, manages benefits (health, dental, 401k), and integrates with QuickBooks and Xero. Starting at $39/month plus $6 per employee per month. US employees only — no international payroll.
Our Verdict
Gusto is our top pick for small business payroll. It automates the most tedious parts of running payroll — federal and state tax filing, W-2s, 1099s — and adds benefits administration and basic HR tools in one dashboard. At $39/month + $6/employee, it's the most affordable full-service payroll solution we reviewed. The 30-day free trial lets you test everything before committing. Its one hard limitation: US employees only. If you have international contractors or remote employees abroad, look at Deel for EOR coverage or Rippling for global payroll.
Score Breakdown
Pros & Cons
✓What We Like
- ✓Automatic federal, state, and local payroll tax filing — included in all plans
- ✓Clean, intuitive interface — most owners complete setup in under two hours
- ✓Next-day direct deposit available on Plus and Premium plans
- ✓QuickBooks and Xero sync out of the box, plus 100+ other integrations
- ✓Full benefits administration: health, dental, vision, 401k, FSA, HSA, workers comp
- ✓30-day free trial with full feature access, no credit card required
- ✓Unlimited payroll runs — pay employees as often as needed at no extra charge
✗What We Don't Like
- ✗US employees only — no international payroll or Employer of Record
- ✗Per-person fee adds up as you scale past 50 employees
- ✗No performance management module (BambooHR and Rippling both have one)
- ✗Customer support slows noticeably during peak tax season (January–March)
- ✗Time tracking requires Plus or Premium plan, not available on Simple
Payroll
Gusto's payroll is the core reason most small businesses choose it. You run payroll in minutes: review hours, approve, submit. Gusto handles the rest — calculating withholdings, filing federal and state payroll taxes, and depositing payments directly to employee bank accounts. All plans include unlimited payroll runs, so you can pay employees weekly, biweekly, or semimonthly without extra charges. Multi-state payroll is supported, which matters if your remote employees are spread across different states. At year-end, Gusto automatically generates and e-files W-2s for employees and 1099-NECs for contractors — included in the base price, unlike some competitors that charge separately for tax filings. One limitation: next-day direct deposit is a Plus-plan feature. Simple plan users get standard 4-day direct deposit.
Benefits Administration
Gusto's benefits administration is one of its strongest differentiators. Unlike basic payroll tools that just track deductions, Gusto lets you offer and manage actual benefits plans: health insurance (medical, dental, vision), 401(k) retirement plans, FSA and HSA accounts, commuter benefits, and workers comp — all from within the platform. Gusto works as a licensed health insurance broker in all 50 states, meaning you can shop for plans and enroll employees without needing a separate broker. The 401(k) integration with providers like Guideline and Human Interest is seamless — contributions are deducted automatically from each payroll run. For small businesses that have never offered benefits before, Gusto's guided setup is significantly less intimidating than managing these through a traditional HR broker.
Time Tracking and PTO
Time tracking in Gusto is available on the Plus and Premium plans. Employees can clock in and out from a web browser or the Gusto mobile app. Managers can review and approve timesheets, and approved hours flow directly into the next payroll run without manual data entry. The PTO management system handles accrual rules (monthly, annual, or on hire date), carryover limits, and employee-facing requests and approvals. Gusto also handles overtime calculations automatically based on the state rules for your employees' locations. If you have employees in California — where overtime rules are more complex than federal law — Gusto applies the correct calculations. The one gap: Gusto does not have a built-in shift scheduling tool, so for hourly shift-based teams (restaurants, retail), a dedicated workforce tool may still be needed alongside it.
Hiring and Onboarding
When you hire someone in Gusto, you send them a digital offer letter through the platform. New hires complete their own onboarding — entering their personal details, bank account for direct deposit, tax withholding (W-4), and signing required documents via e-signature. This eliminates the back-and-forth paperwork typical of manual onboarding. Gusto also handles I-9 verification and state new-hire reporting automatically. The onboarding checklist ensures nothing is missed. For contractors, Gusto manages 1099 contractor agreements, collects W-9 information, and handles year-end 1099-NEC filing. Contractor payouts can be included in the same payroll run as employees (on the Contractor plan, starting at $6/contractor/month). Note: Gusto does not have a built-in applicant tracking system (ATS). If you need recruiting tools, you'll need to integrate with a separate ATS like Greenhouse or Workable.
Integrations and Accounting Sync
Gusto connects natively with QuickBooks Online and Xero, syncing payroll journal entries automatically after each pay run. This eliminates the manual bookkeeping step that costs many small business owners an hour per pay period. Gusto also integrates with over 100 other tools including Slack (for payroll notifications), Google Workspace, BambooHR (for companies using both), TSheets/QuickBooks Time, and various POS systems. The Gusto API is open for developers who want to build custom integrations. One notable gap: native accounting sync with FreshBooks or Wave is not as seamless as the QuickBooks/Xero connections, so businesses using those platforms may need to export and import manually or use Zapier.
Pricing
- ✓Full-service payroll (unlimited runs)
- ✓Automatic federal and state tax filing
- ✓W-2 and 1099 forms included
- ✓Employee self-service portal
- ✓Basic HR tools and document storage
- ✓4-day direct deposit
- ✓Everything in Simple
- ✓Next-day direct deposit
- ✓Time tracking and PTO management
- ✓Overtime calculations by state
- ✓HR resource center
- ✓Priority support
- ✓Everything in Plus
- ✓Dedicated HR advisor
- ✓Compliance alerts
- ✓Workforce analytics and reporting
- ✓Certified HR support line
Prices verified July 2026. Check the tool's official site for current rates.
Top Integrations
Who GustoIs (and Isn't) For
- •US-based businesses with 1–100 employees that need full-service payroll
- •Owners who want to set up payroll themselves without an accountant
- •Companies ready to offer benefits (health, dental, 401k) for the first time
- •Businesses that use QuickBooks or Xero and want automatic accounting sync
- •Teams that want to verify pricing and start with a free trial before committing
- •Companies with international employees or contractors outside the US
- •Businesses with complex shift scheduling needs (restaurants, retail)
- •Large enterprises (500+ employees) that need advanced analytics and HRIS
- •Teams that need a performance management system built in
Frequently Asked Questions
Yes — Gusto is purpose-built for small businesses with 1–100 US employees. Setup takes most owners under two hours, pricing is transparent ($39/mo + $6/person on the Simple plan), and there is no minimum headcount or annual contract. A 30-day free trial with full feature access is available at gusto.com/signup. It is not a good fit for companies with international employees (no global payroll support) or complex shift scheduling needs.