Simple
$49
/month
- + $49/mo base + $6/person
- + Full-service payroll
- + Employee self-service
- + Health insurance administration
- + Basic hiring and onboarding
Gusto
All-in-one payroll, benefits, and HR platform built specifically for small businesses.
finance-accounting
Our Score
4.4
Starting at $49 /month
Try Gusto Free →
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4.4
RecommendedGusto Score
Ease of Use
4.5
Features
4.3
Value
4.5
Support
4.1
Based on our editorial review across usability, features, value, support, and integrations.
Best For
Small businesses with 1-100 employees running payroll for the first timeCompanies that want payroll and benefits administration in a single platformStartups and growing teams that need modern onboarding workflowsAccountants and bookkeepers managing payroll for multiple small business clientsRemote-first teams needing multi-state payroll tax compliance
Best For
Small businesses with 1-100 employees running payroll for the first time
Free Trial
No
Standout Feature
Full-service payroll with automatic federal, state, and local tax filing
Track Record
Since 2011
What Problem It Solves
Gusto solves the payroll complexity problem that prevents small business owners from confidently paying employees and staying compliant with tax obligations. Without Gusto, a small business owner must manually calculate federal, state, and local tax withholdings, file quarterly payroll tax returns, issue W-2s and 1099s at year-end, manage benefits enrollment separately, and handle workers compensation through a different provider. Gusto consolidates all of these workflows into one platform with automatic calculations and filings. It also solves the employee experience gap that small businesses face when competing with larger companies for talent: employees get a professional onboarding experience, self-service access to pay stubs and tax documents, and a benefits enrollment process that rivals what Fortune 500 companies offer.
Key Features
- Full-service payroll with automatic federal, state, and local tax filing
- Employee benefits administration including health, dental, vision, and 401(k)
- New hire onboarding with offer letters, e-signatures, and document collection
- Time tracking and PTO management with geolocation-enabled clock-in
- Workers compensation insurance with pay-as-you-go billing
- Employee self-service portal for pay stubs, tax forms, and benefits
- Gusto Wallet employee app with financial wellness tools and cash accounts
Pros
- + Exceptionally clean interface that makes payroll accessible to non-experts
- + Integrated benefits brokerage eliminates the need for a separate benefits broker
- + Automatic tax filing and year-end W-2/1099 generation saves accountant fees
- + Strong onboarding flow that handles offer letters through first-day paperwork
- + Transparent pricing with no hidden fees or long-term contracts
Cons
- - Not suitable for companies with 200+ employees or complex organizational structures
- - No international payroll support for employees outside the United States
- - Customer support response times can be slow during peak periods
- - Per-employee pricing makes it expensive for larger teams compared to flat-rate alternatives
Pricing
Plus
$80
/month
- + $80/mo base + $6/person
- + Next-day direct deposit
- + Time tracking & PTO
- + Workforce costing reports
- + Multi-state payroll
Premium
$0
/month
- + Custom pricing
- + Dedicated support team
- + HR resource center
- + Compliance alerts
- + Performance reviews
Starting at $49 /month
Try Gusto Free →
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Our Verdict
Gusto — Recommended
Gusto has earned its reputation as the payroll platform that small business owners actually enjoy using. The interface is genuinely well-designed, walking you through each payroll run with clear steps and plain-language explanations of tax withholdings. For a business owner running payroll for the first time, Gusto removes the intimidation factor that legacy payroll providers like ADP and Paychex are known for.
The benefits administration is a genuine differentiator at this price point. Gusto brokers health insurance, dental, vision, 401(k), HSA, FSA, commuter benefits, and workers compensation directly through the platform. Employees get their own portal for accessing pay stubs, tax documents, and benefits enrollment. The onboarding flow for new hires, including offer letters, e-signatures, I-9/W-4 collection, and direct deposit setup, is one of the smoothest in the market.
Where Gusto falls short is scalability. The platform is clearly optimized for companies with 1-100 employees, and businesses approaching the 200+ employee mark will likely outgrow it. Advanced HR features like performance management, succession planning, and complex PTO policies are either basic or missing. International payroll is not supported natively. Customer support, while generally helpful, has received mixed reviews about response times during peak periods like year-end. For the core small business payroll and benefits use case, though, Gusto is hard to beat on the combination of usability and feature completeness.
Related Tools
How much does Gusto payroll cost per month?
Gusto offers three main plans. Simple starts at $40/month base plus $6/month per employee and includes full-service payroll, employee self-service, and basic hiring tools. Plus costs $80/month base plus $12/month per employee and adds next-day direct deposit, time tracking, PTO management, and workforce costing reports. Premium has custom pricing and includes dedicated support, HR resource center, compliance alerts, and performance reviews. All plans include automatic tax filing, W-2/1099 generation, and unlimited payroll runs. There is also a Contractor-only plan at $35/month base plus $6/month per contractor for businesses that only pay 1099 workers.
Does Gusto handle health insurance and 401(k) benefits?
Yes, Gusto acts as a licensed benefits broker and offers health insurance, dental, vision, 401(k) retirement plans, HSA, FSA, commuter benefits, and workers compensation directly through the platform. For health insurance, Gusto partners with major carriers in your state and handles enrollment, COBRA administration, and carrier communication. The 401(k) offering is powered by Guideline and includes low-fee index funds with no employer setup costs. Benefits costs are deducted alongside payroll automatically, and employees manage their enrollment through the Gusto portal. Benefits administration is available on all paid plans, though some advanced features require the Plus tier.
Can Gusto handle multi-state payroll for remote teams?
Yes, Gusto supports payroll tax filing in all 50 US states, making it well-suited for remote and distributed teams. When you hire an employee in a new state, Gusto automatically registers your business for state tax accounts and handles ongoing filings. This includes state income tax withholding, state unemployment insurance, and any local taxes that apply. For businesses with employees spread across multiple states, this eliminates the need to manually register and file in each jurisdiction. The state tax registration service is included in the Plus and Premium plans. Note that Gusto does not support international payroll for employees outside the United States.
Starting at $49 /month
Try Gusto Free →
Affiliate link
Try Gusto Free →
Affiliate link