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Gusto brings payroll, HR and benefits together in one platform, making it easier for small businesses to manage employees from hiring and onboarding through payday. We especially like how well these tools work together, which makes Gusto our top payroll service for HR integration.
Small businesses often need more than a way to pay employees. As a company grows, payroll becomes increasingly connected to hiring, onboarding, time tracking, benefits and other HR responsibilities. Gusto brings these functions together in one platform, with tools for employee recruitment, new hire reporting, digital onboarding, benefits administration and more. Its three payroll plans serve businesses with different needs, from straightforward payroll and basic HR tools to more advanced time tracking, hiring and workforce management features. Gusto also offers 150 integrations, giving businesses plenty of options to connect the platform with the HR, accounting and other software they already use.Â
Most payroll services include at least a few HR tools, but Gusto goes considerably further. Payroll sits within a broader HR platform that can handle hiring, onboarding, time tracking, benefits and other workforce tasks, so employee information doesn’t have to live in separate systems. Gusto also offers 150 integrations with accounting, recruiting, time-tracking, performance management and other business software, making it easier for companies to keep using tools they already rely on.
We especially like how much of the employee lifecycle can be managed through Gusto. Hiring and onboarding tools include offer letter templates, document storage and background checks through Checkr, along with email and software provisioning. New hires can use the intuitive employee self-service portal to enter their own payroll details, complete onboarding tasks and access important documents.
Gusto’s mobile app extends many of these capabilities beyond the desktop. Employees can track their pay and benefits, clock in and out, access important documents, submit expenses and manage personal finances. Business owners and payroll administrators can run payroll and manage employee information from their phones, while expanded mobile tools provide access to compliance dashboards, tax tasks and reports. In our testing, we found the app far more flexible than earlier versions, reducing the need to return to a computer for routine payroll and HR work.
The Plus plan is where Gusto’s payroll and HR capabilities become much more closely connected. It includes built-in time tracking and scheduling, job postings, an applicant tracking system, custom onboarding tools, document e-signing and software provisioning. Businesses can also customize paid time off (PTO) policies and manage performance and compensation from the same system. These tools cost more than Gusto’s entry-level plan, but they can reduce the need for separate HR applications.
Gusto has also addressed one of the weaknesses we previously found with the platform by adding more payroll automation. Newer tools can automatically reroute failed payroll deposits, flag unusual payroll entries before submission and schedule contractor payments in advance, reducing some of the manual work required to run payroll.
Before choosing a payroll provider, check Gusto’s App Directory to make sure the HR, accounting and other business software you already use connects with the platform.
Gusto is a user-friendly platform that most teams can pick up quickly. Here are a few features we noted during testing that make it especially easy to use:
Gusto makes it easy for businesses to run payroll accurately and stay on top of tax filing deadlines. Some standout features include:
Gusto’s extensive integration library impressed us. The platform offers 150 integrations, considerably expanding what businesses can manage alongside payroll. These include many of the best accounting software solutions, along with popular HR and business tools for:
We see particular value in these integrations for businesses that don’t want to give up their existing HR or business software when they move to Gusto. Connecting these systems can reduce duplicate data entry and help keep payroll, HR, benefits and accounting information in sync.
Accounting integrations are particularly useful for keeping payroll and bookkeeping data connected. Read our review of QuickBooks Online, our FreshBooks review and our review of Xero to learn more about three accounting platforms that integrate with Gusto.
We previously criticized Gusto for offering fewer automations than some competitors, but the platform has made meaningful improvements in this area. Gusto can now automate several time-consuming payroll tasks, including rerouting failed direct deposits when an employee adds a new bank account, flagging unusual entries during payroll prep and scheduling contractor payments in advance.
Gusto has also expanded how businesses can use AI-powered tools with payroll. Integrations with ChatGPT, Claude and Slack allow owners and administrators to ask questions about their payroll and business data and analyze trends using natural language. Eligible customers can even run payroll directly from these workflows.
We also like Gusto’s growing use of automation for tax credits. The platform can review payroll and benefits data to estimate eligible tax credits and generate ready-to-file documents. An interactive R&D tax credit calculator helps employers estimate potential savings, while Gusto also supports the FICA Tips Tax Credit and 401(k) Tax Credit.
Gusto handles the core payroll process well. Employees and contractors can enter their own bank and tax information, while administrators manage pay rates, deductions and other payroll details. Each pay period, businesses can enter hours manually or sync them from a time-tracking app. Gusto’s built-in time tracking, included with Plus and Premium or available as an add-on to Simple, also syncs hours directly with payroll.
We like that Gusto supports different types of earnings, including bonuses, commissions and tip credits. Businesses can run unlimited payrolls at no additional cost, which is particularly useful when an off-cycle payment is necessary. Gusto’s AutoPilot feature can also run payroll automatically for eligible employees with predictable pay, reducing the amount of routine work required each pay period.
Not all payroll services help calculate the FICA tip credit, an important consideration in restaurant accounting. Gusto can calculate the credit for eligible businesses and provides a year-end report with the information needed to claim it on a business tax return.
Employees can receive their pay by direct deposit, with deposit speeds depending on the Gusto plan and account eligibility. Paper checks are also an option, as are payroll cards (also called prepaid debit cards). Gusto doesn’t provide its own payroll card, but employees can have their pay deposited onto a compatible prepaid card by entering the card’s routing and account numbers.
We appreciate the flexibility Gusto gives employees over where their pay goes. Employees and contractors can add up to five bank accounts and split payments among them by percentage or dollar amount. Eligible employees can also use Gusto Wallet, which includes a Spending Account with a Gusto debit card, savings and budgeting tools and the option to receive pay up to two days early.
Direct deposit alternatives, such as payroll cards, can be a valuable perk that boosts employee satisfaction and retention.
Gusto automatically calculates, pays and files federal, state and local payroll taxes. It also generates W-2 and 1099 payroll forms for employees and contractors. Digital copies are available to send or print, and Gusto can mail physical copies for an additional fee.
Once payroll is processed, Gusto debits the required payroll taxes from your connected account and files quarterly and annual tax forms, including Form 941. Administrators can view company and employee tax payments in payroll history, while employees can see tax details on their pay stubs.
Gusto’s Plus and Premium plans support multi-state payroll. If you hire an employee in a new state, Gusto can also handle state tax registration for an additional fee.
Gusto Cofounder is an AI assistant designed to help small business owners automate administrative work across payroll, HR and connected business tools. Instead of simply answering questions, Cofounder can take action on a user’s behalf, such as flagging unusual payroll activity, tracking deadlines, scheduling recurring workflows and identifying overdue approvals. It can also generate reports and help manage tasks related to time off and employee expenses.
We especially like that Cofounder can work through tools businesses may already use. It connects with platforms such as Slack, Google Workspace and Notion, and users can complete certain Gusto tasks without returning to the main platform. For example, Gusto says businesses can run payroll through Slack or SMS and receive proactive alerts when something needs their attention.
Cofounder could be particularly useful for small business owners who don’t have dedicated payroll or HR staff and want to reduce routine administrative work. However, availability may be limited, so businesses interested in the feature should check with Gusto to determine whether they have access. As with other AI tools, Gusto recommends reviewing Cofounder’s output before acting on it, particularly for payroll, tax and compliance decisions.
Depending on your plan and selected add-ons, Gusto provides many of the capabilities you’d normally expect from dedicated HR software. We think these tools are particularly valuable for small businesses that want to manage payroll and HR in the same system.
Gusto offers three full-service payroll plans, all of which include unlimited payroll runs, automated tax filings and contractor payments. There’s also a Contractor Only plan for businesses without W-2 employees and Gusto Solo for owner-only businesses. Gusto doesn’t require a long-term contract, so businesses can change plans as their needs evolve.
Here’s how the plans break down:
Plan | Pricing | Key Features |
|---|---|---|
Simple | $49 per month + $6 per person per month |
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Plus | $80 per month + $12 per person per month | Everything in Simple, plus:
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Premium | $180 per month + $22 per person per month | Everything in Plus, plus:
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Solo | $49 per month + $6 per payroll recipient per month |
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Additional pricing considerations include the following:
Gusto’s health insurance broker integration lets you connect your existing employee benefits program to the platform. Alternatively, businesses can choose from thousands of Gusto-brokered health, life, disability and workers’ compensation plans.
By the complex standards of this industry, Gusto is one of the easier payroll services to set up and use. The company provides a clear self-onboarding process with step-by-step instructions for business owners and administrators. Setup involves adding employees, tax information and banking details, as well as choosing a pay schedule and entering any historical payroll data.
Most businesses should be able to work through Gusto’s online setup without much trouble. Account verification and required forms are handled online (note that Gusto may ask for additional financial documents in some cases). Support is available if you need help along the way.
We also found employee onboarding exceptionally easy. During setup, you can enter employees’ email addresses to automatically invite them to Gusto or add them later. Employees then receive an email with a link to complete their own onboarding, including entering the personal, tax and payment information Gusto needs for payroll.
We had excellent experiences each time we contacted Gusto’s customer support team. Representatives were patient, knowledgeable and responsive, and we never experienced long wait times or felt pressured to upgrade or purchase additional services.
Here’s what to expect:
Gusto would be an excellent option for many small businesses. However, there are a few potential downsides to consider:
If advanced workflow automation is a priority for your business, Rippling is another strong option to consider. Read our Rippling vs. Gusto comparison to see how the platforms differ, or check out our detailed Rippling review to learn more about its customizable workflows and automation tools.
We researched and analyzed dozens of the best online payroll services to identify the top solutions for small businesses. We evaluated usability, pricing, HR tool availability, payment options, direct deposit speeds, payroll tax support and other essential features to help organizations choose the right provider for their needs. Our research included hands-on testing when possible, along with software demos, product videos and direct interactions with customer support teams.
To determine the best payroll service for HR integration, we paid particular attention to each platform’s built-in HR capabilities, number and variety of third-party integrations and ability to connect payroll with other workforce tools. We closely examined integrations for time tracking, recruiting and onboarding, performance management, benefits administration, accounting and other common business needs.
Gusto offers next-day, two-day and four-day direct deposit speeds, although availability depends on the employer’s plan, payment history and account standing. Most new employers start with four-day pay and can gain access to two-day pay after a 15-day waiting period and one successful payroll debit. Next-day pay is also available to eligible employers. Gusto may offer Same-day Pay or Instant Pay for qualifying late payrolls.
If a scheduled payday falls on a weekend or bank holiday, Gusto moves the check date to the previous business day.
Gusto uses a redundant banking system designed to keep payroll running if one of its banking partners experiences an outage, delay or failure. The company works with major national banks, including JPMorgan Chase and PNC, and can rely on another banking partner if one experiences a disruption. This redundancy helps reduce the risk that a problem at a single bank will interrupt payroll processing.
Yes. Employers can print and distribute paper checks themselves or have Gusto print and mail checks directly to employees. Gusto charges $1.50 to print each check, plus $1.49 for standard delivery, which typically takes five to 10 business days, or $17.49 for next-business-day delivery. Check mailing is available for regular and off-cycle employee payrolls but isn’t currently available for contractor payments or dismissal payrolls.
We recommend Gusto for …
We don’t recommend Gusto for …
