Gusto: All-in-One Payroll, Benefits & HR Software for Small Businesses

Managing payroll, benefits, and HR tasks can feel overwhelming when you’re running a small business. Between calculating wages, handling tax filings, and keeping track of employee benefits, these administrative duties often consume valuable time that could be spent growing your company.

Gusto positions itself as the solution to this challenge, offering an integrated platform that combines payroll processing, benefits administration, and HR management tools in one place. But does it live up to its promises, and is it the right fit for your business needs?

This comprehensive review examines Gusto’s features, pricing, pros and cons to help you make an informed decision about whether this popular HR software deserves a place in your business toolkit.

What Is Gusto?

Gusto is a cloud-based HR platform designed specifically for small to medium-sized businesses. Founded in 2011, the company has grown to serve over 300,000 businesses across the United States, processing billions in payroll annually.

The platform consolidates three essential business functions into a single dashboard: payroll management, employee benefits administration, and human resources tools. This integrated approach aims to simplify administrative tasks while ensuring compliance with federal and state regulations.

Unlike traditional payroll services that focus solely on wage calculations, Gusto takes a broader approach by incorporating employee onboarding, time tracking, performance management, and benefits coordination into its offering.

Core Features and Capabilities

Payroll Processing

Gusto’s payroll system handles both salaried and hourly employees with automatic tax calculations, deductions, and filings. The platform supports various pay schedules, from weekly to monthly, and can manage multiple pay rates for individual employees.

Key payroll features include:

• Automatic tax filings for federal, state, and local jurisdictions
• Direct deposit and paper cheque options
• Contractor payments with 1099 generation
• Multi-state payroll processing
• Garnishment and child support handling

The system integrates with popular time tracking tools and can import hours directly, reducing manual data entry and potential errors.

Employee Benefits Administration

One of Gusto’s standout features is its comprehensive benefits platform. The company partners with major insurance carriers to offer health, dental, and vision coverage options at competitive group rates.

Benefits management includes:

• Health insurance marketplace with multiple carrier options
• 401(k) retirement plans with automatic enrolment
• Workers’ compensation insurance
• Commuter benefits and flexible spending accounts
• Life and disability insurance options

Employees can review and select benefits through a self-service portal, whilst administrators receive tools to track participation and costs across their workforce.

HR Management Tools

Gusto provides essential HR functionality to help businesses manage their workforce effectively. These tools support the entire employee lifecycle from hiring to termination.

HR capabilities encompass:

• Digital onboarding with electronic document signing
• Employee handbook creation and distribution
• Performance review templates and tracking
• Time-off request management
• Employee directory and org chart generation
• Compliance alerts and guidance

The platform also offers basic applicant tracking features, though these are less comprehensive than dedicated recruiting software.

Pricing Structure

Gusto offers three main pricing tiers, each designed for different business sizes and needs:

Simple Plan (£6 per month plus £5 per employee): Includes basic payroll processing, employee self-service, and next-day direct deposit. Suitable for businesses that need straightforward payroll without extensive HR features.

Plus Plan (£12 per month plus £8 per employee): Adds benefits administration, HR tools, and same-day direct deposit. This tier works well for growing businesses that want comprehensive workforce management.

Premium Plan (£20 per month plus £12 per employee): Includes priority support, advanced HR features, and custom reporting. Designed for established businesses with complex HR needs.

All plans include automatic tax filings, though setup fees may apply for certain features. Gusto also offers add-on services like workers’ compensation and additional compliance support for extra fees.

Advantages of Using Gusto

User-Friendly Interface

Gusto’s dashboard is intuitive and well-organised, making it accessible even for users without extensive HR or payroll experience. The clean design and logical navigation help business owners complete tasks quickly without requiring extensive training.

Comprehensive Integration

The platform’s all-in-one approach eliminates the need to manage multiple vendors for payroll, benefits, and HR functions. This consolidation can lead to cost savings and reduced administrative complexity.

Strong Compliance Support

Gusto handles tax calculations, filings, and updates automatically, helping businesses stay compliant with changing regulations. The platform also provides guidance on labour law requirements and best practices.

Excellent Customer Support

Users frequently praise Gusto’s customer service team for their responsiveness and expertise. Support is available via phone, email, and live chat, with dedicated specialists for different product areas.

Employee Self-Service Features

The employee portal allows staff members to access pay stubs, tax documents, and benefits information independently, reducing HR workload and improving employee satisfaction.

Potential Drawbacks

Limited Customisation Options

Whilst Gusto covers most standard payroll and HR needs, businesses with unique requirements may find the platform less flexible than some alternatives. Custom reporting options are limited compared to enterprise-level solutions.

US-Focused Platform

Gusto primarily serves US-based businesses and may not be suitable for companies with international operations or complex multi-country payroll needs.

Additional Costs Can Add Up

Though base pricing is competitive, add-on services like workers’ compensation, advanced reporting, and premium support can increase monthly costs significantly.

Basic Applicant Tracking

Businesses that rely heavily on recruiting may find Gusto’s hiring tools insufficient compared to dedicated applicant tracking systems.

Who Should Consider Gusto?

Gusto works best for small to medium-sized businesses that want to consolidate their payroll, benefits, and HR functions into a single platform. It’s particularly well-suited for companies that:

• Have 1-100 employees
• Operate primarily within the United States
• Want to offer competitive benefits packages
• Need strong compliance support
• Prefer intuitive, easy-to-use software
• Value integrated solutions over best-of-breed tools

Businesses in professional services, retail, hospitality, and other service industries often find Gusto’s feature set aligns well with their operational needs.

Making Your Decision

Gusto represents a solid choice for small businesses seeking comprehensive HR management without the complexity of enterprise-level systems. Its strength lies in combining essential workforce management functions into an accessible, user-friendly platform.

However, the platform may not suit every business. Companies with complex payroll requirements, international operations, or specific industry needs might benefit from more specialised solutions.

Consider taking advantage of Gusto’s free trial period to evaluate how well the platform fits your specific requirements. Pay particular attention to how the interface feels for your daily workflows and whether the available features meet your current and anticipated future needs.

The investment in a comprehensive HR platform like Gusto often pays dividends through improved compliance, reduced administrative burden, and enhanced employee satisfaction. For many small businesses, these benefits justify the monthly subscription costs and make Gusto a valuable addition to their operational toolkit.