Gusto debuted in 2011 and became a well-known, well-liked, simple, and affordable payroll software. As the company continues to mature, it has expanded its offerings to include benefits, workers comp, talent management, and more.
Ratings
Ease of Use
Best For
Key Differentiator
Price
Free Trial
PROS
- The dashboard feature keeps tabs on compliance tasks
- The hiring and onboarding sequence is nicely streamlined between HR and the new hire
- Post-offer, pre-start tasks are made easy with integrations like CorpNet (state tax set up) Checkr (background checks)
- Easy payroll for U.S.-based W-2 folks, domestic, and international contractors
- Person-to-person phone support, email, and other customer service resources
- The business model is responsive to customer needs
CONS
- Gusto can support payments for international contractors, but not employees
- No native accounting feature to keep earning and spending under the same roof
- Analytics dashboard is simplistic

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Gusto’s software is robust: it’s not adored with fragile bells and whistles that are prone to malfunction, and it’s mostly idiot-proof in that it’s intuitive. It is constitutionally user-friendly so it’ll intervene if you're on the way to doing something ill-advised (like canceling payroll, for example). Gusto has done well in responding to the needs of HR teams since 2011, but that’s not the end of the story.
HR folks are not the primary users of this tool. When a company uses Gusto for payroll and benfits, the whole company uses Gusto, and this means that non-HR workers represent the majority of people interacting with the software. Among these users, many enter the platform via the mobile app (Gusto Wallet), which is available for iOS and Android.
The takeaway is that Gusto is ready to meet you wherever you are, Gusto has a lot of users, and they have considered them all.


I used payroll biweekly, then switched to weekly (payroll changes of this type are extremely well handled in their system). Annually, we update the employee handbook (which is automatically emailed/text-blasted to the employees for an electronic signature), semi-annually for all harassment/employee education (also via a partner listed in Gusto), as needed to onboard/terminate a new employee, and daily as needed to update employee records or pull reports for analysis.
The software is laid out very nicely, making it easy to find anything, and all employee documents are in one place. Reports are easy to find and customize. Their help desk is extremely knowledgeable. If they can't help you, it's elevated via a ticket system to an in-house engineer. Gusto is so user-friendly that an employee can learn what they need to know in minutes.
Gusto was purchased for a small company's payroll, HR management, and processes.
We needed to simplify payroll, become fully HR compliant, and organize processes (handbook, reviews, job descriptions, tax documentation, etc. for the team). HR at the time had worked with various large platforms that would not suit our needs because they were overly complicated with a cumbersome setup for a small company.
Combined with features we would never use, these platforms were an unworkable option. This led us to find a vendor specific to small businesses. A colleague of the owner suggested Gusto. After one demonstration, we decided to go with the full suite of offerings (Premium) but later reduced to Plus. Once you learn the features, you know what you can do without and save some money.
One problem we had, which Gusto was unable to solve at the time, was timekeeping. We added a timekeeping system that partners with Gusto for a seamless hourly staff payroll. There are lots of options listed within Gusto.
I've used the Gusto tool for four years. All our HR problems were solved. Gusto works perfectly for a small business (under 100 employees). Payroll is a snap. Managers approve their employees' time, it's filtered into the Gusto system, and ready for final approval/submission within minutes.
Additionally, you have a window to pull back payroll to make changes. All adjustments (healthcare, court-ordered payments, etc.) are easily set up via each employee, and changes can be made within seconds. Employees can update their personal or tax information right in their app, which is very convenient for them.
Gusto simplified the entire onboarding process, along with payroll, handbooks, employee reviews, etc. Gusto needs to add their own time clock system (if they haven't already), but their time clock partners work extremely well.
One last point, if you want to be very specific about which employee's information their manager is allowed to see, Gusto has levels of permissions for managers and employees built into the software.
It would be nice if they had a timekeeping system (that wasn't on the internet), reducing the need for another app. It would also be nice if Gusto had an applicant tracking system. PTO can be cumbersome to figure out on an accrual basis.
Gusto is by far the best payroll, HRIS software I've used mainly due to its simplicity and speed.
How many employees do you plan on running through the system? Payroll over 100 could be run better on a different platform. Understand what Gusto cannot do that you'll need to add on (timekeeping app, harassment training). What does your accounting firm do for you that Gusto can automate? 940/941 filings, tax setup for unemployment in each state.
I'm a fan of their customer service; however, many think they're too slow. Growing pains, Gusto's management will catch up. They've streamlined even more in the last four years.
The entire HR department and all managers with staff in small business can find Gusto to be a great fit.
Gusto is not suited for a company with a large number of employees. They gear their product to small businesses, and they're good at it.
We use Gusto for applicant tracking, onboarding, offboarding, HR documentation, and expense tracking. We were using Gusto's benefit brokerage, FSA, and COBRA options as well, but we recently changed to our own broker in March 2024. Some of the workflows we use are "to-do" type lists for onboarding and offboarding. We set these up so that tasks will send to each individual (manager, admin, or employee) when it is time to action the task in the onboarding process. Gusto does not have any advanced workflows, and even their basic workflows mentioned above are more similar to email reminders than typical HRIS workflows. The main benefit of these types of workflows is that they are very beginner-friendly. The main drawback is that there is little to no customizability.
Gusto is a great beginner HRIS with basic functionality that is easy to use. Gusto is a cost-effective, affordable HR and payroll solution for small businesses. Gusto's document functions are very customizable, allowing for check mark boxes along with basic and more common features like signature boxes and text boxes.
Our company originally bought Gusto in 2020 and has been using it for four years. I have personally been using it for six months and have used it in the past while working contracts for other start-ups. We use Gusto as a solution for small businesses that need an HR and payroll system. The key benefits it provides include a time tracking system, payroll system, HR storage system, ATS, benefits solution, and more. When originally buying the tool, the company aimed to use it mainly for payroll purposes and to move off of QuickBooks for payroll and paper copies of documentation. Gusto provides document signing as well.
Gusto's customer service lacks urgency and has put us into very difficult situations regarding compliance around our benefits. While Gusto is very beginner-friendly, this means it also lacks the workflows and customizability that most experienced HR professionals are accustomed to when setting up and using an HRIS. Gusto does not have many options for custom reporting, which can be difficult for HR personnel and business operations.
I prefer a more customizable HRIS, even if it is a little more expensive. I think Gusto is a good start solution, but once you grow past 25+ employees, you will need to look into more advanced HR and payroll solutions. I would not recommend Gusto to anyone that has over 25 employees due to this.
Businesses should consider their projected growth and hiring plans. You do not want to implement an HR system if you will need to switch to another HR system further down the road. If you plan on keeping your business small or do not plan on hiring a dedicated HR person, then Gusto might be the solution for you.
I have not been with Gusto long enough to see any change or evolution.
Gusto is good for small businesses with under 25 employees and/or businesses looking for a very cost-effective solution.
Gusto is not a fit for teams larger than 25 employees. Gusto is not a fit for a team in high growth stages. Gusto is not a fit for anyone with a dedicated HR person who likes the functionality of advanced workflows and custom reporting.
I use Gusto daily for various HR and payroll-specific tasks. When an applicant has made it through the interviewing and screening process, I send an offer letter using Gusto. I also send a background check through Gusto's provider, Checkr.
After the applicant accepts the offer and completes the background check, Gusto walks me through the hiring and onboarding process for the new employee. I enter worksite-specific information such as the new employee's supervisor, which department they will be working in, assign risk class codes for worker's compensation, and assign any company-paid time off/sick time policies to their file so that these will accrue during each payroll.
The applicant is then invited to enter their personal information so that we can complete their I-9 and sign them up for direct deposit, wage withholding with the W-4 form, etc.

Gusto has a user-friendly and intuitive interface for basic payroll and onboarding functions. Their app is easy for our employees to understand and navigate. They integrate with several other third-party apps, such as Checkr for background checks and Guideline for 401k plans.
My company purchased Gusto because it was recommended to us by our CPA as a great payroll provider for small businesses. We needed to find a way to automate as much of the payroll process as possible. We looked for software that would file new hire reports for us, automate the onboarding experience, and pay our employees accurately and on time. We also needed something easy to use and that had the option to integrate with other frequently used apps. I have used Gusto for over two years.
I have experienced several "bugs" when we have unique issues with employees, such as messages indicating an overdue payroll from a year previous after entering an employee's promotion. Their customer service team is available during business hours for calls, but I have been given inadequate solutions several times when speaking with one of these representatives. Their reporting function is very limited and doesn't allow for complex custom reports.
Gusto is an affordable solution for small businesses that don't require complex reporting. If you have a company with 50 employees or less, it may be a great solution. I have used other payroll and HRIS systems, such as ADP, Paychex, and Paylocity, which have more advanced capabilities, and I would recommend one of those for mid- to large-sized companies. The biggest difference between Gusto and these other systems is the ability to create custom reports and formulate data analytics as a tool for talent acquisition planning.
If you're in the market for a tool like this, consider the size of your business and what you will be using the tool for. If you're operating a small business and just want the basics covered, a platform like Gusto may be affordable and practical. If you want the ability to create data analytics and grow your talent, you'll need a system with advanced custom reporting capabilities. Government-required reports such as OSHA 300 and annual EEOC reporting will require data each year, so you'll want to have a tool to handle these needs without manual number crunching.
Gusto meets virtually with customers on a quarterly basis to review their accounts and ensure customers are aware of all the capabilities they have access to. They accept feedback and send ticket requests to their support team for consideration when updates are requested. Since I started using Gusto, they've expanded by giving companies the ability to address employee performance, send out monthly anonymous employee surveys, and upgraded their payroll entry process so that data can be imported from other apps.
Small to mid-sized businesses without complex reporting needs will find Gusto very helpful.
Large businesses (100 employees or more) or those that want to create complex reports and utilize data analytics should look for more robust tools.

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Gusto is not designed for enterprise use, and rapidly growing companies should be aware of the drawbacks of settling into software that isn’t (yet) intended for massive teams. If your goal is exponential growth and your luck leads you there, congrats! But be sure to talk to Gusto early on about the functional limits of their platform.
In 2025, Gusto surpassed the 400,000 customer mark; getting closer to serving half a million businesses across the US.
- ATS to create job posts, publish to job boards, and manage candidates
- Admin dashboard: stay compliant with reminders of state and federal requirements, like anti-harassment training and workers' compensation
- Easy state tax registration for new hires in all U.S. states
- The Gusto Wallet app offers employees easy access to pay history, breakdowns and other useful stats
- Gusto accounts are for life: your employees can dig up old tax records or time cards as needed.
To imagine the momentum of Gusto’s integrations, picture a snowball rolling slowly down a gentle slope. Do not imagine a comet-sized orb crashing into an Alpine village. Gusto is thoughtful about integrations, and with more than a decade of company wisdom guiding their decisions, there are no signs of short-sighted choices.
A prime example of thoughtful integrations can be found with Guideline and Human Interest. These are the two major players trying to win the hearts and minds of small and medium-sized businesses across the United States (especially in California, where the retirement mandate is shaking things up). Gusto wisely integrates with both.
- Simple: $49/month +$6/month/person
- Plus: $80/month +$12 / month/person
- Premium: $180/month +$22/month/person
- Contractor only (no W-2 employees): $35/month/person
Even budget-strapped startups can afford Gusto’s basic plan, and for companies who have some bank capital to invest in human capital, the top-tier Premium plan is a great choice, especially if they have an HR department of one person.
- 5 new add-ons for Simple plans (Time tracking, next-day direct deposit, performance, priority support, and HR resources).
- Personalized health insurance suggestions during shopping.
- Vestwell, Guideline, Betterment at Work, and Human Interest as new 401(k) integration partners.
- New feature Smart Import automates payroll data import from spreadsheets or time-tracking software.
It is evident that Gusto knows their customer base when it comes to the ease with which you can set up this platform. It’s not quite “do it on your phone while you’re commuting to work” easy, but it’s a project you can probably complete before you break for lunch.
The concierge service offered with the higher priced plans is an absolute luxury for that Team of One, Department of Everything HR person (many of us have been there).
While not inclined or qualified to offer legal or tax advice, the SHRM-certified people on the other end of the concierge phone line can help any HR novice through the bureaucratic eccentricity for which HR is known. Upper-tier plans also include a massive resource library so packed with knowledge, even an HR master scholar will be impressed.
For basic users (and end users) the customer service staff is reliably available and knowledgeable. The long hold times and the occasional agent who woke up on the wrong side of the bed are inevitable features of any customer success department, but Gusto’s is better than most.
2011 was a big year in tech, but I can’t recall a single year since tech became the center of the universe that wasn’t a big year in tech. Gusto’s history and their sometimes quiet presence in the space is relevant though. Gusto has grown gracefully despite having lived through some major shifts in the HR tech landscape. Unicorn status: achieved.
Company HQ
San Francisco, California
Number of Employees
1000-5000
Year Founded
2011
Amount Raised
Series E, ~10 billion
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