The Gusto quick read
- You want simple, full-service payroll with strong small-business usability
- You plan to offer benefits (health, 401(k)) now or soon
- You want payroll, onboarding, and basic HR in one platform
- You're a one-person S corporation and want the Gusto Solo plan
- You only want the absolute cheapest possible payroll
- You need advanced enterprise HR or global payroll
- You want a hands-on, sales-supported provider with a dedicated rep
- You're tightly committed to the QuickBooks ecosystem and want native accounting-first payroll
| Best fit | Small businesses with W-2 employees, benefits-ready teams |
|---|---|
| Weakest fit | Ultra-budget payroll-only buyers and large enterprises |
| Starting price | Contractor-only: promotional pricing · Simple: $49/mo + $6/person |
| Pricing transparency | Strong — public, plan-based pricing |
| Payroll tax support | Strong — federal, state, local filings included |
| Contractor support | Excellent — dedicated contractor-only plan |
| W-2 support | Full-service, included in all paid plans |
| Multi-state support | Available — multi-state included on Plus and Premium |
| Benefits | Strong — health, 401(k), HSA/FSA, workers' comp |
| HR tools | Good — onboarding, e-sign, handbook templates; advisory on Premium |
| Accounting integrations | QuickBooks Online, Xero, FreshBooks, Wave |
| Setup difficulty | Easy |
| Support quality | Good — phone, chat, email; priority on higher plans |
| Overall rating | 9.2 / 10 |
A CPA's take on Gusto
As a CPA and business owner, I care less about whether payroll software has the longest feature list and more about whether it helps a business owner avoid expensive payroll mistakes. The right payroll provider should make tax payments, filings, employee onboarding, contractor payments, and year-end forms feel routine — because payroll is one area where small mistakes can create real compliance problems.
I also use Gusto in my own business, so my view isn't based only on feature lists — I've seen how it works in real payroll workflows, including employee onboarding, payroll runs, tax filings, and year-end forms. PayrollSignal may earn a commission from Gusto, and this review is still based on business fit rather than commission rate.
Gusto stands out because it makes the most annoying parts of payroll feel routine: employee onboarding, tax filings, contractor payments, W-2s, 1099s, and employee self-service. That's exactly what most small business owners need.
Where I'd be careful is assuming Gusto's headline price is the price you'll pay. Multi-state employers, teams that want priority HR support, and businesses needing time tracking should price out the Plus or Premium plans before signing up — Simple is single-state only.
Gusto is the kind of payroll software I'd feel comfortable recommending to almost any small business with W-2 employees that wants modern software, clean onboarding, and the option to add benefits later. One-person S-corps should specifically look at the Gusto Solo plan — it's purpose-built for owner-only payroll.
Businesses that should probably compare alternatives: contractor-only owners who want the absolute lowest price (compare with Patriot or Wave), QuickBooks Online die-hards (QuickBooks Payroll integrates more tightly), and companies above ~50 employees with complex HR needs (look at Rippling, Paychex, or ADP).
If you're a one-person S corporation and need to run reasonable owner payroll, Gusto Solo may be one of the cleanest fits to evaluate first. It's purpose-built for owner-only payroll, including a reasonable-salary workflow for S-corp owners — PayrollSignal's Green Light pick for one-person S-corps.
A 30-second decision
- Clean, modern payroll software your team will actually use
- Built-in benefits and HR onboarding in one platform
- Transparent, published pricing without a sales call
- Lowest-possible cost for payroll-only with multi-state needs
- Enterprise HR, global payroll, or PEO-style services
- A dedicated representative and white-glove implementation
Who Gusto is best for
- Small businesses that want full-service payroll tax filing without thinking about it
- Owners hiring their first W-2 employee and needing onboarding + new-hire reporting
- Teams that plan to offer health insurance, 401(k), or HSA/FSA benefits
- Companies that want payroll, onboarding, and basic HR in one platform
- Businesses that value usability and transparent pricing over absolute lowest cost
- One-person S corporations (the Gusto Solo plan is purpose-built for owner-only payroll)
- Businesses that want clean QuickBooks Online, Xero, or FreshBooks accounting sync
- Businesses chasing the absolute cheapest payroll software
- Companies with complex, enterprise-grade HR needs
- Employers needing global or international payroll at scale
- Owners who want a dedicated sales rep and hands-on implementation
- Multi-state businesses on the Simple plan (Simple is single-state only — plan accordingly)
- Restaurants and hourly teams deeply embedded in the Square POS ecosystem (Square Payroll may fit better)
Watch My Hands-On Gusto Review
I have personally used Gusto in my own businesses for years, including for salary payroll, hourly payroll, contractor payments, payroll tax filings, W-2s, 1099s, employee onboarding, time off, benefits, worker’s compensation, and multi-state payroll. In the video below, I walk through how I think about Gusto as both a CPA and a small business owner.
Disclosure: PayrollSignal may earn a commission if you sign up for Gusto through links on this page. Logan personally uses Gusto, but this review is based on his own experience and analysis. Gusto did not sponsor this video.
Watch the video for the full walkthrough, or keep reading below for the written review, pricing breakdown, pros and cons, and best-fit recommendations.
Logan Allec, CPA, has used Gusto in his own businesses for the better part of a decade. In the video, he discusses how he has used Gusto across two companies, with salary and hourly employees, contractors, multi-state payroll, payroll tax filings, employee onboarding, benefits, and worker’s compensation.
- Why Logan uses Gusto in his own businesses
- Running salary and hourly payroll in Gusto
- Paying contractors through Gusto
- Payroll tax filings and deposits
- W-2s and 1099s
- Gusto pricing and plan differences
- Time tracking, PTO, and onboarding
- Benefits and 401(k) integrations
- Gusto pros and cons
- Logan's bottom-line recommendation
- Logan personally uses Gusto for his own companies and has used it for years.
- Gusto runs payroll for salary employees, hourly employees, and contractors.
- Gusto prepares and files payroll tax returns and helps remit payroll tax deposits.
- As a CPA, Logan emphasizes payroll tax compliance because unpaid payroll tax problems can become serious quickly.
- Gusto's employee self-service handles pay stubs, W-2s, banking updates, time off, and onboarding.
- Logan views Gusto as a strong fit for many small and midsize U.S. businesses with relatively straightforward payroll and benefits needs.
- Logan does not describe Gusto as perfect — he specifically flags limits around third-party benefit integrations, custom benefits, and registering payroll in new states.
Read the full video transcript
A full written transcript isn’t hosted on this page yet. You can view auto-generated captions directly on YouTube (click the “...” menu under the video and choose “Show transcript”).
One reason I like full-service payroll software is that it can help remove the temptation to delay payroll tax deposits. When payroll taxes are withheld from employees’ paychecks, that money is supposed to be remitted to the government. Falling behind on payroll taxes can create serious IRS and state tax problems.
I am not reviewing Gusto purely from screenshots or marketing materials. I have personally used Gusto in my own businesses for payroll, payroll tax filings, W-2s and 1099s, salary payroll, hourly payroll, contractor payments, onboarding, time-off workflows, benefits administration, worker’s compensation, and multi-state payroll.
That first-hand experience is one reason Gusto ranks highly on PayrollSignal for small businesses that want payroll software that is easy to use, reasonably priced, and capable of growing beyond a one-person business.
Gusto pricing
Payroll pricing changes frequently. Always confirm current pricing on the provider’s site before signing up.
Gusto publishes its plan pricing on its website, which is rare in payroll. The four main plans are Contractor, Simple, Plus, and Premium, plus a dedicated Gusto Solo plan for one-person S corporations.
- Unlimited contractor payments
- 1099-NEC filing
- Contractor self-service portal
- Direct deposit
No W-2 payroll. Promotional base pricing may apply. Confirm the current base fee and per-contractor fee on Gusto's site before signing up.
- Full-service single-state payroll
- Federal, state, and local tax filings
- W-2s and 1099s
- Employee self-service
- Basic onboarding tools
Single-state only — adding employees in additional states requires Plus or higher.
- Multi-state payroll
- Next-day direct deposit
- Time tracking and PTO
- Project tracking
- Advanced hiring and onboarding
- Performance reviews
- Everything in Plus
- HR resource center and HR advisor access
- Priority support
- Compliance alerts
- Dedicated account onboarding
Premium pricing is custom and quote-based.
- Owner W-2 payroll
- Federal and state payroll tax filings
- Year-end W-2
- Reasonable-compensation friendly workflow
Gusto Solo is PayrollSignal's Green Light pick for one-person S corporations. Confirm current promotional pricing on Gusto's site.
- Simple is single-state only — multi-state employers should plan for Plus or higher.
- Time tracking and PTO are gated to Plus and above.
- Next-day direct deposit is a Plus-and-up feature.
- HR advisory and priority support are Premium-only.
- Premium pricing is quote-based — request a quote before assuming a number.
- Benefits availability (especially health insurance) varies by state.
- Always confirm current pricing on Gusto's site — payroll pricing changes frequently.
See current Gusto plans and offers.
Feature scorecard
Payroll features
- Unlimited automated payroll runs
- Direct deposit (2-day on Simple, next-day on Plus+)
- Off-cycle, bonus, and commission payroll
- Multiple pay rates and pay schedules
- Garnishments handled automatically
- PTO tracking (Plus+)
- Employee self-service portal and mobile app
- Automatic payroll on a schedule (AutoPilot)
- Federal payroll tax deposits and filings
- State payroll tax deposits and filings
- Local tax support where applicable
- Quarterly and annual filings
- Automatic W-2 and 1099 generation and filing
- Automatic new-hire reporting
- Tax-notice support included
- Dedicated $0-base Contractor plan
- Unlimited 1099 contractor payments
- Contractor self-onboarding
- 1099-NEC preparation and filing
- International contractor payments (in supported countries)
- Multi-state payroll included on Plus and Premium
- Supports remote employees across U.S. states
- Simple plan is single-state only
- State tax registration help available (third-party partners)
- Local tax support where applicable
- W-2s automatically generated and filed
- 1099-NECs automatically generated and filed
- Employee and contractor self-service access to forms
- Year-end W-2 and 1099 filing generally included with payroll plans — confirm current year-end terms before signing up
HR, benefits, and compliance tools
- Employee onboarding workflows
- Offer letters and e-signatures
- Document storage
- Employee handbook templates (Plus+)
- Org chart and employee directory
- PTO policies and approvals (Plus+)
- Performance reviews (Plus+)
- HR advisor access (Premium)
- Compliance alerts (Premium)
- Health, dental, and vision insurance (state-dependent)
- 401(k) plans through Guideline and others
- HSA and FSA
- Workers' compensation (NEXT Insurance partnership)
- Commuter benefits
- Life and disability insurance
- Automatic new-hire reporting
- Federal, state, and local payroll tax filings
- W-2 and 1099 year-end filings
- Tax-notice support
- Workers' comp pay-as-you-go
- Employee classification guidance (not legal advice)
- Labor-law poster service (paid add-on or higher plans)
Ease of use and setup
- Guided self-serve setup wizard
- Prior payroll import supported
- Employee self-onboarding (employees enter their own info, I-9, W-4)
- Clean payroll-run workflow that owners can finish in minutes
- Mobile experience strong for employees; good for owners
- Lower learning curve than ADP or Paychex
- EIN
- State payroll tax account numbers
- State unemployment account numbers
- Employee information (I-9, W-4)
- Contractor information (W-9)
- Prior payroll history
- Bank account for funding
- Pay schedule
- Benefits information (if any)
- Workers' comp details (if any)
- Accounting software login
- PTO policy
- Existing payroll provider info (if switching)
Integrations
- QuickBooks Online
- Xero
- FreshBooks
- Wave
- Built-in (Plus+)
- QuickBooks Time
- Homebase
- When I Work
- Deputy
- Clover
- Shopify
- Square (via integration)
- Guideline
- Human Interest
- NEXT (workers' comp)
- Expensify
- Zapier
- Trainual
PayrollSignal take: Integrations matter because payroll is rarely isolated. If your payroll system doesn’t talk cleanly to your accounting software, time tracking, or benefits tools, you may end up spending more time fixing payroll than running it.
Customer support
| Support feature | Available | Notes |
|---|---|---|
| Phone support | Yes | Standard hours; priority on Plus+ and Premium |
| Chat support | Yes | In-app chat |
| Email support | Yes | Available across all plans |
| 24/7 support | No | Standard business hours |
| Dedicated representative | Depends | Premium plan only |
| HR advisor access | Add-on | Premium plan or HR add-on |
| Tax-notice support | Yes | Included on all paid plans |
| Setup support | Yes | Self-serve with optional guided onboarding (Premium) |
Payroll support matters more than ordinary software support because payroll problems often have deadlines attached. A login issue is annoying. A missed payroll tax deadline can be expensive.
Gusto pros and cons
- Best-in-class user experience for owners and employees
- Transparent published pricing on most plans
- Excellent contractor-only plan with $0 base
- Built-in benefits — health, 401(k), HSA/FSA, workers' comp
- Strong onboarding tools and employee self-service
- Clean accounting integrations (QuickBooks Online, Xero, FreshBooks, Wave)
- Gusto Solo is purpose-built for one-person S corporations
- Simple plan is single-state only — multi-state employers need Plus or higher
- Time tracking and next-day direct deposit are gated to Plus+
- HR advisor access and priority support are Premium-only
- Premium pricing is quote-based
- Not always the cheapest option for very small or payroll-only businesses
- Benefits availability varies by state
- Not ideal for complex enterprise HR or global payroll at scale
Which businesses should use Gusto?
Gusto's contractor-only plan can be one of the most cost-effective options for businesses that only pay 1099 contractors, especially when promotional pricing is available.
Gusto Solo is built specifically for owner-only payroll, including a reasonable-salary workflow for S corporation owners. That makes it PayrollSignal's Green Light pick for one-person S corps that want owner payroll handled cleanly.
Guided onboarding, automatic new-hire reporting, and clean tax setup make Gusto a strong first-payroll choice.
Pricing, usability, and feature breadth are well-balanced for businesses in this size range.
Built-in health insurance, 401(k), HSA/FSA, and workers' comp simplify benefits as you grow.
Multi-state payroll is supported on Plus and Premium and handles remote workers across states well.
Plus includes time tracking, but Square Payroll may fit better if you're already using Square POS.
Clean accounting integrations and salaried-plus-contractor mix are exactly Gusto's sweet spot.
Workers' comp and job-tracking exist, but specialized construction payroll providers may fit better.
Affordable, simple, and benefits-friendly — Gusto is widely used by small nonprofits.
Gusto can scale here, but compare against Rippling, Paychex, or ADP for deeper HR and reporting.
Not designed for enterprise HR, global payroll, or complex permissions structures.
PayrollSignal Fit Meter
Watch-outs before you buy
- Confirm the Simple plan covers your state setup — Simple is single-state only.
- If you need time tracking or next-day direct deposit, budget for Plus, not Simple.
- Premium pricing is quote-based — request a quote before assuming the number.
- Health benefits availability and broker support vary by state.
- Confirm whether you need HR advisor access; it's Premium-only.
- If you're a one-person S-corp, ask about the Gusto Solo plan specifically.
- Multi-state setup may require state tax registration in each new state — Gusto helps but it's still on you.
Best alternatives to Gusto
ADP offers deeper HR, compliance, and benefits infrastructure, plus dedicated reps at higher tiers.
Gusto is usually simpler to set up, has transparent published pricing, and is friendlier for small teams under 50.
Best for: Businesses that want a large, established provider with sales-supported onboarding and broader HR infrastructure
OnPay's $49 base + $6/person is multi-state out of the box, which can beat Gusto Simple for multi-state teams.
Gusto has a cleaner interface, stronger benefits integrations, and a free contractor-only plan OnPay doesn't match.
Best for: Multi-state employers who want full-service payroll at a flat, transparent price
Native integration with QuickBooks Online accounting can be a meaningful workflow win.
If you're not committed to QuickBooks, Gusto is generally a more modern, employee-friendly platform.
Best for: Businesses already deeply embedded in QuickBooks Online
Patriot's base price is among the lowest for full-service payroll.
Gusto offers far better onboarding, benefits, HR, and employee experience — worth the price difference for most businesses.
Best for: Budget-conscious businesses that want the lowest possible payroll cost
Square Payroll integrates tightly with Square POS for tip reporting, scheduling, and hours.
Outside the Square ecosystem, Gusto is a stronger general-purpose platform.
Best for: Restaurants, retail, and hourly teams already using Square POS
Not sure if Gusto is right for you?
Payroll companies can look similar on the surface, but the best choice depends on your employees, contractors, states, benefits needs, HR support, accounting software, and growth plans. Take the free PayrollSignal quiz and get a recommendation built for your business.
How we reviewed this provider
We review payroll providers based on small business fit, not just feature count. A provider can have many features and still be the wrong choice for a very small business if it’s too expensive, too complex, or unclear about pricing.
| Category | Weight |
|---|---|
| Payroll functionality | 20% |
| Payroll tax & compliance support | 20% |
| Pricing & transparency | 15% |
| Ease of use | 15% |
| HR, onboarding & benefits | 10% |
| Integrations | 10% |
| Customer support | 5% |
| Scalability | 5% |
Our ratings are intended to help small business owners choose payroll software based on fit. A lower-rated provider may still be the better choice for a specific business if its pricing, integrations, service model, or HR features better match that business’s needs.
Gusto FAQs
The bottom line
Gusto is a strong choice for small businesses that want easy, modern payroll with built-in benefits and HR. It's especially worth considering if you care about transparent pricing, employee experience, and the ability to add benefits later. It may not be the best fit if you're chasing the absolute lowest price, you need complex enterprise HR, or you'd rather work with a dedicated sales rep.
If you already know Gusto fits your needs, you can check current pricing below. If you’re still comparing options, take the free PayrollSignal quiz first.