What if running payroll and managing HR tasks could be as simple as clicking a button? For many small business owners, these administrative chores consume valuable time and resources. This platform changes everything.
Founded in San Francisco, this company serves over 300,000 businesses nationwide. It processes tens of billions in payroll annually. The software handles everything from tax filings to employee benefits.
Growing businesses get enterprise-level tools without the complexity. The platform automates payroll processing, health insurance, and onboarding. It supports all worker types: salaried, hourly, and contractors.
Business owners save time with automated direct deposit and compliance tracking. They gain peace of mind with expert support. This service helps companies focus on growth instead of paperwork.
Key Takeaways
- Gusto serves over 300,000 businesses across the United States
- Automates payroll processing, tax filings, and compliance requirements
- Provides comprehensive employee benefits including health insurance and 401(k)
- Supports all employment types including salaried, hourly, and contract workers
- Offers expert support and automated systems for business owners
- Handles complex calculations and filings across all 50 states
- Helps small businesses access enterprise-level HR technology
What is Gusto? A Modern Payroll Solution
Three Stanford graduates transformed payroll headaches into streamlined solutions for modern businesses. Their platform addresses the complex challenges of compensation management and employee benefits.
Company Background and History
Joshua Reeves, Edward Kim, and Tomer London launched their startup in November 2011. They initially called it ZenPayroll during Y Combinator’s Winter 2012 batch.
The founders secured $6.1 million in early funding from prominent investors. Box CEO Aaron Levie and Yammer CEO David O. Sacks supported their vision.
This payroll service officially launched in California on December 11, 2012. The company expanded nationwide after proving its value locally.
In September 2015, ZenPayroll became Gusto to reflect broader services. The new name signaled expansion into health insurance and workers’ compensation.
The platform raised $50 million at a $1 billion valuation in 2015. By 2019, funding reached $200 million at a $3.8 billion valuation.
Total funding now exceeds $746 million as of 2024. The company maintains offices in San Francisco, Denver, and New York City.
Core Service Offerings
This comprehensive platform handles payroll processing for all worker types. It supports salaried employees, hourly workers, and contractors.
Automatic tax calculations and filings save businesses valuable time. The system manages federal, state, and local tax requirements.
Employee benefits administration includes health insurance and retirement plans. Companies can offer competitive packages without complex paperwork.
The software provides full compliance tracking across all 50 states. It automatically updates for regulatory changes and new requirements.
Direct deposit processing ensures timely compensation for workers. The platform also handles year-end forms and documentation.
Growing businesses benefit from enterprise-level tools at accessible prices. The service scales seamlessly as companies expand their teams.
Comprehensive Features of Gusto Platform
Modern businesses need powerful tools that handle complex administrative tasks seamlessly. The platform delivers enterprise-level capabilities through an intuitive interface. Companies can manage their entire workforce with confidence and efficiency.
Payroll Processing and Tax Management
The system handles all employee classifications with precision. It processes salaried, hourly, and contract workers without limitations. Businesses can run unlimited payroll cycles each period.
Multiple payment options accommodate different workforce needs. The platform offers two-day direct deposit for basic plans. Enhanced plans provide next-day deposits for better cash flow management.
Automatic tax calculations eliminate manual errors. The software files forms electronically with all required agencies. It handles local, state, and federal requirements seamlessly.
Year-end tax documentation generates automatically. Employees access W-2 forms through self-service portals. Contractors receive 1099 forms without manual intervention.
Employee Benefits Administration
Comprehensive benefits packages attract and retain quality talent. The platform administers health, dental, and vision insurance plans. Retirement options include 401(k) plans with professional management.
Various tax-advantaged accounts support employee financial wellness. Health Savings Accounts (HSA) and Flexible Spending Accounts (FSA) are available. Commuter benefits and college savings plans provide additional value.
Workers’ compensation insurance integrates seamlessly with payroll. The system manages premiums and coverage requirements automatically. Businesses maintain compliance while protecting their workforce.
HR Tools and Compliance Support
Onboarding becomes streamlined with customizable templates. Offer letters and job descriptions maintain consistency across hires. Employee handbook creation ensures clear communication of policies.
Document signature capabilities accelerate paperwork completion. Digital storage keeps all records organized and accessible. Organization charts help visualize reporting structures and team relationships.
Compliance features automatically update for regulatory changes. The system tracks requirements across all 50 states. Businesses receive notifications about upcoming deadlines and new regulations.
Integration Capabilities
The platform connects with popular accounting software like QuickBooks and Xero. Time-tracking tools sync seamlessly with payroll processing. Expense management systems integrate for comprehensive financial oversight.
Point-of-sale systems like Shopify connect for retail businesses. Employee self-service features empower workforce autonomy. Team members access paystubs, request time off, and update personal information independently.
Contractor management handles payments and tax compliance automatically. The system generates necessary forms and maintains proper records. Businesses can focus on growth while administrative tasks run smoothly.
Pricing and Plan Options
Finding the right payroll solution means matching features with budget. The platform offers tiered pricing to serve different business needs. Companies can choose what works best for their team size and requirements.
Core Plan – Essential Features
The Core Plan starts at $39 monthly plus $6 per employee. This package handles full-service payroll in all 50 states. It includes two-day direct deposit processing for timely compensation.
Employee self-service portals give workers access to their information. The system manages workers’ compensation and basic health insurance administration. Onboarding tools help new hires get started quickly.
Businesses get automated payroll processing and document management. Accounting integrations sync with popular software. This plan covers essential needs for most small companies.
Complete Plan – Enhanced Functionality
The Complete Plan costs $39 monthly plus $12 per employee. It includes everything from the Core tier plus valuable upgrades. Next-day direct deposit improves cash flow for workers.
Time tracking capabilities help manage hourly employees efficiently. Project tracking features monitor team productivity and costs. New hire costing analysis provides valuable budgeting information.
Enhanced tools include employee surveys and permission settings. Organizational directories help teams connect and collaborate. This package suits growing businesses needing more functionality.
Concierge Plan – Premium Support
The Concierge Plan is $149 monthly plus $12 per employee. It offers everything in the Complete tier with premium additions. Dedicated HR professionals provide expert guidance and support.
Companies get access to an expanded HR resource center. Employee handbook creation ensures clear policy communication. Job description templates maintain consistency across positions.
Specialized HR training modules develop management skills. This service level delivers comprehensive support for complex needs. Businesses receive white-glove treatment for their HR requirements.
Contractor-Only and Add-on Services
The Contractor-Only Plan costs $6 monthly per contractor. It handles payments and generates necessary 1099 forms. Tax filing services ensure compliance for contract workers.
Add-on services let businesses customize their experience. Health benefits and workers’ compensation add no extra fees. Retirement plans cost $39 monthly plus $8 per participant.
Tax-advantaged accounts include HSA and FSA options. College savings and commuter benefits provide additional value. These services require a $200 annual charge plus per-employee fees.
Strengths and Limitations
Every payroll solution brings distinct advantages and considerations to the table. Understanding both sides helps companies make informed decisions about their operational needs.
Advantages for Small Businesses
The platform delivers exceptional ease of use through its intuitive interface. Business owners appreciate the minimal training required for daily operations.
Unlimited payroll runs accommodate variable pay schedules without extra fees. This flexibility supports companies with seasonal workers or changing compensation needs.
Automated tax calculations eliminate complex manual work. The system files necessary forms with all required agencies, reducing potential errors.
Comprehensive integration capabilities create seamless operational workflows. The software connects with popular accounting and time-tracking tools effortlessly.
Employee self-service features reduce administrative burdens significantly. Workers access paystubs and update personal information independently.
Compared to traditional providers like ADP, this service offers transparent pricing. Businesses appreciate no hidden fees for each payroll processing cycle.
Potential Drawbacks to Consider
Higher per-employee costs may challenge very small businesses with few workers. Basic payroll services sometimes offer lower pricing structures.
Some users report customer service responsiveness issues during peak times. Limited support options outside business hours can affect urgent needs.
Mobile app functionality remains more limited than the desktop experience. Certain administrative tasks require computer access for full completion.
The comprehensive feature set might exceed some companies’ actual requirements. Businesses could pay for capabilities they don’t actively use.
International payroll needs face limitations despite partnership arrangements. Companies with global teams should verify specific country support.
Additional costs for premium services impact overall budgeting considerations. Add-on features increase the total investment beyond base plans.
Conclusion
This payroll software offers an integrated solution for modern businesses. It combines payroll processing, benefits administration, and HR support in one platform.
The system saves valuable time through automation. It handles tax filings, direct deposit, and compliance tracking automatically.
Small companies get enterprise-level tools without complexity. The service supports all worker types including contractors.
Businesses appreciate the transparent pricing and month-to-month flexibility. The platform grows with your company’s needs.
While costs are higher than basic providers, the time savings justify the investment. This solution works best for companies prioritizing efficiency over lowest price.
FAQ
How does Gusto handle payroll tax filing?
Gusto automatically calculates, files, and pays payroll taxes on your behalf at the federal, state, and local levels. This includes year-end forms like W-2s and 1099s, ensuring compliance and reducing administrative burdens for your business.
Can I pay both employees and contractors through Gusto?
Yes, Gusto supports paying both employees and contractors. You can run payroll for your team and issue payments to contractors, with options for direct deposit or checks, all within the same platform.
What employee benefits can I manage with Gusto?
You can manage health insurance, retirement plans like 401(k), commuter benefits, and more. Gusto helps with enrollment, administration, and compliance, making it easy to offer competitive benefits to attract and retain talent.
Does Gusto offer HR support and compliance tools?
Yes, Gusto provides HR tools including onboarding checklists, document storage, and compliance alerts. Higher-tier plans offer access to certified HR professionals for guidance on complex issues.
How much does Gusto cost for small businesses?
Pricing starts at a base fee per month plus a per-person fee. The Core plan includes full-service payroll, employee profiles, and basic support. The Complete and Concierge plans add more HR tools and dedicated support.
Is Gusto suitable for businesses with remote employees in different states?
Yes, Gusto supports multi-state payroll and tax filings, making it a strong choice for businesses with remote teams across various states. It handles state-specific tax regulations automatically.
