Gusto Payroll Review

If you’re starting a business and hiring employees, mastering payroll is likely to be one of your first major hurdles. Dealing with payroll is often quite complex and time-consuming, which is why many entrepreneurs turn to a professional payroll service. 

One of the top options is Gusto. But is it the best service? And is it the right choice for you? This review takes a closer look — putting ourselves in the shoes of an entrepreneur — to help you choose the payroll service that will put your business on the road to success. 

Pros and Cons

Overall, Gusto’s services offer advantages and drawbacks, as detailed below.

What to Expect from Gusto

Gusto handles the entire payroll process for you, making it nearly seamless and automated, while offering additional services that can make life easier for a business owner. Gusto takes care of all the red tape so you can focus on building a successful business. 

Features and Services

Gusto offers different service levels. We explored all of the options and have broken down the services and pricing here. 

Services overview

	Simple	Plus	Premium
Price	$40/month plus $6/month per person	$80/month plus $12/month per person	Exclusive
Full-service payroll including W-2s and 1099s	Single-state	Multi-state	Multi-state
Employee profiles and self-service	X	X	X
Hiring and onboarding tools	Basic	Advanced	Advanced
Brokered health insurance administration	X	X	X
Employee financial benefits	X	X	X
Payroll and time-off reports	X	X	X
Custom admin permissions	X	X	X
Integrations for accounting, time tracking, expense management	X	X	X
Customer support	Basic	Full	Dedicated
Next-day direct deposit		X	X
PTO management and policies		X	X
Time tracking and project management		X	X
Workforce costing and custom reports		X	X
Team management tools		X	X
HR resource center			X
Compliance alerts			X
Access to certified HR experts			X
Full-service payroll migration and account setup			X
Health insurance broker integration			X
R & D tax credit discount			X
Performance reviews			X
Employee surveys and insights			X

Simple 

The Simple service level offers full-service single-state payroll including W-2s and 1099s, basic hiring and onboarding tools, Gusto-brokered health insurance administration, and an employee financial benefits service.

It also offers payroll and time-off reports and custom admin permissions that allow you to set access to various functions for different people. Integrations for accounting functions are also included, along with basic customer support.

The Simple plan provides a lot of bang for your buck, with many services offered for only $40 per month, plus the employee fee. 

Plus

The Plus plan has the additional benefits of multi-state payroll services, next-day direct deposit, and advanced hiring and onboarding tools. It also offers PTO management, time and project tracking, and workforce costs and custom reports. You also get team management tools and access to full customer support.

The plan offers many advantages and tools, but you’re paying double the price, so it seems as though the Simple plan is a better value. However, if you have employees in multiple states, the Plus plan is a must. 

Premium

The Premium plan offers a robust suite of services, along with everything mentioned above. It’s hard to judge the value, since it’s uniquely priced for each customer, but it’s a strong full-service plan that includes:

• HR Resource Center
• Compliance alerts
• Access to certified HR experts
• Full-service payroll migration and account setup
• Health insurance broker integration
• R&D tax credit discount
• Waived fees and exclusive pricing
• Performance reviews
• Employee surveys and insights
• Dedicated support

Add-on and A La Carte Services

Several services can be purchased as add-ons to the plans or as a la carte services. 

Service	Price
International contractor payments	Varies based on exchange rates
State tax registration	Varies by state
R & D tax services	20% of tax credits used plus fees
Health insurance	Premiums only
Health insurance broker integration	$6/month per eligible employee
Worker's compensation	Premiums only
Life and disability insurance	Premiums only
401K retirement savings	Varies
529 college savings	$6/month per participant
The following four services have one $200 annual fee for all
Health savings account	$2.50/month per participant
Flexible spending accounts	$4/month per participant
Dependent care FSAs	$4/month per participant
Commuter benefits	$4/month per participant

Payroll Service

The payroll service offers a complete suite of services to take many tasks off your plate, such as federal, state, and local tax filings, including employee W-4 and I-9 forms and your W-2s and 1099s. 

You also have the option of paying your employees by direct deposit or paper check, and they provide payroll reports.

The payroll process is complex, so using Gusto can save you considerable time and ensure your continued compliance with all payroll laws and regulations. 

Hiring and Onboarding Tools

Gusto provides hiring documents for new employees that can be electronically signed and stored. They also provide offer letter templates and an onboarding checklist. Hiring employees involves a lot of paperwork and a service like Gusto can make it much easier.

The advanced hiring tools offered in the Plus and Premium plans include job posts and an applicant tracking system, which can simplify and streamline the hiring process. It also includes customized templates and hiring documents.

This service, included as a basic version in the Simple plan, and as an advanced version in the Plus and Premium plans, is a great value.

Benefits Administration

All the Gusto plans include brokered health insurance administration, which includes medical, dental, and vision insurance. You’ll receive support from licensed benefits advisors, and employees can enroll online. 

Employees also have self-service of their health insurance accounts. Most importantly, Gusto handles compliance matters related to health insurance, which can give you peace of mind. Gusto can also administer financial benefits, including 401Ks, health savings accounts, and 829 college savings plans. 

Included in all three plans, this service is a valuable feature that will likely save your business a great deal of time.

Website Interface and Navigation

We tested the Gusto customer service experience from every angle. Here’s what we found. 

The site is laid out well and easy to understand. You can easily find the plans, detailing features and pricing, and get more information on each service. 

The site also has a robust help center where you can get information on numerous topics. 

How Is the signup process?

When you view all the packages, you have the option to select one to setup an account. Once you make your selection, you’re asked a series of questions about your company including number of employees, industry, and business entity type. 

Then you’re asked to set up your account and asked a series of questions:

1. Your company address
2. Your accountant (optional)
3. Company benefits
4. Specific information about employees and contractors
5. Federal tax information
6. State tax information
7. Bank account
8. Payroll schedule

Next you’re offered a few extra add-ons before you’re taken to a screen to select your plan.

You don’t have to pay for the service until your actual first payroll run. The whole process was quite simple and streamlined.

How Is the mobile experience?

Gusto has a mobile app for employees of companies that use Gusto for their payroll. You can track your hours, manage your direct deposit information, and access up to $500 of your paycheck before payday through a payday-type loan, though no fees or interest are charged.

This seems to be one of the more useful apps. 

Quick and Easy Cancellation?

The Gusto website offers detailed information about their cancellation policy.

“Admins can cancel their Gusto plan at any time. Before you cancel, it’s important to read the reminders below—once you’re done, click the Cancel your Gusto account dropdown to get started.  

If you get your Gusto invoice/bill from someone other than Gusto, you’ll need to get in touch with them to cancel your account. 

What to know before you cancel

Once your account is cancelled, you’ll still have unlimited access to your Gusto account to view company forms, reports, employee information, and past payrolls that were run through Gusto. Employees and contractors will also still be able to log into their own accounts to view their paystubs and forms.

• Once you’ve familiarized yourself with the information in this section, click the Cancel your Gusto account dropdown below to cancel your account.

Accounts canceled in the middle of a month will be charged for the full month. So long as you process all final payrolls before canceling, employees will still be paid even after you’ve completed the cancelation in your account. 

Turn off Payroll on AutoPilot®

If one or more of your payrolls is on autopilot, you must first turn it off before you can cancel your account. To do so:

1. From your admin profile, head to the Payroll section and click Payroll settings.
2. Scroll to the “Pay Schedule” header and click edit next to “AutoPilot”.
3. Turn off autopilot and click Save.

Taxes

We’ll ask you to let us know how you’d like us to handle future tax payments and tax filings. If you have questions about what selections are best for your company’s unique situation, we recommend working with an accountant or another third party (ex. new payroll provider).

Tax payment options

• Yes, let Gusto pay all outstanding company taxes on my behalf.
• No, please refund all outstanding taxes to my bank account. I’ll pay the payroll taxes myself.

Tax filings options

• Yes, let Gusto handle all tax filings for Quarter [X], 2022
• No, I’ll make sure all tax filings are submitted (including W-2s and 1099s)

Workers’ Comp

If you have an integrated Workers’ Comp policy, please contact our partner AP Intego at [email protected] and include your company name so the required cancelation form can be signed in a timely manner.”

In Summary

The site is quite user-friendly overall, and information is easy to find. If you have all your information handy, you can probably complete the signup process in 25 minutes.

The site is not very “salesy” and simply seems to guide you toward the right plan for your company. It offers an excellent customer experience. 

Customer Support

We tested all three forms of Gusto customer support. Here’s what we found.  

Chat support

We used the chat feature to ask a question and received an immediate response. 

The answer was quick and clear. 

Phone support

We called customer support to ask if there is a required minimum number of employees to sign up for the service. Our call was answered immediately, and the answer was no. The service representative was nice and asked if we needed further assistance. 

Email support

We filled out an information request form on the site. The question we asked was, again, “Is there a minimum number of employees you need to have to sign up for the Simple plan?” We asked the question on a Friday and had not received a response by midday on Monday.

Customer Reviews

To understand how real Gusto customers feel about the service, we examined countless customer reviews at the Better Business Bureau and Trust Pilot. 

Better Business Bureau

Gusto has an F rating from the BBB with 1.07/5 stars from 70 customer reviews. They are not an accredited BBB business. They have received 141 complaints in three years, all of which have a closed status.

There is only one positive review on the BBB website, which is as follows:

“I have been using and recommending Gusto payroll services for 3+ years and the service has always been top notch. Yes, I have an accounting firm but all my clients have had similar experiences. **** ***** is my rep and she takes really good care of me anytime. She is prompt and responsive. The rep I had before her, was just as good. I have no complaints, and I would highly recommend this company for all your payroll needs. However, as a small business owner, it is not as easy as an ADP or Paychex, it does take a tiny bit of computer literacy but it is a lot cheaper.”

Negative reviews mainly concern processing errors, particularly in terms of tax payments and health insurance. People also complained of a lack of responsiveness. 

Here’s one example:

“THIS IS THE WORST COMPANY EVER, THEY SHOULD BE HELD FOR CRIMINAL PENALITIES FOR THEIR LACK OF RESPONSE. They have NOT sent in my 941 and nothing but LATE FEES LATE FEES LATE FEES. I have emailed back and fourth and YET no response from either tax team. When you try to contact them, they keep saying the Tax team is handling this and will NOT let you contact anyone. STAY AWAY. They should be held accountable for their false advertisement . DO NOT purchase their product and what is so funny, everyone that has commented on them has the same exact issue about Tax filing. I wish I would of read this before I signed up with them.”

You can read reviews on the BBB website. 

Trustpilot 

The Trustpilot score for Gusto is 3.5/5 stars from 1,565 reviews. 

Gusto reviews at Trustpilot break down as follows:

• Excellent 80%
• Great 2%
• Average 1%
• Poor 2%
• Bad 15%

Many positive Trustpilot reviews revolve around great customer service and ease of use.  One person said they “truly care for their customers”. Other people said they liked only having to spend five minutes a week on payroll. 

Some of the less favorable reviews revolve, again, around tax payment issues and poor responsiveness. One person said their quarterly taxes were not filed and they had to pay a penalty. 

One review summed up what others were saying:

“Looks easy, intuitive. Paperless, modern. BUT BEWARE: Messed up filings, no responsibility taken, awful AWFUL customer support. It’s been a solid year trying to resolve issues. Meanwhile, they created new ones. Note to small business – stay away!”

You can read reviews on the TrustPilot website. 

Company Background

Gusto was founded in 2012 in California, and, according to the BBB, has 305 employees and is managed by Mr. Joshua Reeves, CEO & Co-Founder.

Gusto is a private company and raised significant venture capital to get started. They have grown significantly since they launched and have added many new products.

Alternatives to Gusto

Justworks

Justworks is a bit more expensive than Gusto, but allows vendor payments as well as payroll. Justworks also has 24/7 customer service while Gusto customer service has limited hours.

Paychex

Paychex is slightly less expensive than Gusto, but with extended customer service hours. Paychex has a more robust employee benefits service, but the Gusto simple plan offers more than the Paychex base plan. 

ADP

ADP services are priced by quote only. Again, they offer more extended customer service hours than Gusto. They also offer more health insurance options than Gusto.

Our Approach

We take our responsibilities seriously. We understand that countless entrepreneurs, and business owners, rely on our judgments and insights, particularly when it comes to creating their business.

As a result, our writers do their utmost to gain a comprehensive understanding of the services offered and the actual customer experience. In this case, we:

• Examined every page of the Gusto website
• Reviewed all of their offerings
• Put ourselves in the customer’s shoes, creating an account
• Communicated with customer service via chat, email and phone
• Gained a full understanding of the customer experience and service value

Thanks to this full immersion in the actual customer experience, our reviewer and team are able to provide the most complete and insightful review of Gusto payroll services.

Human Resource’s Verdict

Our experience using the Gusto website was good, as it’s very user-friendly. Their pricing is very competitive and even their Simple plan offers an extensive package of services. In that respect, they are superior to most competitors.

But the customer reviews, particularly at the BBB, are deeply concerning. Many negative reviews involved inaccurate tax filings, which can lead to major issues for business owners.

If you’re looking for an affordable payroll option, Gusto is a great value, assuming the negative reviews refer to unusual circumstances. Based on our experience, we cautiously recommend Gusto.