Gusto Review: Is This Payroll Software Worth It?

Gusto has become one of the most popular payroll and HR platforms for small businesses, and for good reason. It's clean, modern, and doesn't feel like software designed in 2003 (looking at you, ADP). But is it actually the right choice for your business?

After digging into the platform, talking to business owners who use it, and comparing it against competitors, here's what you need to know.

What Is Gusto?

Gusto is a cloud-based payroll and HR platform designed primarily for small to medium-sized businesses. The company has served over 300,000 businesses and positions itself as a modern alternative to legacy payroll providers like ADP and Paychex.

The platform handles full-service payroll including calculating and filing federal, state, and local taxes automatically. Beyond payroll, Gusto offers benefits administration, time tracking, hiring tools, and basic HR features depending on which plan you choose.

Gusto Pricing: What Does It Actually Cost?

Gusto uses a base fee plus per-employee pricing model. Here's the current breakdown:

There's also a Contractor Only plan if you just need to pay contractors without full employee payroll.

The good news: Gusto is month-to-month with no long-term contracts. You can cancel anytime, and upgrades kick in immediately while downgrades take effect at the start of the next billing period.

For a deeper dive into the numbers, check out our complete Gusto pricing breakdown or our Gusto cost analysis.

Add-On Costs to Watch Out For

Here's where things can get expensive. Gusto charges extra for several features that you might expect to be included:

If you're on the Simple plan and want all the bells and whistles, those add-ons stack up quickly. A 10-person company could easily pay $150+ extra per month.

What Gusto Does Well

Dead Simple Payroll

This is where Gusto earns its reputation. The interface is clean and intuitive—you don't need prior payroll experience to figure it out. Once you input employee details (pay rate, hours, deductions, direct deposit info), you can automate payroll for salaried employees. For hourly workers, you just punch in hours and click "run payroll."

Gusto automatically calculates taxes based on current tax laws, withholds the right amounts, updates tax filings, and even pays the IRS on your behalf. Every plan includes unlimited payroll runs, and they don't charge extra for off-cycle payrolls—which is something competitors nickel-and-dime you for.

Employee Self-Service

Employees get their own portal to view pay stubs, access tax documents, update personal information, and manage benefits. This saves you from playing middleman every time someone needs a W-2 or wants to change their direct deposit.

The Gusto Wallet mobile app lets employees clock in/out, track pay and benefits, access documents, and even use budgeting tools. It's a nice touch that employees actually appreciate.

Solid Integration Ecosystem

Gusto integrates with most of the major accounting platforms including QuickBooks, Xero, and FreshBooks. They've also built out an app marketplace with integrations for time tracking, accounting, and other HR tools. These integrations reduce manual data entry and keep your systems in sync.

Benefits Administration

You can manage health insurance, 401(k) plans, FSAs, HSAs, and commuter benefits through Gusto. Health insurance premiums and 401(k) contributions sync directly with payroll, so deductions happen automatically. They also offer pay-as-you-go workers' comp through a partnership with AP Intego.

International Contractor Payments

Need to pay contractors overseas? Gusto can handle contractor payments in over 120 countries and manages exchange rates and multiple currencies. For employees (not just contractors), Gusto Global supports hiring in Brazil, Canada, India, Mexico, Philippines, Spain, UK, US, Australia, and Ireland.

What Gusto Gets Wrong

Customer Support Issues

This is consistently the biggest complaint about Gusto. Support is limited to Monday-Friday, 7:00 AM - 6:00 PM MST. If you have a payroll emergency on a weekend or evening, you're out of luck.

Response times can be inconsistent, and some users report challenges getting issues resolved quickly. If 24/7 support is important to you, competitors like Paychex offer that (though you'll pay for it).

Not Great for Large or Complex Organizations

Gusto works best for companies under 75-150 employees. If you're larger than that, you'll likely hit scaling limitations. The reporting and analytics aren't as customizable as enterprise-focused platforms, and complex hourly workforces with varied schedules may find the time tracking features lacking.

Time Tracking Has Bugs

While Gusto offers time tracking with their Time Kiosk feature, it's not flawless. Some users report glitches—one review mentioned persistent error messages when enabling geolocation features for mobile clock-ins. The platform also lacks break and overtime reminders, which can create compliance headaches in states with strict labor laws.

Benefits Admin Costs Extra

Administration of 401(k) plans and tax-advantaged spending accounts (HSAs, FSAs) requires paid add-ons. If you want to offer a full benefits package without paying extra, you'll need the Premium plan or prepare for add-on fees.

Gusto vs. The Competition

How does Gusto stack up against other payroll solutions?

For more options, see our roundup of the best payroll software for small business.

Who Should Use Gusto?

Gusto is a good fit if you:

Look elsewhere if you:

The Verdict

Gusto delivers what most small businesses need: simple payroll that handles taxes correctly, basic HR tools, and a clean interface that doesn't require an accounting degree to navigate. The pricing is fair (if you watch the add-ons), and the month-to-month flexibility means you're not locked in if it doesn't work out.

The customer support limitations are real, but for businesses that don't anticipate payroll emergencies outside business hours, it's manageable. The platform works best for companies in that 5-75 employee sweet spot—big enough to need real payroll software, small enough that Gusto's feature set covers your needs.

If you're currently doing payroll manually, using spreadsheets, or fighting with clunky legacy software, Gusto is almost certainly an upgrade.

Try Gusto free and see if it fits your workflow. Setup typically takes less than a week, and they offer an interactive demo so you can test the software before committing.