Gusto Review: A Comprehensive Payroll and HR Software for Small Businesses.

Running a small business is challenging enough without having to worry about payroll processing, tax filing, and managing employee benefits. That’s where Gusto enters, a cloud-based payroll and HR software that promises to simplify these tasks and more. Whether you’re a startup looking for a simple payroll solution or a growing business with more complex HR needs, Gusto aims to be a one-stop shop for managing employee-related tasks.

In this comprehensive review, we will explore Gusto’s features, pricing, usability, customer support, and how it compares to its competitors. By the end of this post, you should have a clear understanding of whether Gusto is the right choice for your business.

What is Gusto?

Gusto is an all-in-one payroll, benefits, and HR software specifically designed for small and medium-sized businesses. Launched in 2012, Gusto has quickly gained a strong reputation due to its ease of use and robust functionality. The platform automates tasks like payroll processing, tax filing, benefits administration, and time tracking, allowing business owners to focus more on growth and less on administrative headaches.

With over 200,000 customers across the U.S., Gusto has proven to be a trusted partner for businesses in various industries. But is it the right fit for your organization?

Let’s dive deeper into the software’s core offerings.

Key Features of Gusto

Gusto is known for its impressive range of features, which are designed to streamline and automate the HR and payroll process.

Below is an in-depth look at some of the key features:

1. Payroll Processing

The main attraction of Gusto is its easy-to-use payroll system. It simplifies the payroll process for both salaried and hourly employees, ensuring accuracy and compliance with federal, state, and local tax laws.

• Automatic Payroll: Set it and forget it! Gusto allows for fully automatic payroll processing, ensuring employees are paid on time, every time.
• Tax Filing: Gusto automatically calculates, files, and pays federal, state, and local payroll taxes. W-2s and 1099s are generated at the end of the year, with Gusto handling distribution and filing.
• Direct Deposit: Gusto offers free direct deposit for all employees, making payday easy and efficient.
• Off-Cycle Payrolls: No additional fees for running off-cycle payrolls, making it flexible for bonuses or corrections.
• Garnishments: Handles garnishments and child support payments for employees who need them.

2. Employee Benefits

Gusto goes beyond payroll and makes it easy to offer benefits to employees, even for small businesses. From health insurance to 401(k) plans, Gusto simplifies the often complex world of employee benefits.

• Health Insurance: Gusto integrates with health insurance providers, offering affordable coverage options for businesses in 39 states.
• 401(k) Plans: The software connects with retirement plan providers, making it easy to offer 401(k) options to employees.
• Commuter Benefits: Pre-tax benefits for transportation and parking costs are available to help employees save money on commuting.
• Workers’ Compensation: Gusto helps ensure compliance by integrating workers’ compensation insurance into payroll processing.
• Flexible Spending Accounts (FSA) and Health Savings Accounts (HSA): These options allow employees to set aside pre-tax money for healthcare expenses.

3. Time Tracking

Gusto includes built-in time-tracking features that allow you to manage employee hours and ensure accurate payroll.

• Time-Off Requests: Employees can request vacation, sick leave, or other time off directly in Gusto. Employers can approve or deny these requests with a click.
• PTO Policies: Customize and automate Paid Time Off (PTO) policies, ensuring employees’ balances are tracked and managed correctly.
• Overtime Calculations: Overtime is automatically calculated and included in payroll.
• Time Clocks: Employees can clock in and out using Gusto’s time-tracking system, which ensures accurate records of work hours.

4. HR Tools

Gusto also offers several HR tools, making it more than just a payroll provider. These features are designed to simplify the management of employees throughout their lifecycle with your business.

• Onboarding: Gusto helps new hires complete all necessary paperwork online, such as I-9s and W-4s, and even allows you to create a personalized onboarding checklist.
• Employee Self-Service: Employees have access to their pay stubs, W-2s, benefits information, and more through a self-service portal.
• Document Management: Store important documents like contracts, employee handbooks, and other HR paperwork securely in the cloud.
• Compliance Assistance: Gusto ensures you stay compliant with ever-changing labor laws by providing updates, new hire reporting, and automatic tax compliance.
• Org Chart: A simple organizational chart feature that visually outlines your company’s structure.

5. Hiring and Onboarding

The hiring process can be streamlined using Gusto’s built-in tools. While it doesn’t serve as a full-fledged applicant tracking system (ATS), Gusto provides some helpful features.

• Job Offers: Create and send job offer letters through Gusto, allowing new hires to sign electronically.
• Onboarding Checklists: Organize and track every step of the onboarding process, from document signing to welcome kits.
• New Hire Reporting: Gusto automatically reports new hires to the relevant state agencies.

6. Employee Surveys

Gusto has introduced employee surveys as part of its HR tools, allowing employers to gauge employee satisfaction and company culture.

• Custom Surveys: Create and send surveys to employees to gather feedback on work conditions, benefits, and overall satisfaction.
• Employee Net Promoter Score (eNPS): A simple survey tool that measures employee loyalty and satisfaction with one simple question: “How likely are you to recommend this company as a great place to work?”

7. Accounting Integrations

Gusto integrates seamlessly with some of the most popular accounting software systems, making it easy to sync payroll data with your financial records.

• QuickBooks: Automatically syncs payroll data with QuickBooks Online or Desktop.
• Xero: For businesses using Xero, Gusto offers a direct integration to simplify bookkeeping.
• Other Integrations: Gusto also integrates with other platforms like FreshBooks, Clover, and TSheets.

>> Click here to visit the Gusto website to learn more <<

Ease of Use

One of the most significant selling points of Gusto is its user-friendly interface. The software is designed with small businesses in mind, meaning you don’t need to be a payroll expert or an HR professional to get started.

• Setup: Setting up Gusto is relatively easy. The guided setup process takes you through the essential steps like entering your business details, adding employees, and setting up payroll preferences.
• Dashboard: The main dashboard is intuitive, offering a clear view of upcoming payroll runs, tax deadlines, and other critical tasks. The navigation is simple, and even first-time users will find it easy to manage.
• Mobile Access: While Gusto doesn’t have a dedicated mobile app, the platform is mobile-responsive, allowing you to manage payroll and HR tasks from any device with an internet connection.

Customer Support

Gusto offers a variety of customer support options, including phone, email, and chat support. Gusto Concierge, their highest-tier plan, also provides access to certified HR professionals who can give advice on compliance and best practices. Below are some key points about Gusto’s support:

• Knowledge Base: A comprehensive, searchable knowledge base that includes articles, FAQs, and video tutorials is available to all users.
• Phone Support: Available Monday through Friday from 6 AM to 5 PM PT.
• Email Support: Expect responses within 24 hours, though turnaround times may vary.
• HR Resource Center: Concierge customers have access to an HR Resource Center with templates, policy guides, and additional resources to help manage a team more effectively.

Pricing Plans

Gusto offers tiered pricing to accommodate businesses of different sizes and needs. As of 2024, the pricing is as follows:

1. Simple Plan

Designed for small businesses with straightforward payroll needs.

• $40/month + $6 per employee
• Features Include:
  • Full-service payroll in all 50 states
  • Employee self-service and profiles
  • Basic time tracking
  • PTO management
  • Compliance tools (tax filings, W-2s, 1099s)

2. Plus Plan

Best for growing businesses with additional HR needs.

• $60/month + $9 per employee
• Includes everything in the Simple Plan, plus:
  • Advanced hiring and onboarding tools
  • Time tracking with project cost tracking
  • Next-day direct deposit
  • Benefits administration

3. Premium Plan

Designed for larger businesses or companies with more complex needs.

• $135/month + $16.50 per employee
• Includes everything in the Plus Plan, plus:
  • Dedicated account support
  • R&D tax credit support
  • International contractor payments
  • HR Resource Center
  • Employee performance reviews and HR tools

4. Contractor-Only Plan

For businesses that only pay contractors.

• $6 per contractor, per month
• Features Include:
  • Contractor payments in all 50 states
  • 1099 form creation and filing
  • International contractor payments (available in certain countries)

Important Note: Gusto offers a one-month free trial for all new customers, allowing you to test the software before making a commitment.

>> Click here to visit the Gusto website to explore more details <<

Pros and Cons of Gusto

Pros:

• Ease of Use: Gusto’s intuitive design makes payroll and HR tasks simple even for non-experts.
• All-in-One Solution: Combines payroll, benefits, and HR management into a single platform.
• Automatic Tax Filings: Automates federal, state, and local tax filings, saving time and reducing the risk of penalties.
• Transparent Pricing: Clear and straightforward pricing, with no hidden fees.
• Customizable Plans: Offers various pricing tiers to cater to businesses of all sizes and needs.
• Excellent Customer Reviews: Users consistently praise Gusto for its customer service and ease of use.

Cons:

• Limited Mobile Access: While the platform is mobile-friendly, the lack of a dedicated app can be a drawback for users who prefer managing tasks on the go.
• Health Insurance Limitations: Health benefits are only available in 39 states, so businesses in the remaining states will have to look elsewhere for health coverage.
• Lack of ATS: While Gusto offers some hiring tools, it doesn’t include a full-fledged applicant tracking system, which may be a limitation for businesses with more complex hiring needs.
• Pricey for Large Businesses: Gusto’s per-employee pricing can become expensive for larger businesses with a significant number of employees.

Gusto vs. Competitors

To give you a more rounded understanding of Gusto, let’s see how it stacks up against other popular payroll solutions like ADP, Paychex, and QuickBooks Payroll.

Gusto vs. ADP

• Ease of Use: Gusto is generally considered easier to use than ADP, which is more suitable for larger enterprises with more complex needs.
• Pricing: Gusto’s pricing is more transparent, while ADP requires custom quotes.
• Features: ADP offers more advanced features like global payroll, but Gusto excels in simplicity and affordability.

Gusto vs. Paychex

• Customization: Paychex offers more customizability, making it suitable for larger businesses, while Gusto is ideal for small to medium-sized businesses.
• Cost: Gusto is generally more affordable, especially for smaller companies.
• HR Tools: Both platforms offer similar HR tools, but Gusto’s interface is often easier to navigate.

Gusto vs. QuickBooks Payroll

• Accounting Integration: QuickBooks Payroll integrates seamlessly with QuickBooks, but Gusto offers integrations with other accounting software like Xero.
• Features: Gusto offers a wider range of HR tools, while QuickBooks Payroll focuses more on the accounting side of payroll management.

Final Verdict: Is Gusto Worth It?

In conclusion, Gusto is an excellent payroll and HR solution for small and medium-sized businesses that are looking for an affordable, easy-to-use platform with robust features. Its intuitive design, combined with powerful automation tools for payroll and taxes, makes it an attractive option for businesses that don’t have a dedicated HR or finance team.

While it may not have all the advanced features of larger competitors like ADP or Paychex, Gusto’s simplicity, transparent pricing, and comprehensive benefits offerings make it a standout choice for small business owners.

Who Should Use Gusto:

• Small to medium-sized businesses with straightforward payroll needs.
• Businesses looking to automate HR and payroll tasks.
• Companies wanting to offer employee benefits without dealing with the complexities of setup and management.

Who Might Look Elsewhere:

• Larger enterprises with more complex payroll and HR needs.
• Businesses located in states where Gusto doesn’t offer health insurance benefits.
• Companies needing a full-fledged ATS for complex hiring processes.

Overall, Gusto stands out as one of the best payroll and HR software solutions for small businesses in 2024. Its easy-to-use interface, strong feature set, and transparent pricing make it a top contender for any business looking to streamline its payroll and HR operations.

>> Click here to visit the Gusto website to learn more about their services <<

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