Gusto makes payroll easier for small businesses, but is it still a good choice once you factor in its pricing, HR features, and limitations?
With automated tax filing, employee benefits, onboarding, and time tracking, Gusto covers much of what a growing US business needs. But costs increase with headcount, some features require higher-tier plans, and its HR tools may not be enough for every team.
In this Gusto review, I’ll break down what you get for your money, what real users like and complain about, and where Gusto falls short. I’ll also compare it with other options to help you decide whether it’s worth paying for in 2026.
| Category | Summary |
|---|---|
| Type | Payroll, benefits and HR software |
| Good fit for | US small businesses that want payroll and benefits in one tool |
| Pricing model | Monthly base fee plus a per-person fee across three paid plans |
| Free plan | No |
| Coverage | US payroll in all 50 states; international contractors through Gusto, international employees through Remote |
| Standout features | Automated tax filing, built-in benefits administration, AI assistant and chat app connections |
| Main limitations | Per-person costs that rise with headcount, mixed support reviews, basic HR depth |
Gusto is a cloud-based payroll and HR platform founded in 2012 as ZenPayroll. Gusto says more than 500,000 businesses use it. The Gusto app gives admins payroll, benefits, and HR tools, and gives employees access to pay stubs, tax forms, and time off.
About 84% of Gusto reviewers on G2 work at small businesses, which matches the product’s focus.
Under 50 employees: most Gusto plans and features target this size. Simple or Plus covers payroll, taxes, benefits, and basic HR.
50 to 249 employees: Gusto still works. Per-person costs and HR depth become the main questions, and some teams add a separate HR system.
250 or more employees: Gusto can still run payroll. Larger teams should check reporting depth, approval workflows, and support levels against providers such as Rippling or ADP.
Payroll is the core of Gusto. All paid plans include unlimited payroll runs and automatic federal, state, and local tax filing. Gusto handles W-2 and 1099 forms, overtime, bonuses, reimbursements, and multiple pay schedules.
Simple covers single-state payroll. Multi-state payroll and next-day pay start on Plus. Premium adds same-day and instant pay.
On Simple and Plus, faster pay options cost extra.
Gusto lets employers offer health, dental, vision, and life insurance, plus HSAs, FSAs, and commuter benefits. Retirement plans connect through 401(k) partners such as Guideline. Benefits deductions flow into payroll automatically.
When Gusto acts as the health insurance broker, there is no extra admin fee beyond premiums. Employers who keep their own broker pay for the broker integration add-on.
Employers with complex plans or several carriers may still need a dedicated benefits platform.
All plans include digital offer letters, e-signatures, W-4 and I-9 forms, and onboarding checklists. New hires enter their own details, and Gusto handles state new hire reporting.
Plus and Premium add Gusto Recruiting, a built-in applicant tracking system. Admins can post jobs to a Gusto job board, manage applicants, and collect interview scorecards from the hiring team. Plus also adds custom offer letter templates and onboarding checklists.
Simple has no applicant tracking. Teams with complex hiring processes may find the recruiting tools lighter than dedicated ATS software.
All plans include basic PTO policies and holiday pay. Built-in time tracking starts on Plus, and approved hours feed directly into payroll. Simple users can add time tracking and scheduling with the Time & Attendance Plus add-on.
Employees can request time off and check balances in the app. Gusto also connects with scheduling apps such as Homebase and Deputy.
Teams with multiple accrual rules or regional policies may need a dedicated PTO tracking tool.
Gusto supports manager reviews, peer feedback, and self-evaluations with ready-made templates. Since October 2026, performance management is included in the Plus and Premium plans for new customers. New Simple customers can no longer buy it as an add-on.
The tools suit occasional review cycles. Teams running goals, check-ins, and 360 reviews on a schedule often use dedicated performance management software.
For new customers, HR Resources is now exclusive to Premium. It provides HR templates, guides, and access to HR advisors. Gusto also offers HR Partners, a fractional HR support service for eligible Plus and Premium customers.
Gusto Business Compliance is a newer add-on for state-level compliance tasks on Simple and Plus. It is included in Premium.
Simple and Plus customers get no HR advisor access unless they add HR Partners.
Gusto includes standard payroll, tax, and headcount reports on every plan. Higher plans include custom reports. Gusto integrates with accounting tools such as QuickBooks Online and Xero, plus time tracking and expense apps.
Finance teams that need detailed labor cost analysis often export data to other tools.
Gus is the AI assistant inside Gusto. It answers payroll and compliance questions and can complete tasks after the admin approves them.
Admins can also connect Gusto to ChatGPT, Claude, or Slack and query payroll and people data in plain language. These connections have no separate fee. Gusto recommends that consumer ChatGPT and Claude users turn off model training data sharing before connecting.
In June 2026, Gusto launched Cofounder, an AI teammate that connects to tools such as Google Workspace, Notion, and Slack. Cofounder is in a limited early access program and currently requires an invitation.
Companies with strict data policies should review the privacy terms of each platform before connecting.
Gusto Wallet is the employee app connected to Gusto payroll. Employees can view pay, split direct deposits, and use savings and spending account features. These tools cost employers nothing extra and require no admin setup.
Employees can also track their earnings and access pay information without contacting HR. For small businesses, that means fewer routine payroll questions and more control over how employees manage their money.
Gusto can pay contractors in more than 120 countries. Full-time employees abroad require an employer of record. Since 1 May 2026, new Gusto customers sign up directly with Remote for this service instead of using an integrated flow inside Gusto. Remote lists its EOR pricing from $599 per employee per month.
Companies building teams in several countries should compare dedicated global platforms such as Deel.
Gusto charges a monthly base fee plus a fee per person. There is no free plan and no long-term contract. Account setup is free, and Gusto runs occasional promotions for new customers.
| Plan | Base fee / month | Per person / month | Key features |
|---|---|---|---|
| Simple | $49 | $6 | Single-state payroll, unlimited payroll runs, automated tax filing, basic PTO and holiday pay |
| Plus | $80 | $12 | Multi-state payroll, next-day pay, time tracking, performance reviews, job postings and applicant tracking |
| Premium | $180 | $22 | Premium Account Support, HR Resources, Business Compliance, same-day and instant pay, project costing |
Gusto requires a conversation with its team before upgrading an account to Premium.
| Team size | Simple | Plus | Premium |
|---|---|---|---|
| 10 people | $109 | $200 | $400 |
| 25 people | $199 | $380 | $730 |
| 50 people | $349 | $680 | $1,280 |
These are monthly list prices for new customers. They exclude add-ons, insurance premiums, 401(k) fees, and promotions. At 50 people, the Plus plan costs almost double the Simple plan.
Gusto repackaged its plans for new customers on 1 October 2026. Existing customers keep their legacy plan features.
Since 31 August 2026, new Simple accounts are also limited to one custom earning type and standard admin roles.
Gusto ratings differ widely by platform. Most Gusto payroll reviews on G2 and Capterra are positive, while Trustpilot scores are lower.
| Platform | Rating | Approx. reviews |
|---|---|---|
| G2 (main Gusto profile) | 4.6 / 5 | 8,400 |
| Capterra | 4.6 / 5 | 4,200 |
| Trustpilot | 3.3 / 5 | 2,750 |
The gap between platforms comes from different reviewer groups. G2 and Capterra collect reviews mostly from business users, often through vendor review campaigns. Trustpilot attracts more organic and complaint-driven feedback.
| Platform | Native US payroll | Core focus | Consider it when |
|---|---|---|---|
| Gusto | Yes | Payroll, benefits, hiring, basic HR | You want US payroll and benefits in one simple tool |
| Rippling | Yes | HR, payroll, IT and device management | You need HR and IT automation in one system |
| ADP RUN | Yes | Payroll with a service-led model | You prefer an established provider with phone support |
| OnPay | Yes | Payroll and HR in a single plan | You run multi-state payroll and want fewer plan tiers |
| BambooHR | Add-on | HRIS first, payroll as an add-on | Employee records and onboarding matter more than payroll depth |
| Thrivea | No | Core HR, time off, performance, ATS, AI governance | You already have payroll and need HR structure |
For a side-by-side with a long-established provider, see our Gusto vs. ADP comparison. Teams weighing an all-in-one HR and IT platform can read our Rippling review, and HRIS-first buyers can start with the BambooHR review.
Our full list of Gusto alternatives compares 15 options by price and fit.
Thrivea is an HR-first platform and does not run payroll. Companies that need payroll, tax filing, and benefits should keep a payroll provider such as Gusto. Thrivea fits teams whose main gaps are on the HR side.
Core HR is free for up to 30 employees. Above that, the Growth plan costs $5 per user per month. Time Off costs $1 and Performance $2 per employee per month, and the ATS costs $5 per job post. Annual billing saves 20%. Full details are on the Thrivea pricing page.
Yes. Gusto is a large US payroll provider that files taxes on behalf of its customers. Review its security documentation and support terms before moving payroll, as with any payroll provider.
No. Gusto is payroll and HR software, and the employer stays the legal employer. A PEO co-employs your staff and takes on part of the employer responsibilities.
Yes, for most small US businesses. Gusto automates payroll runs and tax filings and keeps benefits deductions in sync. Teams with complex multi-country or high-volume payroll needs should compare other providers.
No. Gusto has no free plan, and its pricing page lists no standard free trial. Account setup is free, and Gusto offers occasional promotions to new customers.
Yes. Payroll, benefits administration, and onboarding work in one account on every plan. Job postings and applicant tracking require Plus or Premium.
No. The plan closed to new customers in the October 2026 plan update. Existing Contractor Only customers keep their plan, and new customers can pay contractors on any plan.
Companies with employees in several countries, teams that need structured HR processes, and businesses that expect dedicated support on lower plans. These teams should compare alternatives before committing.
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