Gusto Payroll Review 2024 – Pros and Cons

Gusto promo code for signup

We’ve been using Gusto at my 20-person branding agency for the last three years and it’s pretty great. Our employees love all the control it gives them over their benefits, PTO, bank setup. and more. It really feels like a more user friendly alternative to corporate solutions like ADP.

Pros of using Gusto for payroll:

  1. Easy to use and customize

One of the main benefits of Gusto is its simple and intuitive interface, which allows you to set up and run payroll with just a few clicks. The software guides you through each step of the process, from entering employee data and hours to calculating taxes and deductions, and provides real-time previews and alerts. Gusto can also adapt to your business needs and policies, such as offering flexible pay schedules, bonuses, overtime rules, and multiple pay rates. You can also add custom fields and inputs, such as tips, commissions, or reimbursements, and create personalized reports and analytics. Additionally, Gusto integrates with other software tools, such as time tracking, accounting, and HR systems, to create a seamless and automated workflow.

  1. Compliant and secure

Another key advantage of Gusto is its compliance and security features, which help you stay up-to-date and protected from legal and financial risks. Gusto handles all federal, state, and local tax filings and payments, as well as W-2s, 1099s, and other forms, and sends them directly to the relevant authorities. Gusto also tracks and updates tax rates, changes, and thresholds, and provides timely reminders and notices. In terms of security, Gusto uses top-level SSL encryption, two-factor authentication, and SOC 1 and 2 certification to ensure that your data is safe and confidential. Gusto also backs up your data regularly and offers disaster recovery options in case of emergencies.

  1. Affordable and flexible

A third benefit of using Gusto is its pricing and flexibility options, which can save you time and money compared to traditional payroll methods or other providers. Gusto charges a base fee per month, plus a per-employee fee, which starts at $39/month and $6/month respectively for the Core plan and increases for higher-tier plans. Gusto also offers a discount for annual subscriptions and waives some fees for non-profit organizations. Gusto does not charge extra fees for direct deposit or pay stubs, and does not require a long-term contract or setup fee. Moreover, Gusto allows you to add or remove employees, change plans, or pause or cancel your service without penalties or hassles.

Cons of using Gusto for payroll:

  1. Limited support for some features and functions

One of the main drawbacks of Gusto is its limited coverage of some payroll functions, which may not be suitable for businesses with complex or specialized needs. For example, Gusto does not support advanced payroll options such as manual checks, garnishments, or third-party sick pay. Gusto also has limited support for multi-state payroll, as it does not handle state-specific tax rules or unemployment insurance. Additionally, Gusto’s benefits and HR management options may not be sufficient for companies that require more extensive or customized offerings, such as 401(k) plans, commuter benefits, or compliance consulting. Finally, Gusto’s customer support is primarily email-based, although it does offer phone and chat options during specific hours.

  1. Limited integration with some software tools

Another potential limitation of Gusto is its integration with other software tools and platforms, which may require additional setup or customization. While Gusto supports many popular applications, such as QuickBooks, Xero, and TSheets, it may not work well with some industry-specific or niche solutions, or may require manual data entry or exporting. Gusto also does not offer a dedicated application programming interface (API) or webhooks, which can limit the ability to automate or extend the functionality of the platform.

  1. Limited international coverage

A third limitation of Gusto is its limited international coverage, which may not be suitable for companies with employees or operations outside the US. Gusto only supports US-based businesses with employees who have a US social security number, work permit, or visa. Gusto does not handle foreign currency or tax rules, nor does it provide compliance or consultancy services for international payroll or HR issues. Therefore, companies that operate globally or intend to expand internationally may need to use other solutions or consult with local experts.

Tips and recommendations for using Gusto for payroll:

Based on the pros and cons outlined above, it is important to assess whether Gusto is the right fit for your business’s payroll needs and goals. Here are some tips and recommendations to help you make the most of Gusto’s features and services:

  • Evaluate your payroll requirements and compare Gusto’s pricing, coverage, and support to other providers or methods, such as ADP, Paychex, or in-house payroll.
  • Consult with Gusto’s customer support and resources to ensure that you understand how to use the platform’s features and functions and how to comply with relevant tax and labor regulations.
  • Customize the payroll settings and policies to match your business’s preferences and requirements, such as pay rates, bonuses, deductions, and benefits.
  • Use Gusto’s integration options to sync with other software tools that you use for time tracking, accounting, HR, or benefits administration.
  • Check Gusto’s compliance and security credentials to ensure that your data and transactions are safe and protected from fraud or theft.
  • Keep track of upcoming payroll deadlines and changes, and use Gusto’s reports and analytics to monitor your payroll expenses and trends.
  • Seek advice from Gusto’s experts or external professionals for any issues or questions that require specialized or customized knowledge, such as international payroll, benefits planning, or HR compliance.

Gusto can be a valuable and convenient solution for businesses that seek to simplify and optimize their payroll and compliance tasks. Gusto’s user-friendly interface, robust security and compliance features, and flexible pricing options make it a popular choice among small and medium-sized businesses. However, Gusto does have some limitations and drawbacks, such as its limited coverage of some payroll functions, integration options, and international payroll, as well as customer support. Therefore, it is important to carefully evaluate Gusto’s pros and cons and consider other alternatives or complementing solutions to meet your business’s specific needs and goals.


Hi! I’m Chris. I’m just a Dad in Portland, OR with a digital marketing background. This is an affiliate website I created because I had some free time. I may update it now and again. I like to share discounts and promo codes for the products and services that I use. Let me know if you have any questions!

Leave a Reply

Your email address will not be published. Required fields are marked *