Gusto

1. What is Gusto?

Positioning: A cloud-based, all-in-one platform focused on simplifying payroll, benefits, and human resources (HR) administration for small and medium businesses. It aims to empower employers to manage their teams with ease and maintain compliance.Functional Panorama: Covers Payroll (full-service, automated tax filing, direct deposit, multi-state payroll), Benefits (health, dental, vision, 401(k), FSA/HSA administration, life and disability insurance), and HR Tools (onboarding, time tracking, PTO management, compliance resources, offer letters, employee self-service portal). The platform also supports Expert HR Resources and Reporting & Insights for better business management.

2. Gusto’s Use Cases

• Small Business Owners can use Gusto to automate their payroll processing end-to-end, ensuring accurate payments and compliance with tax regulations without needing specialized accounting knowledge.
• HR Managers can leverage Gusto for streamlined employee onboarding, efficient benefits enrollment and administration, centralized document management, and managing time off requests.
• Accountants and Bookkeepers can integrate Gusto with their existing accounting software to seamlessly sync payroll data, simplifying financial reconciliation and providing comprehensive payroll services to their clients.
• New Startups can quickly establish a compliant and scalable HR infrastructure from day one, covering payroll, benefits, and essential HR functions as they grow.
• Employees benefit from a self-service portal to access pay stubs, tax documents (W-2s, 1099s), manage their personal information, and review benefit details, reducing administrative queries to management.

3. Gusto’s Key Features

• Automated Full-Service Payroll: Supports unlimited payroll runs, automated tax filing for federal, state, and local taxes, and direct deposits. Speeds up payroll processing by automating calculations and submissions.
• Comprehensive Employee Benefits Management: Offers administration for a wide range of benefits including health insurance, 401(k) plans, FSAs, HSAs, and commuter benefits.
• Simplified Employee Onboarding: Provides tools for sending offer letters, collecting new hire paperwork, and managing digital signatures, reducing manual data entry.
• Enhanced AI-Powered HR Support: Added in April 2024 to provide proactive compliance alerts and personalized HR guidance, helping businesses stay compliant with evolving labor laws.
• Customizable Reporting & Analytics: Expanded in March 2024 to offer more granular data insights into payroll costs, benefits utilization, and employee demographics, aiding in strategic decision-making.
• Integrated Time Tracking: Allows employees to clock in and out directly within the platform or via mobile app, linking seamlessly to payroll for accurate payment calculation.
• User-Recommended Flexible Pay Schedules: Users frequently recommend the platform’s flexibility in easily setting up and adjusting various pay schedules to fit diverse business operations.

4. How to Use Gusto?

1. Set Up Your Company Profile: Begin by providing basic business information, legal entity details, bank account for payroll, and tax identification numbers.
2. Add Employees and Contractors: Input employee details including compensation, tax withholding information, and direct deposit details. Gusto guides you through collecting necessary forms like W-4s and I-9s.
3. Configure Benefits and Time Off Policies: Select and set up health insurance plans, 401(k)s, and other benefits, then define paid time off (PTO) policies and accrual rules.
4. Run Payroll: On your chosen payday, Gusto pre-calculates payroll based on employee hours (if tracked) and salaries. Review the payroll, make any necessary adjustments, and approve for automatic processing and tax filing.

Pro Tip: Typing “compliance checklist” into Gusto’s help center search triggers an AI-generated, state-specific compliance checklist, ensuring adherence to local regulations.Pro Tip: For faster onboarding, utilize Gusto’s direct email invitation feature to allow new hires to input their personal and tax information themselves, significantly reducing HR data entry.

5. Gusto’s Pricing & Access

• Contractor-Only Plan: Starts at $0/month base + $6/contractor per month. This plan is designed specifically for businesses that only pay 1099 contractors, offering unlimited contractor payments and 1099 form creation.
• Simple Plan: Starts at $40/month base + $6/person per month. Includes full-service payroll, employee self-service, basic HR features, and health benefits administration.
• Plus Plan: Starts at $80/month base + $12/person per month. This tier unlocks more advanced HR features such as PTO management, employee surveys, enhanced support, and time tracking.
• Premium Plan: Custom pricing. Offers comprehensive HR support, a dedicated HR resource center, R&D tax credit advisory, and API access, tailored for larger or more complex enterprise needs.
• Web Dynamics: Recent promotions included 3 months free for new payroll customers who sign up for the Plus plan, aiming to attract growing businesses.
• Tier Differences: The main differentiation between Simple and Plus tiers lies in the depth of HR tools and support, with Plus offering more robust employee management features. The Premium tier provides a white-glove service with expert HR advice and advanced integrations for larger organizations.

6. Gusto’s Comprehensive Advantages

• Superior User Experience: Gusto is consistently rated for its intuitive and user-friendly interface, making complex payroll and HR tasks accessible even for non-experts, outperforming many competitors like traditional payroll providers in ease of use.
• Comprehensive Compliance Automation: Automatically handles and files all federal, state, and local payroll taxes, minimizing the risk of penalties for small and medium businesses, a critical advantage over systems requiring manual tax calculations.
• Integrated Benefits Administration: Provides a seamless, all-in-one platform for not just payroll but also a wide range of employee benefits, simplifying administration by consolidating services that often require multiple vendors with other providers.
• High Market Recognition: Rated by PCMag as an “Editors’ Choice” for online payroll services, with user satisfaction rates consistently high.
• Dedicated Contractor Support: Offers a unique, cost-effective plan specifically for businesses paying contractors, which is a niche not as robustly addressed by all competitors, providing specialized tools for 1099 filing.