Running payroll isn’t just about paying employees on time—it’s about staying compliant, managing taxes, providing benefits, and maintaining transparency across HR functions. In 2025, Gusto Payroll continues to be one of the most popular cloud-based payroll and HR platforms, especially among small and medium-sized businesses (SMBs). Whether you’re a startup with a handful of employees or a growing company needing more robust HR services, Gusto Payroll offers a comprehensive solution that simplifies complex administrative tasks while improving employee experience. This article explores Gusto Payroll’s features, pricing, pros and cons, and more to help you determine if it’s the right fit for your business.
Table of Contents
What is Gusto Payroll?
Gusto Payroll is a cloud-based payroll and HR management software designed to automate various aspects of employee management, from salary disbursement to benefits and compliance. Originally launched in 2012 under the name ZenPayroll, Gusto has significantly evolved, serving over 300,000 businesses across the U.S. by 2025. The platform offers an intuitive interface, strong automation features, and end-to-end HR tools that make it a leading choice in its category.
At its core, Gusto processes payroll, handles federal, state, and local tax filings, and offers direct deposit capabilities. However, what sets Gusto apart is its integrated suite of services like employee benefits administration, onboarding tools, time tracking, and compliance support. Unlike traditional payroll software that merely cuts checks, Gusto empowers employers with a full-stack solution to manage their workforce from hire to retire.
Key Features of Gusto Payroll
1. Automated Payroll Processing
One of Gusto’s standout features is its ability to automatically run payroll. Employers can set up recurring schedules, after which Gusto calculates wages, deductions, and tax withholdings without manual input. If needed, manual overrides are simple to execute. This automation reduces the chances of human error and ensures payroll is always on time.
Gusto supports full-time, part-time, and contractor payrolls, making it ideal for businesses with mixed workforce structures. You can also issue one-time bonuses, handle multiple pay schedules, and split payments across different bank accounts—offering flexibility for both the employer and employee.
2. Tax Filing and Compliance
Staying compliant with tax regulations is a major burden for any business. Gusto removes that stress by automatically calculating, filing, and paying all federal, state, and local payroll taxes. This includes W-2s, 1099s, and new hire reporting, all of which are managed within the platform.
In 2025, Gusto continues to maintain compliance with the latest tax changes, including updated thresholds and deductions under federal laws like the FLSA (Fair Labor Standards Act) and ACA (Affordable Care Act). The platform also provides year-end tax form generation, ensuring employees and contractors receive necessary documents on time.
3. Employee Benefits Management
Gusto offers a wide range of benefit plans, from health insurance to 401(k) retirement savings and commuter benefits. Employers can choose from hundreds of plans across multiple providers, all directly integrated into the system. Employees can enroll, make changes, and manage their benefits from a centralized dashboard.
In 2025, Gusto has enhanced its benefits marketplace, providing more regional and niche providers for customized options. Gusto also simplifies COBRA administration and offers dental, vision, life, and disability insurance options—all in one platform.
4. Hiring and Onboarding Tools
The platform includes comprehensive tools to manage the employee onboarding process. New hires can e-sign documents, fill out tax forms (like I-9 and W-4), and complete custom checklists. This not only improves the first-day experience but also reduces paperwork and administrative effort.
In addition to onboarding, Gusto also helps manage offer letters, background checks, and even job postings, making it a pseudo-HRIS (Human Resource Information System) for smaller businesses.
5. Time Tracking and PTO Management
With built-in time tracking, Gusto allows employees to clock in/out, submit hours for approval, and track time-off requests. Managers can easily approve timesheets, and the data automatically flows into payroll for accurate calculations.
PTO policies are fully customizable, and Gusto tracks accruals automatically based on the company’s policy. Employees can view remaining leave balances and request time off directly through their employee dashboard.
6. Employee Self-Service Dashboard
Employees get access to a beautifully designed dashboard where they can view pay stubs, tax documents, benefits, and PTO balances. They can also update personal information, manage payment preferences, and download necessary forms without HR intervention.
This level of transparency and self-service reduces the burden on HR teams while improving employee satisfaction and empowerment.
7. Integrations and API Support
Gusto integrates with a wide range of tools like QuickBooks, Xero, FreshBooks, Expensify, TSheets, and more. These integrations enable seamless financial operations across accounting, time tracking, and expense reporting.
Gusto also provides API access for custom workflows, ideal for businesses that require tailored automation or want to build proprietary tools.
Gusto Payroll Pricing Plans (2025)
Gusto offers three main pricing tiers, with optional add-ons for benefits and advanced HR services. Here’s a detailed breakdown of each:
1. Simple Plan
- Base Price: $40/month
- Per Employee: $6/month
- Ideal for small teams needing basic payroll features.
- Includes full-service payroll, direct deposit, W-2/1099 filings, and employee self-service.
2. Plus Plan
- Base Price: $80/month
- Per Employee: $12/month
- Adds features like time tracking, PTO management, project tracking, and performance reviews.
- Best for growing businesses needing more robust HR capabilities.
3. Premium Plan
- Custom Pricing
- Designed for larger businesses or those with complex HR needs.
- Includes compliance alerts, HR resources, dedicated support, and a full HR suite.
Add-Ons:
- Health Benefits: Custom pricing based on provider and plan.
- 401(k) Plans: Starting at $39/month + $8/participant.
- Broker Integration: $6/month per participant if you use your own broker.
In 2025, Gusto has also introduced Gusto Global, a new service that helps U.S.-based businesses manage international contractors—a feature that comes with additional pricing but can be crucial for distributed teams.
Pros and Cons of Gusto Payroll
Pros
- User-Friendly Interface: Gusto’s clean, intuitive dashboard makes it easy for both employers and employees to navigate.
- All-in-One Solution: Combines payroll, HR, and benefits in a single platform, reducing the need for multiple vendors.
- Automated Compliance: Handles tax filings, new hire reporting, and year-end forms with no manual intervention.
- Scalable Plans: Offers solutions for businesses of all sizes, with flexible pricing and add-ons.
- Excellent Customer Support: Access to phone, chat, and email support, with knowledgeable agents ready to assist.
Cons
- Higher Costs for Small Teams: While Gusto offers excellent features, the per-employee fees can add up for very small businesses.
- Limited International Payroll: While Gusto Global supports international contractors, it doesn’t offer full international employee payroll services yet.
- Some Features Are Plan-Locked: Advanced features like performance management and dedicated HR support are only available in higher-tier plans.
Who Should Use Gusto Payroll in 2025?
Gusto is particularly well-suited for startups, small businesses, and medium-sized companies that want a comprehensive HR and payroll solution without the complexity of enterprise systems. If your team is U.S.-based and you need automated compliance, easy benefits administration, and excellent employee experience, Gusto is a top choice.
Businesses that are growing quickly or have hybrid teams of employees and contractors will also benefit from Gusto’s scalability and flexibility. However, larger enterprises or companies with international offices may find limitations in Gusto’s global capabilities.
How Gusto Stands Out in 2025 Compared to Competitors
In a competitive landscape where payroll services like ADP, Paychex, QuickBooks Payroll, and OnPay dominate, Gusto still shines because of its user-focused design, holistic features, and simplified automation. While ADP offers deeper enterprise features, it often comes with a steeper learning curve and cost. QuickBooks Payroll works well for users already in the QuickBooks ecosystem, but lacks Gusto’s HR depth.
In 2025, Gusto’s investment in AI-driven compliance tools, better customization for remote teams, and expanded benefits marketplace help it retain its top-tier status. With consistent updates and an ever-improving user experience, Gusto continues to outperform other platforms for the small to mid-market segment.
Final Verdict: Is Gusto Payroll Worth It in 2025?
For businesses looking for an easy-to-use, full-service payroll and HR solution, Gusto Payroll is absolutely worth considering in 2025. It’s not just a payroll processor—it’s a workforce management tool designed with modern businesses in mind. From onboarding to taxes, and from benefits to performance tracking, Gusto simplifies and automates critical business functions that can otherwise be time-consuming and error-prone.
Its transparent pricing, user-friendly interface, and comprehensive features make it one of the best payroll platforms for U.S.-based businesses. While not the cheapest solution on the market, the value Gusto delivers far outweighs the cost, especially for teams that want to offload HR complexities and focus on growth.
Frequently Asked Questions (FAQs)
Is Gusto good for small businesses?
Yes, Gusto is ideal for small businesses that want an easy-to-manage, all-in-one payroll and HR platform.
Does Gusto handle taxes automatically?
Yes, Gusto automatically calculates, files, and pays all payroll taxes at the federal, state, and local levels.
Can I use Gusto to pay international employees?
Gusto supports international contractors through Gusto Global, but does not yet offer full payroll services for international employees.
Is there a mobile app for Gusto Payroll?
As of 2025, Gusto does not offer a full-featured mobile app but has a mobile-friendly web interface accessible through browsers.
Does Gusto integrate with accounting software?
Yes, Gusto integrates with major accounting platforms like QuickBooks, Xero, and FreshBooks.
Read More Blogs – Best Gusto Payroll Features for Small Businesses
