Gusto HR Software Review: Pricing, Benefits, and User Insights

Gusto

Overview

Gusto is the modern leader in small business payroll. This space has been dominated by ADP and Paychex for years, but Gusto's modern user interface and ease-of-use have made them a popular choice for new companies. In the last few years, Gusto has adding benefits admin, time tracking and onboarding capabilities to the system to provide more value to clients

Market Segment

Gusto is considered an SMB HRIS, which means the system works best for companies with less than 150 employees. SMB solutions are designed to cover some, but not all HR needs with some gaps to be filled in by 3rd party solutions. SMB solutions are typically more user-friendly and more modernly designed than other vendors. Additionally, they are typically built with integrations in mind and have open APIs. A solution like Gusto usually takes 2-4 weeks to implement and often does not require a great deal of work from an administrator to get started, due to the fact that most of the system is not configurable. SMB solutions tend to have limited rules engines and custom workflow tools, which can limit how scalable they can be.

Many companies compare Gusto to Quickbooks Payroll or evaluate Gusto vs ADP in their evaluations since those companies tend to be the market leaders for small business payroll and common Gusto competitors.

Many companies wonder if Gusto is a professional employer organizations (PEO). However, Gusto is not a certified PEO today. They do, however, offer full service payroll processing functionality and benefits broker services to small business owners. However, they do not take on the liability for employment that a PEO does.

Costs

What is Gusto payroll pricing? Gusto pricing for accountants and customers is charged on  a monthly or quarterly subscription basis. Gusto rates are often a good value for companies and the software fees can cost between $12 and 16 PEPM.

Additionally, Gusto does not usually charge an implementation fee to clients to get started.

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Strengths

• Gusto delivers a modern, user friendly payroll software and HR experience for companies that don’t want to use legacy platforms like Paychex or ADP
• In addition to their technology offering, Gusto offers robust HR support services for companies that needed added help with creating policies and staying compliant
• The Gusto user experience gets positive reviews from employees for it’s simplicity and ease of use
• Gusto recently added functionality to support state registrations and for paying global contractors
• In addition to their technology offering, Gusto offers additional HR support services for companies that needed added help with creating policies and staying compliant
• Gusto recently opened their app marketplace and now have a number of pre-built integration partners for 3rd party HR apps

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Weaknesses

• Gusto focuses on very small companies. Companies tend to outgrow Gusto’s platform when they grow beyond 50-75 employees
• Gusto has struggled to maintain their customer support SLA’s since the pandemic began and their resolution times have dropped significantly for customers
• Gusto’s timekeeping tool offers basic clock-in / out functionality but is not designed to support complex hourly workforces with scheduling or job costing requirements
• Gusto is fairly limited beyond Core HR and can’t offer employee engagement, ATS / Recruiting or robust learning management

Integration Capabilities

Gusto has strong integrations with accounting systems and benefit carriers, but has traditionally lagged behind its peers with their HR point solution integrations. They've recently started building a marketplace and opening up APIs but it will take time for their capabilities to catch up

Global Capabilities

Gusto is a domestic payroll solution and has historically only worked with US-based companies. However, they recently purchased a global payroll start-up that will allow them to expand internationally in the future.

Modules Offered

• Gusto Online Payroll
• HR / Employee Files
• Gusto Employee Login
• Time & Attendance (limited)
• Onboarding
• Performance Management

FAQs

What types of companies is Gusto best suited for?

Gusto is ideal for small businesses with less than 150 employees. Its user-friendly interface and modern design make it particularly appealing to companies looking for an intuitive payroll and HR solution without the complexity of legacy platforms like ADP or Paychex.

How much does Gusto cost?

Gusto pricing is typically charged on a monthly or quarterly subscription basis, ranging from $12 to $16 per employee per month (PEPM). Unlike some other providers, Gusto usually does not charge an implementation fee to clients to get started.

What are the strengths of Gusto's platform?

Gusto offers a modern and user-friendly payroll software and HR experience, with additional HR support services available for companies needing assistance with compliance and policy creation. Its simplicity and ease of use receive positive reviews from users, and recent additions include support for state registrations and paying global contractors.

What are some limitations of Gusto's platform?

Gusto is best suited for very small companies, typically those with fewer than 50-75 employees, as it may lack scalability for larger organizations. Customer support SLAs have seen challenges since the pandemic began, and certain functionalities like timekeeping may not meet the needs of complex hourly workforces.

How does Gusto handle integrations with other software applications?

Gusto has strong integrations with accounting systems and benefit carriers, but its HR point solution integrations have historically lagged behind competitors. However, they have recently started building a marketplace and opening up APIs to expand integration capabilities.