Gusto Review for Freelance Accountants

Gusto is a cloud-based payroll, HR, and benefits management platform designed primarily for small to medium-sized businesses. It streamlines payroll processing, offers HR tools, and helps with compliance, all while providing a user-friendly interface. Below is a detailed review of Gusto’s features, pros, cons, and pricing:

Features

1. Payroll Processing: Gusto automates payroll processing, including calculating wages, taxes, and deductions. It supports direct deposits and offers automatic tax filing for federal, state, and local taxes.
2. Tax Filing & Compliance: Gusto handles tax filings, including federal, state, and local payroll taxes. It ensures your business stays compliant with tax regulations, filing forms like W-2s and 1099s automatically.
3. Employee Benefits Management: Gusto allows you to manage health insurance, retirement plans (401(k)), and other employee benefits directly through the platform. It integrates with benefit providers to streamline administration.
4. Time Tracking: Gusto includes time-tracking tools for employees, which can sync with payroll to ensure accurate pay based on hours worked.
5. HR Tools: Gusto provides essential HR tools such as employee self-service, document storage, onboarding, and performance reviews.
6. Direct Deposit & Paycards: Employees can receive payments via direct deposit or paycards, giving them flexibility in how they get paid.
7. Hiring & Onboarding: Gusto has tools to help businesses hire and onboard new employees, including offering customizable offer letters, background checks, and new-hire paperwork.
8. Employee Self-Service: Employees can access pay stubs, tax forms, and benefits information directly through the platform, reducing the administrative burden on HR teams.
9. Customizable Reporting: The platform offers customizable reports for payroll, taxes, employee benefits, and more to help businesses track finances and compliance.
10. Integrations: Gusto integrates with a variety of accounting software (like QuickBooks, Xero, and QuickBooks Online) and time-tracking tools, making it easy to sync data across systems.

Pros

• User-Friendly Interface: Gusto is known for its easy-to-use interface. It’s intuitive and designed to help non-HR professionals handle payroll and HR tasks without a steep learning curve.
• Automation: The platform automates payroll, tax filing, and compliance tasks, reducing the need for manual data entry and minimizing errors.
• Comprehensive HR Tools: Beyond payroll, Gusto provides valuable HR features like benefits management, performance reviews, and hiring tools that help businesses manage employees more efficiently.
• Excellent Customer Support: Gusto offers strong customer support through phone, email, and chat. Users consistently praise their responsive and helpful support team.
• Scalability: Gusto is suitable for small businesses, but it can also grow with you as your business expands. The platform offers the flexibility to add additional employees and features as needed.
• Transparent Pricing: Gusto’s pricing is transparent and clearly laid out, so businesses know what they are paying for with no hidden fees.
• Compliance & Accuracy: Gusto takes care of all federal, state, and local tax filings and ensures compliance with tax laws, reducing the risk of errors and penalties.
• Employee Benefits Management: Gusto’s benefits offerings (like health insurance, 401(k), and more) are a big plus for businesses looking to offer competitive benefits packages to their employees.

Cons

• Pricing for Small Businesses: While Gusto offers excellent features, its pricing can be on the higher end for smaller businesses, especially when adding optional features like benefits management.
• Limited Global Payroll: Gusto is primarily designed for U.S.-based businesses, so if you have employees in other countries, it lacks support for international payroll processing.
• No Unemployment Insurance (SUTA) Filing for All States: Gusto does not handle unemployment insurance filings for all states, which could require additional setup or management.
• Limited Customization: Some businesses may find that the customization options for payroll, benefits, or reports are somewhat limited compared to more specialized HR or payroll platforms.
• Lack of Advanced HR Features: While Gusto offers essential HR tools, it’s not as robust in HR management as dedicated HR platforms. Businesses with more complex HR needs may find it lacking in advanced features like talent management or advanced reporting.

Pricing

Gusto offers three pricing plans:

1. Core: $40/month + $6 per employee – Includes basic payroll processing, tax filing, and direct deposit. This plan is ideal for businesses that need a simple payroll solution without extensive HR features.
2. Complete: $80/month + $12 per employee – Adds HR tools like benefits management, employee self-service, time tracking, and more. This plan is best for businesses that want a comprehensive payroll and HR solution.
3. Premium: Custom Pricing – This plan includes everything in the Complete plan, plus additional features such as a dedicated account manager, advanced reporting, and premium support. It’s tailored for larger businesses with more complex needs.

Gusto also offers a free trial for new users, allowing you to explore the features before committing to a paid plan.

Who is Gusto Best For?

• Small to Medium-Sized U.S.-Based Businesses: Gusto is ideal for businesses in the U.S. that need an easy-to-use, comprehensive payroll and HR solution. It’s particularly well-suited for small businesses that want to automate payroll and employee benefits without investing in complex software.
• Businesses Needing HR and Payroll Integration: Gusto is a good option for companies that want a single platform to manage both HR and payroll functions, from hiring to paying employees.
• Companies Looking to Offer Benefits: Gusto’s employee benefits package (including health insurance and 401(k)) is particularly beneficial for businesses looking to offer competitive benefits to their employees.
• Businesses That Want to Scale: Gusto is scalable and can grow with your business, making it a good choice for companies planning for future growth or that want to streamline HR processes as they expand.

Final Verdict:

Gusto is an excellent payroll and HR platform for small to medium-sized businesses in the U.S. It offers an intuitive, user-friendly experience, and automates complex payroll, tax filing, and compliance tasks. The addition of HR tools, benefits management, and excellent customer support makes it a strong all-in-one solution for businesses that want to streamline employee management.

However, its pricing may be a bit high for very small businesses, and it’s not suitable for companies with international employees. Despite these limitations, Gusto remains one of the top payroll platforms for small businesses that need reliable, automated payroll and HR services.