Gusto

Gusto was founded in 2011 (originally as ZenPayroll) by Josh Reeves, Edward Kim, and Tomer London. The trio came together with a mission to help small businesses "care for their teams" by fixing the broken, manual processes of payroll. Josh Reeves, the CEO, is a Stanford graduate who has built Gusto around a culture of empathy and "customer obsession." This approach is evident in the platform’s friendly tone and the personal "thank you" notes that often accompany new feature releases.

Headquartered in San Francisco and Denver, Gusto has grown into a multi-billion dollar tech giant, backed by prestigious investors like Fidelity, T. Rowe Price, and General Catalyst. In early 2026, the company continues to focus on "People Operations," expanding its reach into international contractor payments and embedded finance. Despite its massive scale—serving over 300,000 businesses—the founders remain deeply involved in advocating for small business policy changes and ensuring that the platform remains accessible to "mom-and-pop" shops, not just high-growth startups.

Gusto is built specifically for Small to Medium-Sized Business Owners who are terrified of getting a letter from the IRS. It is the ideal home for teams ranging from 1 to 100 employees who need a "one-stop-shop" for everything related to their workforce. If you are a founder who values design, ease of use, and a platform that "just works," Gusto will feel like a breath of fresh air compared to traditional systems like ADP or Paychex.

It is also a favorite for Startups and Modern Agencies. Because Gusto handles both W-2 employees and 1099 contractors with ease, it is perfect for the "flexible" workforces of 2026. If you have a remote team scattered across multiple states, Gusto’s ability to handle different state tax registrations and local withholdings is a lifesaver. In the current year, it has also become a top choice for Freelancers and Solopreneurs (through the Solo plan) who want to pay themselves a salary and stay compliant while operating an S-Corp or LLC.

• • New Business Owners: Who need a guided setup that walks them through every legal requirement of hiring.
• • Remote Teams: Organizations that need to manage multi-state payroll and distributed benefits without a physical HR office.
• • S-Corp Owners: Individuals who need to run "reasonable compensation" payroll to maximize their tax savings.

At its core, Gusto is a Full-Service Payroll Machine. It calculates net pay, handles all deductions (taxes, health insurance, 401k), and manages the direct deposit to your team’s bank accounts. But its power goes much deeper. Its Benefits Administration allows you to offer high-quality health insurance, vision, dental, and even commuter benefits to your team, with all costs automatically deducted from their paychecks. In 2026, Gusto acts as your "Broker of Record," meaning you don't have to deal with insurance companies directly.

For managing day-to-day operations, Gusto features **Time and Attendance Tracking**. Employees can clock in and out via the mobile app or a web browser, and those hours flow directly into the next payroll run with one click. It also handles **Hiring and Onboarding**, providing templates for offer letters and custom checklists to ensure every new hire has their IT equipment and security training ready on day one.

One of the standout features in 2026 is **Gusto Global**. This allows US-based companies to pay contractors in over 120 countries and hire full-time employees in select regions through their Employer of Record (EOR) service. This removes the barrier of having to set up a legal entity in a foreign country just to hire a developer in India or a designer in Brazil. Combined with **Advanced Reporting**, which provides deep insights into your labor costs and turnover rates, Gusto gives small business owners the "Big Data" capabilities of a Fortune 500 company.

• • Gusto Wallet: A dedicated mobile app for employees to track their pay, save money, and access their paycheck early.
• • Workers’ Comp: Pay-as-you-go workers' compensation that adjusts your premiums based on your actual payroll, improving your cash flow.
• • Performance Reviews: Built-in tools for the Plus and Premium tiers to handle quarterly reviews and feedback loops.

Gusto’s pricing model in 2026 is transparent but has become more tiered as the platform has expanded. The Simple Plan starts at $40 per month plus $6 per person. This is the standard choice for small businesses operating in a single state that just need reliable payroll and basic HR. It includes full-service tax filing and employee self-service.

The Plus Plan is the most popular, costing $80 per month plus $12 per person. This tier is essential for multi-state employers and those who need advanced time tracking and project tracking. It also unlocks more advanced hiring tools and performance management features. For businesses only paying 1099 freelancers, the Contractor Only Plan is a great value at $35 per month (with no base fee for the first 6 months for new users) plus $6 per contractor.

For larger organizations, the Premium Plan requires a custom quote. This plan is designed for scaling teams and includes a dedicated support advisor, compliance alerts, and an HR resource center with certified experts you can call. It’s important to remember that while the base software is affordable, Benefits Premiums (like health insurance) are paid on top of these fees, though Gusto does not charge an extra "administration fee" for the insurance they broker.

The biggest thing to watch out for with Gusto is Pricing Scaling. While the $40 base fee sounds cheap, as you grow to 20 or 30 employees on the Plus plan, you can easily be paying $400+ per month just for the software. You must evaluate if the "time saved" justifies the monthly bill. Additionally, be aware of State Specifics. While Gusto operates in all 50 states, the specific health insurance plans and workers' comp options they can broker vary by region, so always check their availability map before you commit.

You should also pay attention to the Support Tiers. On the Simple plan, support is primarily through chat and email. If you are the type of person who needs to talk to a human on the phone immediately when a payroll error occurs, you will likely need to upgrade to the Plus or Premium tiers. Lastly, while their International Hiring is great, the Employer of Record (EOR) service is significantly more expensive than their domestic plans, so make sure to budget accordingly if you are planning to hire your first international full-timer.

If Gusto's modern vibe doesn't fit your business, the 2026 market has several heavy hitters. QuickBooks Payroll is the most direct rival for people already deep in the Intuit ecosystem; it’s faster for accounting sync but often lacks the depth of Gusto’s HR features. Rippling is the top choice for tech-heavy companies that want to manage payroll, IT equipment, and software access all in one automated flow.

For those who want a more "traditional" and stable enterprise experience, ADP RUN or Paychex are the industry titans. They often provide more local, in-person support but are notorious for having less transparent pricing and more "clunky" interfaces. If you are focused entirely on global hiring, Remote or Deel are superior alternatives that were built from the ground up for international law and currency management.

• • OnPay: A great "budget" alternative that offers a single flat rate for all features, including HR and multi-state filing.
• • Square Payroll: The undisputed king for retail and restaurant owners who already use Square for their point-of-sale.
• • Zenefits: A strong HR-first platform for companies that prioritize benefits and performance management over pure payroll.

• Does Gusto handle my year-end taxes? Yes. Gusto automatically generates, files, and sends digital copies of W-2s and 1099s to your employees and contractors at the end of the year, all included in your base price.

• Can I use Gusto for just one employee? Absolutely. Gusto has a 'Solo' plan specifically for owners who are the only employee of their LLC or S-Corp, helping them stay compliant with salary requirements.

• Is my data safe with Gusto? In 2026, Gusto uses bank-level 256-bit SSL encryption and is fully SOC2 compliant, ensuring that your company’s sensitive financial and employee data is always protected.

• Can I run payroll more than once a month? Yes. All Gusto plans include unlimited payroll runs. You can pay your team weekly, bi-weekly, or run off-cycle bonus checks as many times as you need without extra fees.

• Does Gusto offer a free trial? Gusto doesn't have a traditional '30-day' trial, but they are 'Free until you run your first payroll.' This means you can set up your entire account and explore the features for free.