Gusto

In short

Gusto runs payroll, automatically files payroll taxes, and manages benefits enrollment, built for self-serve setup so an owner can run a pay cycle without an accountant. It fits a small trades business paying a mix of W-2 employees and 1099 contractors that wants to handle payroll itself rather than through a bookkeeper. Its per-employee monthly fee scales with headcount, and multi-state payroll, deeper HR tools and instant pay are reserved for its higher plans.

Key features for service businesses

Who it's for

Gusto fits a small trades business running payroll for a handful of employees, often mixed with 1099 subcontractors, that wants to set up and run payroll itself without hiring an accountant for every cycle. Its self-serve onboarding and included contractor payments cover the core need of most plumbing, HVAC, electrical, roofing and landscaping shops at this size.

Who should skip it

A business with complex multi-state pay rules, a large seasonal hourly crew, or a need to combine payroll with IT device management should look at Rippling or Paylocity instead, both built for more configurable, larger-scale HR needs. A business that specifically wants a long-established provider's support network and add-on services may prefer RUN by ADP.

How it handles payroll and taxes

Gusto automatically calculates payroll taxes and files them with the correct federal, state and local agencies every time a pay run is submitted, which removes a recurring compliance task an owner would otherwise track manually. It also handles state tax registration in all fifty states, collects and stores employee I-9s and W-2s, and can set up a pay-as-you-go workers' compensation policy that syncs deductions directly with payroll.

How it handles contractor payments

Domestic contractor payments and 1099 form creation and filing are included on Gusto's entry-level plan, which matters for a trades business that regularly pays subcontractors alongside W-2 crew. A dedicated Contractor Only plan exists for a business that has not hired W-2 employees yet, and global contractor payments to contractors outside the country are available as an add-on rather than bundled by default.

Integrations

Gusto's app directory groups integrations by category, including accounting, time tracking, point of sale, expense management, hiring and onboarding, tax preparation and business operations, so a business can connect its existing bookkeeping or scheduling tools rather than switching them out. Named partners in the directory include recruiting and applicant-tracking tools, background-check providers, bookkeeping services, and 401(k) providers such as Fisher, Goldman Sachs and Vanguard for retirement plan administration.

Its help center separately documents setup guidance for provisioning apps and devices tied to those integrations, alongside a project tracking feature for admins who need to see time and cost by job.

How it handles benefits and workers' comp

Gusto sets up and administers health, dental and vision plans through its own licensed brokers, and a business can integrate an existing broker and eligible health plan directly into the platform rather than starting over. Workers' compensation runs pay-as-you-go once a policy is signed online, with deductions calculated automatically from each payroll run instead of a single upfront premium.

Alternatives

• RUN by ADP if you want a longer-established provider with a larger support organization and are comfortable trading some self-serve simplicity for that. See Gusto vs RUN by ADP for a side-by-side on payroll.
• Paylocity if your business has outgrown simple payroll and needs more configurable pay rules, multiple locations, or broader HR and workforce management in one platform. See Gusto vs Paylocity for how they compare.
• Rippling if you want payroll and HR combined with IT device management, such as provisioning laptops for office staff, under one login. See Gusto vs Rippling for a full side-by-side.

How we reviewed it

We checked Gusto's payroll product page for its tax filing and compliance features, its pricing and plan comparison page for what each plan tier includes, its integrations directory for the categories and partners it lists, and its help center for the support topics it documents. We did not rely on any third-party review site for feature claims in this review.