Is Gusto Worth It?

Why We Think Gusto Is Worth It

After years of helping small businesses choose HR software, we recommend Gusto more than any other platform for companies under 100 employees. Here is why:

1. It Actually Saves You Time (Not Just Money)

Running payroll in Gusto takes about 5 minutes if nothing unusual happened that pay period. Click review, click submit, done. Compare this to legacy providers like ADP or Paychex where the same process can take 20-30 minutes due to clunkier interfaces and more manual steps.

If you run payroll twice a month and save 20 minutes each time, that is 8 hours per year. At $50/hour (a reasonable cost for a business owner or HR manager time), that is $400 in time savings annually—more than covering the price difference between Gusto and cheaper alternatives.

2. Employees Actually Like Using It

This matters more than you might think. When employees can easily access their pay stubs, update their direct deposit, check their PTO balance, and enroll in benefits through a clean mobile app, they stop asking you HR questions.

We have seen companies reduce HR administrative questions by 50% or more after switching to Gusto simply because employees can self-serve. That is real time back in your day.

3. Benefits Administration Included

On the Plus plan ($80/mo + $12/employee), Gusto includes benefits administration. They broker health insurance (at no cost to you—they are paid by carriers), manage open enrollment, handle COBRA, and integrate 401(k) through partners like Guideline.

With competitors like ADP or Paychex, benefits is often a separate add-on that costs extra. With Gusto Plus, it is included in one predictable price.

4. Transparent, Predictable Pricing

Gusto publishes their pricing: $40/mo + $6/employee (Simple) or $80/mo + $12/employee (Plus). No surprise fees, no annual price increases (historically), no negotiation required.

Compare this to ADP or Paychex where you have to call for a quote, negotiate, and then deal with annual price increases of 5-10% that you have no control over. The predictability alone is worth something.

5. Modern Integrations

Gusto integrates with 100+ apps: QuickBooks, Xero, Slack, BambooHR, Carta, and more. If you use modern business tools, Gusto will connect to them. Data flows automatically—no manual exports and imports.

When Gusto Might NOT Be Worth It

Let us be honest about the limitations:

1. You Are Extremely Budget Constrained

If your business is making less than $100K/year and every dollar matters, Gusto might be more than you need. Patriot Payroll at $37/mo + $4/employee or OnPay at $40/mo + $6/employee can save you $20-50/month with acceptable trade-offs.

The trade-off: less polished interfaces, fewer integrations, worse employee experience. But if budget is king, they work.

2. You Have Complex Payroll Needs

Gusto handles standard payroll scenarios excellently. But if you have:

• Union workers with complex dues calculations
• Prevailing wage or certified payroll requirements
• Advanced job costing and labor distribution
• Complex time clock integrations (biometric, geofencing)
• Multi-company consolidated payroll

You may need a more enterprise-focused solution like ADP or Paychex that has deeper features for these edge cases.

3. You Are Over 100 Employees

Gusto can handle 100+ employees on their Premium plan, but it is not their sweet spot. At that scale, you may want:

• Rippling for unified HR/IT management
• BambooHR for more robust HRIS features
• Enterprise solutions like Workday or HiBob

Gusto is purpose-built for 1-100 employees. Beyond that, their feature set starts to feel limiting.

4. You Need International Payroll

Gusto is US-only for full-time employees. They now support international contractor payments, but if you need to hire full-time employees in other countries, look at Deel or Rippling Global Payroll.

What Actual Gusto Users Say

Based on reviews from G2, Capterra, and our own user interviews:

Common Praise:

• "Payroll takes me 5 minutes now instead of an hour"
• "My employees love the mobile app"
• "Customer support is actually helpful"
• "Setting up was so much easier than I expected"
• "Benefits enrollment is way simpler than our old broker"
• "The price is fair for what you get"

Common Complaints:

• "Time tracking is basic—we needed to add a separate tool"
• "Customer support is chat/email only (no phone unless Premium)"
• "Reporting could be more customizable"
• "We outgrew it when we hit 150 employees"
• "Occasional bugs with state tax filings that require support tickets"

Gusto vs. The Alternatives

Gusto vs. Doing It Yourself (Spreadsheets + Manual Tax Filing)

Verdict: Gusto is 100% worth it.

DIY payroll might save you $100/month, but it costs you 3-5 hours per pay period and risks IRS penalties averaging $1,000-5,000/year for small business filing errors. The math does not work.

Gusto vs. Patriot or OnPay (Cheaper Alternatives)

Verdict: Gusto is worth the extra $20-50/month for most businesses.

The better UX, integrations, and employee experience justify the premium. If you are truly bootstrapping under $100K revenue, the cheaper options are fine. Otherwise, Gusto.

Gusto vs. ADP or Paychex (Legacy Providers)

Verdict: Gusto is usually better AND cheaper.

Unless you have very complex needs (union payroll, prevailing wage, 200+ employees), Gusto delivers better UX at comparable or lower cost without the hidden fees and annual price increases.

Gusto vs. Rippling (Modern All-in-One)

Verdict: Depends on your needs.

Rippling is better if you want unified HR, IT, and device management. Gusto is better if you just need excellent payroll and benefits without the extra complexity. Rippling costs more but does more.

The Real ROI of Gusto

Let us do the math for a typical 25-employee company:

Costs:

• Gusto Plus: $80/mo + (25 × $12) = $380/month = $4,560/year

Savings:

• Time savings (20 min/payroll × 24 payrolls × $50/hr): $400/year
• Reduced HR questions (2 hrs/week saved × $50/hr × 50 weeks): $5,000/year
• Avoided tax penalties (conservative estimate): $500/year
• No benefits broker fee (vs. traditional broker): $0-2,000/year

Total Estimated Savings: $5,900-7,900/year

Even with conservative estimates, the ROI is positive. Gusto costs $4,560/year but saves $5,900+ in time and avoided problems. That is before accounting for intangibles like employee satisfaction and peace of mind.

Who Should Definitely Get Gusto

Who Should Consider Alternatives

Our Final Verdict

Is Gusto worth it? Yes, for the vast majority of small businesses.

Gusto is not the absolute cheapest option, but it is the best value for most companies under 100 employees. The combination of excellent UX, transparent pricing, built-in benefits, and time savings makes it an easy recommendation.

If you are on the fence, start with the free trial. Run a few pay cycles. See if your employees like the self-service portal. We are confident you will find it worth every penny.

The only people we would not recommend Gusto to are those with very complex needs (union payroll, prevailing wage, 200+ employees) or those who are so budget-constrained that saving $30/month matters more than saving hours of time.

For everyone else: yes, Gusto is absolutely worth it.