Gusto
Run US payroll, file the taxes, and post a mapped journal into QuickBooks Online or Xero.
Best for
US shops that want full-service payroll tax filing and a mapped journal in QuickBooks Online or Xero, and will pay a base fee plus headcount.
Not ideal if
Anyone who needs payroll to live inside QuickBooks Online with no second vendor, who pays people in two states and will not buy Plus, or who expected Gusto to be the ledger.
Standout
After each run, Gusto files the taxes and posts a mapped journal entry into QuickBooks Online or Xero.
About Gusto
Gusto is US payroll, benefits, and HR, not a ledger. You add employees or contractors, run payroll (or put it on AutoPilot), and Gusto calculates withholdings, pays people by direct deposit or check, and files federal, state, and local payroll taxes (W-2, 1099, 940, 941, and others named on the pricing FAQ). After each run you map wages, employer taxes, and benefit liabilities to your chart of accounts. Gusto posts a journal entry into QuickBooks Online, or a manual journal or bill into Xero. You still close the books there.
It does not replace QuickBooks Online or Xero. Kick is the replacement ledger that can take a Gusto feed. Xero's own US payroll add-on is powered by Gusto. OnPay is the other full-service payroll pick; its published base matches Gusto Simple and includes filings in all 50 states, which Gusto gates behind Plus. Patriot sells payroll plus an accounting module under one login. Rippling is the broader HR, IT, and spend platform if payroll is only one piece. Gusto Money adds bill pay and invoicing on the same login. That is still not the books.
People who stick want tax filings, W-2s, 1099s, and benefits in one place, and they will pay the base-plus-headcount bill as the team grows. Owners on public forums cite self-onboarding and a short payroll run. Bookkeepers care that the journal lands in QuickBooks Online after they finish the mappings.
What people who used it say
What they tend to like
A short payroll run and the tax filings are done
Owners cite automatic 940/941/W-2/1099 filings and new-hire state reporting so they are not chasing forms.
The hire enters their own tax and bank details
Self-onboarding and a to-do list are the parts owners mention after year one.
Benefits and 401(k) stay on the same login
Teams that add health and retirement want those deductions in the same payroll run.
What they hesitate about
Support is thin on Simple and Plus
Basic support is help center plus business-hours chat and phone. Priority Support is $30 + $3 per person unless you are on Premium.
Multi-state filings can go wrong and stay wrong
Owners describe delayed or incorrect filings during a state change, and a long chat loop to fix them.
The real bill is often Plus, not Simple
A second state or time tracking jumps you from $49 + $6 to $80 + $12, and headcount keeps adding.
How it hits your books
- Replaces your ledger
- No
- QuickBooks Online
- Yes
- Xero
- Yes
- Inventory
- No
- 1099s
- Yes
- Payroll
- Yes
After each run, review the Gusto journal in QuickBooks Online (it posts to the bank register) or the Xero journal or bill. Match it to the lump bank debit, clear benefit liabilities when you pay the carrier, and lock the period in the ledger. Unmapped new categories break the sync. Desktop shops import an IIF.
Invite the accountant as a Gusto collaborator or Partner. Gusto files W-2s, 1099s, 940, and 941. The CPA still needs the QuickBooks Online or Xero file for the rest of the return.
Images
Features
Run payroll and file the taxes
Run payroll as often as you want. Unlimited runs are on every plan, including off-cycle. Gusto withholds, pays by direct deposit or printable check, and files federal, state, and local payroll taxes. Simple is single-state only. Plus and Premium cover multi-state.
Sync the journal to QuickBooks Online or Xero
Connect from the App directory and map every payroll category. After each run, Gusto posts a journal entry to the QuickBooks Online bank register, or a manual journal or bill in Xero. You can split by department, employee, job, or Gusto project. New earning types must be mapped or the sync fails. QuickBooks Desktop is an IIF export you import yourself.
Pay contractors and e-file 1099-NECs
Pay US contractors on any W-2 plan. Gusto e-files 1099-NEC to federal and state agencies at no extra form fee. You pay the per-person rate only in months you pay that contractor. Contractor Only is the plan if you have no W-2s. Global contractor payments are $5 per payment to a US bank.
Self-onboard a new hire
Send the offer from Gusto. The hire enters tax and bank details. Gusto can file the new-hire report to the state. Basic PTO is on Simple. Time tracking that syncs hours into the run is on Plus, or Time & Attendance Plus as a Simple add-on at $6 per person per month.
Benefits that hit the same payroll
Offer health, dental, and vision (Gusto as broker: premiums only; keep-your-broker is $6 per eligible employee per month, waived on Premium). 401(k) pricing varies by provider. HSA, FSA, and commuter sit under one $200 annual service charge plus per-participant fees. On the journal, employee deductions stay inside gross wages; employer contributions and the benefit liability map separately.
Gusto Solo for a one-person S-corp
Pay yourself a reasonable salary, file Form 2553 with Gusto's guided election, and let AutoPilot run the W-2 payroll. Official Solo page: most owners pay $55/month ($49 base + $6 for you). Upgrade to Simple or Plus when you hire. This is still payroll, not a ledger.
Pricing
A 5-person single-state shop on Simple pays $49 + $30 = $79/month. The same shop that needs a second state or built-in time tracking moves to Plus at $80 + $60 = $140/month. Ten people on Plus is $80 + $120 = $200/month before benefits add-ons. Contractors count as people only in months you pay them. Priority Support on Simple or Plus is another $30 + $3 per person. Tax-advantaged benefits add a $200 annual service charge plus per-participant fees. Contractor Only is $0 base for 6 months, then $35 + $6 per contractor. Gusto Solo is $49 + $6 for a one-person S-corp. Month to month; no setup fee on the standard plans.
Contractor Only
Shops that pay 1099 contractors and have no W-2 employees yet. Promo terms apply.
- Domestic contractor payments
- 4-day pay
- Form 1099 creation and filings
- No backup withholding
- Global contractor payments add-on only
Simple
Single-state US payroll for a small team that does not need built-in time tracking.
- Single-state payroll
- Unlimited payrolls per month
- Tax filings and payments
- Basic PTO policies and holiday pay
- Basic support (Priority Support is an add-on)
Plus
Multi-state payroll, time tracking, and next-day pay. The usual step up from Simple.
- Multi-state payroll
- Next-day pay
- Time tracking
- Expenses and reimbursements
- Workforce cost reports and unlimited custom earning types
Premium
Scaling teams that want a dedicated advisor, HR experts, and priority support.
- Dedicated Service Advisor
- Access to certified HR experts
- Performance and compensation management
- Custom reports and priority support
- Payroll migration and account setup
Gusto Solo
One-person S-corp owners paying themselves a reasonable salary. Most owners pay $55/month.
- S-corp payroll with automated withholdings and quarterly filings
- Reasonable salary calculator
- Guided S-corp election (Form 2553)
- W-2 and 1099 generation
- Compliance hub
Integrations
Platforms
Audience
Pick something else instead of Gusto
OnPay
Pick OnPay instead if you want full-service US payroll at the same $49 + $6 published sticker and you pay people in more than one state. OnPay's help center puts all-50-state filings in that base. Gusto Simple does not.
Rippling
Pick Rippling instead if payroll is one piece of a bigger workforce stack (HR, IT device and app access, and spend) and you will take a sales quote for that breadth.
Patriot Software
Pick Patriot Software instead if you want cheaper payroll and a cheap accounting module under one login. Gusto sits next to QuickBooks Online or Xero; it does not replace them.
QuickBooks Online
Stay in QuickBooks Online if the books already live there and you want Intuit Workforce payroll journals inside that file, with no second mapping layer. Gusto posts into QBO; it is not QBO.