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Payroll software review

Gusto Payroll

Full-service payroll for small businesses, billed as a monthly base fee plus a fee per active employee, month to month. It files federal, state and local payroll taxes, tops up tipped pay to the minimum wage and documents the 2026 W-2 codes for tips and overtime.

By GustoParent company: Gusto, Inc.

RTC SCORE

8.2

#1 of 22 with enough data

Our verdict

A month-to-month payroll with published prices and documented tip and 2026 W-2 handling, at $49 a month plus $6 per active employee on Simple. Check how your tips will get in, because Gusto documents tip import only from SpotOn and Lightspeed U-Series.

What we like

  • Month to month with no early termination fee, and its prices are published: $49 a month plus $6 per active employee on Simple.
  • Tops up tipped employees' pay to the minimum wage automatically and alerts you to state and local minimum wage increases.
  • Documents the 2026 W-2 for No Tax on Tips (code TP and the tipped occupation code) and for qualified overtime (code TT).
  • Unlimited payroll runs, and W-2s, 1099s and amendments at no extra cost; it files federal, state and local payroll taxes.
  • Its payroll terms commit it to pay penalties caused by its own late tax payments or filings.

What to watch

  • It does not file Form 8846 for the FICA tip credit; it gives you a tips report for your accountant.
  • Tips come in from SpotOn Teamwork and Lightspeed U-Series only; no integration with Toast, Square or Shift4 POS is listed, and Clover syncs only names and emails.
  • On Simple, new accounts start on 4-day direct deposit, next-day pay costs $15 a month + $3 per person, and only one state is covered.
  • No 24/7 live support: chat runs 80 hours a week and phone help is by callback on weekdays.

How the score breaks down

RTC Score8.2out of 10

Methodology v0.1.0

Data completeness100%

We could verify 100% of the scoring data

Strongest points
12-month payroll cost (reference restaurant), Who files payroll taxes, Published pricing
Weakest point
Tips imported from POS systems

Score by criterion

  • 12-month payroll cost (reference restaurant)Weight 19%Strongest9.4 out of 10

    $1,668 over 12 months

  • Who files payroll taxesWeight 7%Strongest10.0 out of 10
  • POS integrationsWeight 6%4.3 out of 10
  • Published pricingWeight 5%Strongest10.0 out of 10
  • Tip credit and minimum wage make-upWeight 5%10.0 out of 10
  • Tips imported from POS systemsWeight 5%Weakest2.9 out of 10
  • 2026 W-2 ready for No Tax on TipsWeight 5%10.0 out of 10
  • Initial termWeight 5%10.0 out of 10
  • Live support hours a weekWeight 5%4.8 out of 10
  • Payroll in all 50 statesWeight 4%10.0 out of 10
  • Time trackingWeight 4%5.0 out of 10
  • FICA tip credit (Form 8846)Weight 3%5.0 out of 10
  • Tip pooling and tip-outsWeight 3%5.0 out of 10
  • Early termination feeWeight 3%10.0 out of 10
  • Unlimited pay runsWeight 3%10.0 out of 10
  • Fastest direct deposit includedWeight 3%6.0 out of 10
  • Tax penalty guaranteeWeight 3%10.0 out of 10
  • Year-end W-2 and 1099 formsWeight 2%10.0 out of 10
  • Accounting integrationsWeight 2%10.0 out of 10
  • Notice to avoid renewalWeight 2%10.0 out of 10
  • Garnishments and new-hire reportingWeight 2%10.0 out of 10
  • Declared cash tipsWeight 2%10.0 out of 10
  • State and local minimum wages built inWeight 2%10.0 out of 10
  • Dedicated specialistWeight 2%0.0 out of 10
  • Paying 1099 contractorsWeight 1%10.0 out of 10
  • Early pay for employeesWeight 1%10.0 out of 10

Current promotion

  • Discount

    Not publishedSource: Gusto Help Center (opens in a new tab)Gusto does not say whether the per-person fee is waived too, so we don't put a dollar amount on it.
    Conditions
    Gusto payroll free for the first 3 months for businesses that join Gusto from SpotOn (through the SpotOn Teamwork integration). Gusto does not say whether the per-person fee is also waived or which plans it covers, and publishes no end date.
    Valid until
    The vendor publishes no end date. We take it down if we can't re-check it within 30 days.

Counts in the RTC Score only if our reference restaurant qualifies.

The switching or signing incentive is one of the criteria with the most weight in the RTC Score. We count a promotion only while it's current, with a fixed published amount and conditions our reference restaurant meets. "Up to" amounts, buyouts of your current contract and unpublished amounts don't count. The cost calculator subtracts one only when your numbers qualify.

Check it with your numbers

All the data, with sources

Each value links to its source. "Not published" means the vendor doesn't disclose it; "Unconfirmed" means we looked and couldn't confirm it. Data points we have for fewer than four vendors are left out until we can compare them.

Pricing
Data pointValue
Base fee$49/mo()Source: Gusto (archived copy) (opens in a new tab)Simple plan: $49 a month plus $6 per person. Plus is $80 + $12 per person and Premium $180 + $22 per person. The Contractor Only plan ($35 + $6 per contractor, $0 base for the first 6 months as a limited-time offer) is only for businesses with no W-2 employees, so it is not compared here.
Per employee$6()Source: Gusto (archived copy) (opens in a new tab)On Simple. $12 on Plus and $22 on Premium.
Who counts as an employeeEach active employee, even if not paid that monthSource: Gusto Help Center (opens in a new tab)
Per contractor (1099)$6()Source: Gusto (archived copy) (opens in a new tab)On Simple, and only in months when you pay the contractor. Same per-person price as employees on each plan.
Published pricingPublished()Source: Gusto (archived copy) (opens in a new tab)
Setup fee$0 one-timeSource: Gusto (opens in a new tab)The pricing page lists no setup fee. Registering for payroll taxes in a new state through Gusto is a separate service priced by state.
Year-end forms fee$0/yrSource: Gusto (opens in a new tab)Only if you cancel and ask Gusto to pay and file your remaining taxes: $100 for federal forms, $100 per state and $5 per W-2 or 1099.
Each extra stateN/ASource: Gusto (opens in a new tab)Simple covers one state. To pay employees in more states you move to Plus ($80 + $12 per person), where extra states cost nothing more. Registering in a new state through Gusto is priced by state.
Other feesOn Simple: next-day direct deposit $15 a month + $3 per person; Same-day Pay $90 and Instant Pay $100 per payroll, only on eligible late or off-cycle payrolls (included on Premium); Priority Support $30 a month + $3 per person; Time & Attendance Plus $6 per person after a free trial. Also: $100 debit failure fee, $5 per one-time wire, $6 a month per eligible employee to integrate your own health broker, state sales tax on the subscription in some states, and $100 federal + $100 per state + $5 per form if Gusto pays and files your taxes after you cancel (not when you switch providers). A month you cancel in is billed in full.Source: Gusto Help Center (opens in a new tab)
Taxes and forms
Data pointValue
Who files payroll taxesThe provider calculates, files and pays federal, state and local payroll taxesSource: Gusto (opens in a new tab)
Payroll in all 50 statesYesSource: Gusto (opens in a new tab)Simple covers one state; multi-state payroll starts on Plus.
Year-end W-2 and 1099 formsW-2 and 1099 prepared and filedSource: Gusto (opens in a new tab)
Paying 1099 contractorsAlso a contractor-only planSource: Gusto (opens in a new tab)Included in every plan at the per-person price, billed only in months you pay them; there is also a Contractor Only plan for businesses without W-2 employees.
Tax penalty guaranteePays penalties caused by its own errorsSource: Gusto (opens in a new tab)It covers penalties when Gusto fails to remit taxes or file on time on payrolls you submitted correctly. Penalties caused by wrong or incomplete information you gave are yours, and you must help reduce them.
Garnishments and new-hire reportingIncludedSource: Gusto (opens in a new tab)Garnishments are deducted on every plan; child-support payments are sent for you in all states except South Carolina.
Paying your team
Data pointValue
Pay schedulesWeekly, Every two weeks, Twice a month, MonthlySource: Gusto (opens in a new tab)
Unlimited pay runsYes()Source: Gusto (archived copy) (opens in a new tab)
Fastest direct deposit includedTwo business daysSource: Gusto Help Center (opens in a new tab)On Simple. New accounts start on 4-day pay. Next-day pay is included on Plus and Premium and is a $15 a month + $3 per person add-on on Simple, for accounts in good standing. Same-day ($90) and Instant Pay ($100 per payroll) only appear on eligible late or off-cycle payrolls.
Early pay for employees (earned wage access)Included at no cost to the employerSource: Gusto Help Center (opens in a new tab)Provided by Clair inside Gusto. Free for the employer; employees pay nothing for a 2 to 3 business day transfer and $4.50 to $4.99 for an instant one. The employer must qualify (2-day payroll, on-time payrolls) and can opt out.
Tips
Data pointValue
Imports tips from these POS systemsSpotOn, LightspeedSource: Gusto Help Center (opens in a new tab)SpotOn Teamwork syncs credit card and cash tips with hours. Gusto's Lightspeed article says tips edited on Lightspeed Restaurant U-Series (formerly Upserve) timecards sync to Gusto; it does not cover K-Series. Gusto's app directory lists no Toast, Square, Shift4 POS or Heartland integration, and its Clover integration syncs only names and emails.
Tip pooling and tip-outsThrough an integrationSource: Gusto Help Center (opens in a new tab)Gusto's tips article documents no pooling or tip-out tool of its own: you enter each employee's tips. Distribution happens in a connected tool such as SpotOn Teamwork.
Tip credit and minimum wage make-upCalculated automaticallySource: Gusto Help Center (opens in a new tab)You turn it on per hourly employee and pick the applicable minimum wage.
FICA tip credit (Form 8846)Gives you a report for itSource: Gusto Help Center (opens in a new tab)Gusto does not file Form 8846 or calculate the final credit; the report separates tips that may and may not qualify. Gusto says a pre-filled Form 8846 is in the works.
Declared cash tipsYesSource: Gusto Help Center (opens in a new tab)You enter cash tips in their own column when you run payroll.
2026 W-2 for No Tax on Tips (code TP and tipped occupation code)Confirmed in writingSource: Gusto Help Center (opens in a new tab)Gusto lists the 2026 W-2 boxes: 14b for the tipped occupation code and box 12 code TP for tips (TS for specified service businesses). It collects each tipped employee's occupation code in their compensation settings.
2026 W-2 for qualified overtime (code TT)Confirmed in writingSource: Gusto Help Center (opens in a new tab)
Service charges paid as wagesYesSource: Gusto Help Center (opens in a new tab)
State and local minimum wages built inYesSource: Gusto Help Center (opens in a new tab)For employees set up with the tip credit.
Integrations and time tracking
Data pointValue
POS integrations (hours or sales data)Clover, Lightspeed, SpotOn, OthersSource: Gusto Help Center (opens in a new tab)Clover syncs team names and emails both ways (no hours or tips). Lightspeed Restaurant U-Series (formerly Upserve) sends hours. SpotOn Teamwork sends hours and tips. Others: talech and Shopify. No Toast, Square, Shift4 POS or Heartland integration is listed in Gusto's app directory.
Time trackingPaid add-on or higher plan()Source: Gusto (archived copy) (opens in a new tab)On Simple, Time & Attendance Plus is a separate add-on: free trial, then $6 a month per person. Time tracking is included on Plus and Premium.
SchedulingPaid add-on or higher plan()Source: Gusto (archived copy) (opens in a new tab)Scheduling is part of Time & Attendance Plus, a $6 per person add-on on Simple.
Accounting integrationsQuickBooks Online, Xero, OthersSource: Gusto Help Center (opens in a new tab)Also QuickBooks Desktop, FreshBooks, Sage Intacct and others. NetSuite works through a general ledger export, not a direct integration.
Payroll engineThe vendor itselfSource: Gusto (opens in a new tab)
Benefits and insurance
Data pointValue
Health benefitsOffered and connected to payroll()Source: Gusto (archived copy) (opens in a new tab)Gusto's licensed brokers in all 50 states and D.C. Keeping your own broker costs $6 a month per eligible employee (free on Premium).
Workers' compensationPay-as-you-go connected to payroll()Source: Gusto (archived copy) (opens in a new tab)Insured by NEXT Insurance (ERGO NEXT), starting at $14 a month.
Contract and exit
Data pointValue
Initial termMonth to month()Source: Gusto (archived copy) (opens in a new tab)
Automatic renewalMonth to monthSource: Gusto (opens in a new tab)Month to month, with no renewal term.
Notice to avoid renewal0 daysSource: Gusto (opens in a new tab)You can close the account from inside it at any time; the month you cancel in is billed in full.
Early termination feeNoneSource: Gusto (opens in a new tab)Fees are not prorated: the month you cancel in is billed in full (Gusto may refund it if you cancel by the 5th and ran no payroll that month).
Early termination clauseNo early termination fee. Month to month; you can close the account at any time from inside it. Fees are not prorated, so the month you cancel in is billed in full, and fees already paid are not refunded.Source: Gusto (opens in a new tab)
Right to raise pricesGusto may change its fees at any time with at least 30 days' notice; using the service after the change means you accept it. It may change the terms themselves when it posts a new version (Employer Terms of Service).Source: Gusto (opens in a new tab)
Your records when you leaveYou can download them yourselfSource: Gusto Help Center (opens in a new tab)The account stays available in read-only mode after you cancel.
Support
Data pointValue
Support 24/7NoSource: Gusto Help Center (opens in a new tab)The help center and email are available around the clock; live people answer during the hours below.
Live support hours a week80Source: Gusto Help Center (opens in a new tab)Pacific Time: chat 5 a.m. to 5 p.m. Monday to Friday and 5 a.m. to 3 p.m. on weekends; phone is by callback, 5 a.m. to 5 p.m. Monday to Friday. Only chat on 2026 holidays. Priority Support ($30 + $3 per person on Simple) moves you up the queue.
Dedicated specialistNo()Source: Gusto (archived copy) (opens in a new tab)Simple gets basic support. A dedicated advisor comes only with Premium ($180 + $22 per person).
Language
Data pointValue
Employee app in SpanishNoSource: Apple App Store (Gusto Mobile listing) (opens in a new tab)Gusto Mobile lists English only, and Gusto's help center documents no Spanish option for the employee account, pay stubs or onboarding (we searched the employee setup, paystub and W-2 articles).
Owner's dashboard in SpanishNoSource: Gusto Help Center (opens in a new tab)Gusto documents no Spanish version of the admin dashboard; we searched its help center and site.
Pay stubs in SpanishNoSource: Gusto Help Center (opens in a new tab)Gusto's paystub article documents no Spanish version or language setting.
Support in SpanishNoSource: Gusto Help Center (opens in a new tab)Gusto's contact article lists chat, callback and email with no Spanish option.
Contract or terms in SpanishNoSource: Gusto (opens in a new tab)The employer terms and payroll terms are published in English only.
Website in Spanish for the USNoSource: Gusto (opens in a new tab)gusto.com/es exists, but only its page title is in Spanish; the content is in English.

More about Gusto Payroll

How we score