Gusto Secures A $10 Billion Valuation Tailwind As Its Hr Software Sails Toward Ipo

Categories: Bookkeeping


On June 12, 2013, announced support for paying contract workers, including making sure of tax compliance . This was touted by some technology writers as giving the company an advantage over competitors such as ADP and Paychex, whose payroll software was claimed to lack the flexibility to accommodate contract workers. The company also announced plans to launch services in Florida, Texas, and New York state. As a San Francisco-based startup that helps small businesses manage their payrolls, benefits and human resources, Gustois always up to date with the latest trends in work, technology and design. But Gusto’s benefits, tax and payroll tools proved essential to businesses that did survive, and the company added a tool to help distribute more than $4 billion in Paycheck Protection Program loans.

You can also revisit some of the data presented on the previous page, including the Payroll Journal Report, or cancel the payroll. You have to submit your own payroll taxes and filings to get those prices, though the sites do all the required calculations. QuickBooks Payroll costs between $45 and $125 per month , plus per-employee fees. Designed for small businesses, this cloud-based, all-in-one platform can be accessed from virtually anywhere through a web browser. Gusto, formerly ZenPayroll, doesn’t lock you into a contract, and if you need new features or aren’t using others, it’s easy to change your plan.

Next is Gusto Core, which is what was used for this review. Gusto Core costs $39 per month, plus $6 per employee per month. Core focuses primarily on payroll processing and its supporting records and tools, including benefits and links to integrated applications. We do have one other Editors’ Choice winner, which is Rippling. Like Gusto, it supports the most common capabilities needed for payroll and then some. The sheer volume of modules and features and options that it offers may be intimidating to very small or simple businesses that would be better served by Gusto. Rippling’s customizability, robust payroll and HR features, and third-party app integration make it a particularly smart choice for larger businesses with more than 10 employees.

That pension fund would likely be a big holder in the company down the road. So as Gusto moves into the public realm bringing on an ex-pension fund executive is a savvy move.

Statistics For Gusto

The site then helps you create and test a link to your bank account (submitted using a company signatory’s name and approval) and select a payroll schedule, which determines how often payroll is run and when. You can pay employees on different schedules, and pay runs are unlimited. You can even set up pay schedules by compensation type, employees, and departments. For anything you have to sign, Gusto supports online signatures. Higher tiers offer additional features, and add-on benefits can be used to further customize your plan. You have the flexibility to upgrade or downgrade your plan at any time. In June 2021, Gusto announced that it will now offer part of its service via an API to external platforms.

GustoMSC enables and supports safe and efficient operations at sea. This fits neatly in TechCrunch’s more general perspective that sharing more information, as opposed to less, would be good not merely for our ability to cover the startup market, but for the companies themselves. Stellar support and expert advice are here when you need it-by phone, email, or chat. Employees can deposit their paycheck or funds from another account and automatically split paychecks into optional Gusto spending and savings accounts—or external ones. As mentioned, there’s a Gusto debit card to withdraw cash and make purchases. Employees can also create up to five savings goals and have a specified amount of money deposited to them automatically. The issuing financial institution is an NBKC bank, Member FDIC.

What You Get With Gusto:

There are no mobile apps, but it works on a mobile web browser. Payroll websites require a lot of information in a small space, the rows that contain the actual payroll data. Most sites limit the type of data that are contained in each column, so you sometimes have to scroll sideways. Gusto deals with the problem by putting multiple types of data in each column. Data labels are written out completely when you first open the screen, but they turn to initials once you enter a number.

After you provide Gusto with some basic information, you can get a feel for the product through an interactive demo. Unlike some of its competitors, Gusto doesn’t charge a setup fee. When creating your initial payroll account, you can tackle the online setup process yourself, or you can request free payroll setup assistance from Gusto. This may influence which products we review and write about , but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services.

  • Click Submit payroll, and the confirmation page appears, displaying the debit amount and date as well as employee pay date and total payroll.
  • An analyst commenting on Gusto used the same 30 million SMBs in the U.S. as Gusto’s addressable market.
  • Now Gusto is aiming to leverage its growth to prepare for an initial public offering.
  • Automated payroll is becoming more common on these sites, and Gusto offers it, as does Rippling.
  • Higher tiers offer additional features, and add-on benefits can be used to further customize your plan.
  • You prepare this report by selecting the columns you want to appear from a few dozen options, like employment type and payment method.

Taxes are calculated, filed and paid to federal, state and local agencies at no additional cost. The gondola and instruments carried by the balloon have an approximate mass of 2,000 kg and measures about 6 m wide by 6 m height (20 ft × 20 ft). The telescope has a 90 cm mirror, which will direct Gusto light to a series of superconducting detectors contained inside a cryostat that will keep them at −269 °C (−452 °F). The round was led by CapitalG, Dragoneer Investment Group, T. Rowe Price and Y Combinator, followed by Kleiner Perkins, General Catalyst, Emergence, SWS Venture Capital, etc.

Product Design

Gusto, which ranks 25th on the 2021 Forbes Cloud 100 list, also bought two companies this summer — tax compliance software firm Ardius and Symmetry, which provides tax calculation software — and is in talks for more acquisitions. Today, as we write this the two major players that Gusto competes with collectively carry a $132 billion valuation. At a $10 billion valuation, that is less than 10% of the ADP/Paychex valuation. At 200,000 customers, the company has about one-eighth as many customers as the two leading players have. So if you’re looking for a disruptive play in the payroll and human capital space, Gusto may well be it. The most efficient solution possible needs to be found for our existing operations at sea, while new challenges call for innovative ideas. Our designs of Mobile Offshore Units and equipment are based on decades of experience and an in-depth knowledge of all the technical and operational aspects involved.

That Gusto is raising money as an extension of its Series E, implying that it added the capital at a flat valuation to its 2021 raise, should not be considered a negative sign. Gusto automatically calculates, pays, and files your federal, state and local payroll taxes, as well as W-2s, 1099s, and new hire forms. There are occasional dedicated links within the site, like when you open the payroll-processing section, for example.

The least expensive is Gusto Contractor, which offers unlimited U.S.-based and global contractor payments, supporting more than 100 countries, plus 1099 creation and filing at a rate of $6 per person per month with no base price. Roll by ADP is a chat-based, mobile payroll app that offers unlimited payroll in all 50 states. Gusto gives your employees the ability to manage many tasks themselves, through their own Gusto employee portal and the Gusto Wallet app. Employees can complete onboarding paperwork, select benefits and access pay stubs and other records through the portal on their own. In 2020, Gusto has built more than 50 new products in the last year directed toward helping small businesses.


Payroll is no one’s favorite accounting task, and anything you can do to make the user experience more pleasant is welcome. Gusto offers the best user interface and navigation system of any service I’ve reviewed. Its use of space and choice of fonts, graphics, and color are excellent. The site’s layout and navigation tools make a lot of sense, too. Benefits administration is standard on all the payroll websites we’ve reviewed, but some sites excel at it. If your company has existing benefits providers, you can transfer their management to Gusto, which simplifies payroll deductions and eliminates the need to use multiple platforms and support teams.

If you find discrepancies with your credit score or information from your credit report, please contact TransUnion® directly. Starts at $35 per month, plus $5 per person, while Gusto starts at $39 per month, plus $6 per person. Like Gusto, Square Payroll offers unlimited payroll runs, automatic payroll tax filing and help managing employee benefits. And similar to QuickBooks, Square has an Instant Payments option that allows you to pay employees the same day using its Cash App. In July 2015, Gusto announced that it had expanded its business and opened a new office in Denver, Colorado. In September 2015, it was announced that ZenPayroll had changed its name to Gusto, and was broadening its focus to integrate health benefits and workers’ compensation into its payroll software. In 2016, the firm launched an ad campaign featuring Kristen Schaal playing a Gusto human resources representative.

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Gusto simplifies the process through its exceptionally friendly user interface and by offering free assistance from company specialists. Every competing service we’ve reviewed also offers such support, and they all request similar standard data. Rippling does the best job of importing historical data from specific competitors. Gusto (legally ZenPayroll, Inc.) is a company that provides a cloud-based payroll, benefits, and human resource management software for businesses based in the United States. Gusto handles payments to employees and contractors and also handles electronically the paperwork necessary to help client companies comply with tax, labor, and immigration laws. When both employee and employer have completed their portions of the employee records, the result is impressive.

Our experience and knowledge also enable us to provide engineering services during the operational support phase of our designs and equipment. Old-school payroll and HR aren’t built for the way you work today. That’s why 9 out of 10 customers say Gusto is easier than other payroll providers. In fact, more than 40,000 organizations nationwide choose Gusto because it’s refreshingly easy-to-use, friendly, expert customer service, and is loved by both employers and employees.

Current Job Openings At Gusto

Supports church payroll needs with pastor housing allowances and tax exemptions. New employees self-onboard entirely online, reducing errors and paperwork.


Companies that need even more functionality, like built-in time and project tracking and user permission levels, need to upgrade to the more-expensive Complete version, however. For its very friendly, understandable approach to a rather unfriendly process, Gusto once again earns an Editors’ Choice award. The admin mobile site opens to your Dashboard, and a link opens the site’s menu, which is exactly the same as on the desktop. Sometimes you have to scroll right and left on either to see content that appears horizontally on the desktop—or you can just turn the phone sideways to see more. Depending on whether you use the employee or admin version, you’ll have to do some maneuvering to see all the data on content-heavy screens like reports and pay stubs. Once you finish your payrolls, you may occasionally want to look them over and analyze the data. You can view them directly or download them as a CSV or PDF .

The Time Off page displays how many PTO hours each individual has remaining. Having this information here is helpful, as it can save you a trip to another section of the site. ADP, which offer expanded benefits through professional employer organizations, or PEOs. If you prefer completing tasks on your own, Gusto also provides an extensive online help center, checklists, videos and FAQs.

Again, almost every competing application includes these elements, too. The main difference lies in their execution, and Gusto’s is excellent. Gusto also helps you set up workers’ compensation, providing estimates to help you choose a plan, and then automatically sending payments each period. The final step in the setup wizard involves selecting the right Gusto plan for your business. Up until this point, you don’t pay anything, and Gusto saves any data you’ve entered as you go.

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Employees can get advances on their paychecks through the company’s Cashout program, available in 45 states at this writing. Individuals can request up to 40% of their estimated net wages for the next pay period (maximum $500) and get the cash as soon as the next day—or instantly with a Gusto debit card .

The action you just performed triggered the security solution. There are several actions that could trigger this block including submitting a certain word or phrase, a SQL command or malformed data. One of the first company’s we wrote about when we began covering the SaaS space was Gusto. The company continues its aggressive drive forward this week with a fresh $175 million in funding at a valuation of nearly $10 billion. The Series E round pushes their total raise to just under $700 million since the company launched eight years ago.