Payroll Software 2026
Gusto Payroll
Gusto Payroll is full-service payroll software built for small and growing businesses. It runs payroll in minutes, files your payroll taxes automatically, and pays your team by direct deposit. This is the complete overview: what Gusto does, how it works, what it costs in 2026, and how to knock $300 off your start.
What is Gusto Payroll?
Gusto is a cloud-based payroll and HR platform used by more than 300,000 businesses. "Full-service" means Gusto doesn't just calculate paychecks — it files and pays your federal, state, and local payroll taxes for you, handles year-end W-2s and 1099s, and keeps you compliant as tax rules change. You can pay both W-2 employees and 1099 contractors from the same account, with unlimited payroll runs on every paid plan.
How Gusto Payroll works
Running payroll on Gusto takes a few minutes:
- Add your team. Enter each employee or contractor once — their pay rate, tax details, and direct-deposit info. Employees can onboard themselves.
- Connect your bank. Gusto pulls funds and sends direct deposit, so you don't cut checks.
- Run payroll. Gusto calculates gross pay, withholds federal income tax, Social Security, Medicare, and any state or local taxes, and shows you the exact cost before you submit.
- Gusto files the taxes. After each run, Gusto files and pays the withheld payroll taxes to the right agencies automatically.
Want to see the math on a single paycheck? Try our free Gusto payroll calculator to estimate take-home pay after federal, state, and FICA taxes, or find your state paycheck calculator.
Gusto Payroll features
| Feature | What you get |
|---|---|
| Full-service payroll | Unlimited payroll runs for employees and contractors, across all 50 states |
| Automatic tax filing | Federal, state, and local payroll taxes calculated, filed, and paid for you |
| Direct deposit | Standard, next-day, and same-day options depending on plan |
| Benefits | Health insurance, 401(k), workers' comp, and more, integrated with payroll |
| Year-end forms | W-2s and 1099s generated and filed automatically |
| Employee self-service | Team members onboard themselves and access pay stubs and tax docs online |
How much does Gusto Payroll cost?
Gusto uses transparent, published pricing: a flat monthly base fee plus a per-person fee. The Simple plan starts around $40/month + $6 per employee, and Plus is about $80/month + $12 per employee with multi-state payroll and next-day direct deposit. Every paid plan includes automatic tax filing at no extra cost. See the full breakdown on our Gusto pricing page.
When does Gusto direct deposit hit?
Gusto direct deposit generally arrives by 5:00 PM local time on payday, and often first thing in the morning depending on your employee's bank. Businesses on faster plans can enable next-day or same-day direct deposit. More detail in our FAQ on what time Gusto direct deposit hits and whether Gusto pays early.
How Gusto compares to other payroll providers
Gusto competes with ADP, QuickBooks Payroll, Rippling, Paychex, and others. Its edge for small businesses is transparent pricing and included tax filing, where several competitors quote custom pricing or charge add-ons. Compare them side by side on our payroll comparison chart, or read the head-to-heads like Gusto vs. ADP and Gusto vs. QuickBooks.
How to save $300 on Gusto Payroll
New customers can earn a $300 Visa card (up to $600 for teams of 10 or more) for running their first payroll with Gusto. The offer is active and verified for 2026 — see the details on our 2026 Gusto promo code page.