by Jackie Navarrete
Running a small business is a juggling act. Between managing employees, keeping customers happy, and staying on top of finances, the last thing you want is a complicated, outdated payroll system slowing you down. That’s where Gusto comes in—Gusto is the best payroll system and a game-changer.
In the world of payroll solutions, Gusto stands out as the best payroll system for small businesses. It’s modern, user-friendly, and packed with features designed to make your life easier, whether you’re a team of 2 or 200.
Let’s break down exactly why Gusto is a small business favorite, and why it might just be the secret weapon you need to streamline your operations and boost employee happiness.
What Is Gusto?
Before we dive into the nitty-gritty, here’s a quick intro for those new to the platform.
Gusto is a cloud-based payroll, benefits, and human resource management software designed for small and medium-sized businesses. It automates the boring stuff—like tax filings, direct deposits, and benefits enrollment—so you can focus on growing your business, not buried in spreadsheets.
Gusto isn’t just a payroll tool. It’s a full-service platform that covers:
- Payroll
- Employee benefits
- Time tracking
- HR tools
- Onboarding and compliance
Now let’s talk about why Gusto truly shines.
Why Small Businesses Love Gusto
1. Incredibly Easy to Use
One of the biggest selling points of Gusto is its intuitive interface. You don’t need to be a CPA or tech wizard to use it. Setup is straightforward, and once you’re in, everything is organized in a clean dashboard that makes running payroll a breeze.
New employee? You can onboard them digitally.
Need to run payroll on a Friday afternoon? Click, click, done.
2. Full-Service Payroll Done Right
Gusto’s payroll processing is truly full-service. Here’s what that means:
- Automatic tax filings: Gusto calculates, files, and pays federal, state, and local payroll taxes on your behalf.
- Direct deposit and paper checks: Choose how your team gets paid.
- W-2s and 1099s: Automatically generated and filed for employees and contractors.
- Unlimited payroll runs: Pay your team as often as you like at no extra cost.
Unlike some platforms that nickel and dime you for every feature, Gusto gives you all the essentials (and then some) right out of the gate.
3. Affordable for Small Teams
Gusto hits the sweet spot by offering transparent pricing that scales with your business. Here’s a quick peek at their plans (as of 2025):
- Simple Plan: $40/month + $6 per employee
- Plus Plan: $80/month + $12 per employee
- Premium Plan: Custom pricing for larger teams
No hidden fees, no surprise charges—just straightforward pricing that lets you plan ahead.
4. Integrated Benefits Administration
If offering benefits sounds expensive or complicated, Gusto makes it doable—even for the smallest of teams.
Through Gusto, you can offer:
- Health, dental, and vision insurance
- 401(k) retirement plans
- Commuter benefits
- Life and disability insurance
- HSAs and FSAs
The best part? Gusto handles all the paperwork and compliance, and you only pay for what you offer. Employees can manage their own benefits in their portal, saving you time and questions.
5. Built-In HR Tools (That Don’t Feel Overwhelming)
Gusto makes it feel like you have an HR team—without actually hiring one.
You’ll get:
- Custom onboarding checklists
- Employee self-service
- Org charts and directories
- Time-off tracking
- Compliance alerts
- Job offer letters and e-signatures
And if you upgrade to higher-tier plans, you even get access to certified HR pros for real-time help.
6. Employee Self-Onboarding and Mobile Access
Time is money, and Gusto saves you both.
When you hire someone new, just send them an invite and Gusto guides them through tax forms, direct deposit setup, and benefit enrollment—all online.
Plus, employees can log into their own portal to view:
- Pay stubs
- Benefits
- Time-off balance
- Tax documents
No more printing out paychecks or chasing down signatures.
Real Small Businesses, Real Results
Over 300,000 small businesses already use Gusto—and they’re not shy about it.
️ “Gusto made it so easy to manage our payroll that I actually look forward to payday.”
️ “Switching to Gusto saved us hours of admin time every week—we don’t know how we lived without it.”
️ “Our team loves the benefits and having control over their own info. It’s a win-win.”
And Gusto consistently ranks at the top of third-party review sites:
- ⭐ 4.7/5 on G2
- ⭐ 4.6/5 on Capterra
- ⭐ Top pick by NerdWallet, PCMag, and The Blueprint
Gusto vs. The Competition
Let’s compare Gusto to a few other major payroll providers:
| Feature | Gusto ✅ | ADP ❌ | Paychex ❌ |
|---|---|---|---|
| Transparent Pricing | Yes | No | No |
| Self-Onboarding | Yes | Yes | Yes |
| Built-In HR Tools | Yes | Add-on | Add-on |
| Employee Benefits Integration | Yes | Yes | Yes |
| Ideal for Small Businesses | Absolutely | Not really | Nope |
Gusto isn’t a bloated corporate system. It was built from the ground up with small business owners in mind—and it shows.
Final Thoughts: The Best Payroll System for Small Businesses
If you’re searching for the best payroll system for small businesses, Gusto checks all the boxes:
- Affordable
- Powerful
- Easy to use
- Trusted by small businesses everywhere
From payroll to benefits and everything in between, Gusto simplifies the backend so you can focus on what matters most: your people and your purpose.
Thinking about making the switch? Try Gusto free for 30 days and see the difference for yourself. It might just be the smartest (and easiest) decision you make this year.
For more insights like this, keep up with the VMS blog—where small business meets big tech without the fluff.
