Gusto Problems & Issues
SaasThe all-in-one people platform for payroll, benefits, and HR
Gusto has a modern interface and works well for very basic payroll. However, customer support is consistently terrible, making corrections is nearly impossible, and payroll errors do occur. Growing companies find per-employee pricing expensive compared to flat-rate alternatives.
Overview
Payroll and HR platform for small businesses. G2: 4.6/5 from 7,000+ reviews. Trustpilot: Mixed reviews with complaints about support. Users praise ease of use for basic payroll but report customer service issues, payment problems, and difficulty making corrections. Recent price increases in 2026.
Signals & Issues
Patterns extracted from real user feedback — not raw reviews.
Users report customer service is slow to resolve problems, sometimes taking 24 hours to reply to a single question, with full conversations stretching over a month. Phone support is limited and tickets logged by phone often disappear. Free users are stuck with chatbots.
Gusto is very easy if you never have to talk to support, but if you do, you talk to someone who cannot answer your question and will not transfer you to someone who will. Users describe support as a 'waste of time' that does not provide needed assistance.
Customer support has declined significantly. Tickets logged by phone disappear and online tickets are not being taken on. Users report going weeks without resolution on critical payroll issues.
Multiple users report money withdrawn from company accounts that never reached employees. Gusto told customers funds would be returned but never did. Critical payroll failures that directly impact employee compensation and trust.
Customers report mistakes in tax account information including incorrect EIN number transcription preventing tax payments from being credited properly. Some users discovered Gusto filed taxes incorrectly, leading to IRS issues.
Users report issues with unexpected debits, delays in receiving funds, and difficulties in rectifying billing errors. Some experienced double charges or incorrect amounts withdrawn from business accounts.
What used to be an easy, intuitive platform has become unusable for anything other than basic payroll. Need to make a correction? Everything has to be a support issue and they honestly cannot fix simple things. Users describe it as a nightmare to navigate changes.
When running off-cycle payroll or multiple payrolls per month, Gusto does not track hours properly and fails to track employees' weekly hours when paying monthly. This causes issues with overtime calculations and compliance.
The user interface for employees can be somewhat clunky at times. The software becomes sluggish and unresponsive, particularly when processing large volumes of data. Users report frustration with navigating basic tasks.
As of March 2026, Gusto increased Simple plan from $40 to $49/month (22.5% increase). Add-ons can raise costs by $10-30 per employee each month. Small businesses often see a $49 plan turn into $100+/month once features are enabled.
Customers report being charged the full month's fee after canceling without running any payroll. Gusto charges for the full month regardless of when you cancel, with no prorated refunds for early cancellation.
Gusto gets pricey depending on employee count. Plus plan is $80 base + $12/employee/month. A 20-person company pays over $320/month ($3,840/year). Premium plan reaches $180 base + $22/employee for larger teams.
Some employees have found it difficult to customize their withholdings properly. The system lacks flexibility for non-standard payroll scenarios and custom deduction configurations.
Contractors have a limit on how many payments per month they can receive, which has caused delays for some users. This is problematic for businesses with frequent contractor payouts.
What Users Love
Very easy to set up and run basic payroll
Gusto excels at simplicity for basic payroll. Most users can get started quickly and run payroll in minutes. The interface is clean and intuitive for standard pay runs without complications.
Automated tax filing saves significant time
Gusto automatically calculates, files, and pays federal, state, and local payroll taxes. For businesses without dedicated HR staff, this automation is a major time-saver and reduces compliance risk.
Employee self-onboarding is seamless
New hires can complete onboarding themselves including tax forms, direct deposit, and benefits enrollment. Reduces administrative burden on small business owners significantly.
Strong integration with accounting software
Gusto integrates well with QuickBooks, Xero, and other accounting platforms. Automatic syncing reduces manual data entry and reconciliation work for bookkeepers.
Modern, user-friendly interface
Compared to legacy payroll providers like ADP and Paychex, Gusto has a much more modern and user-friendly interface. Small business owners without payroll experience can navigate it easily.
Timely reminders for payroll and compliance deadlines
Users praise Gusto for sending timely reminders about payroll deadlines, tax filings, and compliance requirements. Helps prevent missed deadlines and penalties.
Pricing Plans
Users: Per employee: $6/month
Storage: N/A
Limitations: Single state only, No next-day direct deposit, No time tracking, No PTO management, Limited HR tools
Users: Per employee: $12/month
Storage: N/A
Limitations: No dedicated CSM, No priority support, No compliance alerts, No HR expert access
Users: Per employee: $22/month
Storage: N/A
Limitations: Requires larger budget, May be overkill for simple payroll needs
Users: Per contractor: $6/month
Storage: N/A
Limitations: No W-2 employee support, Contractor payment frequency limits, No benefits
Users: Per international employee
Storage: N/A
Limitations: Only available through Gusto Global, Additional setup requirements
Features
Payroll
- Full-Service Payroll
Core feature, works well for basic runs
- Automatic Tax Filing
Federal, state, local - but errors reported
- Direct Deposit
Next-day on Plus plan only
- Multi-State Payroll
Plus plan required
- Contractor Payments
Separate plan or add-on
Compliance
- 1099 Filing
End of year filing included
- W-2 Filing
Automatic year-end filing
- Compliance Alerts
Premium plan only
HR
- Employee Self-Onboarding
Strength - very easy for new hires
- Benefits Administration
Health, dental, vision, 401k options
- PTO Management
Plus plan required
- Time Tracking
Plus plan required, basic functionality
Integrations
- QuickBooks Integration
Well supported
- Xero Integration
Well supported
Support
- Dedicated CSM
Premium plan only
Platforms
- Mobile App
iOS and Android
Developer
- API Access
Available for integrations
Who Should Use This?
Good Fit
Very small businesses with straightforward payroll
If you have 1-10 employees in one state with standard W-2 payroll, Gusto works well. Automated tax filing and easy onboarding justify the cost.
Startups valuing modern UX over traditional providers
Compared to ADP, Paychex, and legacy providers, Gusto has a dramatically better user interface. For tech-savvy founders, the experience is refreshing.
Businesses needing contractor-only payments
The contractor-only plan at $35/month + $6/contractor is competitive for businesses that only pay 1099 contractors. First 6 months have no base fee.
Neutral
Growing companies watching costs
Per-employee pricing adds up quickly. A 30-person company on Plus plan pays $440/month ($5,280/year). Compare with competitors that offer flat-rate pricing.
Multi-state employers
Multi-state payroll requires the Plus plan ($80 + $12/employee). Works well once set up, but initial configuration can be complex and support is limited.
Avoid
Businesses that need frequent payroll corrections
Making corrections is extremely difficult and requires support tickets. If you often need to fix errors, add bonuses, or adjust payments after the fact, Gusto will frustrate you.
Companies running multiple payrolls per month
Gusto does not track weekly hours properly when paying monthly or running off-cycle payroll. This causes overtime calculation issues and compliance problems.
Businesses that need responsive support
Customer support is consistently criticized as slow, unhelpful, and difficult to reach. If you need quick answers to payroll questions, you will be disappointed.
Regret Patterns
Common buyer's remorse scenarios reported by users.
Users praise Gusto initially for ease of use. The real problems surface when something goes wrong - support takes days to respond, cannot fix issues, and you are stuck with payroll problems affecting employees.
Users commit to Gusto before discovering Rippling, OnPay, or other alternatives with better support and pricing. Annual billing makes switching mid-year costly.
Businesses budget based on current pricing, then face unexpected increases. The 2026 price hike caught many off guard. Per-employee costs compound as the company grows.
Users trusted Gusto's automated tax filing, then discovered errors months later when IRS notices arrived. Fixing tax issues with slow Gusto support adds stress and potential penalties.
Money withdrawn from company account never reached employees. Explaining to staff that their paycheck is missing due to Gusto errors destroys employer credibility. Some never recovered the funds.
Users realize too late that making corrections is nearly impossible. A simple bonus or adjustment turns into weeks of support tickets. What should take minutes takes days.
When It Breaks Down
Scenarios where this product tends to fail users.
Something was entered wrong and you need to fix it before payday. Support takes days to respond. Making direct corrections is nearly impossible. Employees end up with wrong amounts.
Money left your account but the employee did not get paid. Support is slow to respond and cannot explain where the money went. You need to pay the employee out of pocket while waiting for resolution.
You need to run an extra payroll mid-month. Gusto does not track weekly hours across pay periods, causing overtime miscalculations. Employees may be underpaid and you face compliance risk.
Costs escalate rapidly. A 30-person company on Plus pays $440/month. You start comparing to competitors with flat-rate pricing and realize you are overpaying significantly.
You receive an IRS notice about unpaid taxes or incorrect filings. Gusto support takes weeks to investigate. You may owe penalties while waiting for Gusto to admit and fix their error.
You hire your first out-of-state employee and realize you need to upgrade to Plus plan. Setup is complex, support cannot help quickly, and you face compliance deadlines.
It is payday and you have a critical question. Support takes 24+ hours to respond. Phone support is unavailable or unhelpful. You are forced to make decisions without guidance.
Alternatives Users Switch To
Rippling
8x mentionedUsers switch for better automation, IT/device management integration, and unified HR platform. Rippling combines payroll, IT, and HR into one system with stronger automations.
ADP Run
7x mentionedUsers switch for more robust support and enterprise-grade compliance. ADP offers 24/7 support and decades of payroll expertise, though at higher cost.
Paychex Flex
6x mentionedUsers switch for 24/7 access to certified HR professionals, stronger compliance dashboards, and retirement plan management. Better for mid-size companies.
OnPay
5x mentionedUsers switch for simpler flat-rate pricing and efficient labor cost analysis. Good for small companies up to 200 employees that want transparent pricing.
QuickBooks Payroll
5x mentionedUsers already on QuickBooks switch for seamless integration. Native payroll within their existing accounting system reduces complexity and duplicate data entry.
Frequently Asked Questions
See how Gusto compares in our Best HR Software rankings, or calculate costs with our Budget Calculator.
Work at Gusto or spotted something outdated? Suggest a correction — we verify every change against public sources. See our methodology.