Gusto Review: The Best Payroll & HR Software for Small Business (2026)
- Alchemy Effect LLC
- Jan 1
- 4 min read
Why We Switched to Gusto: The Ultimate Payroll & HR Solution for Modern Businesses
Let’s be honest: You didn’t start your business because you were passionate about calculating payroll taxes or navigating state compliance laws.
For most small business owners and startups, payroll is a source of anxiety. It’s time-consuming, the penalties for mistakes are high, and the old-school legacy providers (like ADP or Paychex) are often clunky, expensive, and difficult to use.
At Alchemy Effect, our mission is to streamline operations and leverage technology to make business easier. That is why we don't just recommend Gusto. We rely on it.
If you are looking to automate your payroll, simplify employee onboarding, and offer Fortune 500-level benefits without the headache, this in-depth Gusto review is for you.
A Comprehensive Gusto Review: What is Gusto, and Why We Love It
Gusto (formerly ZenPayroll) is a cloud-based payroll, benefits, and human resource management software designed specifically for modern small businesses. Unlike traditional payroll providers that rely on manual entry and outdated interfaces, Gusto is "people-centric." It is designed to be intuitive, friendly, and shockingly easy to use.
It currently serves over 300,000 businesses, handling everything from:
Full-service payroll: Automated tax filings and payments.
Employee benefits: Medical, dental, vision, and 401(k).
HR Tools: Time tracking, hiring & onboarding, and compliance.
Breaking Down Our Gusto Review: The Top 5 Reasons We Recommend It
1. "Auto-Pilot" Payroll & Tax Filing
This is the killer feature. With Gusto, you don't need to be a tax expert.
Automatic Filings: Gusto calculates, pays, and files your federal, state, and local payroll taxes automatically.
Unlimited Payrolls: Run payroll as many times as you need (bonuses, off-cycle payments) without extra fees.
The "Auto-Pilot" Mode: Once you have your team set up, you can set payroll to run automatically. You get an email reminding you it's about to happen, and if you don't need to make changes, it just runs.
2. Employee Self-Onboarding
Remember the days of handing a new hire a stack of paper forms (W-4s, I-9s, direct deposit slips) and manually typing that data into a system?
Gusto eliminates that entirely. You simply enter the new hire's name and email. Gusto sends them a beautiful welcome email, and they enter their own data, sign their tax forms digitally, and set up their bank info. It saves you hours of administrative work per hire.
3. Integrated Benefits & 401(k)
Offering health insurance used to be a nightmare for small shops. Gusto acts as your broker. They guide you through selecting a plan that fits your budget and handle the carrier enrollment.
They also integrate with 401(k) providers (like Guideline) so contributions are deducted from payroll automatically. No manual spreadsheets required.
4. Contractor Management
The modern workforce is a mix of W-2 employees and 1099 contractors. Gusto handles both seamlessly. You can pay contractors in the same system, and at the end of the year, Gusto automatically generates and emails them their 1099-NEC forms.
5. Seamless Integrations
As a tech-forward company, Alchemy Effect values the ecosystem. Gusto integrates perfectly with:
Accounting: QuickBooks Online, Xero, FreshBooks.
Time Tracking: TSheets, Homebase, and built-in Gusto time tracking.
Collaboration: Slack and Google Workspace.
Gusto Pricing Review: Transparent and Fair
One of the biggest complaints about legacy payroll providers is hidden fees. Gusto is transparent.
Simple: Base price + a small fee per person.
Plus: Adds advanced HR tools, time tracking, and next-day direct deposit.
Premium: For scaling teams needing dedicated support and HR resource centers.
There are no setup fees, and you can cancel anytime.
Gusto Review: How it Stacks Up Against the Competition
Feature | Gusto | QuickBooks Payroll | ADP / Paychex |
Ease of Use | ⭐⭐⭐⭐⭐ (Best in Class) | ⭐⭐⭐ | ⭐⭐ |
Auto-Tax Filing | Included in all plans | Extra cost usually | Complex tiered pricing |
Interface | Modern & Intuitive | Cluttered | Outdated |
Support | Phone, Chat, Email | Hard to reach | Dedicated rep (expensive) |
The Verdict: If you are a small to mid-sized business (1–100 employees), Gusto wins on user experience and automation hands down.
The Alchemy Effect Gusto Review: Boosting Your Operational Efficiency
At Alchemy Effect, we talk a lot about "operational efficiency." Your tech stack should work for you, not create more work.
Moving to Gusto is often the first step we recommend to clients who feel overwhelmed by admin tasks. By automating the back office, you free up mental bandwidth to focus on growth, marketing, and product development. The things that actually make you money.
Ready to Ditch the Payroll Headache? Our Final Gusto Review Recommendation
If you are still using spreadsheets, or if you are overpaying a legacy provider for a clunky interface, it is time to switch.
Gusto makes the switch incredibly easy. They will even help migrate your data from your old provider.
Use our referral link below to sign up. When you run your first payroll, you will often receive a Visa Gift Card (terms apply) just for trying it out.
Disclaimer: Alchemy Effect LLC is an affiliate partner of Gusto. We may earn a commission when you use our link, at no extra cost to you. We only promote tools we actually use and believe in.
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