Payroll shouldn’t feel like a second job, but most payroll software makes it one. Between tax forms, benefits administration, and trying to keep employee info organized, small teams often end up juggling five tools to do one job. That’s what led me to test Gusto payroll software side by side with newer HR tools like Thrivea.

In this Gusto review, I’ll break down what Gusto gets right, where it falls short, and when an alternative might be the better move. If you’re deciding between Gusto and something more flexible, this will help you skip the sales fluff and get straight to what matters.

Gusto overview

I’ve been digging into Gusto payroll for a while now to help small business owners figure out if it’s the right fit. Gusto is a payroll software and HR tool built mostly for businesses in the United States. It started in San Francisco and now serves hundreds of thousands of companies. 

Gusto combines payroll, employee benefits, hiring tools, and HR features all in one place. You don’t need separate systems or to switch between apps; Gusto handles most of the core functionality you need to manage a team.

At its core, this platform helps with running payroll, onboarding new employees, and handling common HR tasks like tracking time off or managing health benefits. If you’re a small business owner who wants to skip paperwork and let software do the heavy lifting, that’s where Gusto shines. 

It does way more than sending paychecks; Gusto helps with benefits administration, performance management, and tax filings. There’s even the Gusto Wallet app that gives employees more control over their money.

Gusto pros

Gusto has some clear advantages, especially if you’re running a small business and want to automate payroll and HR without hiring an HR professional.

• All-in-one tool. Gusto combines payroll management, employee benefits, and HR tasks in one place, so you don’t need multiple systems.
• Simple to use. The dashboard is easy to understand. Running payroll or setting up onboarding tools doesn’t take more than a few clicks.
• Strong customer support. You get solid help from Gusto’s team, especially on higher plans. I didn’t run into long waits or confusing answers.
• Built for small businesses. Gusto was clearly made with small business needs in mind, from quick setup to tools like the Gusto Wallet and automatic tax filing.
• Modern employee features. Employees get access to features like Gusto Wallet, early paydays, and paperless onboarding. It makes your business look more professional.

Gusto cons

It’s true, Gusto does a lot right, but there are some downsides to consider before you purchase a plan that suits your needs:

• Costs add up fast. The base plan looks affordable, but once you start adding time tracking, performance reviews, or extra HR tools, your monthly bill climbs.
• Limited global support. Gusto Payroll is designed for the United States. If you need to hire full-time employees abroad, you’ll need Gusto Global, which costs much more.
• Basic HR software. Gusto’s HR resource center and HR features work for basic needs, but it’s not as deep as a full HR software suite.
• The contractor plan is stripped down. If you’re using the contractor-only plan, you won’t get access to most features, like benefits or detailed reports.
• No free plan or trial. You have to pay from day one. There’s no way to test the tool first unless you go through the setup and commit for a month.

Gusto features

Gusto offers a full stack of features to help with payroll tasks, employee management, and HR. I’ve broken down the core functionality here so you can see exactly what you’re getting with this tool.

Full-service payroll

Gusto Payroll is the core of the platform. You can use it to pay both employees and contractors with just a few clicks. You can run payroll as often as needed each month, without limits or extra charges. It files all payroll taxes automatically, including federal, state, and local forms like W-2s, 1099s, 940s, and 941s. If you’re a small business owner, this takes a huge burden off your plate. 

The tool handles wage calculations, overtime, reimbursements, bonuses, and even supports multiple pay schedules. Running payroll with Gusto means I don’t need to worry about deadlines or tax mistakes. Compared to other payroll software like QuickBooks Payroll, Gusto feels easier to manage day-to-day.

Employee benefits

Gusto simplifies employee benefits by letting you offer health benefits, vision, dental, and life insurance without using a separate platform. You can also add 401(k) plans, FSAs, HSAs, and commuter perks. 

The best part is that benefits administration is built into payroll. That means all deductions are handled automatically, and you don’t need to manually update anything. 

If you don’t want to use Gusto as your broker, you can still connect your current one (for a fee). Offering good benefits helps with employee management and retention, especially when you’re growing a team.

Hiring and onboarding tools

Gusto includes basic onboarding tools like offer letters, digital forms (W-4, I-9), and e-signatures. You can send digital offer letters, get forms signed electronically, and even build checklists. The employee fills out all their info themselves, which cuts down on mistakes. 

Gusto also handles new hire reporting for you. It’s not a full recruiting platform, but for most small businesses, it covers the basics well. This part of Gusto helps a lot with early HR tasks when you’re building your team.

Time tracking and PTO

On the Plus and Premium plans, Gusto gives you built-in time tracking. You can let your employees clock in and out using the mobile app or browser. They can also request PTO and see their balances anytime. Once time is approved, it feeds straight into payroll, which saves a lot of hours each month. 

You can also set rules for overtime, breaks, and holidays. If you’re not using Gusto’s time tools, it connects with other apps like Homebase and Deputy. As a small business owner, having this all-in-one payroll service reduces errors and manual work.

Performance reviews and HR tools

Gusto’s performance management tools come in handy when you want to run feedback cycles or check in with team members. You get templates for manager reviews, peer feedback, and self-evaluations. 

You can also use the HR resource center for templates and compliance guides. It’s not a full HR software suite, but it covers most HR tasks that small businesses deal with weekly. 

If you’re not ready to hire an HR professional, Gusto’s built-in HR features can keep things running smoothly as your business grows.

Financial tools: Gusto Wallet

The Gusto Wallet app is one of the standout features for employees. It gives them a way to access their pay, save money, split deposits, or even get early access to funds. 

I’ve seen employees use this to handle bills or build savings. It’s a small perk, but it makes businesses feel more modern and employee-focused. 

Gusto Wallet connects directly to the payroll system, so you don’t need to manage anything extra. It’s an easy way to boost financial wellness across the team.

International contractor payments

With Gusto Global, you can pay contractors in over 100 countries. It works well for freelance or part-time help outside the United States. If you want to hire full-time employees overseas, you’ll need to use their employer-of-record partner, which costs more. Gusto Global for contract payments works without issues. This makes it more flexible than some other U.S.-only payroll options.

Integrations and Add-ons

Gusto integrates with QuickBooks Online, QuickBooks Payroll, Xero, FreshBooks, and other platforms. You can connect it with QuickBooks for accounting, and the sync is seamless. You can also plug in apps for time tracking, performance reviews, or project management. 

Some add-ons cost extra, like advanced time tracking or priority customer support. But if you need more than just payroll management, these features let you customize the tool for your needs. 

Gusto pricing

The pricing is simple on the surface, but the final cost depends on how many features you add. I’ll break it down by plan, including what you get at each level. These are all monthly charges—there’s no free trial, but you can cancel anytime.

• Simple plan – $49/month base + $6/month per person
  This plan covers the basics: single-state payroll, unlimited monthly payrolls, tax filings and payments, and basic PTO policies and holiday pay. It works well if you’re a small business with one state and no need for time tracking or advanced HR tools. You can still offer employee benefits, but some HR features like performance reviews aren’t included.
• Plus plan – $80/month base + $12/month per person
  This is the most popular option. You get everything in the Simple plan, plus multi-state payroll, next-day pay, and time tracking. I found this plan to be the best value if you want more control over employee management and are doing more than just running payroll. It’s also better if you operate in multiple states.
• Premium Plan – $180/month base + $22/month per person
  Premium includes everything from Plus, but adds a dedicated service advisor, access to certified HR experts, performance & compensation management, custom reports, priority support, payroll migration, and account setup. If you have a larger team or more complex HR tasks, this is the top-tier option. You’ll need to contact Gusto to get an exact quote.
• Contractor Only plan – $35/month base + $6/month per contractor
  If you’re only paying 1099 contractors, this stripped-down plan saves money. It doesn’t include W-2 payroll or most HR tools, but it handles contractor payments and 1099 forms. I’d use this if I were just managing freelancers.
• Add-ons and Extra Fees
  Gusto pricing can go up fast with extras. Some features, like performance reviews, Gusto Global, state tax registration, and even faster payroll delivery, come at an additional cost. Offering health benefits may also increase your monthly spend, depending on what you choose.

Overall, Gusto’s payroll service is flexible, but you’ll want to look closely at what’s included in each plan to avoid surprise charges month-to-month.

Gusto reviews

Gusto reviews show a strong mix of praise and criticism, mostly from small business users. On G2, Gusto holds a 4.6 out of 5 rating across over 7,000 customer reviews. Most people love how easy it is to use, especially for payroll tasks, time tracking, and onboarding. The platform is often described as intuitive, clean, and simple to set up, and even users without payroll experience say they picked it up quickly.

A lot of users mention how Gusto saves them time. Running payroll, managing employee benefits, and tracking hours is smoother compared to other payroll software. Features like the Gusto Wallet app, early paycheck estimates, and integrated 401(k) access make it appealing for team members, too. 

But it’s not all positive; some reviews point out weak customer support, login issues, and limited customization. If you need global payroll or operate in more than one state, reviewers say Gusto can feel stretched thin without add-ons like Gusto Global. Still, most Gusto reviews agree it’s a solid payroll service for small teams in the United States.

Best alternative to Gusto: Thrivea

If you’re looking for a modern HR platform that skips the bloat and actually works out of the box, Thrivea is worth serious attention. While Gusto payroll focuses heavily on payroll tasks and employee benefits, Thrivea is all about clarity, structure, and zero-overhead HR operations. 

I tested it for my own small business setup and found it more useful for the HR side of things, especially if you’re not looking to manage payroll inside the same system.

Where Gusto handles payroll management and benefits administration well, Thrivea shines in organizing people, documents, communication, and workflows in a way that feels intuitive and fast. You don’t need an HR professional or IT team to get started. And unlike many “free” platforms that lock down key tools, Thrivea’s free Core HR plan gives you access to real, usable features from day one.

When I’d pick Thrivea over Gusto

I’d pick Thrivea over Gusto in these situations:

• You don’t need built-in payroll: Thrivea doesn’t run payroll, but it connects to QuickBooks Payroll, Gusto, and others. If you already use a payroll service, Thrivea fills the HR gaps without making you switch.
• You want real features without a monthly bill: The Core HR plan is free and actually usable. Gusto’s lowest tier doesn’t include time tracking, performance tools, or document management without upgrades.
• You’re tired of HR tools that need setup help: Thrivea takes minutes to set up. No onboarding calls, no hidden steps. It’s ready out of the box.
• Your team is small but growing: Thrivea works best for teams with 10–500 employees. It scales well without becoming a monster to manage.
• You need HR structure, not just payroll: Thrivea handles employee records, internal comms, performance reviews, and HR workflows better than Gusto. If your main pain isn’t running payroll, Thrivea gives you more clarity with less effort.

Bottom line: Gusto is a payroll-first tool. Thrivea is a people-ops-first tool. If you already have payroll handled and want HR that runs itself, Thrivea is the better fit.

Honest limitation (so you’re not surprised)

If you need a tool that runs payroll, files taxes, and handles benefits administration, Thrivea isn’t it, yet. You’d still need to use a separate payroll service like Gusto, Rippling, or Deel. 

But if you’re looking for an HR system that makes sense, skips the mess, and brings clarity to people operations, Thrivea is the cleanest alternative I’ve seen in 2025.

Other Gusto alternatives

Gusto payroll works well for small businesses in the United States, especially if payroll and benefits are your top priority. But if you need a deeper HR structure, more global reach, or better performance tools, Gusto might feel limited. 

Thrivea is my top pick for a lightweight, structured HR platform, especially if you’re already using a separate payroll service. Still, depending on your goals, there are other solid options out there:

• Deel: Strong if you’re hiring globally. Deel handles international payroll, contractor payments, and compliance in over 100 countries.
• Rippling: Ideal for teams that want everything in one place: payroll, HR, IT, and even app/device management.
• BambooHR: Great for small and mid-sized teams that want a user-friendly HR system with strong onboarding and people management tools.
• HiBob: Designed for fast-growing companies that care about culture, engagement, and performance reviews.
• Justworks: Combines payroll and benefits with compliance support under a PEO model. Good if you want help with risk management.
• Paycor: Payroll-focused platform with deep compliance and workforce management tools, especially for regulated industries.
• Zoho People: Part of the Zoho ecosystem, offering customizable HR features at a lower price point.

Each Gusto alternative brings a different mix of features. Your best pick depends on what matters more: payroll simplicity, global reach, deep HR workflows, or team engagement.

TL;DR: Why choose Thrivea over Gusto?

If you’re a small business that already uses a payroll service and wants modern, automated HR tools without overhead, Thrivea is the stronger choice.

Gusto: buy or skip?

If you’re a small business in the United States and payroll is your biggest pain, Gusto is a solid buy. It handles payroll tasks, tax filing, and employee benefits without much effort. But once you need more structured HR workflows, performance reviews, or document control, Gusto starts to show its limits, unless you’re ready to pay for every add-on.

That’s where Thrivea comes in. If you already have a payroll provider or just want HR to feel less chaotic, Thrivea is a better fit. It gives you real structure without the overhead, and the free Core HR plan means you can try it without risk.

Want to see how it works in practice? Schedule a demo with Thrivea and test it today.