Don’t get me wrong, life as a solopreneur can be incredibly rewarding. But it also gives you a whole new appreciation for the unsung heroes of HR departments everywhere! Nearly a decade ago, my wife and I first began seriously considering whether I should walk away from my corporate job and set out on my own.
I’ll never forget how surprised we were when we realized just how many questions would need to be answered. As my own boss and sole employee, how would I handle paying myself? How would I handle tax deductions? Was there a way to set up my own employee benefits?
The answer to these questions and more turned out to be Gusto, a payroll program I’ve been using for the last seven years. I know what some of you may be thinking–does Gusto make sense for single-employee businesses?
That’s why I decided to write a Gusto review from a solopreneur's perspective. I’ll give you my honest feedback on the program and hopefully answer some of the questions you may have about whether it’s right for you.
My Gusto Review Verdict After 6 Years
I've used Gusto since early 2020 as the owner of an LLC taxed as an S-Corp. During that time, I've run payroll twice per month, processed more than 150 payroll runs, paid myself anywhere from roughly $30,000 to more than $100,000 annually, and relied on Gusto to handle federal and Michigan payroll tax compliance.
In short: I still use Gusto today, and I still recommend it.
Pros
– Easy payroll processing
– Automatic federal and state tax filings
– Great fit for S-Corp owners
– Flexible salary adjustments
– Reliable customer support
– W-2 generation included
Cons
– Not the cheapest payroll option
– Can feel overwhelming for solopreneurs because of extra HR features
– Some tools are designed for larger teams and may never be used
My Rating
★★★★★ 5/5
Want the video version of this review? Watch my full Gusto review below.
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What is Gusto?
Gusto is a payroll and HR platform designed to help businesses manage payroll, taxes, benefits, and compliance.
While it's built for businesses of all sizes, I've personally found it especially useful as a solopreneur running an LLC taxed as an S-Corp. Since 2020, I've used Gusto to pay myself, handle payroll taxes, generate W-2s, and stay compliant with both federal and Michigan state requirements.
When I first started my business, one of my biggest concerns was figuring out how to pay myself correctly while staying compliant with IRS rules. Gusto simplified that process dramatically.
Today, I primarily use Gusto for:
- Payroll processing
- Payroll tax filing
- State tax compliance
- W-2 generation
- Payroll reporting
There are plenty of additional HR and benefits features available, but those core functions are what have made Gusto worth the cost for me over the past six years.
Overall, it’s helped address many of my initial concerns about becoming a solopreneur without giving up all the perks of a traditional job. With that said, let’s dive deeper into our Gusto review to help you decide whether it’s the right solution for you.
Gusto Review: Best Features
There are several reasons that I’ve been a Gusto user for nearly a decade. Here are some of the many ways Gusto has proven so helpful to me as a single-employee business owner.
Automated Tax Filing
This is the single biggest reason I continue to use Gusto.
As a solopreneur, payroll taxes are one of those responsibilities that can become incredibly stressful if you try to manage everything yourself. Federal taxes are complicated enough, but state requirements can add another layer of confusion.
Gusto handles those responsibilities automatically.
Since I started using Gusto in 2020, I've relied on the platform to manage payroll tax calculations, tax filings, and compliance reporting. As a Michigan business owner, I've occasionally received notices or filing requirements from the state that looked intimidating at first. More often than not, Gusto had already handled the filing or provided clear guidance on what needed to happen next.
The peace of mind alone is worth the monthly fee.
Instead of worrying about deadlines, forms, and tax calculations, I can focus on running my business while Gusto handles the administrative side of payroll.
Gusto also automatically generates and files year-end tax documents like W-2s. Since 2020, I've successfully completed multiple years of payroll tax filings through Gusto without experiencing any major issues.
For me, this feature is the biggest reason the platform continues to earn a 5-star rating.
Managing Benefits Through Payroll
When I first became a solopreneur, one of my biggest concerns was how I'd handle benefits without a traditional employer.
While I don't purchase benefits directly through Gusto, I do use the platform to manage benefit deductions through payroll.
For example, my health insurance comes through Healthcare.gov, and Gusto helps me account for those deductions as part of my payroll setup. If you're evaluating your own options, here's how I found health coverage as a self-employed entrepreneur.
I've also used Gusto to manage dental insurance deductions through payroll.
What I appreciate most is having these items integrated into the same system that handles my payroll and taxes. Instead of juggling multiple spreadsheets or manual calculations, everything is reflected in one place.
For me, having payroll, taxes, and benefit deductions organized in one place has been a valuable feature.
Easily Adjustable Self-Payments
When you first become a solopreneur, several things take some getting used to. One of them is the idea of trading in the security of a steady paycheck for the fun of financial fluctuation.
After all, running your own business often comes down to maintaining a delicate balance of income and expenses. With that in mind, it’s not always easy to calculate a set salary or even fixed paychecks.
Luckily, Gusto built its platform to make it easy to adjust self-payments. All it takes is a few clicks to cash in on a profitable quarter or reinvest a little more back into your business at any time.
One of the realities of running a business is that income isn't always consistent.
Over the years, I've paid myself anywhere from roughly $30,000 during slower periods to more than $100,000 during stronger years. Gusto makes it easy to adjust compensation without creating extra paperwork or payroll headaches.
That flexibility has been incredibly valuable because it allows me to adapt my salary to the performance of the business while maintaining proper payroll records and tax compliance.
Customer Support Has Been Reliable When I’ve Needed It
Over the past six years, one of the best compliments I can give Gusto is that I rarely need to contact customer support.
I've used the platform since early 2020 and run payroll twice per month. Over the years, I've only needed to contact support a handful of times, which speaks to how reliable the software has been.
When I have reached out, both the chat and phone support teams were helpful and easy to work with. The issues were relatively minor and resolved quickly.
For a payroll provider, that's exactly what I want. Payroll should work quietly in the background without creating headaches, and that's been my experience with Gusto.
Gusto Review: Things to Be Aware Of
While I’ve become a big fan of Gusto, I think it’s also important to give you a heads-up about some of its potential downsides. Here are a few things to be aware of if you’re considering signing up.
Gusto Pricing: Is It Worth the Cost?
As a solopreneur, I currently pay about $55 per month for Gusto, which works out to roughly $660 per year.
At first glance, that might sound expensive for a one-person business.
But when I think about the value Gusto provides, it's one of the easiest business expenses for me to justify.
Gusto handles payroll processing, payroll tax calculations, federal tax filings, state tax filings, W-2 generation, direct deposit, and compliance requirements that I would otherwise need to manage myself or pay an accountant to handle.
The time savings alone are worth the cost.
More importantly, Gusto helps me avoid mistakes. Payroll taxes and compliance issues can become expensive very quickly if something is filed incorrectly. Knowing those responsibilities are largely automated gives me peace of mind that is easily worth the monthly fee.
Could you find a cheaper payroll solution? Probably.
Would I switch to save a few dollars per month? Not a chance.
If you do decide to give Gusto a try, be sure to take advantage of this special promotion and get up to $100 back when you run your first payroll!
My Biggest Complaint About Gusto
If there's one thing I'd change about Gusto, it would be the complexity of the platform.
As a solopreneur, I primarily use Gusto for payroll, tax compliance, reporting, and W-2 generation.
Over the years, Gusto has expanded into HR, hiring, benefits, and workforce management. I understand why. Many businesses grow beyond a single employee, and Gusto wants to grow with them.
The downside is that the interface can sometimes feel overwhelming for solo business owners.
There are days when I log in knowing exactly what I need to accomplish and find myself navigating around features I'll probably never use.
I'd love to see an optional experience specifically designed for solopreneurs that prioritizes payroll, taxes, compliance, and reporting.
This isn't a deal-breaker. It's simply the biggest annoyance I've experienced after more than six years of using the platform.
Gusto FAQ
Still have questions about whether Gusto is right for you? Let’s get you up to speed on answers to some common questions.
Is Gusto good for solopreneurs?
Yes. As a solopreneur, I've used Gusto since 2020 to manage payroll, payroll taxes, compliance, and W-2 generation. While the platform includes some features designed for larger businesses, I've found it to be an excellent solution for a one-person business operating as an LLC taxed as an S-Corp.
Is Gusto Worth It for S-Corp Owners?
In my experience, yes. One of the biggest responsibilities of an S-Corp owner is paying yourself a reasonable salary and maintaining proper payroll records. Gusto makes that process significantly easier by handling payroll calculations, tax filings, compliance requirements, and W-2 generation.
As an LLC taxed as an S-Corp, this is one of the primary reasons I continue to use Gusto.
Is Gusto legit?
Yes. Gusto is a legitimate payroll and HR platform used by hundreds of thousands of businesses across the United States.
Personally, I've used Gusto since 2020, run payroll twice per month, completed more than 150 payroll runs, and successfully filed multiple years of payroll taxes and W-2s through the platform. Based on my experience, it's been reliable and trustworthy.
How much does Gusto cost per month?
As a solopreneur, I currently pay about $55 per month for Gusto. Pricing changes periodically, so I recommend checking Gusto's website for current rates and promotions.
For me, the cost has been well worth it because of the time savings and automated payroll tax compliance.
What are some Gusto alternatives?
Here are some of Gusto’s biggest competitors and how they compare:
- Rippling: While Rippling is a great HR platform, it’s designed for larger companies with much more complex needs. Gusto is a much friendlier option for solopreneurs and small to medium-sized businesses.
- QuickBooks Payroll: If you’re already a QuickBooks user, then this one is worth looking into because it’s designed to integrate with other Intuit products. Personally, I’m not super Quickbooks fluent, however, so I found Gusto’s interface much more intuitive.
- Justworks: Justworks can be a solid choice for small businesses, though it does cost a little more than Gusto. But it also requires a minimum of two employees (even if one is an unpaid employer) to run payroll, so it’s not the best choice for solopreneurs.
Can I cancel my Gusto subscription at any time?
Yes, you can cancel your Gusto subscription at any time as long as you're an admin with the right permissions. Before you cancel, here’s what you need to do:
- Wait until all payrolls finish processing. You can’t cancel if a payroll is in progress (submitted with today’s or a future check date).
- Turn off AutoPilot. Head to your Pay Settings and disable it before starting the cancellation process.
- Plan for your final bill. Gusto bills after the fact, so you’ll get one more full-month invoice. If you ask Gusto to file year-end taxes (like W-2s and 1099s), expect extra fees: $100 federal, $100 per state, and $5 per form.
After you cancel, you’ll still have full access to your company’s reports, paystubs, and tax documents. Your employees and contractors can log in to view their info too. If your account runs through an accountant or Gusto partner, reach out to them directly as they’ll need to cancel it for you.
Final Thoughts on Our Gusto Review
After more than six years as a customer, I don’t hesitate to give the platform a 5/5 star Gusto review. I highly recommend it to anyone who is looking for a way to streamline benefits, payroll, and all the other administrative tasks that go into running a business.
I've used Gusto continuously since 2020 and still rely on it today to manage payroll, tax filings, compliance, and W-2 generation for my business.
If you’re ready to see what Gusto can do for you, then sign up for Gusto here to get up to $100 when you run your first payroll!
What do you think of this Gusto review? Are you considering Gusto for your solopreneur journey?
Please let me know in the comments below.
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