Gusto runs payroll, benefits administration, and HR software for small and midsize businesses that want to manage their teams in one place. Its payroll system calculates wages and taxes, files required forms, and connects employee hours with pay runs. Employers use the same platform to enroll workers in health insurance and retirement plans, manage time off, and organize hiring paperwork, while staff access paystubs through personal accounts. Businesses pay monthly subscription fees based on their plan and workforce size, with extra charges for selected services and faster payment options. Gusto was founded in 2011 and is headquartered in San Francisco, California.
Company Size
1,001-5,000
Company Stage
Series E
Total Funding
$706.2M
Headquarters
San Francisco, California
Founded
2011
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It's a marathon, not a sprint: Employees celebrating 5 or 10 years at Gusto enjoy a month-long sabbatical to travel and relax after all their hard work.
Meals and conversations: Free meals, snacks, and drinks to keep us fueled, but more importantly: they bring people together and foster community.
Wellness for every body: We're proud to offer inclusive health care such as hormone treatments, gender-affirming surgery, therapy, family planning, and more.
The time you need: Our flexible PTO policy means every employee is encouraged to take the time they need now to keep doing great work, long term.
Family-friendly benefits: Fertility treatments, primary and secondary parental leave, sleep coaching, house cleaning for new parents, and more.
Be well, be you: Get free, comprehensive medical, dental, and vision benefits, plus a monthly fitness stipend and mental health resources too.
Gusto enhances Claude connector to simplify Small Business management. In an era where efficiency is paramount, Gusto has unveiled its enhanced connector for Claude, which aims to simplify payroll management for small business owners. This innovation is not just a step forward in streamlining administrative tasks; it's a leap toward integrating artificial intelligence into daily operations for those juggling multiple responsibilities. By leveraging AI tools, small business owners can now spend less time on routine administrative work and more on strategic initiatives that drive growth. The Gusto connector for Claude empowers small business owners to manage essential functions directly through conversational commands. Gusto's recent survey indicates a growing trend, with 44% of new businesses now incorporating AI into their daily operations - an increase from 21% just a year before. This shift demonstrates that small business owners are transitioning from experimentation to strategic integration of AI into their operations. With the upgraded connector, owners can easily manage payroll, timesheets, and personnel details all within a single conversation. By bringing context and actionable insights together, the connector enhances the ability of AI to understand the real state of a business and prepare the next steps based on specific needs. Discover more Business Operations Software Management Training Courses Small Business Trends For instance, small business owners can simply instruct the AI to perform tasks such as adding bonuses to payroll, updating employee hours, or pulling labor costs for budget sheets - all through natural language commands. Small business owner Alex Aukerman of Ox Asphalt shared his experience: "I use the Gusto connector for Claude to make more data-driven decisions for a small business like ours. By pulling timesheet data into Claude, I can see which crew was on which job and how long each job took, then feed that information back in to improve future scheduling. As a result, we're more efficient, our employees are happier and less overworked, and we feel far more confident making decisions based on real data instead of gut feeling." The Gusto connector not only automates and simplifies processes, but it also keeps business owners in control. All actions prepared by Claude, including hours, bonuses, deductions, and paid time off, require final approval from the owner before they are executed. This level of oversight ensures that business owners can maintain accountability while benefiting from improved efficiency. Looking beyond payroll, Gusto plans to expand the connector's capabilities to include full support for company setup, onboarding of employees and contractors, pay schedule configuration, and enhanced benefits visibility. These features signify Gusto's commitment to equipping small businesses with tools that can adapt to their evolving needs. However, while the benefits are evident, small business owners should consider potential challenges in adopting AI tools like the Gusto connector. For instance, while AI can streamline administrative tasks, it also requires a degree of user comfort and familiarity with conversational interfaces. Furthermore, data integrity and security will always be of paramount importance, and business owners must ensure that their data remains protected while using these innovative solutions. Discover more Open Biz Account Read Market News Small Businesses Despite these challenges, the potential for increased efficiency and profitability through the use of AI is substantial. As AI becomes an integral part of business management, the ability to harness its benefits can lead to improved employee satisfaction, better decision-making, and ultimately, business growth. In the fast-paced world of small business, tools like the Gusto connector for Claude are paving the way for more strategic management approaches. As owners embrace these advancements, they stand to gain a competitive edge by transforming how they operate - one conversation at a time. For more information about the Gusto connector for Claude, check out the official announcement at Gusto's press release here. Image via Google Gemini
Gusto announced major updates to its platform for accounting firms at its Gusto Next event. The company unveiled a redesigned Gusto Pro with AI-assisted workflows that automate payroll tasks, including extracting hours from emails and generating reports automatically. The platform now features Pro Gus, an AI assistant built for accountants. Gusto also launched a multi-client Model Context Protocol, allowing accountants to connect Gusto once and work across all clients from a single interface within their existing AI tools. Previously, accountants had to connect and disconnect for each client individually. The company expanded its Partner Program with Marketing Development Funds, Partner Development Funds, and AI agents to help firms acquire clients and grow advisory services. Starting mid-November 2026, revenue sharing will extend to 401(k) plans. Gusto serves over 500,000 small businesses and more than 23,000 accounting firms.
Business Compliance gets automated in Gusto's new service. Gusto announced general availability of Gusto Business Compliance on October 1, 2026. The service takes care of registering with state tax agencies, filing yearly reports, and similar paperwork for companies that hire employees in more than one state. It arrives about six months after Gusto bought the compliance automation company Mosey. If you have ever hired a remote teammate in a new state, you know the dread. One hire can quietly create a registration duty you did not plan for, and missed deadlines get expensive. Let's walk through how to think about business compliance as your team spreads out, and what this launch changes. What Gusto Business Compliance covers. Gusto serves more than 500,000 small businesses, and the new service is open to all of them. Rather than a checklist you manage yourself, it takes over a bundle of recurring chores. How the compliance service is organized | Job to be done | What the service handles | | Getting set up in a new state | State tax registration, foreign qualification, registered agent service | | Staying current | Annual report filings and proactive alerts | | Catching surprises | Monitoring of government mail | | Getting help from a person | A dedicated Compliance Concierge Team | Gusto also introduced HR Partners, which connects eligible customers with experienced HR specialists. A Gusto PEO, which would bundle pay runs, benefits, people operations, and legal upkeep, is expected in the coming months. Why this problem is bigger than it looks. The company's own research says roughly 50 percent of owners feel compliance eats too much of their time. Roughly three in four name tax filing as the most time-consuming piece. Those figures come from the company's announcement, so treat them as a signal rather than a census. Still, the pain is real. Compliance rarely feels urgent until a notice arrives, and by then penalties may already be running. Because founders wear many hats, this work often lands on whoever has the most spare minutes, which usually means nobody. Where multi-state hiring creates hidden duties. Hiring across state lines is now normal for young companies. A contractor becomes an employee, a sales rep moves to another city, or a great engineer lives somewhere you have never operated. Each of those moves can trigger new tax accounts and filings. That is one reason the business filing wave matters. More new companies means more first-time owners meeting these rules for the first time. Meanwhile, state agencies do not slow down for beginners. How to decide whether to automate. Automation is not automatically the right call. Use a few simple tests before you buy anything. * Count the states where you have employees today and where you plan to hire in the next year. * Estimate the hours per month someone spends on filings, then price that time honestly. * Ask what happens if a deadline slips and who pays the penalty. If you have employees in just one state, a good accountant may be enough. If you are adding states quickly, software that watches deadlines for you starts to look like insurance. Protect cash while you add compliance help. Every new vendor changes your monthly burn. Therefore, compare the fee against the cost of a single missed filing, and fold it into your regular cash flow management review. Pricing was not detailed in the announcement, so ask for a written quote before you commit. It also helps to read the government's own basics. The SBA's guidance on hiring employees outlines the federal and state steps every employer should know, which gives you a baseline to judge any vendor against. Do not forget the people side. Compliance is not only taxes. Benefits, leave rules, and workplace policies vary by state as well. For example, a growing team may also need a plan for small business health insurance as it crosses headcount thresholds. The HR Partners offer is aimed at exactly this gap. Founders without an HR leader can get expert answers without a full-time hire, though availability is limited to eligible customers for now. What to watch from here. The PEO is the next piece to track. A PEO changes who is the employer of record for certain purposes, so read the contract terms carefully when it launches. Compare it with your current setup on price, control, and exit terms. For now, the practical move is simple. List your states, check your registrations, and put every annual deadline on one shared calendar. Whether you automate or not, a clear map of your obligations is the cheapest protection a growing company can buy. Finally, assign ownership. Compliance fails when everyone assumes someone else is watching the calendar. Name one person, even part time, who confirms each filing is done and keeps proof on file. In addition, schedule a quarterly review so new hires and new states get added to the list before a deadline sneaks up on you.
Gusto has launched Business Compliance, a solution that automatically handles state and local compliance obligations for small businesses, particularly when hiring employees across state lines. The service registers businesses with state agencies, files annual reports, monitors government mail, and provides proactive compliance alerts. The launch follows Gusto's acquisition of compliance automation company Mosey less than six months ago. According to a recent survey, half of small business owners say compliance negatively impacts their growth, with three in four citing tax filing as their most time-consuming compliance task. Business Compliance is now available to all Gusto customers. The company also announced Gusto HR Partners, which provides access to senior HR leaders, available to eligible customers today. Gusto PEO, offering comprehensive payroll and benefits support, will launch in coming months.
The 900,000-install signal: Anthropic just wired 43 ready-made AI Workflows into the tools Small businesses already run - Here's how to use them without losing control. On September 15, 2026, Anthropic expanded Claude for Small Business to 43 ready-made workflows and 27 new integrations - Shopify, Salesforce, TikTok Ads, Zoom, Xero, Gusto, Square, Stripe and Zapier now plug directly in. The plugin, launched in May and installed more than 900,000 times, is moving past the back office into lead follow-up, proposals and marketing campaigns - with every send, post and payment gated behind the owner's approval. Here's what launched, why the design matters more than the number, and the 4-step playbook to turn ready-made workflows into hours saved. Claude for Small Business AI Workflows Small Business Automation Integrations