If you’re reading this, you’re probably considering Gusto for managing your growing international workforce.
But you’re also probably uncertain about:
- Whether its user-friendly platform can handle your global payroll and HR needs.
- How it compares to more established international EOR providers.
- If its limited country coverage is enough for your expansion plans.
- Whether it’s cost-effective for small to medium-sized businesses.
- How well it integrates US and international employee management.
If that sounds familiar, this comprehensive review will answer every one of your questions.
It’s a 10-minute read that could save you weeks of research and potentially thousands in global hiring missteps.
The key to deciding might be understanding how Gusto’s integrated approach to US and international hiring can streamline your workforce management.
Here’s what you’ll learn – table of contents:
- Gusto EOR explained – user-friendly global workforce management for SMBs.
- Key features and benefits (including some unique perks for US-based companies).
- Gusto’s real-world performance in different international hiring scenarios.
- Pricing structure – balancing affordability with growing global needs.
- How Gusto measures up against top EOR competitors (you might be surprised).
- User experiences – from small startups to expanding mid-sized companies.
- When to choose Gusto and when to look elsewhere (this could save you from outgrowing your EOR too quickly).
Pros
- User-friendly interface: Gusto’s platform is intuitive and easy to navigate, making it accessible for businesses without dedicated HR staff.
- Comprehensive payroll features: Automated tax filings, multi-state payroll, and international contractor payments set Gusto apart from many competitors.
- Integrated benefits administration: Gusto serves as a benefits broker, simplifying the process of offering and managing employee benefits.
- Robust compliance support: The platform helps businesses comply with federal, state, and local regulations.
- Employee self-service: Workers can access their pay stubs, tax forms, and benefits information through a user-friendly portal.
- Time tracking integration: Gusto’s built-in time tracking features seamlessly integrate with payroll processing.
- Scalable plans: Multiple service tiers allow businesses to choose the needed features and upgrade as they grow.
- Expanding global coverage: Gusto’s EOR services are now available in 12 countries across North America, Europe, Asia-Pacific, and South America, with new countries being added regularly.
Cons
- Pricing complexity: With various add-ons and per-employee fees, costs can escalate quickly for businesses expanding internationally.
- Limited advanced global HR features: Gusto’s tools for managing complex international employment scenarios are less robust than some specialized EOR providers.
- Customer support limitations: Lower-tier plans have restricted access to customer support, which may be frustrating when dealing with time-sensitive international employment issues.
What is Gusto?
Gusto’s EOR, also known as Gusto Global, is an extension of Gusto’s popular payroll and HR platform designed to support businesses in hiring and managing international employees. Known to be powered by Remote, it allows companies to expand their workforce globally without establishing local legal entities in foreign countries.
Gusto EOR’s core strengths lie in its user-friendly design, comprehensive payroll features, and integrated benefits administration. The platform is particularly well-suited for small to medium-sized businesses looking to hire in its supported countries or those managing international contractors across multiple countries.
Company Information
- Headquarters: San Francisco, California, USA
- Founders: Edward Kim, Josh Reeves, Tomer London
- Funding: $746 million+
- Founding Date: 2011
What are the Key Features of Gusto EOR?
Gusto offers 8 key features that set it apart:
These key features include:
- Global Payroll Processing: Gusto’s payroll system now extends beyond the US, offering support for international employees in 12 countries. The platform handles complex calculations for taxes, benefits, and deductions across multiple jurisdictions. It supports various pay schedules and wage types, ensuring compliance with local regulations. Gusto’s automated tax filing services, a hallmark of its US offerings, are now available for supported international markets, saving businesses significant time and reducing the risk of compliance errors.
- Contractor Management: Gusto excels in managing both domestic and international contractors. The platform supports payments in over 120 countries, making it an excellent choice for businesses with a globally distributed workforce. It provides tools for easy onboarding, time tracking, and payment processing for contractors, along with necessary tax documentation like 1099 forms for US-based contractors.
- Integrated Benefits Administration: One of Gusto’s standout features is its role as a benefits broker. The platform offers a wide range of employee benefits, including health insurance, retirement plans, and other perks. This integrated approach simplifies benefits administration for employers and provides a seamless experience for employees. Gusto’s benefits offerings are now expanding to include options for international employees in supported countries.
- Compliance Support: Gusto helps businesses stay compliant with ever-changing employment laws and regulations. For its US services, this includes automated tax filings, new hire reporting, and labor law posters. With Gusto Global, this compliance support extends to international markets, helping businesses navigate the complexities of global employment laws.
- Employee Self-Service Portal: Gusto provides employees with a user-friendly self-service portal where they can access pay stubs, tax forms, and benefits information. This portal is now available for international employees as well, offering a consistent experience across the entire workforce.
- Time Tracking and PTO Management: Gusto’s built-in time tracking tools integrate seamlessly with its payroll system. The platform offers a web-based time clock, mobile app for remote time tracking, and automated overtime calculations. PTO tracking and management features help businesses efficiently manage time off requests across different countries and time zones.
- HR Tools and Resources: Beyond payroll, Gusto offers a suite of HR tools including employee onboarding workflows, document management, and performance review tools. These features are particularly valuable for small businesses without dedicated HR departments.
- Reporting and Analytics: Gusto provides a range of reports to help businesses gain insights into their workforce data. This includes payroll summaries, employee details, tax payments, and custom reports. As Gusto expands its global services, these reporting capabilities are extending to provide insights across international operations.
What are the Benefits of Gusto?
The benefits of using Gusto are:
- Simplified Payroll Management: Automate complex calculations and tax filings across multiple jurisdictions.
- Cost-Effective Global Expansion: Hire international employees without setting up local entities.
- Time Savings: Reduce administrative workload with automated processes and self-service options.
- Compliance Assurance: Stay up-to-date with changing regulations in supported countries.
- Improved Employee Experience: Offer a consistent, user-friendly platform for all workforce interactions.
- Scalability: Easily adapt to changing workforce needs, from local to global.
- Integrated Approach: Manage payroll, benefits, and HR functions in one unified system.
- Data-Driven Insights: Access comprehensive reporting tools for informed decision-making.
Gusto Pricing
Gusto offers four main pricing tiers for its US-based services, but pricing for Gusto Global (the EOR service) is not publicly disclosed and is available upon request. This custom pricing approach is common in the EOR industry due to the complexities involved in international employment.
Gusto Global’s EOR pricing plans typically include the following:
- Base fee per country: Available in 12 countries, with more regularly added.
- Per-employee fee: Varies depending on the country.
- Additional services or benefits: Tailored to meet the specific needs of each organization.
For example, in India and the Philippines, employing through Gusto’s EOR costs $399 per employee monthly. A promotional rate of $599 per employee per month is available, discounted from $699, and valid until December 31, 2024.
After this date, the per-employee fee will increase to $699, including for those already engaged before the deadline.
For US-based services, the plans are:
- Contractor: $6 per contractor per month
- Designed for businesses that only need to pay contractors
- Simple: $40 per month + $6 per person per month
- Basic payroll processing and tax filing for a single state
- Plus: $80 per month + $12 per person per month
- All Simple features plus multi-state payroll and more HR tools
- Premium: Custom pricing
- All Plus features plus dedicated support and more advanced features
While Gusto’s pricing for US services is transparent and competitive for small businesses, costs for international employment through Gusto Global can increase quickly. Businesses should carefully consider their needs and calculate the total cost based on their employee count, countries of operation, and required features.
| Service | Price |
|---|---|
| Employer of Record (EOR) Pricing | $399 per employee/month |
| Contractor Management Pricing | $6 per employee/month |
| Annual Discount | Not available |
User Data Security and Compliance
Gusto places a high priority on data security and compliance, recognizing the sensitive nature of the payroll and employee information it handles. The platform implements robust measures to protect user data:
- Encryption: Utilizes bank-level encryption to secure data in transit and at rest
- Multi-Factor Authentication: Enhances account security with additional verification layers
- SOC 2 Type II Certification: Maintains compliance with this rigorous data security standard
- Regular Security Audits: Conducts frequent internal and external security assessments
- GDPR and CCPA Compliance: Adheres to international data protection regulations
- Data Access Controls: Implements strict role-based access controls to protect sensitive information
- Disaster Recovery: Maintains comprehensive backup and recovery procedures
- Vendor Management: Carefully vets and monitors third-party service providers
For its global services, Gusto ensures compliance with local data protection laws in each supported country. The platform’s expansion into international markets has been accompanied by enhancements to its data security protocols to meet the varied requirements of global operations.
Gusto’s commitment to data security extends to employee education, with regular training programs to ensure all staff members are aware of the latest security best practices and potential threats.
Gusto EOR Competitor Comparison at a Glance
| Feature | Gusto | Deel | Multiplier | Remofirst | Remote | Atlas HXM | Rippling | Oyster HR |
|---|---|---|---|---|---|---|---|---|
| Best For | SMBs with up to 100 employees, Food Service, Retail & Nonprofits | Startups, Scale-ups, Tech & Creative Industries | Startups & SMBs, IT, Consulting, Financial Services | Startups & Scale-ups, Tech & Creative Industries | Startups & Scale-ups, Creative & Financial Services | SMBs, Fintech, E-commerce & IT Companies | SMBs with up to 500 employees, Tech & Healthcare Services | Startups, Scale-ups, Creative Industries & Tech Companies |
| EOR Pricing | $399 per employee/month | $599 per employee/month | $400 per employee/month | $199 per employee/month | $599 per employee/month | Custom | $500 per employee/month | $599 per employee/month |
| Contractor Pricing | $6 per employee/month | $49 per employee/month | $40 per employee/month | $25 per employee/month | $20 per employee/month | Custom | $25 per employee/month | $29 per employee/month |
| Country Coverage | 120+ | 150+ Countries | 150+ | 180+ | 180+ Countries | 160+ Countries | 185+ | 180+ |
| Support Channels | Email, Phone, Live Chat | Email, Phone, Live Chat | Email, Phone, Live Chat | Email, Live Chat | Email, Live Chat | Email, Phone, Live Chat | Email, Phone, Live Chat | |
| Support Availability | Business Hours | 24/7 | Business Hours | 24/7 | 24/7 | 24/7 | Business Hours | Business Hours |
| G2 Rating | 4.5/5 (2104 reviews) | 4.85/5 (4630 reviews) | 4.7/5 (986 reviews) | 4.5/5 (109 reviews) | 4.6/5 (2068 reviews) | 4.5/5 (35 reviews) | 4.8/5 (3227 reviews) | 4.4/5 (714 reviews) |
| Capterra Rating | 4.6/5 (3964 reviews) | 4.8/5 (1554 reviews) | 4.7/5 (40 reviews) | 5/5 (2 reviews) | 4.5/5 (46 reviews) | 5/5 (5 reviews) | 4.9/5 (3073 reviews) | 4.5/5 (68 reviews) |
| Trustpilot Rating | 2.5/5 (2088 reviews) | 4.9/5 (5332 reviews) | 4.9/5 (832 reviews) | 3.1/5 (10 reviews) | 4.7/5 (1639 reviews) | No Reviews | 4.4/5 (1029 reviews) | 4.6/5 (199 reviews) |
| Visit Website | Visit Website | Visit Website | Visit Website | Visit Website | Visit Website | Visit Website | Visit Website |
Gusto EOR stands out for its user-friendly interface and excellent payroll processing, particularly for US-based companies expanding into its supported countries or those managing international contractors. Its expanding global coverage for full-time employees makes it increasingly competitive, though it still lags behind some competitors regarding the number of countries supported.
Deel and Remote offer more comprehensive global coverage, making them better options for companies hiring in a wider range of countries. Atlas HXM provides a more comprehensive suite of global HR tools, which could benefit larger enterprises with complex needs. Rippling offers a powerful combination of HR and IT management tools, which could be attractive for tech-savvy companies.
Recommendations for Gusto Usage
Gusto is a popular payroll and HR platform primarily focused on serving US-based small to medium-sized businesses. Its suitability depends on specific company needs and size. Let’s examine who benefits most from Gusto and when other solutions might be more appropriate.
Who do I recommend using Gusto to?
Gusto is particularly well-suited for small businesses in the US, startups, and companies looking for an all-in-one HR and payroll solution. Gusto provides significant advantages for:
- US-Based Small Businesses: Gusto’s user-friendly interface and comprehensive features make it an excellent choice for small businesses managing payroll, benefits, and HR tasks. Its automated tax filings and compliance updates are especially valuable for companies without dedicated HR departments.
- Startups and Growing Companies: The platform’s scalability allows it to grow with your business, making it ideal for startups and rapidly expanding companies. Gusto’s ability to handle both contractor and employee payroll provides the flexibility many young companies need.
- Service-Based Industries: Businesses in sectors like professional services, retail, and hospitality can benefit from Gusto’s time tracking features and integration with popular point-of-sale systems, streamlining payroll processes for hourly workers.
When to consider Gusto alternatives?
You might want to explore alternatives to Gusto if you have international hiring needs, require more advanced HR features, or are a larger enterprise. Consider alternatives to Gusto in these scenarios:
- Atlas HXM: For mid-sized to large companies looking to expand internationally and needing comprehensive global workforce management capabilities.
- Horizons: If your business is focusing on expansion into emerging markets and requires specialized local support in those regions.
- Deel: For companies needing to manage a global workforce, including international contractors and employees.
- Rippling: If you require a platform that offers more extensive IT management features alongside HR and payroll services.
- Papaya Global: For larger organizations requiring advanced global workforce analytics and compliance management across multiple countries.
- ADP: If you’re a larger business needing more robust features for complex payroll scenarios and extensive reporting capabilities.
Consider these alternatives when Gusto EOR’s current global coverage or feature set doesn’t align with your specific needs, particularly if you require hiring in countries not yet supported by Gusto or need more advanced global HR features. Below, we’ve compared Gusto to other providers to show how it measures up to the competition:
Conclusion
Gusto’s EOR services, Gusto Global, offer a user-friendly and efficient solution for US-based companies looking to expand their workforce into major international markets. Its intuitive interface, strong payroll automation, and integrated benefits administration make it an attractive option for small to medium-sized businesses taking their first steps into international employment or managing a growing global team.
Gusto’s expanding global coverage, now including 12 countries across North America, Europe, Asia-Pacific, and South America, demonstrates its commitment to supporting businesses in their international growth. While this coverage is still more limited than some competitors, it encompasses many key markets and continuously grows.
Gusto EOR’s simplicity and ease of use make it an excellent choice for smaller companies or those new to international hiring. Its seamless integration with Gusto’s popular US payroll and HR tools is a significant advantage for businesses already using Gusto for their domestic operations.
The platform’s comprehensive payroll features, including multi-currency support and automated tax filings, simplify the complexities of international payments. Its robust compliance support also helps businesses navigate the intricacies of employment laws across different countries.
However, businesses with needs beyond Gusto’s current supported countries or those requiring more advanced global HR features may need to look elsewhere. While competitive for small businesses, the pricing structure can become complex as companies scale their international operations.
In conclusion, Gusto is a strong contender in the global employment space, particularly for US-based SMBs expanding into its supported countries or managing international contractors. Its user-friendly approach and solid payroll and compliance features make it a valuable tool for simplifying international workforce management.
Frequently Asked Questions
In which countries does Gusto offer EOR services?
Gusto’s EOR services are currently available in the USA, Australia, Brazil, Canada, Germany, India, Ireland, Mexico, the Netherlands, the Philippines, Portugal, the United Kingdom, and Spain. They are continuously expanding to new countries.
Can Gusto EOR handle both full-time employees and contractors?
Yes, Gusto EOR can manage both full-time employees in its supported countries and contractors in over 120 countries worldwide.
How does Gusto ensure compliance with local employment laws?
Gusto partners with local experts in each country to stay up-to-date with employment laws and regulations. They provide automated compliance checks, alerts for regulatory changes, and access to a team of global HR experts for complex compliance issues.
Does Gusto EOR offer benefits administration for international employees?
Yes, Gusto offers benefits administration in its supported countries. The specific benefits available may vary by country but can include health insurance, retirement plans, and other locally relevant benefits.
How does pricing work for Gusto EOR?
Gusto EOR pricing is customized based on your specific needs. It typically includes a base fee per country and a per-employee fee that varies by country. For detailed pricing, you need to contact Gusto directly for a quote.
Can I use Gusto EOR if I’m not already a Gusto customer?
Yes, you can use Gusto EOR even if you’re not currently using Gusto for your US payroll and HR needs. However, the seamless integration between Gusto’s US and international services can be a significant advantage for existing Gusto customers.
