Gusto is a feature-rich human resource (HR) platform designed to suit the needs of small and growing businesses. It also caters to single users and companies dealing with contractors only.
The platform is widely recognized for its intuitive interface, payroll capabilities, and benefits administration features. However, it is important to know how Gusto works to optimally utilize its capabilities.
This comprehensive article sheds light on different features of Gusto HR and how you can use them effectively.
How Does Gusto Work?
Gusto helps streamline HR operations with the following core features:
Employee Portal
Gusto's employee access portal provides a dedicated dashboard where employees can manage various aspects of their work life with ease. Through this portal, employees can view their pay stubs, track time (if enrolled in the ‘Gusto Plus’ plan), and manage benefits and time off.
A standout feature is the ‘Gusto Wallet’, which offers tools for savings, budgeting, and paycheck management. Employees can split their paychecks into multiple accounts, set automated savings goals, and even avail themselves of the optional credit card offer.
Payroll
Gusto offers an intuitive interface for payroll processing, allowing HR managers to easily manage employee compensation.
To process payroll, start by navigating to the ‘payroll’ section. There, you will see details about the next payroll cycle. Click on ‘Run Payroll’, where you can view all listed employees along with their base salary.
Now, you can either automate the process using the ‘AutoPilot™’ function or run payroll manually. For the latter, you can enter/change the base salary, add bonuses, cash tips, or other earnings (if applicable).
Gusto integrates with several third-party time-tracking applications. You can use any of these apps, and the platform will automatically import data into your payroll module. In case you’re using the ‘Gusto Plus’ plan, it has a native time-tracking module that integrates with the payroll module. This means all your data will be synced automatically.
After you have entered the required payroll information, click ‘Continue’. Fill out any paid time off information if needed, and you will have the summary of the payroll on your screen. Submit the payroll and leave the rest to Gusto. It will schedule a deposit from your business’s checking account to your employees’ accounts.
Tax Filing
Gusto automatically calculates all required taxes, including withholding taxes, employer taxes, and employee taxes, based on payroll data. It ensures all tax liabilities are paid on time, directly to the relevant tax agencies. Furthermore, any update in tax laws is automatically incorporated. This ensures compliance without additional effort.
It generates all necessary tax forms, ensuring they are filled out accurately and in compliance with federal, state, and local tax laws. Then, the completed tax forms are submitted electronically to the IRS and applicable state tax authorities on the user’s behalf.
Benefits Administration
Gusto's benefits administration module streamlines the management of employee benefits, such as life insurance, fringe benefits like company cars, and health insurance plans. It ensures seamless integration with your existing programs and offers direct connections with third-party benefits providers.
Depending on your state, Gusto can assist with setting up health insurance options and retirement plans. Additionally, it accurately tracks all benefits-related data and makes sure it is properly accounted for in tax calculations.
Even if you already have established benefits programs, Gusto enables you to input this information efficiently, ensuring comprehensive record-keeping and compliance.
Employee Onboarding
Gusto's employee onboarding module allows new employees or contractors to handle most of their paperwork independently. Using this feature, employers can easily add a new team member by entering their basic details, such as name, employment type (employee or contractor), and email address.
Gusto then sends an email invitation, enabling the new hire to log into their Gusto dashboard and complete essential forms, including tax information and direct deposit setup.
For contractors, Gusto streamlines management by filing 1099s and providing them with a dedicated platform to access their information. This intuitive system eliminates administrative hassles, ensuring a smooth and efficient onboarding experience.
Reporting
Using Gusto's reporting tools, employers get access to well-organized, customizable reports on payroll, taxes, and other critical data. The platform allows customization of reports, such as payroll journal entries, which can be exported as PDFs or CSVs based on specific preferences.
Additionally, accountants can be added directly to the Gusto account, enabling them to access necessary reports without needing to request exports. This feature not only ensures transparency but also saves time by making all relevant information easily accessible and customizable.
If you still have more questions about using Gusto, book a free demo to have a closer look at how this software works.
