Gusto
Full-service payroll and HR for freelancers who form S-corps.
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Gusto is the leading online payroll and HR platform for small businesses. For freelancers who have formed an S-corp (or are considering one), Gusto handles the required W-2 payroll for the owner-employee, benefits administration, 1099 contractor payments, and HR compliance. It is the payroll backbone for thousands of S-corp solopreneurs who use Collective or manage their own back office.
Our Scores
4.5
Ease of Use
4.6
Features
4.2
Value
4.4
Support
Pros & Cons
Pros
- ✓Automated payroll with tax filing for federal and all 50 states
- ✓1099 contractor payments and year-end forms included
- ✓Benefits administration: health, dental, 401(k)
- ✓Integrates with QuickBooks, Xero, FreshBooks, and more
- ✓Beautiful, intuitive interface loved by small business owners
Cons
- ✗Expensive for what solo S-corp freelancers need
- ✗Overkill for sole proprietors who do not have S-corp structure
- ✗Per-employee pricing adds up quickly with a larger team
- ✗Some advanced HR features require higher-tier plans
Best For
- →S-corp freelancers who need to run payroll for themselves
- →Freelancers who pay contractors and need 1099 management
- →Small agencies with W-2 employees
- →Those who need benefits administration alongside payroll
Not Ideal For
- ✗Sole proprietors who do not have an S-corp structure
- ✗Those who just need simple invoicing or tax filing
- ✗Budget-conscious freelancers who are not yet S-corps
Pricing
Simple
$40
month + $6/person
- ✓Full payroll
- ✓Employee self-service
- ✓W-2 and 1099 filing
- ✓Basic HR tools
Plus
$80
month + $12/person
- ✓Everything in Simple
- ✓Time tracking
- ✓PTO management
- ✓Project tracking
- ✓Priority support
Estimate Your Tax Bill First
Use our free quarterly tax calculator to estimate how much you owe before filing.
Free Quarterly Tax Calculator →Frequently Asked Questions
Do I need Gusto as a solo S-corp freelancer?
If you have an S-corp, you are required to pay yourself a "reasonable salary" as a W-2 employee. Gusto automates this payroll, withholds taxes, and files all required forms. It is generally the most efficient way to manage S-corp payroll.
Does Gusto handle 1099 contractor payments?
Yes. Gusto allows you to pay both W-2 employees and 1099 contractors in the same platform. At year-end, it automatically generates and files both W-2s and 1099-NECs with the IRS.
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Tax Information Notice
This content is for informational and educational purposes only. It does not constitute tax, legal, or financial advice. Tax laws change frequently. Always consult a qualified CPA or Enrolled Agent for your specific situation.