Today marks an exciting milestone that gets at the heart of why we exist: to grow the small business economy. After more than ten years of close partnership, it’s official: Guideline is now part of Gusto. Together, we’re launching Gusto 401(k), powered by Guideline – making it possible for small businesses and their teams to access payroll, HR, benefits, money management, and now retirement benefits all in one trusted place.
Guideline has already helped more than a million people save for their future. Now, as part of Gusto, we’re building on that impact and making it even easier for small businesses to help their employees plan for the life they want. Small businesses can finally offer the kind of benefits that attract and retain the talent they rely on. Employees get a chance to build savings, strengthen their financial security, and feel confident about what’s next.
Why retirement benefits matter for the small business economy
93% of Fortune 500 companies offer a 401(k), but 66% of small businesses don’t. That’s not because they don’t want to, but because it can feel too complicated, too expensive, or too time-consuming.
Small business owners wear many hats, they’re often the HR team, the payroll manager, the IT department, and everything in between. They’re already stretched thin with hiring challenges, navigating state and federal regulations, and trying to stay competitive in tight labor markets. The last thing they need is more complexity.
That’s exactly why we’re launching Gusto 401(k), powered by Guideline. We want to eliminate the friction that’s kept retirement benefits out of reach for millions of small business employees– benefits that make a real difference in employees’ lives. People are 15 times more likely to save for retirement when they have access to a workplace plan. And for employers, offering retirement benefits helps businesses attract and retain talent.
And with at least 20 states already enacting legislation requiring employers to either offer their own retirement plans or enroll employees in a state-issued auto-IRA, the stakes have never been higher for small businesses to be compliant, competitive and avoid costly penalties.
When small businesses can offer the same quality benefits as large corporations, they level the playing field and strengthen the entire small business economy.
Retirement benefits, reimagined for small businesses
With Gusto 401(k) powered by Guideline, small businesses can now offer retirement benefits with the same simplicity they’ve come to expect from Gusto.
Gusto 401(k) Powered by Guideline Product Demo
One platform for everything: Business owners will be able to set up all their benefits in one place, employees will onboard and update their benefits using a single app, and compliance requirements, taxes, and payments will be easily managed in Gusto – including automated 401(k) tax credit forms that help businesses save time and money. Employers can manage their team’s 401(k) directly within Gusto, right alongside payroll and other benefits.
Automatic sync with payroll: Payroll deductions are calculated accurately and contributions sync automatically. When you run payroll, 401(k) contributions just work, the way payroll should.
Faster, easier setup: Onboarding a retirement plan used to take weeks. Now, setup can simply be completed using your existing payroll data. If you can run payroll, you can offer a 401(k).
A better employee experience: Your team can manage their retirement savings right alongside their other benefits—health insurance, HSAs, commuter perks, all within Gusto. It’s the complete picture of their compensation and benefits in one place.
Whether you’re hiring your first employee or expanding your team, offering retirement benefits will now be as straightforward as running payroll.
That’s been the experience of a longtime Gusto customer, Christina Stembel, of Farmgirl Flowers, who decided to offer retirement benefits to her employees from day one.
Farmgirl Flowers Story
Building the future, together
Every small business begins with a leap, one person deciding to take an idea and make it real. As they grow, they become employers who help others build their futures, too.
That’s what Gusto 401(k) is all about.
By bringing retirement into Gusto—the same trusted platform that handles payroll, HR, and benefits—we’re helping more people take care of their teams, which means more people can save for retirement – creating better outcomes for themselves, their families, their communities, and the small business economy.
This is the next chapter in small business benefits, and we’re just getting started.
