Most small business owners start their business to do more of what they love. But new moves, like making their first hire in a new state, bring a wave of unexpected responsibilities. Tax registration deadlines, form filings, regulatory changes – these only grow more complex as the business does.
In a recent survey, half of small business owners said they spend too much time and money on compliance, and that it’s negatively impacting their growth. In the same survey, 3 in 4 business owners said that filing federal, state, and local taxes was their most time-consuming compliance task.
Today, Gusto is announcing three solutions tackling this challenge head-on, each meeting small businesses’ different needs: Gusto Business Compliance, which helps business owners quickly handle registrations, filings, and upcoming deadlines; Gusto HR Partners, which gives owners access to senior-level HR expertise; and Gusto Professional Employer Organization (PEO), which takes on much of the day-to-day work for payroll, compliance, HR and benefits.
Together, they can help owners spend less time on compliance and HR, with solutions designed to support them as their businesses grow.
Gusto Business Compliance: Helping to Solve Paperwork and Prevent Problems
Launching less than six months after Gusto’s acquisition of Mosey, Gusto Business Compliance takes on the legal obligations that trip up business owners and HR teams, especially when they hire in another state.
Because Gusto already runs a business's payroll and HR, it has visibility when the business makes a new hire across state lines. This allows Business Compliance to proactively act on new requirements that many small business owners aren’t even aware of, making compliance easier and simpler.
Gusto Business Compliance is now available to all Gusto customers.
Features include:
State Tax Registration — Registers a business with state and local agencies such as the Department of Revenue and Department of Labor to establish required tax accounts when hiring in a new state
Annual Report — Files the annual report required by states to maintain a business's good standing with the Secretary of State
Government Mail Monitoring — Tracks and resolves official compliance mail from state and local agencies, tax notices, and tax rate changes, directly within Gusto
Registered Agent — Appoints a designated agent in each state to receive legal and official government correspondence on behalf of the business
Foreign Qualification — Registers a business with the Secretary of State to legally operate in another state
Proactive Compliance Alerts — Notifies customers of upcoming compliance deadlines and new obligations, including annual reports, as well as annual tax reminders
Compliance Concierge Team — Team of dedicated compliance experts provides assistance during critical moments, like expanding to a new state
“As a business owner, there's always something in the back of your head – am I doing everything I'm supposed to be doing to stay compliant with my business, payroll and sales tax, and insurance?” said Chris Rupp, Founder and Managing Partner of Red Shark Digital, a marketing agency in North Carolina.
Chris turned to Business Compliance when he hired his first employee in a new state, Massachusetts. He needed to register his existing LLC to do business in that state and set up the required state tax accounts, but didn't know where to start. Business Compliance helped him through the process.
“With Business Compliance, you get 100% confidence that you are doing the right thing … having the peace of mind that it's being taken care of properly and things are getting paid and filed correctly. And if there's action I need to take manually, I'm being notified when to do it and how to do it.”
Gusto HR Partners: Senior HR expertise when it’s needed most
For small businesses that want expert HR support, but aren’t ready to hire full-time, there’s Gusto HR Partners. We provide direct access to a fractional HR leader – a Gusto employee backed by a team working behind the scenes.
Gusto HR Partners help small businesses confidently navigate complex needs and situations, without the cost of hiring a full-time HR executive.
A Gusto HR Partner helps businesses:
Navigate HR compliance – Enabling teams to handle complex HR requirements, while delivering ongoing guidance to proactively reduce risk and keep the business in good standing.
Support the employee lifecycle – Helping set compliant processes and standards around employee hiring and onboarding, terminations, performance, development, and more.
Evolve people strategies – Guiding businesses as they establish and evolve their approach to handling HR, total rewards, internal communication, and documentation.
Manage employee relations – Supporting small businesses in handling complex and challenging situations with employees, like workplace conflict, performance conversations, attendance issues, and more.
Gusto HR Partners is currently available to eligible customers, and will become available to more businesses soon.
Gusto PEO: Big company support for growing small businesses
For small businesses that want a partner to take on much of the HR, payroll, benefits, and compliance work for them, Gusto is introducing a Professional Employer Organization (PEO).
Gusto PEO bands many small businesses together, so each one can access benefits and support usually reserved for big companies.
Gusto PEO will become available to eligible customers in the coming months.
Supporting small businesses as a proactive, trusted compliance and HR partner
As a business grows and its needs change, Gusto grows with it — cutting the red tape around hiring in a new state with Business Compliance, offering senior HR expertise through HR Partners, and taking on more of the day-to-day work with payroll, people, benefits, and compliance with PEO.
By proactively supporting businesses with their people and compliance needs, we’re helping them grow their teams, without the guesswork.
It's a continuation of what Gusto has always tried to do: simplify the hard parts of running a business, so owners can focus on growing what they've built.
Frequently Asked Questions
What is Gusto Business Compliance?
Gusto Business Compliance is a solution that helps small businesses handle state tax registration, annual report filings, and other compliance requirements. Because Gusto already runs payroll and HR for a business, it has visibility on when a business makes a new hire in another state and proactively acts on the requirements that follow.
What does Gusto Business Compliance include?
Gusto Business Compliance includes state tax registration, annual report filing, government mail monitoring, registered agent services, foreign qualification, proactive compliance alerts, and access to a Compliance Concierge Team of dedicated experts.
Who can use Gusto Business Compliance?
Gusto Business Compliance is available now to all Gusto customers.
What is the difference between Gusto Business Compliance, Gusto HR Partners, and Gusto PEO?
Gusto Business Compliance handles registrations, filings, and compliance deadlines for small businesses, especially when hiring in a new state. Gusto HR Partners gives business owners access to a senior HR expert for guidance on HR strategy and compliance. Gusto PEO (Professional Employer Organization) takes on much of the day-to-day work for payroll, compliance, benefits administration and HR directly, giving small businesses access to benefits and support typically reserved for larger companies.
Why does hiring an employee in a new state trigger compliance requirements?
Hiring in a new state typically requires registering with that state's tax and labor agencies, filing for a registered agent, and in some cases qualifying to legally operate there. These requirements vary by state and are easy for business owners to miss, which is why Business Compliance automatically flags and helps handle them when a new-state hire occurs.
When will Gusto HR Partners become available?
Gusto HR Partners is currently available to eligible customers, and will become available to more customers soon.
When will Gusto PEO be available?
Gusto PEO will become available to eligible customers in the coming months.
