It’s no secret that running a small business is hard. Small business owners know they’re committing to long hours, hard work, and uncertainty in exchange for the chance to pursue their ambitions.
What new business owners often don’t expect? Many find it difficult to navigate complex federal, state, and local regulations. In fact, small business owners typically spend 200 hours a year just on maintaining compliance, according to a report from the U.S. Chamber of Commerce.
The same report found small firms with fewer than 50 employees incurred regulatory costs of over $11,700 per year per employee – higher than average for all firms – showing the burden of maintaining compliance can be heavier for smaller businesses than for larger companies.
Gusto launched over a decade ago to help small business owners with running payroll quickly and accurately. We help more than 400,000 businesses ensure they’re filing their taxes and managing deductions compliantly, giving them peace of mind so they can focus on their growth.
Today, we’re expanding our support with Gusto Compliance – a new product that will make it simpler for small businesses to navigate regulatory challenges. From crucial government filings to employee training and benefits mandates, Gusto Compliance is designed to help business owners know what steps they need to take to maintain compliance.
Small Business Owners Want Peace of Mind Around Meeting Compliance Requirements
In a recent Gusto survey of 1,100 small business owners, the majority reported that it feels risky to make mistakes with compliance, and that meeting their compliance requirements often feels burdensome. Their concerns ranged from registering their businesses correctly to ensuring they were fully compliant with all employment and labor regulations.
- 77% of all business owners said they felt making mistakes while registering their businesses with the right federal agencies was risky – whether it was for the new Beneficial Ownership Information reporting requirement, or for trade or patent registration.
- 67% said they felt it was risky to make mistakes in enrolling and making deductions for required benefits to their employees.
- 61% said they felt it was risky to make mistakes around ensuring proper worker classification – for example, determining if an employee would be exempt or non-exempt.
Enter Gusto Compliance: Guiding Businesses Through a Maze of Regulatory Requirements
Gusto Compliance provides ongoing monitoring, proactive alerts, and personalized guidance to help businesses navigate complex regulations effortlessly. It sorts through the maze of employment laws and regulations from multiple agencies, including state Departments of Labor, to help businesses stay on top of important compliance deadlines.
Failing to meet compliance requirements can result in financial penalties, reputational harm, business disruption, employee lawsuits, government sanctions, and potentially criminal charges, depending on the severity of the violation.
At the heart of Gusto Compliance is the new Compliance Hub, a centralized platform that enables businesses to navigate compliance with ease. It offers a transparent dashboard where business owners can:
- Receive real-time updates and tailored alerts on new regulations or changes. Gusto Compliance closely monitors and tracks new changes to compliance requirements, providing business owners with reliable, accurate information through the Compliance Hub and email alerts. This helps them cut through the noise and only track the changes that matter to their business.
- Access a personalized overview of their unique, specific compliance needs. Gusto Compliance only surfaces relevant information to business owners as they need it. When they hit a certain number of employees, or hire workers in another state, they get timely alerts letting them know they may need to take a compliance-related action.
- Take actionable steps with in-app guidance. Gusto Compliance removes confusing jargon and legalese. It provides business owners with clear, simple language both in the Gusto Compliance Hub and throughout the Gusto platform so they never wonder what step to take next.
- Track compliance history and document what’s been completed. Gusto Compliance gives business owners full visibility and transparency into what actions they’ve taken to maintain compliance, and what still needs to be done – making it easy to track and report on their activities as needed.
With its emphasis on usability and real-time support, the Compliance Hub saves time and reduces anxiety, focusing on actionable, personalized tools instead of generic advice.
Looking Ahead
Starting in March 2025, Gusto Compliance will automatically become available, at no extra charge, to all Gusto customers in California and New York – two states with some of the most comprehensive employment regulations.
At launch, Gusto Compliance will help business owners quickly and easily maintain compliance with common regulatory requirements including:
- Navigating state retirement mandates
- Enrollment and deductions for required benefits, like workers’ compensation
- Identifying required trainings and certifications for employees – like harassment prevention training
- Identifying when labor law posters need to be displayed for on-site and remote employees
- Managing deadlines to collect and submit Form I-9 for new hires
In the coming months, we’ll be rapidly expanding our coverage to more states, while adding support for an even broader range of regulations.
With Gusto Compliance, we’re excited to support more business owners across the U.S. with peace of mind around maintaining compliance – so they can focus on their businesses’ growth and success.
