Xero and Gusto

Frequently asked questions

What is the new partnership with Gusto?


This new partnership is all about delivering a better experience for customers by combining the power of two innovative solutions – Xero’s global cloud accounting platform and Gusto’s full-service payroll service.

Small businesses using Gusto spend 75 percent less time managing employee payroll than before they started using the service. That’s because Gusto’s born-in-the-cloud service handles all aspects of payroll on behalf of the small business owner.

Over the coming months, Gusto’s product will be deeply integrated into the Xero platform and become the core payroll solution for our customers. Key components of the integration will include:


  • Single sign-on: Xero will deliver a beautiful user experience by giving customers the ability to access their Gusto account using their Xero credentials.
  • Managing cash flow: Xero will be automatically updated every time payroll is run, providing an always up-to-date view of cash-flow.
  • Accountant collaboration: Small businesses will be able to grant their accountant or trusted advisor permission to manage payroll and generate payroll reports within Xero.

Who should use Gusto?

Just like Xero, Gusto aims to make the task of processing payroll as easy as possible. Gusto is for any business that wants to spend less time processing payroll (suggested for up to 100 employees). Gusto is a full-service payroll option (payroll is automated and filings handled automatically), and has three available bundles with increasing functionality.  Employees can get their own login (for paystubs, time sheets, balances) and many compliance tasks are taken care of (HIPAA, ACA, ERISA compliant).

Read more about Gusto

What does this mean for me if I am an existing payroll customer?


We are committed to working with you to ensure that there is a smooth transition as we integrate Gusto’s more robust product onto our platform. We are providing you with a wind-down period, so that you can continue using the existing service until you transition to Gusto, or the payroll solution of your choice.


Here are the key details on the wind-down period:

  • There is no immediate action required. You have the option to continue using your existing account until December 31, 2018.  If you continue to use your existing account through December 31, 2018, Xero will handle your 2018 payroll taxes as in prior years.
  • If you decide to move to Gusto before October 31, 2018, you will self onboard onto the Gusto platform and use it for the remainder of the year. The Gusto support team is available to provide assistance if necessary. Gusto will handle your tax fillings at year end at no additional cost.
  • We will also notify you as soon as the integration with Gusto is close to going live to make the process of transitioning your account as easy as possible.  Xero / Gusto will have a migration tool that will help you migrate to the Gusto platform so that, if you choose, you can be ready to run payroll on Gusto for 2019.

How will I pay my 2018 payroll taxes?

There will be no change from previous years. You have the option to continue using Xero payroll through December 31, 2018. In this case, Xero will handle your 2018 payroll taxes as in prior years.

How much will Gusto cost?

We will be sending you additional information as we complete the integration with Gusto. This will include full pricing details, and a special offer available exclusively to Xero customers.  We will update you with ample time on the offer details, so you can assess the new solution and make any changes to payroll services well ahead of year-end.

Have further questions?

Contact Xero support