Gusto runs the payroll on time. We build and keep the reasonable pay memo that backs up your salary.
Gusto is the payroll provider we set up almost every time we file an S-corp election. Automatic federal + state tax filings, multi-state friendly, 1099-NEC year-end filings included. The point isn't the payroll itself. It's that reasonable comp documentation, tax-deposit timing, and payroll-tax math all happen without you having to think about them.
Payroll + benefits + contractor pay. One platform, light footprint.
Gusto is a payroll platform built for small business. The job-to-be-done is mundane and critical: cut paychecks on schedule, withhold and remit the right federal + state taxes, file the quarterly returns, ship year-end W-2s and 1099-NECs, never miss a deadline.
For an S-corp owner running reasonable comp through payroll, this is the operational backbone. The wrong payroll provider creates audit risk (missed deposits, sloppy state filings, inconsistent pay timing). The right one makes the S-corp structure work without you noticing it's working.
The standard Gusto setup at engagement.
S-corp election filed (Form 2553)
If applicable. The deadline is 2 months and 15 days after the start of the year the election starts; we check this date first. We model reasonable comp against your specialty/industry first.
Gusto account opened + connected to Relay
Gusto pulls funds from your payroll-account at Relay. Federal and state tax registrations handled in Gusto's onboarding.
Reasonable comp paid on schedule
Monthly or semi-monthly for owners. Documentation memo (specialty benchmark, geography adjustment, rationale) lives in Basecamp.
Quarterly + year-end filings automatic
Gusto prepares and files Forms 941 and 940, state quarterly returns, W-2s and 1099-NECs for you. Form 1096 is only the paper transmittal for paper-filed 1099s; when filed electronically, no 1096 is used. You see confirmations in your portal.
Accountable plan reimbursements (optional)
Home office, vehicle, phone, internet. With a written accountable plan, and with receipts or logs, these refunds are not taxed to you; the S-corp deducts them. Without records, they count as pay. Templates provided.
What clients ask about Gusto and payroll setup.
Do I have to use Gusto?
No. Gusto is our default because it works well, integrates with Kick + Relay, and has the multi-state support most S-corp clients eventually need. We can also support Run by ADP, Patriot, Justworks, or your existing provider. The choice is yours; Gusto just has the lowest friction with the rest of the ETS stack.
What does Gusto cost?
Gusto's pricing is published on their site (gusto.com/pricing). Plans start near $49 a month plus $6 per person. Plans with multi-state payroll cost more. An S-corp can lower Social Security and Medicare tax on profit above a fair salary; the saving depends on your profit and your salary, and we run the numbers with you first.
How does Gusto handle reasonable comp?
Gusto doesn't set reasonable comp. We do. We model the comp benchmark against your specialty and industry, document the rationale, and then configure Gusto to pay that amount on the schedule we recommend (usually monthly or semi-monthly for S-corp owners). The documentation lives in your Basecamp project.
Can Gusto handle 1099 contractors?
Yes. Gusto handles both W-2 employees and 1099 contractors in one platform. We use it for clients who have a small contractor bench, the 1099-NEC filings happen automatically at year-end.
What about multi-state payroll?
Gusto can register you in each state and file state payroll returns on plans that include multi-state payroll (its Plus plan and above). For ETS clients with employees in 2+ states, this is a factor in which Gusto plan we set you up on.
One Discovery call. We confirm whether S-corp + Gusto is the right move.
Bring your net business income for the last 12 months. Many owners start to see a benefit once profit is well above a fair salary; we model your numbers to be sure. If it doesn't fit, we say so and route you elsewhere.
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