Complaints

The complaint text that is displayed might not represent all complaints filed with BBB. Some consumers may elect to not publish the details of their complaints, some complaints may not meet BBB's standards for publication, or BBB may display a portion of complaints when a high volume is received for a particular business.

• Initial Complaint

  Date:05/28/2025

  Type:Order Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I have attempted to resolve this matter directly with the Gusto Benefits team, but after 4 months I am out of patience. We use Gusto for benefits management and selected our medical plans in Nov 2024 during the renewal timeframe. When our first BlueCross bill arrived in February reflecting our new plans, I reached out to Gusto on 2/15/25 to inquire why the amounts didnt match what we signed up for. After weeks of looking into it, Gusto admitted that one of the plans they sent to **** for renewal was incorrect. We elected a cheaper Alliance plan, but instead they signed us up for the Statewide network for our base health plan. This resulted in incorrect premiums being deducted for our employees - and our company having to pay higher health care premiums on our monthly bills to ****. Our **** representative has been heavily involved in this issue and has had extensive communication with the Gusto benefits team, but the problems are still ongoing. Fortunately, **** was finally able to move us to the correct plan this month, backdated to May 1, but several issues are still ongoing. (1) As a company, we are owed reimbursement for the months of Jan through Apr where we were billed for a higher cost health plan than what we signed up for. I have submitted a detailed reimbursement letter and all supporting documentation to Gusto as of 5/27/25. (2) Employee deductions need to be corrected dating back to 1/1/25 - or Gusto owes us reimbursement for the incorrect deductions from employee paychecks, resulting in us having to cover higher premium costs. (3) The payroll system still reflects the incorrect premiums and plans for our employees. Sometime in the last pay cycle, one of our employees was moved to the wrong health plan in ********************, resulting in him having a $0 premium deduction. When I asked Gusto to correct this, they said nothing could be done at this time, so I just have to process payroll with incorrect amounts. This is unacceptable and needs correction.

  

  Business Response

  Date: 05/29/2025

  Dear *****,

  
  Thank you for bringing this matter to our attention. We understand how critical it is for your benefits to be set up correctly, and we sincerely apologize for the frustration youve experienced. Its absolutely unacceptable for you to have encountered these issues, and we are committed to making it right.

  We have escalated your case internally, and you can expect to hear from us within your open case soon (********). In the meantime, as you process payroll, our team is prepared to manually adjust the benefits and corresponding deductions to ensure your payroll reflects accurate data. We appreciate your patience as we work to address the system discrepancies and provide a permanent solution.

  Thank you for the opportunity to work with you through this challenge. We are dedicated to seeing this through to full resolution and ensuring your experience improves moving forward.
  

  Sincere regards,
  Gusto
  
  
  Sincere Regards,

  Gusto

  Customer Answer

  Date: 06/02/2025

   
  Complaint: 23389028
  
  While I appreciate Gusto's acknowledgement and empathy regarding my benefits issues, I have seen no action taken since this complaint was received; therefore I am rejecting this response.  Four days have passed and I have heard nothing from the Gusto team regarding my case.  Our payroll system continues to reflect employees on the wrong plans and incorrect premium amounts.  Nothing has changed since I submitted my initial complaint.  Additionally, I have heard nothing regarding the reimbursement for the enrollment error overcharges.  Gusto claims this has been "escalated", but I would like to see escalation that actually produces action, not just more apologies.  As Gusto stated in their response, the is "completely unacceptable".  
  
  Sincerely,
  
  ***** ********

  

  Business Response

  Date: 06/03/2025

  Hello *****,

  Thank you for your response. We understand the discomfort of waiting, especially for a matter as pressing and important as this. There has been activity on the open case, today, and would like to reiterate a few key points.
  

  We have identified the root of the problem and are actively working to resolve the issue between our Gusto system and the carriers. Our internal supervisory teams are fully engaged in addressing this situation. While the current circumstances may require you to run payroll based on incorrect deductions, we are committed to working with you to make the necessary manual adjustments internally so that you payroll is accurate. 

  For transparency, these corrections do take some time for our internal partners to process while working with the Carriers; potentially spanning a few weeks. Please refer to the additional insight on what this process will look like until we get each employee reassigned to the correct plans and get the deductions reflecting accurately in Gusto.

  We are working to rectify this matter as quickly as possible and look forward to restoring your trust in Gusto. Your satisfaction is our top priority, and we are here to support you. We sincerely appreciate your understanding.

  Sincerely, 

  Gusto

  Customer Answer

  Date: 06/07/2025

   
  Complaint: 23389028
  
  I am rejecting this response because additional errors have been discovered since Gusto's last response.  As I stated previously, I was able to get all health plans corrected on the **** side in May (I was just waiting on Gusto's payroll system to match).  But in the last few days, our employee (initials SB) received an email from Gusto stating his new healthcare plan application has "been approved" - and he subsequently received a new ID card from BlueCross....for the WRONG health plan!  So after I got everything fixed with ****, Gusto went in and had it changed incorrectly!!!!  This employee never had an issue with his assigned health plan, so why was he moved?  He has been on the correct health plan all year (it was a different employee who was incorrect), but now this employee's plan has been downgraded erroneously.  It seems every time Gusto touches anything, it get messed up further, but never gets corrected.  Additionally, the Gusto payroll system now shows that no employees are enrolled in ANY healthcare plan. Given everything that has happened, I think it's fair to request a call from a Gusto manager/director or someone with some authority to discuss these matters.  All of my emails just end up in a queue that go days and days without a response - and the responses I get are simply "we are working on it".  And now you are telling me it may be another "few weeks" to get corrections made.  How long is an acceptable amount of time for me to wait?  I will remind you, Gusto claims they have been "working on it" for 4 months already.  
  
  Sincerely,
  
  ***** ********

• Initial Complaint

  Date:05/26/2025

  Type:Billing Issues
  Status:

  ResolvedMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  We currently use Gusto for payroll services and 401k management, as well as timekeeping for billable projects and reimbursable grants. We have had 3 major issues with the platform, all of which they have failed to remedy: (1) we found a huge error in that their software was not matching employee timekeeping sheets to payroll reports, our source documents for audits; (2) the hours allocated to different projects do not match our internal documents ("project tracking hours"), another software failure; and (3), their system will not allow us to update employee pay rates, and to date still show as "pending" despite months of trying to update them to be in compliance with our grants. Furthermore, their timekeeping system does not time keep correctly. It will record two projects as working in the same minute. This we also pointed out to them, which they have not fixed. We kindly requested an account credit to help compensate for the thousands of dollars it cost our organization to remedy these accounting issues with our contractual bookkeeper due to their inaccurate software, and they declined an account credit. The company has never understood the legal gravity of the situation they put our small nonprofit in, and they declined to escalate my case to a manager or supervisor based in **, where the company is supposedly based in, and where our nonprofit is registered. They have not fixed any of the issues, and have admitted that other customers have complained about similar issues, particularly not being able to update pay rates for employees. Other nonprofits who receive state and federal grants as we do should be very wary of utilizing this platform. Gusto should reimburse us for our monthly costs to use the platform in some amount over the past year, as we have been paying for a faulty system that has cost our small, publicly-funded organization quite a lot of money.

  

  Business Response

  Date: 05/28/2025

  Hello ******,

  Thank you for sharing your experience. We are deeply sorry for the challenges your organization has faced while using Gusto. We understand how critical accurate payroll, time tracking, and compensation management are especially for nonprofits that rely on public funding and need to stay compliant with grant ************* We take your concerns seriously, and we are committed to supporting you as best we can.
  

  We want to acknowledge the issues you've described and provide some clarity around the steps we have taken so far. Regarding the project tracking hours, our support team explored every available channel to find a solution. We confirmed that hours tracked in previous periods become locked once payroll is processed, which prevents manual edits or updates. This limitation is based on how the platform is built to ensure payroll compliance. While we know this isnt the outcome you were hoping for, we recommended keeping an external project tracking sheet for your records, and we have submitted your feedback to our Product and Engineering teams as a feature request.
  

  In terms of the compensation rate updates, we reviewed your account and confirmed that updates were successfully applied for all employees except one. For that individual, the pending rate was due to the required hours not being entered. The system finalizes rate changes based on hours recorded, and if hours are left blank or set to zero, the rate will remain pending. Running payroll with the correct hours should allow the rate to update as expected. We recognize this process may not have been intuitive and will use this feedback to improve clarity going forward.
  We also want to acknowledge your request to work with a different advocate and to escalate your case further. At this time, our support model does not allow us to transfer case ownership to specific individuals or regions. However, our entire support team is trained on the same tools, policies, and best practices to provide consistent, high-quality care. Your case was actively managed by a dedicated specialist who remained committed to resolving your concerns. We also reached out via phone and email following our last update on May 16, 2025, but we have not yet heard back.
  We understand that these issues have had a real impact on your team, both in time and cost. While we were not able to issue an account credit, please know that your experience has been fully documented and escalated internally. Your feedback helps us build a better product, and your voice matters.
  If you would like to continue the conversation or reconnect with our team, we encourage you to log in to your Gusto account and visit the Help section. From there, you can chat, request a callback, or send a message. We are here and ready to support you.
  We appreciate the important work your organization does, and we remain committed to earning back your trust.

  Customer Answer

  Date: 05/29/2025

   
  Complaint: 23378936
  

  It is not accurate that all of our employees with "Pending" pay rates have been changed except one. See the attached PDF with the current time stamp and screenshots that has two employees, still with pending pay rates. The explanation provided is also wholly different than previous explanations we have been given as to how and why pay rates were not changing. If I am supposed to put a future date on when pay rates should change-- as directed by your customer **********************, and evidenced in the emails I sent the BBB-- how can I input future hours for that respective employee? I am not sure how many hours that employee will work on any given project.  Again, this is a good example of how we get different responses from different personnel at Gusto, none of which are consistent nor helpful in resolving the issue. The major issue that Gusto should address is why it is so challenging to update pay rates at all. It should be as simple as an Admin updating the pay rate in the employee profile, without the need to wait for pay periods to pass, or to undergo the lengthy customer ********************** process I was subject to. 

  The only response I received that I have not directly responded to was from Customer ********************** in regards to our case relaying that no account credit would be granted. My response to that was to file a complaint with the Better Business Bureau, as were paid for payroll services, but the payroll services we received included a year's worth of inaccurate payroll reports and incorrectly recorded project tracking hours that were unmatched to payroll reports. That, to me, seems unethical, especially to a small 501(c)(3) nonprofit, and poor customer ********************** at the least. 

  Understandably, we will not be remaining a Gusto customer due to these issues. We have found an alternative payroll platform to use.

  

  Business Response

  Date: 05/29/2025

  Hi ******,
  Thank you for following up and for sharing the additional documentation. Weve reviewed the file you provided, and we acknowledge that your account still reflects two employees with Pending pay rates. We apologize for the earlier misstatement, and we appreciate you bringing this to our attention.
  We understand how frustrating and time-consuming this situation has been, especially when trying to manage variable hours and ***** compliance as a small nonprofit. Regarding the pending pay rate issue, the system currently finalizes rate changes based on actual hours recordedwithout those hours, the new rate remains in a pending state. We recognize this can be especially challenging when you cannot predict hours in advance, and that limitation has been escalated as a usability concern to our Product and Engineering teams.
  We also want to acknowledge your broader concern: that updating pay rates should be a straightforward process. We agree. Your feedback underscores an important gap in functionality, and we are actively reviewing how this workflow can be improved to better serve organizations like yours.
  As for your comments about the outcome of this case, we understand your disappointment with the resolution and the denial of an account credit. While we are unable to issue a credit, we do want to assure you that your experience has been documented in full and shared with internal teams for further review and improvement. We understand how critical it is that payroll reports and project tracking align accuratelyespecially when public accountability and funding are involvedand were truly sorry that your expectations were not met in this regard.
  We respect your decision to move to another provider and regret that your experience with Gusto did not reflect the quality of service we strive to deliver. If there are any remaining questions or concerns, our team remains available to support you through your open support case.
  Thank you again for the work you do and for the opportunity to have served your team.
  

  Customer Answer

  Date: 05/30/2025

  Better Business Bureau:
  
  I have reviewed the response made by the business in reference to complaint ID ********, and find the response satisfactory.
  
  Sincerely,
  
  ****** ******

• Initial Complaint

  Date:05/16/2025

  Type:Sales and Advertising Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  We have had numerous issues with Gusto for the past 18 months, but, in particular since May 2024. As part of our premium membership, we are supposed to have a dedicated account manager. On 5/28/24, we were informed by Gusto manager, ***** K, that our current account manager was leaving and that they were working on finding a new person. At that time, we officially complained that we were unhappy with the premium package, in particular that the "premium" support phone line was not able to answer most questions for the past 8 months. We were told to email the basic email support line instead, even though we were paying for "premium" phone support. After 41 days of not being assigned an account manager, we emailed again and were assigned ***** *. We worked with ***** for several months, but had numerous issues getting questions answered. Often questions went unresolved altogether. We have many email strings that were abandoned by ***** and issues that were never resolved. We continued to have a terrible experience with the "premium" phone support, often getting an overseas operator who was unintelligible and who could not answer any questions. We also were not contacted for the quarterly meetings that were part of the premium plan.On 3/10/25 we got an email from ********* C stating that ***** was leaving Gusto and that we would be assigned a new account manager soon. Not only have we still not been assigned a new account manager, but we have reached out on 4/4, 4/15, and 4/22 complaining that we have not gotten our new account manager. I want a refund for the difference between the premium plan and the "Plus" plan between September 2023 and May 2025. We have paid far more per month for service we have not received. We very likely will be downgrading our plan at this point. I have dozens of email chains I can gather to support these events. I attached the most recent example.

  

  Business Response

  Date: 05/16/2025

  Hi ******,

  Thank you for taking the time to share your concerns with us. We sincerely apologize for the challenges you've experienced over the past 18 months, especially regarding the support associated with your premium membership. Your feedback is invaluable, and we want to assure you that we take it very seriously.

  We understand that having a dedicated account manager and reliable support is crucial to your experience with Gusto, and we regret that we have fallen short of your expectations. The issues you've described, particularly with the transition between account managers and the quality of support, are not reflective of the service we strive to provide.
  

  We appreciate your patience during this time and recognize the frustration that comes with unanswered questions and unresolved issues. It is our goal to ensure that our customers receive the support they deserve, and we are committed to addressing these concerns promptly.

  To begin resolving this matter, we have created a case (********) to follow up with you early next week. Please allow us to reach out to you via the open case to work together toward a suitable resolution.

  Thank you again for your feedback and for allowing us the opportunity to make this right. We value your business and hope to restore your confidence in our services.

  
  Warm regards,
  Gusto

  Customer Answer

  Date: 05/21/2025

   
  Complaint: 23339955
  
  I am rejecting this response because all we have heard from the business is that they are "looking into things". We then got a random email from someone stating they are our "Dedicated Customer Success Manager", but the email was just a random template email trying to sells us on an upgraded feature in Gusto. So, basically all we have gotten from Gusto is a generic sales email from someone saying they are our dedicated success manager. We can certainly reach out to introduce ourselves to this person, but my original request to Gusto is for compensation for all the months that we have paid for "premium" service but not been getting the advertised benefits of the premium package. I'm attaching a copy of the sales email we received. 
  
  Sincerely,
  
  ****** *********

  

  Business Response

  Date: 05/23/2025

  Hi ******,

  Thank you for your response and for taking the time to share your continued concerns. I truly apologize that our previous communication has felt impersonal and sales-focusedthat is not our intent, especially in the context of a support issue that is important to you.

  We understand your frustration regarding the lack of clarity and resolution around your original request. I also recognize that receiving a generic outreach instead of a personalized follow-up may have felt dismissive, and for that, we sincerely apologize.

  To directly address your concern: we are actively reviewing your account to assess the full scope of the services provided under your premium package, and whether those aligned with the benefits advertised. We absolutely want to ensure that you feel the value of your investment in Gusto, and if there have been shortcomings, we are committed to making things rightincluding discussing appropriate compensation.

  Again, thank you for holding us accountable. We value your business and the opportunity to regain your trust.

  
  

• Initial Complaint

  Date:05/11/2025

  Type:Customer Service Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I have been a customer of ******************** for several years. I sold my business last fall and contacted Gusto about terminating my services as I no longer owned the business. While I understand that they probably did not violate any of the "legal terms", since no small business owner is going to really read those. I feel that their business practices have been absolutely horrible since notifying them of the termination of the policy, even when I no longer owned this business. I even helped the new owners set up their account with ******************** to continue service with them. I am opening a new business in another state and had planned to use them again here. However, they basically gave me no support or understanding of how to accurately terminate my account and they ultimately charged me over $1,000 AFTER we terminated the account and stopped running payroll. I reached out numerous times to their customer ********************** team and inquired about the charges. I gave them all of the above information and they still refused to help me. They still never told me the correct way to terminate the account to keep getting charged. I even had to call them last month to issue an updated W-2 where an employee entered the wrong social security number during self on-boarding and did not catch it until they had to file their taxes. I called Gusto to get this corrected and a new W-2 issued. They told me that I had to re-activate the account and to leave it open for several days to ensure that the W-2 was processed properly. They charged me AGAIN for another $300+. Everyone keeps saying that they are just "following their policies". I even asked them, so you want to lose a customer and future business over a few hundred dollars, when there was not clear communication or willingness to correct the charges. I am a small business owner and always do everything possible to do business in an ethical situation and always take care of the customer. It is unfortunate that they don't follow the same,

  

  Business Response

  Date: 05/12/2025

  Hello ****,

  Thank you for taking the time to share your experience. We truly appreciate your past business and understand how important it is to feel supported when closing a company and navigating transitions.
  Gusto is a subscription-based service, and we bill monthly for continued access to the platform, including payroll processing, tax filings, reporting tools, and compliance support. According to our records, your account was officially closed on April 28, 2025. In line with our billing process, the final monthly invoice was generated in May to cover subscription services provided during April.
  The payment method on file was not successfully charged, which means the balance still reflects the April service period. Since the debit was unsuccessful, were unable to process a refund, as no funds were collected.
  Regarding the W-2 correction request, in order to process an updated tax form, the account must be temporarily reactivated. This ensures the system can generate and deliver corrected documentation as required. Charges associated with that reactivation are in line with our standard monthly billing model, regardless of payroll activity during that time.
  Were always here to help clarify your account or billing details. If you'd like to regain access or resolve the balance, you can do so by remitting payment using the wire instructions we previously provided. Let us know if youd like us to resend those details or assist further.
  Thank you again, and we wish you the very best with your new business.

• Initial Complaint

  Date:05/09/2025

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I am an employee whose payroll is processed through Gusto. Due to an error, two of my paychecks one for $31.27 and another for $1,746.66, totaling $1,777.93 were deposited into a debit card account under my husbands name instead of mine. As a result, ******** froze the funds because the name on the receiving account did not match the employee name.I have visited the bank multiple times and submitted all required documents, but ******** clearly stated they cannot release the funds unless Gusto submits a formal ********** employer and I have contacted Gusto several times to ask them to submit the request, but Gusto refused to assist, claiming too much time had passed.More importantly, Gustos system allowed payroll deposits to be sent to an account under a different name without verifying ownership, which directly caused this issue.Supporting documents, including my Gusto paystubs and Citibanks response, are attached.

  

  Business Response

  Date: 05/09/2025

  Hello ***** **,

  Thank you for reaching out, and we are truly sorry to hear about the trouble youve experienced with your paycheck deposits. I understand how frustrating and urgent this situation must feel.
  While Gusto facilitates payroll on behalf of your employer, we are not authorized to take direct action on individual employee payment issues without a request from the employer. This includes submitting formal requests to financial institutions like *********
  To move forward, your employer will need to contact us directly and authorize any next steps. Were here to support them and can work with them to determine if any documentation or assistance can be provided based on the situation.

  We understand how important it is to resolve this, and were committed to supporting your employer in getting it addressed as quickly as possible.

  Thank you!

• Initial Complaint

  Date:05/04/2025

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  Gusto is the payroll company for my employer, ******************************** in *********, **. When I filled out my direct deposit form, I gave the wrong last four numbers. (I have four accounts with my credit union, ******************************. All four accounts start with the same ten numbers, but then each account has a dash and more numbers to distinguish each account. When instructed to provide last four digits on direct deposit form, I gave the "last four" of my checking account following the dash, "0050"). When I did not get my first paycheck on January 31, 2025, I contacted my employer then my bank. My bank discovered that the funds were deposited into an account ending in 0050 and that I was suppose to use the last four digits BEFORE the dash. (The incorrect account number issue was immediately corrected). The bank said they could not remove the funds without a "Letter of Indemnity" from the payroll company. I informed my employer who forwarded my request to Gusto, the payroll company, and I have been getting the runaround ever since. I was told it would take 1-3 days, then 3-5 days, then 30 days, then 3-5, now they say they are "working on it", and they didn't know how long it would take. I was hung up on, denied access to my records without an attorney and denied permission to speak with a department supervisor. They insist that their "internal team" is working on it, but I have not been allowed to speak with anyone on that team to understand why it is taking so long. It has been over 3 months and we are still in the same position, simply waiting for a one-page form to be sent to the bank. I provided them with the bank contact and explained what they needed to do. I am at a loss as to this company's apparent refusal or inability to comply with a request that does not affect them financially (yet) and fear that the longer it takes the more complicated and costly it will become.

  

  Business Response

  Date: 05/05/2025

  Hello *********,

  Thank you for sharing your concerns, and were truly sorry for the delays and frustration youve experienced. We understand how important timely access to your paycheck is and regret that your experience has caused stress.

  Weve reviewed your case (Reference #********) and can confirm that our internal team is actively working on your request related to the Letter of Indemnity. These requests require careful handling to ensure that we meet legal and security standards, which can sometimes extend processing time. That said, we recognize that this situation has taken longer than expected, and we apologize for the lack of clarity along the way.
  While we are unable to discuss specific account or ******************** details in a public forum for security reasons, we want to assure you that your case remains a priority. Our team will continue working closely with your employer to ensure the matter is resolved. If there are any new developments or additional information needed, a member of our team will follow up directly.
  We appreciate your patience and encourage you to continue working with our support team, who are best positioned to provide updates and ensure the necessary documentation is delivered.
  Sincerely,

  Gusto Client Relations

• Initial Complaint

  Date:05/02/2025

  Type:Billing Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  On December 30, 2024, Gusto processed a payroll in error. The payroll was formally reversed within 24 hours, and no services or funds were rendered. However, Gusto still filed taxes on the reversed payroll. Since that time, I have received no communication from the *** indicating an overpayment and no notification from Gusto that a balance was dueuntil April 28, 2025.Without prior notice, Gusto claimed I owed them the full gross amount, including taxes, totaling over $100,000. They immediately placed a payroll block on my account and attempted to withdraw the full amount from my business bank account, despite the issue already being under dispute. I stopped the withdrawal, and Gusto retaliated by locking me out of my account, including access to tax forms, W-2s, and compliance records.Ive had no response from Gusto in over a week, despite multiple urgent support requests. Their behavior is unlawful, retaliatory, and damaging to my ability to remain tax-compliant. I demand immediate reinstatement of account access, removal of false charges, and a written resolution.

  

  Business Response

  Date: 05/05/2025

  Hello *****,
  Thank you for reaching out and for the opportunity to clarify the situation. I understand how important it is to resolve this matter, especially as you work to transition to a new provider and maintain tax compliance.
  After a thorough review, heres what occurred:
  On December 31, 2024, a payroll was submitted under the user login *************************************************************** with a 12.31.2024 check date. This payroll was processed with a check payment type, but was set up for Gusto to debit and remit the taxes. Due to the size of the tax liability, a next-day deposit was required, and Gusto remitted $162,755.08 to the IRS.
  Although the payroll was reversed on January 2, 2025, the tax funds had already been paid to the *** prior to debiting your employer account and cannot be recalled. A partial refund (approximately $133,000) has already been issued by the *** (see attached transcript). However, $31,371.01 remains non-refundable, as it was counted as prepaid tax tied to an additional historical payroll your business added after the reversal indicating that the taxes had been paid outside of Gusto.
  To restore full access to your Gusto account and tax documents, the full amount Gusto paid on behalf of your business to the *** must be repaid. This includes both the refunded portion and the prepaid tax amount. Please work directly with our Assurance team to arrange repayment and resolve the balance.
  We know this situation has been frustrating and appreciate your attention to resolving it. Our team is here to support you through the next steps.
  If you have further questions please work with the specialist assigned to your case 38215034 as they are the best point of contact moving forward.

• Initial Complaint

  Date:05/02/2025

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I used Gusto to run an EOY Payroll. What was supposed to be a payroll towards 2024 was not submitted as such and they submitted for 2025. After trying to fix the issue with Gusto they refused to accept that they messed it up and are unwilling to help fix the issue they created. Their direction to me was figure it out on my own. Great customer support! I know have to pay a *** to help fix the issue with the *** and their mistake has cost me more money. I have paid for 3 months of their service with no actual work done from them and they refuse to refund me even though they have performed no service. Their Subscription service is a scam to milk people for money and I would advice anyone to never use them for anything.

  

  Business Response

  Date: 05/05/2025

  Hello ******,

  Thank you for taking the time to share your experience. Were sorry to hear about the frustration this situation caused and appreciate the opportunity to clarify what happened.
  Based on our review, the first payroll processed through Gusto had a check date of January 2, 2025. In accordance with *** guidelines, Gusto generates W-2s based on the check date, not the pay period. Since there were no payrolls with a 2024 check date, a 2024 Form W-2 cannot be generated through our system. This also means the business became an active customer in 2025, when the first ******************** was officially run.
  

  Our support team explained this and also provided instructions on how to reverse the January payroll in case you'd like to report the wages outside of Gusto for tax year 2024. While were not able to retroactively file a 2024 W-2 through our system, we did aim to equip you with the steps needed to resolve this outside of Gusto.
  

  Regarding billing, Gusto is a monthly subscription-based service. Charges continue until the account is formally canceled. In this case, the account remained active until April 15, 2025, which is why billing continued through that month. We understand it can be frustrating when services arent used as expected, and were always here to answer questions about how and when charges occur.
  

  Were committed to providing helpful, clear support and regret that this experience didnt meet your expectations. Your feedback helps us continue to improve our product and service.
  

  -Gusto Client Relations Team

• Initial Complaint

  Date:04/25/2025

  Type:Product Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I purchased a prescription and sunscreen using my FSA card. The transaction was a covered expense but gusto reduced my account and charged me an offset both for the full amount. Gusto later approved the transaction but did not replenish my funds. I have been trying to work with their customer ********************** for months but the refused to return my funds.

  

  Business Response

  Date: 04/27/2025

  Hello ******,

  Thank you so much for reaching out and giving us the opportunity to review and respond to your concerns. We truly understand how important your FSA funds are, and we appreciate your patience while we carefully investigated this matter.  We've provided resolution in your case 36733694 and outlined more detail below as well.

  
  After a thorough review, we can confirm that all of the funds in your FSA account were successfully used and paid out according to the plan rules. Id love to walk you through the details:
  The original FSA card transaction for $116.49 was processed correctly and paid directly to your provider. Because the payment was made at the point of sale using your FSA card, the funds were deducted from your account balance at that time.
  Later, when you provided documentation showing the expense was eligible, it helped validate the original transaction but it didnt change the fact that the $116.49 had already been used for that provider payment and wasn't available for reimbursement again.
  When you later submitted a manual claim through the portal, our system treated that as a new, separate request. Your manual claim was valid and approved based on eligibility, but unfortunately, by that time, your *** account had already been depleted from the original transaction and other claims.
  As a result, only the remaining available balance (if any) could be reimbursed. If additional funds had been available, they would have been reimbursed accordingly.
  In short: even though the original transaction was later confirmed as eligible, it was already fully paid out to your provider using your *** funds. No funds were withheld or lost the account was simply used up through valid transactions.
  We genuinely understand that this may not have been the outcome you were hoping for, and we sincerely appreciate all of your efforts in working with us. After exhausting all available resources and thoroughly reviewing your account history, we can confirm that no further reimbursement is possible, and the matter is fully resolved.
  Thank you again for bringing this to our attention and for being part of Gusto. If you have any other questions or if theres anything else we can do to support you, please dont hesitate to reach out.

  Customer Answer

  Date: 04/28/2025

   
  Complaint: 23251979
  
  I am rejecting this response because: my complaint is rooted in the fact that Gusto charged me an offset for an eligible transaction. The response fails to address this despite it being key in the complaint. The offset was repaid and my fsa balance was not increased meaning gusto utilized those funds against irs laws and their own protocol. These funds are still owed to me. 
  
  Sincerely,
  
  ***** ******

  Customer Answer

  Date: 04/28/2025

  Complaint rejection taken in dictation by BBB *** SS 04/28/2025 
  The purchase was paid by my FSA account. Once paid they determined it was now ineligible. I then went in and paid the balance for that purchase. 
  The purchase was then deemed to be illegible. I would like a refund or my account to be ***lenished. 

  

  Business Response

  Date: 04/28/2025

  Hello ******,
  Thank you again for your continued communication and for clarifying your concerns regarding your *** account. We truly appreciate the opportunity to fully review your case and ensure that we address every point youve raised.
  We understand that your primary concern is related to the offset that occurred on your FSA account, and specifically whether funds were appropriately restored to your available balance after repayment. Id like to walk through what we found to ensure full transparency:
  When the original card transaction for $116.49 was processed, those funds were deducted from your FSA account at the point of sale.
  Following standard IRS requirements, when documentation was not provided timely, a temporary offset was placed on your account, reducing the available balance until the eligibility could be verified.
  Once you submitted documentation validating the transaction, the offset was properly cleared per IRS guidelines. However, because the funds had already been spent when the card transaction occurred, there was no additional balance to "re-add" to your available funds. The original use of funds was already final and valid under your plan rules.
  To put it simply: the offset was tied to validating a prior eligible payment, not to withholding or reclaiming your funds. There was no instance where eligible funds were improperly withheld, used twice, or left unrestored the funds had already been correctly used for their intended purpose according to *** *** regulations and Gustos plan procedures.
  We recognize that FSA rules can be complex and its completely understandable to seek further clarity. Please know we have taken your concerns seriously and completed multiple layers of internal review to confirm that your account was handled accurately and compliantly.
  At this time, we must respectfully reaffirm that all available FSA funds were appropriately spent on eligible expenses and no additional funds remain owed.
  We sincerely appreciate your patience and the opportunity to support you throughout this process.

  Customer Answer

  Date: 04/28/2025

   
  Complaint: 23251979
  
  I am rejecting this response because: the rationale regarding how the offset was dealt with is incorrect. I submitted an additional claim for reimbursement with Supergoop which was paid paid out of pocket (ie. without fsa funds.) The claim with Supergoop was not refunded to me but was applied to the offset balance. The NimbleRX (also known as Colonial Drugs) transaction was resubmitted as a manual claim, using the same documentation requested for the card transaction, and was approved. A portion of those funds were also applied to fully satisfy the offset balance despite it being the same transaction. Gusto has a policy that assumes a claim being utilized to satisfy an offset is paid out of pocket, which was not the case for the NimbleRX manual claim. Again, the offset assessed for the card transaction and the NimbleRX manual claim were the same transaction. The offset repayment did not replenish my account resulting in mishandled funds by Gusto. The attachment shows that these claims were applied to the offset and that an offset was assessed incorrectly. The second attachment shows that the entire purchase was deemed ineligible. 
  
  Sincerely,
  
  ***** ******

• Initial Complaint

  Date:04/24/2025

  Type:Service or Repair Issues
  Status:

  AnsweredMore info

  Complaint statuses

  Resolved:

  The complainant verified the issue was resolved to their satisfaction.

  Unresolved:

  The business responded to the dispute but failed to make a good faith effort to resolve it.

  Answered:

  The business addressed the issues within the complaint, but the consumer either a) did not accept the response, OR b) did not notify BBB as to their satisfaction.

  Unanswered:

  The business failed to respond to the dispute.

  Unpursuable:

  BBB is unable to locate the business.

  I am submitting this complaint regarding repeated issues with Gusto Payroll's handling of our annual employee benefit renewals. Over the past several years, Gusto has consistently demonstrated a lack of professionalism and reliability in managing the timeline and communications associated with benefits enrollment.Each year, their failure to coordinate properly has led to confusion and unnecessary stress for our HR team. Deadlines are not clearly communicated, changes are introduced without notice, and there is minimal to no proactive outreach or guidance. In some instances, the disorganization has nearly resulted in employees being left without health insurance coverage due to missed deadlinesdespite our team making every effort to stay ahead of the process.This recurring negligence puts our employees' health and financial wellbeing at risk and has caused significant administrative burden. Despite attempts to work with their support team, the core issues have not been addressed or resolved.We are seeking accountability from Gusto for these failures and a concrete plan to ensure benefit renewals are handled accurately, clearly, and on time moving forward.

  

  Business Response

  Date: 04/24/2025

  Hi ******, 

  Thank you for bringing this to our attention. We understand how critical it is to have a smooth, timely, and transparent benefits enrollment process, and we sincerely apologize for the frustration and disruption you've experienced during the annual renewal cycles.

  At Gusto, we deeply value the trust of our customers. We take your concerns seriously and regret that our service in this area has not met your expectations.

  Weve escalated your feedback internally and are working to resolve any outstanding issues as quickly as possible. Your insights have highlighted key areas for improvement, particularly around communication and coordination, and we appreciate your patience and partnership as we focus on delivering a better experience moving forward.

  Sincerely, 

  Gusto