Why Use Gusto for Your Small Non-Profit Payroll

December 4, 2022

Running payroll could be one of your biggest headaches as a non-profit organization. Hiring an accountant can be costly, but handling everything manually will take a lot of time and effort. Plus, making mistakes could greatly impact you and your staff. This is where online payroll systems are a helpful solution.

For our small businesses, we use Gusto. It is an online payroll system targeted at small businesses and non-profits, so you don’t need to stress about running payroll, calculating wages, or filing taxes. The software will do everything on your behalf. You just need to pay a small monthly fee that is typically much lower than hiring an accountant for the job.

Let’s dig deeper into online payroll systems and, specifically, Gusto.

What Is an Online Payroll System?

An online payroll system is responsible for performing payroll calculations and reports. Get your team members set up with appropriate forms, such as W-2s or W-9s, and pay through the system with options to print checks or set up direct deposit. Besides payroll, these systems will deposit and file federal, state, and local taxes on behalf of your company.

With the support of these types of companies, you can run and monitor your payroll from anywhere.

Other benefits like time and attendance tracking may also be available in online payroll systems. This cost-effective solution could drastically change the amount of time and stress spent on payroll maintenance and issues.

What Should I Look for?

Though online payroll systems are beneficial for small non-profits, it is worth taking time to find the right software for your business. Here are some of the factors to consider.

How Many Employees Do You Have?

As most online payroll systems are designed for small businesses, you should determine what will be the number of employees in the system. Choose a system compatible with the number of employees you have in your business currently while also considering your business growth and selecting a system that will accommodate an increased number of employees.

Does the System Handle Taxes?

Handling payroll taxes may seem daunting to many small business owners. If you don’t want to handle taxes manually, look for software that will do the job for you. Not all online payroll systems have this feature, so check before you start using it.

How Much Does the Payroll System Cost?

Cost is a crucial factor in choosing an online payroll system. Most systems charge based on the number of employees or the number of payrolls run. They may also have different levels depending on what services or features you’ll need. Look for a solution that fits both your needs and your budget.

Why Did We Choose Gusto?

I first became acquainted with Gusto as a freelancer. A few of my clients used it to pay for writing and other services. From the employee or contractor side, I found it easy to set up my account, link to my bank for direct deposit, and submit hours. So, it was already on the list when we were looking for a solution for my consulting business. After comparing it to other systems, these are the reasons I went with Gusto for our family’s home service business and for this business, too.

Affordable

Gusto’s pricing was comparable to other services, such as Quickbooks payroll and Onpay. You can use a basic plan currently for $40 plus $6 a month per team member. If you only have contractors, there is currently a monthly fee of $35, plus $6 a month per team member. (Look for the first six months free for Contractor-Only plans). There are no hidden charges in the pricing plan of Gusto. Gusto doesn’t consider the number of payrolls run.

Contractors or Employees

As mentioned above, Gusto is an affordable option for companies starting off with just contractors. Gusto will let you convert employees into contractors and vice-versa, making these transitions seamless. Being able to onboard and pay different types of team members easily is a helpful function.

Easy to Set Up

The interface of Gusto is very user-friendly. With all the features organized simply, you have all the necessary options within your reach. You just need to submit employee, business, and tax information and send notifications to your team members to set up their online accounts. Gusto will handle the rest for you.

All In One

Gusto is more than just an online payroll system. With its features, you also have integrations with more than 20 different software you can use for your business. These integrations include QuickBooks, Clover, TSheets, etc. They also offer health insurance administration and financial benefits like IRA’s. Higher-priced plans will even provide HR resources such as hiring and onboarding tools, performance reviews, and a dedicated support team, including access to certified HR pros.

Generous Referral Program

You also have a generous referral program on this platform with exclusive features. While this may vary, we were able to receive a $300 visa card with our first referral to another company!  

Customer Service

Customer service is another important factor in selecting a payroll system, as you may come across issues in setting up and managing your payroll. Take a look at online ratings. Gusto receives mixed reviews depending on the complexity of the issue. We’ve received quick and helpful online support through the chat for our few questions.

Other Options to Consider

Other payroll systems, like ADP, QuickBooks, or Wave, provide similar benefits as Gusto. Justworks is a popular online payroll system that is pricier but includes more extensive HR and compliance needs.

No matter the size of your business, managing payroll and taxes are complex and time-consuming. Running payroll manually leaves the risk of errors or tax penalties that can be mitigated using online payroll systems like Gusto.

We have loved the ease of setting up and using Gusto. Think it might be a good fit for your business? Sign up for Gusto with this affiliate link and receive a $100 gift card for you. We’ll receive a gift card as well. Then refer a friend to receive your $300 gift card! Everyone wins!

(Referral offers may change).