Gusto’s new tools span LLC formation, payroll, AI assisted workflows and HR support, giving owners more tasks to manage within one platform.
Gusto is expanding its platform from payroll and benefits into more of the work that surrounds running a small business. Announced at the company’s Fall Showcase on Oct. 22, 2026, the additions include LLC formation, a business bank account, payroll automation, AI connections and new HR services.
The breadth of the release is the story: owners can use Gusto before hiring, then draw on its payroll, benefits and HR features as their teams grow. That could reduce the number of separate tools and providers a small company needs to coordinate. The practical value will depend on how well each feature fits a business’s existing processes and needs.
Support from business formation onward
Gusto says owners can form an LLC, open a business bank account and view their financial position through the platform before they hire employees. The company’s chief product officer, Chris Cosgrove, said the goal is to make difficult steps easier “starting on day one.” He argued that simplifying the process of getting started could help more people launch a business and succeed.
For a founder, combining formation and banking with payroll and team management could make early setup more straightforward. It also places several operational tasks under one provider. Owners still need to assess whether the services fit their circumstances, but the expansion makes Gusto relevant earlier in a company’s life than payroll alone would.
Payroll and contractor payments
Several new features address the administrative work that builds as a business hires across locations or pays workers in different ways. Gusto Business Compliance covers state tax registration, annual report filing and monitoring business mail. The company highlights hiring in a new state as one situation where obligations can catch owners off guard.
Multi-location payroll is designed for hourly employees working across state or city lines. The system calculates and files taxes based on each work location, while intelligent payroll automations collect hours and flag unusual entries for review. The intended workflow is a shorter check and approval process, with the owner retaining a review step before payroll is finalized.
Owners also gain additional options for managing pay. Eligible businesses can issue same-day payments for off-cycle bonuses and corrections, set custom twice-monthly schedules, and send printed paychecks with delivery tracking. Contractor tools bring U.S. and international contractors into the same platform. When an owner uploads an invoice, Gusto can read it and fill in a payment sheet for review and approval.
Project tracking adds a way to tag employee hours to projects, clients and tasks. That gives owners a view of labor costs by job, which can inform internal decisions about how work is staffed and priced. The feature’s usefulness will rest on consistent time tracking and accurate project labels.
AI with owner approval
Gusto says customers can connect the platform to Claude, ChatGPT and other AI tools to ask questions about payroll and teams, prepare payroll and create reports. The company says owners can review proposed changes and approve them before they take effect. For developers and power users, Gusto also offers an MCP server and a command line interface that can prepare work ahead of payroll and list decisions needing owner input.
Cosgrove’s framing is that AI should fit into tools owners already use, while the owner remains responsible for decisions. That distinction matters when a system is handling payroll information or preparing changes. A useful test for small teams will be whether automation reduces preparation time while keeping review clear and manageable.
Benefits and HR help inside the platform
The company is adding benefits guidance and administration alongside its payroll products. Gus, Gusto’s AI Benefits Assistant, provides personalized, real-time guidance and prepares a package covering medical, dental, vision and other benefits. A licensed advisor reviews the package before it is finalized. Gusto is also adding retirement plan management through Gusto 401(k), plus health reimbursement arrangements in which employers set a monthly allowance and manage reimbursements alongside payroll.
Voluntary life and disability coverage can be added through automatic payroll deductions, with the source describing the coverage as employee-paid and at no additional direct cost to the business. For benefits renewals, Gusto says customers will receive cost-optimized options, side-by-side comparisons and access to a licensed advisor.
New HR resources include employee handbook creation, document generation for performance improvement plans and termination letters, alerts about employment law changes, written responses from a human HR expert and instant answers from Gus. Gusto HR Partners offers access to a fractional HR professional. Its Professional Employer Organization service is intended to take on much of the day-to-day work across HR, payroll, benefits and compliance.
Tools for accounting firms
Gusto also announced updates for accountants: a redesigned Gusto Pro dashboard with AI assisted workflows, a multi-client MCP feature for working across selected clients in one AI conversation, and an expanded partner program with marketing and development funds. New solo advisory tools include calculators for S corporation tax status and reasonable compensation estimates.
Taken together, the launch points to a wider role for Gusto in small business operations and accountant workflows. Owners weighing the tools can start by identifying the tasks that consume the most time—payroll review, multistate administration, benefits setup or HR support—and judge each feature against that need.
