Xero Partners With Gusto As Payroll Provider

Xero has announced that Gusto will be the preferred payroll provider for its small business and accountant customers in the U.S. The partnership will allow Xero to deliver full-service payroll in all 50 U.S. states for the first time.

“We’re partnering with Gusto because we have a shared vision for building innovative new solutions that help small businesses and accountants thrive in the new economy,” Xero Americas President Keri Gohman said in a press release. “We’re both born-in-the-cloud companies working to build software that makes complicated business tasks more simple and human. By joining forces, we can help more small businesses and accountants find long-term success.”

Xero’s U.S. subscribers can now organize payroll entirely online, with all federal, state and local payroll taxes automatically paid and filed. In addition, Gusto instantly syncs payroll and financial data with Xero, as well as expense-tracking and time-tracking software.

Gusto also integrates with workers’ compensation, benefits —like health insurance or 401(k) retirement plans — and human resources.

According to Gusto Chief Operations Officer Lexi Reese, “We first began our partnership with Xero five years ago and, since then, they have quickly become one of the most popular integrations on Gusto. We are confident that together we can help business owners manage the back-office complexities that can distract them from growing their companies.”

Customers will be able to access their Gusto accounts using their Xero credentials. Small businesses can grant their accountant or advisor permission to manage payroll and generate payroll reports within Xero, enabling these professionals to engage in meaningful conversations about key decisions, including how to navigate compliance requirements and major business transactions.

Xero has 1.4 million subscribers in more than 180 countries, while Gusto serves over 60,000 companies nationwide and has offices in San Francisco and Denver. It is anticipated that the integration will be completed by early 2019.