Payroll that runs itself. So reasonable comp documentation runs itself too.
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. We model reasonable comp against your specialty/industry first. Election filed at engagement.
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
941, 940, state quarterlies, W-2s, 1099-NECs, W-3, 1096 — all generated and filed by Gusto. You see confirmations in your portal.
Accountable plan reimbursements (optional)
Home office, vehicle, phone, internet. Reimbursed through Gusto as non-taxable to you, deductible to the S-corp. 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). For most ETS-client S-corps with 1–5 employees, the monthly cost lands at $40–$80/mo. That's small compared to the $5K–$15K/yr the S-corp election saves on SE tax.
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 handles multi-state automatically — state withholding registrations, state unemployment, state-specific quarterly filings. For ETS clients with employees in 2+ states, this is the single biggest reason we recommend Gusto over cheaper alternatives.
One Discovery call. We confirm whether S-corp + Gusto is the right move.
Bring your net business income for the last 12 months. If S-corp election makes sense (typically above $80–100K net), we set up Gusto on day one of the engagement. If it doesn't, we say so and route you elsewhere.
Book the 15-min Discovery →