Gusto does not offer business checking accounts
Gusto is a payroll and HR platform, not a bank. It does not issue checking accounts, hold deposits, or move money between accounts on its own. What Gusto does is connect to your existing business bank account—one you open elsewhere—and uses that account to run payroll, pay contractors, and handle tax withholdings.
If you are looking for a business checking account to pair with Gusto, you need to open one at a bank or fintech lender first. Gusto then integrates with that account to pull funds for payroll on the dates you set. The account itself comes from your bank, not from Gusto.
Key Takeaways
- Gusto is payroll software that connects to a business checking account you open elsewhere, not a banking service itself.
- You must have an active business checking account at a bank or fintech lender before you can use Gusto to process payroll.
- Gusto integrates with most major banks and some fintech lenders, but the account relationship is between you and your bank, not Gusto.
- Gusto charges a monthly fee for payroll processing separate from any fees your bank charges for the checking account itself.
How Gusto connects to your bank account
When you set up Gusto, you provide your business checking account details—routing number and account number. Gusto uses those details to pull funds from your account on payroll dates and distribute them to employees and the IRS. This is called ACH debit, a standard electronic transfer method that most banks support.
Gusto does not hold the money. It does not sit between you and your bank. On the day you run payroll, Gusto calculates what you owe, tells your bank to move that amount out of your account, and directs the bank where to send each piece—employee wages to their accounts, payroll taxes to the IRS, and so on. Your bank executes the actual transfer.
This means you need sufficient funds in your checking account before payroll runs. Gusto will not lend you money or cover a shortfall. If your account does not have enough to cover payroll, the transfer fails and you will need to reschedule or deposit more funds.
Which banks work with Gusto
Gusto integrates with most major U.S. banks, including Chase, Bank of America, Wells Fargo, and Citibank. It also works with many regional banks and some fintech lenders like Mercury, Brex, and Stripe. The full list changes as Gusto adds integrations, so you should check Gusto's current bank list before opening an account elsewhere.
If your bank is not on Gusto's list, you can still use Gusto—you just cannot connect it directly to your account. Instead, you would need to manually initiate transfers from your bank to Gusto, or use a third-party service to bridge the connection. This adds a step and delays payroll processing, so most users choose a bank that integrates directly.
Some fintech business checking accounts market themselves as "Gusto-ready" or "Gusto-compatible," meaning they have already built the integration. These accounts often appeal to small business owners who want a streamlined setup, but they are not required—any bank that Gusto supports will work.
What Gusto actually charges versus what your bank charges
Gusto charges a monthly subscription fee for payroll processing. The cost depends on how many employees you have and which features you use—basic payroll starts around $39 per month for one employee, with additional per-employee fees. Gusto also charges for add-ons like benefits administration, time tracking, or contractor payments.
Your bank charges separate fees for the business checking account itself. These might include monthly maintenance fees, per-transaction fees, minimum balance requirements, or overdraft charges. These are not Gusto's fees—they come from your bank. You pay both: Gusto's payroll fee and your bank's account fees.
Some fintech lenders offer business checking with no monthly fees, which can reduce your total cost if you use Gusto. But the account fee and the payroll fee are distinct line items on your statements. Do not assume Gusto's pricing includes your bank account.
Why Gusto does not offer checking accounts
Gusto is not a bank and does not have a banking license. To offer checking accounts, a company must be a bank or credit union, or partner with one that holds deposits and insures them under FDIC rules. Gusto chose to focus on payroll and HR software instead, which is why it partners with banks rather than competing with them.
This design has a practical benefit for you: your deposits are insured by FDIC coverage at your bank, not dependent on Gusto's stability. If Gusto shut down tomorrow, your money would still be in your bank account. If a payroll platform that also held deposits failed, customers could lose access to their funds during the recovery process.
Alternatives if you want checking and payroll in one place
Some fintech lenders combine business checking with payroll processing. Stripe, for example, offers a business account and can process payroll through a partnership. Mercury offers checking and integrates with Gusto, but does not process payroll itself. Brex offers checking and can handle some payroll functions, though many small businesses still use Gusto for the full suite.
If you want a single provider for both checking and payroll, research what each fintech actually does. Some offer checking plus payroll processing directly. Others offer checking plus integration with Gusto or another payroll platform. The features and fees vary widely, so compare what you actually need—payroll frequency, number of employees, tax filing support—rather than assuming one provider does everything.
For most small businesses, the Gusto-plus-bank model works well because it separates concerns: your bank holds and protects your money, and Gusto handles the payroll math and tax filings. If you prefer simplicity over separation, a fintech that bundles both may suit you better, though you will want to confirm it covers all the payroll features Gusto offers.
Frequently Asked Questions
Can I use Gusto without a business checking account?
No. Gusto needs a business bank account to pull funds from and distribute payroll. You cannot use Gusto with a personal account. You must open a business checking account at a bank or fintech lender first, then connect it to Gusto.
Does Gusto hold my money while processing payroll?
No. Gusto does not hold deposits. When you run payroll, Gusto instructs your bank to move money out of your account on the same day or next business day. The money goes directly from your bank to employees and tax agencies. Gusto is the middleman for instructions, not for funds.
What happens if my bank is not on Gusto's integration list?
You can still use Gusto, but you will need to manually transfer funds to Gusto or use a third-party service to connect your bank. This adds delays and extra steps. Most users choose a bank that integrates directly with Gusto to avoid this friction.
Do I pay Gusto's fee and my bank's fee at the same time?
No. Gusto charges you monthly for payroll processing, usually on a set date. Your bank charges you separately for the checking account, often on a different date. You will see both fees on your statements, but they are billed independently.
Can I switch banks if I am already using Gusto?
Yes. You open a new checking account at a different bank, update your account details in Gusto, and future payroll runs pull from the new account. There is no penalty or waiting period. Just make sure the new bank integrates with Gusto before you switch, and confirm the old account is closed after the transition is complete.