Gusto does not offer business checking accounts
Gusto is a payroll and HR software platform, not a bank. The company does not hold deposits, issue debit cards, or provide checking accounts of any kind. If you use Gusto to run payroll, you will still need a separate business checking account at a bank or credit union to fund your payroll runs and manage your business cash.
Gusto integrates with your existing business bank account — you connect your account details to Gusto so the software can pull funds for payroll on the dates you schedule. The integration is one-way: Gusto moves money out, but Gusto itself is not the account holder.
Key Takeaways
- Gusto is payroll software, not a bank, and does not offer checking accounts or hold your money.
- You must open a business checking account at a separate bank or credit union before you can use Gusto to process payroll.
- Gusto connects to your existing business bank account so it can withdraw funds for payroll on your scheduled dates.
- Some banks offer payroll integration features that work alongside Gusto, but the account itself comes from the bank, not from Gusto.
What Gusto actually does with your bank account
When you set up Gusto, you provide your business bank account login information or authorize Gusto to access your account through a secure connection. Gusto uses this connection to pull money from your account on payroll dates — typically one or two business days before payday, depending on your bank's processing speed.
Gusto does not store your money, charge you fees for holding deposits, or issue you a card. The software simply automates the withdrawal and distribution of funds to your employees' accounts. Your bank controls the account, the balance, and the fees.
Where to open a business checking account for Gusto
You can use Gusto with a business checking account from any bank or credit union that allows ACH transfers — nearly all of them do. Common options include Chase, Bank of America, Wells Fargo, Citibank, and smaller regional banks. Credit unions often offer lower fees and better customer service for small business accounts.
When you open the account, make sure it is a business account, not a personal one. Banks require an EIN (Employer Identification Number) or sole proprietor tax ID to open a business account. You will also need to provide your business license or formation documents, depending on your business structure.
Some banks market payroll integration as a feature, meaning they have built-in connections to Gusto or other payroll platforms. This can speed up setup, but the account itself is still from the bank — Gusto is just the software that moves the money.
What you need before connecting Gusto to your bank
Before you can use Gusto, you need an open business checking account with a positive balance. Gusto will ask for your bank's routing number and your account number — information you can find on a check or in your online banking portal.
You will also need to authorize Gusto to access your account. Most banks offer this through a secure connection called OAuth, which means you log into your bank's website through Gusto's interface and approve the connection. You do not give Gusto your password directly.
Some older or smaller banks may not support this method. In those cases, Gusto can set up ACH transfers manually, but you will need to provide more information and the process takes longer.
Fees and costs when using Gusto with your bank account
Gusto charges its own fees for payroll processing — typically $39 per month plus $6 per employee per month, though pricing varies by plan. These are Gusto's fees, not your bank's.
Your bank may also charge fees for your business checking account. Monthly maintenance fees range from $0 to $25 depending on the bank and account type. Some banks waive fees if you maintain a minimum balance or set up direct deposit.
When Gusto withdraws money from your account for payroll, your bank may charge an ACH transfer fee — usually $0 to $2 per transfer. Not all banks charge this, so check your account agreement or call your bank to ask.
Alternatives if you want banking and payroll in one place
If you want a single provider for both checking and payroll, you have limited options. Most fintech banks (online-only banks like Brex, Mercury, or Stripe) do not offer payroll processing directly. Instead, they partner with payroll platforms like Gusto or ADP, meaning you still use two separate services.
Some traditional banks bundle payroll services with business checking, but these are usually add-ons to their own payroll software, not Gusto. If you want to use Gusto specifically, you will need a separate bank account.
The advantage of keeping them separate is flexibility — you can switch banks without switching payroll software, or switch payroll software without moving your bank account. The disadvantage is managing two logins and two sets of fees.
Frequently Asked Questions
Can I use Gusto without a business checking account?
No. Gusto needs a bank account to pull funds from. If you only have a personal account, you must open a business account first. Some sole proprietors use personal accounts, but most banks and Gusto recommend a separate business account for tax and liability reasons.
Does Gusto hold my payroll money until payday?
No. Gusto withdraws money from your account a day or two before payday and sends it directly to your employees' banks. Your money stays in your account until Gusto pulls it. If your account does not have enough funds on the withdrawal date, the transfer will fail and payroll will not process.
What happens if my bank does not support Gusto's connection?
Gusto can set up manual ACH transfers instead. You provide your routing and account numbers, and Gusto initiates the transfer from your bank's side. This takes longer to set up and may delay your first payroll, but it works with nearly every bank.
Can I use Gusto with a business savings account instead of checking?
Technically yes, but it is not recommended. Savings accounts have limits on how many transfers you can make per month (usually six). Gusto needs to withdraw funds for payroll, and if you run payroll twice a month, you could hit that limit and trigger fees or failed transfers.
Do I need to tell my bank I am using Gusto?
No. When you authorize Gusto to access your account, your bank sees it as a standard ACH transfer, which is a normal business activity. You do not need to call your bank or fill out extra paperwork.