A growing number of African startups incorporate in Delaware to raise capital, then hire a first employee or contractors in the US. US payroll comes with tax withholding and filings that are easy to get wrong from abroad. A payroll service handles them.
Short answer: Gusto is a US payroll and HR platform that runs payroll, files payroll taxes and manages benefits. It is relevant only if your company is a US entity paying people in the US.
What is Gusto?
Gusto calculates pay, withholds and files federal and state payroll taxes, pays contractors and offers benefits administration for US companies. See Gusto.
Problems it solves for African founders
- US payroll tax filings from abroad: Gusto files them for you.
- Paying US contractors: payments and year-end forms.
- Benefits for US hires: health and other benefits administration.
- Compliance mistakes: automated calculations reduce errors.
Pricing and plans
Contractor Only is about $35 a month plus $6 per contractor. Simple is about $49 a month plus $6 per employee, for single-state payroll. Plus is about $80 a month plus $12 per employee, with multi-state payroll. Premium is about $180 a month plus $22 per employee. Check current pricing.
How to get started
- Confirm your company is a US entity with an EIN.
- Choose Contractor Only if you have no US employees yet.
- Add your US bank account and team members.
- Run your first payroll and check the tax filings.
- Use a separate solution for staff based in Africa.
Who it is for, and who it is not for
It fits African-founded startups with a US entity and US-based staff or contractors. It does not pay employees in African countries; for those, use a local payroll provider or an employer of record.
FAQ
Can Gusto pay my team in Nigeria or Kenya?
Gusto is built for US payroll. Use a local provider or an employer of record for staff in Africa.
Do I need a US company to use Gusto?
Yes. Gusto is for US businesses.
Does Gusto file payroll taxes?
Yes, federal and state payroll taxes for US employees.
Disclosure: Africapreneurs may earn a commission if you sign up or buy through our links, at no extra cost to you. It does not affect which tools we cover or what we write about them.
