Xero has partnered with payroll software provider Gusto to provide full-service payroll to its accounting software users in all 50 states.

U.S. Xero subscribers will be able to use Gusto to run payroll completely online. All federal, state and local payroll taxes are automatically paid and filed through the software. Gusto also automatically syncs payroll and financial data with Xero, as well as popular expense tracking and time tracking software. In addition, Gusto integrates with workers compensation, benefits like health insurance, 401(k) retirement plans and human resources.

As part of the partnership, Xero and Gusto plan to build a deeper technical integration to provide a more seamless experience for small business owners and accountants. The companies expect the integration to be complete by early 2019. The planned features include:

  • Single sign-on;
  • Cash flow management, where Xero will be automatically updated every time payroll is run, providing an up-to-date view of cash flow;
  • Accountant collaboration, allowing small businesses to grant their accountants permission to manage payroll and generate payroll reports within Xero.

“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,” said Xero Americas President Keri Gohman in a statement. “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.”

“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,” added Gusto chief operations officer Lexi Reese.

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