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Gusto contractor management: Is there a better option to hire and pay contractors?

November 21, 2024

10 mins approx

The Gusto Contractor Management Platform  Why Companies Are Switching To Multiplier And Maybe You Should Too 1

Imagine hiring the perfect contractor to expand your team’s skills and reach—only to find that the tools you rely on can’t support their payment, legal compliance, or onboarding. Suddenly, the promise of a global workforce feels limited. 

Platforms like Gusto offer a solid foundation for U.S.-based contractor management, but when teams scale internationally, the cracks begin to show. For businesses aiming to tap into global talent seamlessly, contractor management has to go beyond onboarding forms and checkboxes. 

The right solution offers the flexibility and peace of mind to engage talent in Tokyo, São Paulo, or Sydney with the same ease as hiring locally. 

Designed specifically for small-to-mid-sized businesses in the U.S., Gusto’s contractor management solution offers contractor onboarding, payments, and compliance.

While Gusto might feel comfortable, what about

  • International compliance, which keeps changing
  • Cross-border, multi-currency payments
  • Region-specific contracts
  • Locally relevant benefits

If you’re thinking, “Wait, my contractor management platform should handle all that?” — stick around. We’re about to tell you why your choice of contractor management platform could be the difference between scaling globally and staying frustratingly local.

By the end of this article, you’ll know exactly whether it’s time to thank Gusto for the memories and switch to a truly global solution.

The hallmarks of an ideal global contractor management platform

Contractor management is much more than just tracking payments and compliance. For organizations with a global presence, the right contractor management solution is a strategic asset, offering the control, flexibility, and protection needed for frictionless operations across borders. 

Here are the essential features global HR leaders should prioritize.

1. Global contractor onboarding

Delivering a superb onboarding experience to your contractors is crucial to ensuring productivity and engagement. The platform should support region-specific compliance requirements, ensuring contractors are properly documented and compliant with local laws from day one. 

Also, there should be provisions for creating customizable onboarding workflows to reduce the administrative burden, allowing HR teams to focus on building relationships rather than managing paperwork.

2. Automated payments across borders

Contractors value timely, accurate payments, but managing cross-border payments can be complex. A robust contractor management solution should offer automated, flexible payment options in multiple currencies, along with real-time exchange rates. 

This not only builds trust but also protects contractors from unpredictable fluctuations, helping your organization maintain a reputation as a reliable partner.

3. Compliance-driven management

Compliance with global labor laws is non-negotiable. The contractor management platform should include built-in compliance tools tailored to international labor standards, from tax withholdings to social security contributions. 

This reduces risk and potential penalties, allowing HR leaders to confidently expand their contractor network across various countries without legal or regulatory concerns.

4. Localized contracts and IP protections

Standardized contracts may seem efficient but can miss critical region-specific requirements.

A global contractor management solution should enable localized contracts that cover necessary legal protections, including intellectual property clauses, non-disclosure agreements, and enforceable jurisdiction terms. 

This ensures that your company’s assets, intellectual property, and reputation are safeguarded regardless of geography.

5. Comprehensive reporting and analytics

Data-driven insights into workforce costs, productivity, and compliance status are invaluable for strategic planning. 

A robust contractor management platform should offer detailed analytics that allows HR leaders to monitor and optimize contractor performance, track spending, and ensure compliance across all locations. 

With clear visibility into these metrics, HR and finance leaders can make informed decisions that align with the organization’s overall objectives.

While these features set the standard for effective global contractor management, not all platforms offer them equally well. Let’s look at some challenges of the Gusto contractor management platform and how they compare with Multiplier.

Challenges in Gusto contractor management and how Multiplier addresses them

When businesses evaluate contractor management platforms, they often find Gusto’s capabilities limited, especially as they scale internationally. 

Here’s a look at specific challenges shared by Gusto users on review platforms.

1. Customer support limitations

Gusto’s ease of use is often overshadowed by inconsistent support, leaving many users feeling unsupported during critical moments. 

“The verification process is arduous… I can’t pay my contractors which I made abundantly clear to the support rep who couldn’t escalate or let me talk to anyone else and gave me no next steps and no timeline, just 1000 sorries,” shared Christopher W., a small-business owner. “Why do we put up with these subpar call center support groups – I would rather talk to a chatbot.”

In contrast, Multiplier users consistently praise its responsiveness, as Ha P. shared:

“I got great support from Shatakshi to solve my insurance issues today. She was quick to respond and went the extra mile to ensure everything was sorted”.

2. Limited global payment and compliance support

Gusto’s limitations in supporting international teams can hinder a business’s ability to scale. 

Victoria P., an online media owner, expressed her frustration, saying,

“I moved states early this year, and Gusto is still debiting employer fees related to my former state without telling me. I happened to notice an odd charge on my bank account and had to inquire myself. No communication from Gusto! I changed bank accounts, and Gusto withdrew my payroll from my OLD account despite marking the new account as my ‘default’ for payroll. If you are an employer, stay far away from Gusto…”

On the other hand, Multiplier’s platform is built for global compliance, with multi-currency support and localized contracts.

Vinoth K., from HR Operations, said,

“Multiplier portal is best to use for the employee onboarding and offboarding. Its good support service for our organization FTC solar. We are happy to have Multiplier in our organization for the rest of the world’s countries’ business.”

3. Errors in tax filings and compliance risks

Tax and compliance errors with Gusto have left several users concerned about reliability. 

Jessica H., an HR professional, says,

“For those searching if Gusto is a good choice… it’s not. I thought it was… had a few hiccups, nothing major… until they overdrew my account, blamed me, and then took no responsibility. I had seven different people ‘helping’ and ‘responding’ to my issue, yet nothing was fixed.” She added, “While I like their feature set, it’s not worth the massive headache that comes when any little thing goes wrong—steer clear!”.

Multiplier, however, is lauded for its accuracy and proactive support. 

Gunasekaran J., Senior GL Accountant, says,

“Multiplier excels in efficiency and flexibility when managing global payroll, compliance, and employee benefits. I appreciate the easy and streamlined onboarding process for employees and contractors across various regions. Additionally, their payroll automation simplifies complex payroll processes across different countries, ensuring local tax compliance and benefits management. Their software platform is user-friendly and highly effective, and the staff are knowledgeable and consistently helpful in a timely manner.”

4. Delayed issue resolution and onboarding concerns

Delayed responses from Gusto have left users hankering for basic functions. 

Leslie Z., a small-business owner, described,

“I’ve run into a ton of issues trying to do very basic things on Gusto… like processing expenses. I spent multiple hours per week with customer support, and the software was often down. I wouldn’t recommend this software to anyone looking, unless you’ve got time to spend multiple hours on the phone with customer support weekly.”

Again, in contrast, Multiplier is known for proactive, reliable support. 

Meriam Patrice E., Junior SMSF Accountant, a Customer Support Agent, noted,

“One of the first person I met from Multiplier on my onboarding was Esperança and she has been nothing but wonderful to us. She is thorough with her explanation on the employee dashboard and is very open to questions. I am very pleased with how Multiplier handled our entire team. Although I am relatively new with Multiplier, I can feel that they are easy to talk to when it comes to concerns. Our onboarding went as easy as a breeeze. Thanks to all the representatives that reached out and assisted us on each step.”

For companies looking to manage global teams effectively, Multiplier provides a robust, compliant solution with a dedicated support system – ideal for scaling without setbacks.

From Gusto to Multiplier: A checklist for an effortless transition

Transitioning from Gusto to the Multiplier contractor management system can be a strategic move for businesses expanding their global contractor network. Here’s a comprehensive Gusto-to-Multiplier switch checklist.

Assess current compliance gaps

Begin by evaluating Gusto’s compliance capabilities outside the U.S. Often, limited compliance support can leave companies vulnerable to international regulatory risks, from payroll inaccuracies to non-compliance with local labor laws. 

Examine if Gusto meets all local legal standards, as each region can have distinct tax, reporting, and employment regulations. Here, Multiplier offers dedicated compliance support across numerous countries, ensuring that businesses adhere to each region’s unique requirements, which can be critical as you expand your workforce globally.

Evaluate international payment requirements

If you’re scaling beyond the U.S., it’s crucial to assess your need for flexible, multi-currency payment options and secure payment gateways. Gusto’s contractor payment support is U.S.-focused and may lack essential tools for handling multi-currency transactions across regions. 

With Multiplier, companies benefit from automated, region-specific payroll functions that allow timely, compliant payments to contractors in their local currency. This flexibility not only simplifies payments but also builds trust and reliability with international teams.

Examine reporting needs for a global workforce

Robust reporting and analytics can transform workforce management by delivering insights into costs, productivity, and compliance adherence across multiple geographies. Assess whether Gusto provides the granular, region-specific insights you need. 

Multiplier’s platform supports comprehensive reporting with tailored metrics to track payroll costs, performance, and workforce compliance in real time. This can be a valuable asset for teams seeking to optimize international operations and make informed business decisions based on detailed workforce data.

Check contract customization options

Standardized contracts may not suffice when managing international contractors due to differences in labor standards, IP protections, and localized legal requirements. So, review Gusto’s flexibility in creating and enforcing contracts across diverse regions. 

Multiplier provides customizable, compliant contracts tailored to each country’s specific regulations, with provisions to protect IP and ensure enforceability. This adaptability can reduce legal risks and create stronger, more transparent relationships with global contractors.

Consider integration with existing systems

Integration with your current systems – such as HRIS, payroll, and compliance tools – is essential to maintaining productivity during the transition. You can evaluate whether Gusto’s contractor management integrates well with your existing workflows or if its limitations hinder process efficiency. 

Multiplier’s platform is designed for ease of integration, allowing companies to connect payroll and HR systems, streamline data management, and reduce the need for manual reconciliation across multiple platforms. A compatible, cohesive system can drastically reduce time spent on administrative tasks and improve overall data accuracy.

With these essential checks in place, you’re now well-prepared for a smooth transition from Gusto to a more globally equipped solution.

Making the right choice with Multiplier

While Gusto keeps things simple for your U.S. team, what about Maria’s invoices from Brazil? Or Raj’s complex tax requirements in India? That’s where most businesses fail. And honestly, that’s perfectly normal. After all, global expansion wasn’t on most companies’ agendas until remote work exploded.

But times change. And your contractor management platform should, too. This is why businesses are switching to Multiplier:

  • A network spanning 150+ countries (because your next great hire could be anywhere)
  • In-house and on-ground legal and tax experts who understand local regulations
  • Support for 120+ currencies, so your contractors get paid on time, every time

The best part? Everything is accessible from one dashboard. You don’t have to shuffle between spreadsheets or break a sweat over compliance – Just simple, efficient contractor management that works whether your team is in Tokyo, Toronto, or Toulouse.

Look, we get it. Switching platforms is a big problem. But ask yourself this: is playing it safe with Gusto worth missing out on global talent?

Book a free Multiplier demo today.

Picture of Binita Gajjar
Binita Gajjar

Content Marketing Lead

Binita is a Content Marketing Lead at Multiplier

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