What Is Gusto Account Verification & How Does It Work?

Gusto offers comprehensive solutions for payroll, human resources (HR), and employee benefits, primarily serving small and medium-sized businesses across the United States. Account verification refers to the process by which Gusto confirms the legitimacy and identity of businesses and individuals utilizing its services. This process aligns with standard practices in the financial services industry.

Purpose of Account Verification

Account verification is a requirement for payroll and HR platforms like Gusto, driven by regulatory mandates, including Know Your Customer (KYC) and Anti-Money Laundering (AML) laws. These regulations compel financial service providers to identify and verify their customers to prevent illicit activities such as financial fraud, money laundering, and terrorism financing.

Beyond regulatory compliance, verification defends against fraudulent activities. It protects both Gusto and its users by ensuring legitimate transactions and authorized fund recipients. This process helps mitigate risks associated with identity theft, account takeovers, and other deceptive schemes that could compromise sensitive financial data. By confirming the authenticity of businesses and their owners, Gusto safeguards the integrity of payroll operations and the security of financial transactions.

Information Required for Verification

To verify an account, Gusto requires business and personal information. Businesses must provide their legal name, Employer Identification Number (EIN), and physical address. Details regarding the company’s industry type and legal entity classification, such as LLC, sole proprietorship, or corporation, are also necessary. This foundational business data helps Gusto accurately categorize and register the entity within its system for compliance and operational purposes.

For individuals associated with the business, such as owners, Gusto collects personal identifying information. This includes their legal name, date of birth, Social Security Number (SSN), and residential address. For businesses with multiple owners, the percentage of ownership for significant stakeholders may be requested to identify beneficial owners. This personal data is essential for identity verification and to comply with regulations requiring the identification of individuals controlling the business.

Bank account information is a mandatory component for processing payroll and other financial transactions. Users must provide their bank name, account number, and routing number for the primary business checking account. To confirm ownership and authorization, Gusto may request a voided check or bank statement, or utilize instant verification services that connect directly to the bank. This ensures that payroll funds are accurately debited and disbursed.

Supporting documentation is required to corroborate the provided information. For individuals, copies of government-issued identification, such as a driver’s license or passport, are requested. Businesses may need to submit formal business formation documents, including Articles of Incorporation or an LLC Operating Agreement, along with the IRS-issued EIN confirmation letter (Form SS-4). These documents serve as official proof of identity and business registration. Users can find specific requirements and upload options within Gusto’s setup wizard or account settings.

Steps for Completing Verification

The account verification process within Gusto begins after a user creates an account and logs into the platform. Users navigate to a dedicated section, often labeled “Account settings,” “Compliance,” or integrated into the initial setup wizard. This centralized area guides the user through submitting their information.

The process involves inputting business details, owner information, and bank account particulars into designated fields. As information is entered, the platform may provide immediate feedback or indicate progress. Users are then prompted to upload digital copies of supporting documents, such as government-issued IDs or business formation papers, through a secure upload feature.

Once all data has been entered and documents uploaded, the user submits the information for review. Gusto’s system often includes progress indicators or confirmation messages. For bank account verification, users may have the option for instant verification through a third-party service like Plaid. Alternatively, a manual verification method involves Gusto sending small test transactions to the bank account, which the user then confirms by entering the amounts back into the platform.

Verification Outcomes and Status

After submitting information, Gusto initiates a review process. The duration for this review can vary; manual bank account verification through test transactions typically takes two to three business days. Users receive updates on their verification status through email notifications or directly within their Gusto account interface.

Upon successful verification, the account gains full access to Gusto’s features, including payroll, employee benefits, and HR tools. This signifies that the business and its associated individuals have met Gusto’s security and compliance standards. If verification is pending or encounters issues, Gusto usually requests additional information or clarification. Common reasons for delays or rejections can include mismatched names between documents, incorrect Employer Identification Numbers (EINs), or unreadable submitted documents.

If issues cannot be resolved, an account might remain in a pending status or face limitations until all verification requirements are satisfied. Beyond the initial setup, Gusto also engages in ongoing monitoring through its Compliance Hub. This continuous process helps businesses stay updated on regulatory changes and may involve occasional requests for updated information to maintain compliance and security standards.