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Community > US Payroll >

Thoughts on Xero and Gusto partnership announcement

Started by John Haugen -   in US Payroll

Xero has decided to kill its payroll service as of Dec 2018. They have a referral agreement with Gusto and presumably will be making a cut of whatever they send over there. For anyone that using Xero Payroll, that means you'll now be paying Gusto a lot more to do the same thing.

Anyone else going to find a new accounting provider as a result?
Official Xero Reply
While I appreciate there's a few concerns here, it's really good to see you all who've been popping in to help and offer advice around payroll services and the recent price change announcement.

There's been a lot of research that's gone into the new offerings that are available from 1st Nov, and our partnership with Gusto will give our customers the power of two best-in-class solutions, with Xero’s global cloud accounting platform and Gusto’s innovative full-service payroll service.

Xero and Gusto will be deeply integrated over time, and while there will be a mixture of Gusto and Xero Support to help with questions and issues surrounding the integration, we do want to make sure the transition is as smooth as possible for all our customers.
If you have any specific concerns on the integration, come into our team at Support who can give a bit more direction and detail.

Kelly M (Community Manager)  

Best Reply as chosen by John Haugen (Original Poster)
Hi @KellyM --

To be honest I don't think I can blame Xero for getting out of the payroll business at this price point as there must be a good reason nobody else is offering what Xero offered for $30. I enthusiastically recommended Xero on that basis alone for the last few years.

What is a bit frustrating is the packaging of this message as an improvement or an exciting new development. I appreciate that's what Marketing's job is, but at the end of the day you're telling small business owners that what you'd told them you'd deliver for $x is no longer possible and the nearest alternative is $2x. If that's how it's got to be, OK, sometimes we miss the mark and correction is necessary. But just come clean about it. Don't put lipstick on a pig.

Samuel Knowlton