This article is not provided as financial advice, nor is it a substitute for financial or legal counsel. As laws in jurisdictions vary, it is incumbent on the recipient to insure compliance with State and Federal labor and tax laws. The content of this blog should foster discussion with your financial adviser to determine parameters of state and federal laws affecting your business. Gusto payroll and HR services services are only available in the US.



40% of Small Business owners say payroll and taxes are the worst part of owning a business

As the small business owner of a salon, spa, fitness, or wellness center, you’re already well-acquainted with the burden of payroll software and associated administrative tasks. To make sure your small business is successful, you’ve got to manage everything from time card calculations to payroll processing and everything in-between. Those tasks are no small chores, and they make demands on your time, money, and energy. In fact, money management almost requires small business owners to have a second set of job skills! The complexity of bookkeeping—a necessary daily task—is why 40% of owners say it’s the worst part of owning their own small business.

Vagaro, now partnered with Gusto, can help you re-discover the joy of being a small business owner again. With Gusto integrated through your Vagaro account, you’ll have full-service payroll software solutions that focus on ease-of-use and autopilot features to make payday a breeze. Now there’s a way for small business owners to ease the bookkeeping and payroll burden. Gusto’s concierge plan provides small business owners access to not just payroll, but a wealth of other benefits that can build a better workplace. Whether it’s payroll you need a hand with, or you’re looking to add health insurance, PTO, retirement plans, or other benefits, Gusto’s got a solution. Here’s how Gusto, when integrated with your Vagaro software system, can save you time, money, and energy that’s better spent with your clients!

Gusto Brings Full-Service Payroll Features to Vagaro Businesses



  • Real-time reporting and invoice tracking are easy and ensure accuracy

  • Centralize and track payments, invoices, employee hours, and payroll

  • Boost productivity by freeing up valuable time

  • Automate key administrative functions in bookkeeping and payroll

  • Avoid costly manual errors with automation

1. Sync Hours and Earnings

Using two separate software systems that aren’t integrated together can be time-consuming and labor intensive. It also leaves room for error—whether it’s human error or an error in data double-entry. When you integrate your Vagaro software to enable Gusto, everything is automated to make your life easier. Automation allows your business to sync hours and earnings effortlessly—and reliably. It’s almost like having an automated team of professionals working to make your business better!



2. Easy Payroll Onboarding

Onboarding can be difficult, and it’s often the place where most business mistakes are made. When you onboard a new hire with Gusto through your Vagaro software, everything is simple and streamlined. You’ll have all the tools you need for a seamless onboarding experience for new employees in one centralized location. From employee profile completion and payroll configuration to employee management tools, onboarding has never been easier.

3. Flexible Payroll Options


When you run payroll, flexibility is crucial for small business owners, especially if you have a plan to scale up. Gusto integration with Vagaro gives your business flexible options for syncing employee profiles to Gusto profiles. Once your Vagaro employees are synced to Gusto, any edits you make will be automatically saved in both platforms, reducing the risk of accidental errors. That means fewer hassles and holdups for business owners, greater payroll reporting and recording accuracy, and simple payroll processing. As your business scales up, you can change your payroll options and pay rates as needed. For example, you can easily edit profiles to reflect a commission-based employee switching over to booth rent, or to add pay raises for hourly employees. From setup to payday, Gusto gives small business owners back some of their most valuable commodity: time.

Vagaro’s role-based hourly pay feature simplifies your payroll even further by allowing you to set up pay rates based on different job roles, making it easier to manage payroll and taxes, and ensuring that employees are compensated fairly.  

Role-based hourly pay significantly streamlines the payroll process, saving time and reducing errors. Employers can easily adjust pay rates as needed, calculate paychecks, track hours, and ensure that everyone is paid accurately and on time. Clearly defining pay rates for distinct roles enables you to avoid disputes and misunderstandings about pay, fostering greater transparency and fairness in the workplace. This, in turn, boosts your business’s reputation and ability to attract the most talented employees.

4. Easy Payroll Sync for Any Pay Structure

One of the obstacles many salon, spa, fitness and wellness small business owners encounter when it comes to payroll processing have to do with small staff sizes and unconventional pay structures. You’ll be able to personalize each employee profile, pay structure, and time tracking requirement for every pay period. Employees can even split their paycheck into multiple bank accounts and savings programs. Regular hours, regular hourly rates, built-in minimum wage adjustment, commission (service, products, classes, flat rates), overtime hours, and tips are all customizable. For example, in an average salon, you may have the salon owner, who draws a salary from their business. This salon also employs front desk staff, who are paid hourly and use a time card to log their employee clock-ins. The salon also employs 2 commission-based apprentice stylists whose paychecks are calculated through their employee clock-ins, service sales, and retail sales. Finally, the salon has 5 booth renters, whose paychecks vary, depending on the specifics of their booth rental contract with the salon. With Vagaro and Gusto, everyone gets paid using one integrated software with all the tools you need from payroll set-up to payday.

5. Pay Your Employees Easily with Vagaro and Gusto

Vagaro software allows business owners to calculate and track pay, tips, and commissions, as well as running detailed reports. Essentially, Vagaro does the real-time payroll calculations, then Gusto syncs that information and handles the payments via physical check or direct deposit. Vagaro payroll runs can be configured to calculate and track staff pay according to the schedule that suits you: weekly, bi-weekly, monthly, or bi-monthly. Gusto integration with your Vagaro software allows business owners to see payroll through to completion, by syncing hours and earnings from Vagaro into Gusto. Instead of labor-intensive payroll calculations, running payroll manually, or using outside payroll services, business owners can get everyone paid with just a few clicks. Even better: employees have convenient 24/7 digital access to their profile, payroll records, pay stubs, and more.

6. Tax Withholdings Automatically Calculated and Deducted

Did you know what 58% of business owners hate most about payroll taxes?  According to a National Small Business Association survey, the answer is the burden of administrative tasks! Small business owners say that the labor, time, and cost of calculating, processing, withholding state and federal taxes and tax filing is worse than actually paying taxes! When you sign your business up for Gusto’s full-service payroll processing through Vagaro, this becomes a task you can cross off your “to-do” list! Gusto integration calculates, records, and deducts taxes for you with each payroll you process—meaning there’s no unpleasant surprises come tax time. For service professionals, having tax withholdings automated and taken care of for you increases your productivity by giving you back more of your valuable time.

This article is not provided as financial advice, nor is it a substitute for financial or legal counsel. As laws in jurisdictions vary, it is incumbent on the recipient to insure compliance with State and Federal labor and tax laws. The content of this blog should foster discussion with your financial adviser to determine parameters of state and federal laws affecting your business. 

Ready to make payday easy and earn yourself some extra time? It’s time to integrate your Vagaro software and give your business a Gusto upgrade. Sign up for Gusto payroll processing for small business through your Vagaro account settings, and Gusto will give you three months of service for free!

Header Image: Giorgio Trovato via Vagaro

Infographics and Animations: Mia Montemayor via Vagaro