SAN FRANCISCO--(BUSINESS WIRE)--Today, Gusto announced they will begin offering their small business customers a wide array of unique benefits typically only available to employees of big companies. To start, they announced the availability of 529 plans within its all-in-one HR platform through an exclusive partnership with Gradvisor. With Gradvisor’s technology fully integrated with Gusto – which already includes long-term and short-term saving options – Gusto’s 40,000 small business customers will be able to provide personalized, tax-advantaged savings plans to their employees, enabling them to save for their children’s college education.
“We saw that large companies are twice as likely as small businesses to allow employees to contribute to 529 college savings plans through payroll deductions, but when we talked to our customers, they said they wanted to provide this benefit too,” said Josh Reeves, CEO and co-founder of Gusto. “We want to be the platform that evens the benefits playing field. Companies of any size should be able to take care of their employees and help them save for the future. Gusto, in partnering with Gradvisor, will help them do that.”
According to a recent survey from The College Board, the average cost of tuition and fees for the 2016–2017 school year was $33,480 at private colleges, $9,650 for state residents at public colleges, and $24,930 for out-of-state residents attending public universities. College tuition is the fastest growing household expense in America, but despite rising costs, research has shown that 89% of businesses do not offer college savings plan services as a benefit to their employees.
“We’ve always wanted to bring this benefit to smaller businesses, but it was difficult for us to scale on our own,” said Marcos Cordero, CEO and co-founder of Gradvisor. “By tapping into Gusto’s well-established ecosystem of 40,000 customers, we can now bring this benefit to a broader audience simply and automatically – helping small businesses and their employees to plan for the future.”
“As someone who cares deeply about employee onboarding and culture, I want to provide my employees with a wide variety of benefits,” said Kate Heddleston, co-founder of Opsolutely. “When I started my own company, I wanted to make sure that we provided benefits that were inclusive of the needs of all employees, including things like the 529 savings plans. With Gusto, I can make sure that we have that inclusive workplace by offering employees benefits we wouldn't be able to provide on our own."
529 plans will be available within Gusto for an additional $6 per employee that registers to use Gradvisor. More information is available at: gusto.com/product/529-college-savings.
Gusto’s mission is to create a world where work empowers a better life. By making complicated, impersonal business tasks simple and personal, Gusto is reimagining HR, payroll, and benefits for over 40,000 companies nationwide. Gusto has offices in San Francisco and Denver and the company’s investors include Capital G, General Catalyst, Kleiner Perkins Caufield & Byers, as well as the founders of Instagram, Stripe, Nest, PayPal, Yelp, Dropbox, and Eventbrite, among others.
Gradvisor is a financial wellness benefits platform designed to make it easy for employees to enroll in and monitor 529 college savings plans. By offering personalized savings options, Gradvisor offers employees peace of mind about college savings and allows employers to support financial wellness to their workforce. Learn more at Gradvisor.com.