Gusto has announced an agreement to acquire Guideline, a leading retirement benefits platform serving over one million people and 65,000 small businesses. The deal, pending final approvals, aims to create a unified solution for payroll, HR, benefits, and retirement. With regulatory momentum—25+ states now requiring retirement plans—this move positions Gusto to simplify compliance, enhance employee savings access, and deliver an all-in-one HR and financial security platform for small businesses.

Gusto , the HR and payroll technology company valued at nearly $10 billion, announced it has signed an agreement to acquire Guideline, a retirement benefits provider serving more than 65,000 small businesses and over one million savers with $20 billion in assets under management. The transaction, which remains subject to customary approvals, is set to deepen the integration between payroll, HR, compliance, health insurance, and retirement savings on a single platform.

A Decade of Guideline’s Growth

Founded in 2015 by Kevin Busque, Guideline emerged with the mission of fixing what it called the “outdated and confusing” 401(k) industry. By eliminating middlemen through technology, Guideline positioned itself as a transparent and affordable solution for small and mid-sized businesses. The company was an early advocate of mandatory auto-enrollment and was first to market with a “Starter 401(k),” making retirement savings more accessible to the smallest employers.

In 2024, Guideline ranked second nationally by number of new plans added and has been recognized for its user-friendly mobile app and customer experience. “We set out to fix 401(k)s, and together we’ve transformed an industry,” Busque said in a statement reflecting on the company’s tenth anniversary.

The Regulatory Backdrop

The acquisition comes as U.S. retirement policy undergoes significant change. More than 25 states have enacted laws requiring employers to offer retirement plans or automatically enroll workers into state-run programs. At the same time, new rules are emerging on investment options inside 401(k) funds, including the potential use of private equity and crypto assets.

Industry experts note that these shifts raise both compliance pressures and opportunities for providers that can simplify retirement offerings for small businesses. Studies show employees are 15 times more likely to save when they have access to a workplace plan, underscoring the policy and business case for broader adoption.

Guideline + Gusto: A Longstanding Partnership

Gusto and Guideline are not strangers. Guideline was Gusto’s first fully integrated retirement partner, dating back to 2016. The companies share a customer base and an aligned mission to serve small businesses, which often face resource constraints and the burden of managing multiple disconnected systems.

For Gusto, bringing Guideline in-house expands its ability to deliver an all-in-one solution: payroll, HR, compliance, health insurance, time tracking, and retirement benefits in a single dashboard. Business owners will be able to configure all benefits in one place, while employees will onboard and manage their benefits from a unified app.

Gusto emphasized that it will continue to support other retirement providers on its platform, ensuring customer choice even as it integrates Guideline more deeply.

Market Implications

The deal strengthens Gusto’s position in the competitive SMB HR tech landscape, where rivals such as ADP, Paychex, and newer fintech entrants are also expanding into benefits. By fully embedding retirement plans into its payroll workflows, Gusto gains a strategic advantage at a time when embedded finance is projected to exceed $1 trillion in market value globally.

“This is a full-circle moment,” said Busque. “Gusto was our first payroll partner, and now, as teammates, we’re ready to expand access to secure retirements even further.”

Neither company disclosed financial terms of the transaction.