
Acquisition expands Gusto's compliance capabilities beyond HR and payroll to address the growing compliance burden facing millions of small businesses
SAN FRANCISCO, April 9, 2026 /PRNewswire/ -- Gusto, a leading provider of payroll, benefits, and HR solutions for small businesses, today announced it has acquired Mosey, a leading AI-powered business compliance platform. The acquisition will bring state and local registration, filing, renewal, and ongoing compliance management directly into Gusto's platform, giving the more than 400,000 small businesses that use Gusto to hire and pay their teams a single place to manage their compliance obligations.
Small businesses account for nearly half of all private-sector employees in the United States, yet compliance remains one of the most persistent barriers to growth. Businesses with fewer than 50 employees face roughly $14,700 per employee per year in compliance costs — approximately 20% more than large enterprises with dedicated legal teams. Fifty-one percent of small business owners say compliance negatively affects their growth.
The burden compounds quickly. Each new hire in a new state can trigger unemployment insurance registrations, workers' compensation requirements, paid family leave filings, corporate and franchise tax obligations, and Secretary of State registration requirements — often across multiple agencies. Mandatory benefits and state-specific policies continue to expand: California already requires employers to offer retirement plans; Maryland added a similar requirement in 2026. And roughly 15,000 new laws are passed across all levels of government every year, with notifications often sent to physical addresses businesses no longer staff.
"Building a business is hard enough without compliance getting in the way. With Mosey now part of Gusto, we can do what Gusto has always done: take complexity off the plate of small business owners so they can focus on what they actually started their business to do. This is a natural extension of our vision to be the platform that helps small businesses start, hire, and grow," said Tomer London, Co-Founder and Chief Product Officer, Gusto.
Mosey was founded by Alex Kehayias after he experienced firsthand the compliance pitfalls that face nearly every new business owner: hiring without the right legal setup, incorrect payroll configuration, and missed tax deadlines. After watching thousands of other owners hit the same wall immediately after incorporation, asking "okay, what do I do next?" Alex built Mosey to answer that question at scale.
"I started Mosey because I'd made every compliance mistake myself, and then I watched thousands of other businesses make the same ones. The problem isn't that small business owners don't care about compliance, it's that they shouldn't have to become experts in it. Joining Gusto means we can bring that vision to the millions of small businesses that need it most," said Alex Kehayias, Founder, Mosey.
Gusto Business Compliance: What's Coming
With Mosey's technology and team now part of Gusto, the company will expand its platform beyond HR and payroll to include:
- State and local business registrations
- Entity management, ongoing filings and renewals
- Resolving agency mail
- Real-time surfacing of new compliance obligations as businesses grow or expand to new states
Gusto Business Compliance is an all-in-one compliance management — no separate tool, no integration to maintain, no compliance expertise required. AI will automate the complexity and do the work behind the scenes, so small businesses don't have to. It is expected to launch later this year.
About Gusto
Gusto is a leading provider of cloud-based payroll, benefits, and HR solutions for small and medium-sized businesses. Gusto serves over 400,000 businesses nationwide. Each year Gusto processes tens of billions of dollars of payroll and provides employee benefits—like health insurance and 401(k) accounts—while helping companies create incredible workplaces. Through one refreshingly easy, integrated platform, Gusto automates and simplifies payroll, benefits, and HR, all while providing expert support.
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Lynsay Montour
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SOURCE Gusto, Inc.
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