Xero + Gusto = :)
Both applications are our preferred partners for accounting and payroll, respectively. Needless to say, we are deeply excited to see an enhanced integration between the two applications.
Here's an FAQ from Xero providing more details and what's to come:
This is a significant decision for Xero as they have spent a significant amount of resources building their own payroll solution. Xero Payroll is built right into Xero and included in the monthly subscription pricing. Their payroll product was pretty cool and robust, but it's taken a long time to add states to the product (still not on all 50 states) and support all states with electronic filing and e-pay (most states don't have electronic file capability).
Gusto, on the other hand, ramped up to all 50 states with fully automated filing and payment quite fast, which is why we've used Gusto as our #1 preferred payroll partner. Gusto has also added integrated benefits and HR within the last year or so, making it even more useful to our small business customers.
Kudos to Xero to make such a difficult decision for the benefit of their customers. This should allow Xero to accelerate enhancements to the core Xero application and perhaps Projects, Reports, or Analytics, we believe focus is needed.
The official change over isn't due until the end of 2018, so more information will follow.