Gusto Cost: Full Pricing Breakdown (What You'll Actually Pay)

Looking for Gusto's actual pricing? Here's the short version: Gusto costs between $49 and $180 per month as a base fee, plus $6 to $22 per employee per month depending on which plan you choose. But your real cost depends on team size, add-ons, and which features you actually need.

I've broken down every plan, the add-on costs that can sneak up on you, and what you'll actually pay at different company sizes. Let's get into the numbers.

Gusto Pricing Plans at a Glance

Gusto offers four main pricing tiers. Here's what each one costs:

Note: Gusto increased its Simple plan base price from $40 to $49 in March 2025. Some older pricing guides still show the old numbers.

Try Gusto free →

Gusto Simple Plan: $49/month + $6/employee

The Simple plan is Gusto's entry-level option. It works for small businesses with straightforward payroll needs—think under 10 employees in a single state.

What you get:

• Full-service single-state payroll
• Automatic tax filing (federal, state, local)
• W-2 and 1099 processing
• Employee self-service portal
• Basic hiring and onboarding tools
• Direct deposit (4-day)
• Integrations with QuickBooks, Xero, and other accounting software
• Unlimited payroll runs

What you don't get:

• Multi-state payroll (you'll pay extra for each new state)
• Time tracking (built into higher tiers)
• Next-day direct deposit
• Priority support

Real cost example: A 5-person team on Simple pays $49 + ($6 × 5) = $79/month or $948/year.

Gusto Plus Plan: $60/month + $9/employee

The Plus plan is Gusto's most popular tier. It's designed for growing businesses that need multi-state payroll and more HR tools.

Everything in Simple, plus:

• Multi-state payroll
• Next-day direct deposit
• Time tracking and PTO management
• Advanced hiring and onboarding tools
• Project tracking and workforce cost reports
• Custom admin permissions

Optional add-on: Priority support and HR resources cost an extra $8/month per person on the Plus plan.

Real cost example: A 15-person team on Plus pays $60 + ($9 × 15) = $195/month or $2,340/year.

Gusto Premium Plan: $135-$180/month + $16.50-$22/employee

The Premium plan is for larger teams or businesses with complex compliance needs. Pricing varies—you'll need to contact Gusto for an exact quote.

Everything in Plus, plus:

• Dedicated Customer Success Manager
• HR resource center with compliance alerts
• Access to certified HR experts
• Full-service payroll migration
• Health insurance broker integration (free—it's a paid add-on for other plans)
• R&D tax credit discounts
• Priority support included
• Performance reviews and employee surveys

Real cost example: A 25-person team on Premium (at $180 base + $22/person) pays $180 + ($22 × 25) = $730/month or $8,760/year.

Gusto Contractor Only Plan: $35/month + $6/contractor

If you only pay 1099 contractors—no W-2 employees—this plan is specifically for you.

What you get:

• Unlimited contractor payments across all 50 states
• Automated 1099 filing
• 4-day direct deposit
• Contractor self-onboarding

Current promotion: New users can get the $35 base fee waived for the first 6 months. You'd only pay the $6/contractor fee during that period.

What you don't get: Most add-ons aren't available on this plan (except global contractor payments). No employee payroll features, obviously.

Gusto Add-On Costs That Can Add Up

Here's where your Gusto bill can grow beyond the base pricing. These add-ons are available on Simple and Plus plans (Premium often includes them):

According to multiple sources, these add-ons can increase your total cost by $10-$30 per employee per month. A $49/month Simple plan can easily become $100+ per month once you enable several features.

What Does Gusto Cost for Different Team Sizes?

Let's do the math for common team sizes on each plan:

5 Employees

• Simple: $49 + $30 = $79/month ($948/year)
• Plus: $60 + $45 = $105/month ($1,260/year)
• Premium: ~$180 + $110 = $290/month ($3,480/year)

10 Employees

• Simple: $49 + $60 = $109/month ($1,308/year)
• Plus: $60 + $90 = $150/month ($1,800/year)
• Premium: ~$180 + $220 = $400/month ($4,800/year)

25 Employees

• Simple: $49 + $150 = $199/month ($2,388/year)
• Plus: $60 + $225 = $285/month ($3,420/year)
• Premium: ~$180 + $550 = $730/month ($8,760/year)

These are base costs only. Add benefits administration, time tracking add-ons (for Simple), or priority support to get your true number.

What's Included in Every Gusto Plan

No matter which plan you choose, Gusto includes:

• Unlimited payroll runs — No extra charge for off-cycle payments
• Automatic tax filing — Federal, state, and local taxes handled
• No contracts — Month-to-month, cancel anytime
• Free account setup — No implementation fees
• Only charged for active employees — Deactivate seasonal workers and stop paying for them
• Contractor billing flexibility — Only billed for contractors in months you pay them

The no-contract, month-to-month structure is genuinely nice. If Gusto doesn't work out, you're not locked in.

Gusto vs. Competitors: How Does the Cost Compare?

Quick comparison with other payroll providers:

• ADP RUN: Starts around $79/month + $4/employee. More expensive base, but per-employee cost is lower. Better for larger teams.
• QuickBooks Payroll: $50/month + $6/employee for their premium tier. Similar to Gusto Simple, but integrates natively with QuickBooks accounting.
• Paychex: Custom pricing only—typically more expensive than Gusto for small teams.
• Justworks: Starts at $59/month per employee (all-inclusive). More expensive per person, but includes benefits and compliance.

For detailed comparisons, check out our guides on Gusto vs ADP, Gusto vs QuickBooks Payroll, Gusto vs Paychex, and Gusto vs Justworks.

Hidden Costs to Watch For

Gusto is generally transparent about pricing, but here are potential extra costs people miss:

• Multi-state registration fees: If you hire someone in a new state, there may be state registration fees
• Workers' comp premiums: Gusto offers pay-as-you-go workers' comp through a partner, but premiums vary by industry and state
• 401(k) administration: Gusto integrates with providers like Guideline, but the 401(k) provider charges their own fees
• Health insurance: Gusto doesn't charge for health insurance administration if they're your broker, but you pay premiums. Using your own broker costs $6/employee/month (free on Premium)
• Benefits premiums: HSA, FSA, life insurance, etc. have their own costs beyond Gusto's platform fee

Is Gusto Worth the Cost?

For most small businesses (under 50 employees), yes. Here's why:

What Gusto does well:

• Clean, modern interface that's actually easy to use
• Automatic tax filing that works
• Solid integrations with accounting software
• Employee self-service that reduces your admin work
• Transparent pricing without hidden fees

Where Gusto falls short:

• No international employee payroll (only contractors abroad)
• Limited enterprise features for large companies
• Add-ons can inflate costs quickly
• Per-employee pricing gets expensive as you scale past 50+ employees

If you're a small U.S. business with straightforward payroll needs, Gusto's Simple or Plus plan offers genuine value. For more details on the platform itself, read our full Gusto review or check out user reviews.

Try Gusto and see if it fits your business →

How to Choose the Right Gusto Plan

Pick Simple if:

• You have fewer than 10 employees
• Everyone works in the same state
• You don't need built-in time tracking
• Basic support is fine

Pick Plus if:

• You hire across multiple states
• You need time tracking and PTO management
• You want next-day direct deposit
• You're actively hiring and need better onboarding tools

Pick Premium if:

• You have 25+ employees
• You need dedicated support and an account manager
• Compliance is complex (multiple states, specific industry requirements)
• You want performance review tools and employee surveys

Pick Contractor Only if:

• You exclusively work with 1099 contractors
• You haven't hired W-2 employees yet

Bottom Line

Gusto's cost ranges from $55/month (Simple plan with one employee) to several hundred dollars per month for larger teams on Premium. The most popular setup—Plus plan for a 10-person team—runs about $150/month.

It's not the cheapest payroll option, but it's not the most expensive either. What you're paying for is a modern platform that genuinely reduces payroll headaches. For most small businesses, that's worth it.

For more on Gusto's features and how it stacks up, see our Gusto pricing guide and best payroll software for small business comparison.

Get started with Gusto →