Gusto Pricing: What You'll Actually Pay for Payroll
Gusto is one of the most popular payroll platforms for small businesses, and for good reason. It's easy to use, handles tax filings automatically, and integrates with the accounting tools you're already using. But before you sign up, you need to understand what it actually costs.
Here's the breakdown: Gusto has four plans ranging from $35/month (contractor-only) to $180/month (premium), plus per-employee fees. But the base price is just the starting point—add-ons, benefits, and extra features can significantly increase your monthly bill.
Let's dig into the real numbers.
Gusto Pricing Plans at a Glance
Gusto offers four main pricing tiers. Here's what you're looking at:
| Plan | Base Price | Per Employee | Best For |
|---|---|---|---|
| Simple | $49/month | $6/month | Small teams, single-state payroll |
| Plus | $80/month | $12/month | Growing businesses, multi-state |
| Premium | $180/month | $22/month | Larger teams needing dedicated support |
| Contractor Only | $35/month | $6/contractor | Businesses paying only contractors |
Important: Gusto increased their Simple plan base price from $40 to $49 per month as of March 2025. Some older articles still show the old pricing.
Gusto Simple Plan ($49/month + $6/employee)
The Simple plan is designed for small businesses with straightforward payroll needs. If you're running payroll in a single state and don't need advanced HR features, this is your starting point.
What's included:
- Full-service single-state payroll
- Automated tax filings (federal, state, local)
- W-2s and 1099s
- Direct deposit (2-day or 4-day)
- Employee self-service portal
- Basic hiring and onboarding tools
- Health insurance administration
- Basic PTO policies
- Integrations with QuickBooks, Xero, and other accounting tools
What's NOT included:
- Multi-state payroll
- Next-day direct deposit
- Time tracking
- Advanced hiring tools
- Priority support
Example cost: A 10-person team on the Simple plan pays $49 + ($6 × 10) = $109/month.
Gusto Plus Plan ($80/month + $12/employee)
The Plus plan is Gusto's most popular option and the one most growing businesses end up on. It adds multi-state payroll capabilities, time tracking, and better hiring tools.
What's included (everything in Simple, plus):
- Multi-state payroll
- Next-day direct deposit
- Time tracking and project tracking
- PTO management and time-off requests
- Advanced hiring and onboarding tools
- Workforce cost reports
- Custom admin permissions
- Team management tools
What's NOT included:
- Dedicated customer success manager
- HR resource center access
- Compliance alerts
- Priority support (available as add-on for $8/person/month)
Example cost: A 10-person team on the Plus plan pays $80 + ($12 × 10) = $200/month.
If you're expanding to multiple states or need time tracking built into your payroll system, Plus is worth the upgrade. The time tracking integration alone can save you from paying for a separate tool.
Gusto Premium Plan ($180/month + $22/employee)
Premium is for larger teams (think 25+ employees) that need dedicated support and advanced HR features. The per-employee cost jumps significantly, but you get white-glove service.
What's included (everything in Plus, plus):
- Dedicated customer success manager
- HR resource center
- Compliance alerts
- Access to certified HR experts
- Full-service payroll migration
- Health insurance broker integration (free)
- R&D tax credit discounts
- Priority support
- Performance reviews and goal tracking
Example cost: A 25-person team on the Premium plan pays $180 + ($22 × 25) = $730/month.
Premium makes sense if you're scaling quickly and don't have an in-house HR team. The dedicated support and compliance alerts can save you from costly mistakes.
Gusto Contractor Only Plan ($35/month + $6/contractor)
If you only work with contractors (no W-2 employees), this plan keeps things simple and cheap.
What's included:
- Unlimited contractor payments in all 50 states
- 1099 filings
- 4-day direct deposit
- Contractor self-service portal
Promo: New users can get the first 6 months at $0/month base fee—you only pay the $6 per contractor during that period.
This plan doesn't include any employee payroll features, so if you hire even one W-2 employee, you'll need to upgrade.
Gusto Add-Ons and Hidden Costs
Here's where Gusto pricing gets tricky. The base plans look reasonable, but add-ons can quickly inflate your monthly bill by $10-30 per employee.
Common Add-Ons:
- Priority support + HR resources: $8/person/month (Plus plan add-on)
- Health insurance broker integration: $6/eligible employee/month (free on Premium)
- Next-day direct deposit: $15/month + $3/person/month (Simple plan add-on)
- Health Savings Accounts (HSAs): $2.50/participant/month
- Flexible Spending Accounts (FSAs): $4/participant/month ($20 minimum)
- Commuter benefits: $4/participant/month ($20 minimum)
- 529 College Savings: $6/participant/month ($18 minimum)
- State tax registration: Varies by state
- R&D tax credits: 15% of identified credits
Benefits That Don't Cost Extra:
- Workers' compensation (pay-as-you-go through AP Intego)
- Health insurance administration (if Gusto is your broker)
- 401(k) setup (though there are third-party fees)
- Unlimited payroll runs
- Off-cycle payrolls
The good news: Gusto doesn't charge extra for running payroll multiple times per month or for off-cycle payments. That's a big deal if you have different pay schedules for different employees.
Real-World Gusto Cost Examples
Let's look at what actual businesses pay:
5-Person Startup (Simple Plan)
- Base: $49
- Per-employee: $6 × 5 = $30
- Total: $79/month
15-Person Growing Business (Plus Plan)
- Base: $80
- Per-employee: $12 × 15 = $180
- Total: $260/month
15-Person Business with Add-Ons (Plus Plan)
- Base: $80
- Per-employee: $12 × 15 = $180
- Priority support: $8 × 15 = $120
- HSAs: $2.50 × 10 participants = $25
- Total: $405/month
See how fast it adds up? A $260/month bill can easily become $400+ when you factor in the features your team actually needs.
How Gusto Compares to Competitors
Gusto isn't the cheapest option, but it's competitive for what you get. Here's a quick comparison:
- ADP RUN: Starts at $79/month + $4/employee. More expensive base, cheaper per-employee on Plus-equivalent plans.
- QuickBooks Payroll: Starts at $50/month + $6/employee. Similar pricing, but less robust HR features.
- Rippling: Custom pricing starting around $8/employee. More flexible but can get expensive fast.
- Paychex: Custom quotes only. Generally more expensive than Gusto for similar features.
For a detailed breakdown, check out our comparisons: Gusto vs ADP, Gusto vs Paychex, Gusto vs QuickBooks Payroll, and Gusto vs Rippling.
Is Gusto Worth It?
Here's my take after looking at the numbers:
Gusto is worth it if:
- You're a U.S.-based small business with under 100 employees
- You want an all-in-one payroll and HR platform
- You value ease of use over maximum customization
- You're okay paying a premium for good software
Gusto might NOT be worth it if:
- You have international employees (Gusto's global EOR is $599-699/employee/month)
- You only need basic payroll and want the cheapest option
- You need enterprise-level customization
- You're a large company (100+ employees)—there are better options
For most small businesses, the Plus plan hits the sweet spot. You get multi-state payroll, time tracking, and solid HR tools without paying for features you don't need.
Gusto Discounts and Promotions
Gusto occasionally runs promotions. Current and recent offers include:
- Contractor Only plan: First 6 months at $0 base fee
- New customer discount: Run payroll by 12/31/2025 for promotional pricing
- Amazon Business partnership: Up to 50% off for first 12 months
- Gusto Global EOR: $599/employee/month (discounted from $699) through January 2026
Check current Gusto promotions →
Final Thoughts
Gusto's pricing is transparent and predictable—no long-term contracts, no setup fees, and you can cancel anytime. The month-to-month flexibility is a big plus for growing businesses.
Start with the Simple plan if you're a small team in one state. Upgrade to Plus when you expand to multiple states or need time tracking. Premium only makes sense if you need dedicated support and have 25+ employees.
Just watch out for add-on creep. Those $4-8/person fees add up fast.
For more on Gusto, check out our full Gusto review and customer reviews roundup. Looking at alternatives? See our guide to the best payroll software for small business.