Choosing the right payroll software is one of the most critical decisions a small or growing business will make. It affects everything from employee satisfaction to compliance with tax regulations. Among the most popular payroll platforms out there is Gusto, known for its user-friendly interface, integrated HR tools, and excellent customer support. But before diving in, one of the main questions prospective customers have is: How much does Gusto payroll cost? In this article, we’ll break down Gusto’s pricing plans, what’s included, optional add-ons, and whether it’s worth the investment for your business.
TL;DR (Too Long; Didn’t Read)
Gusto offers four main pricing plans—Simple, Plus, Premium, and a customized Contractor Only plan. The base plans range from $40 to $80 per month plus a per-employee fee of $6 to $12, depending on the plan. Each tier includes different features like automated payroll, hiring tools, and advanced HR services. Whether you’re a new startup or an established business, there’s likely a Gusto plan that fits your needs and budget.
Overview of Gusto Payroll Plans
Gusto’s pricing structure is relatively straightforward, making it easy for business owners to gauge affordability. All of Gusto’s plans come with Core payroll services, but the depth of features increases with each pricing tier. Here’s a breakdown of each plan:
- Simple: $40/month base fee + $6/month per person
- Plus: $80/month base fee + $12/month per person
- Premium: Custom pricing (includes all features plus priority support)
- Contractor Only: $35/month base fee + $6/month per contractor (no employees)
Let’s take a closer look at what each plan actually offers.
Simple Plan
The Simple plan is well-suited for small businesses with straightforward payroll needs. It covers payroll processing, direct deposit, and some basic HR functionalities.
Features include:
- Full-service payroll in all 50 states
- Employee self-service portal
- Health benefits administration
- Basic hiring and onboarding tools
- Gusto-brokered benefits integration
This plan is ideal for companies just starting out or those with basic HR needs and wanting a simple, cost-effective solution.
Plus Plan
Tailored for growing businesses, the Plus plan builds upon the Simple plan with more advanced tools and integrations that aid with team management and compliance.
Additional features include:
- Next-day direct deposit
- Advanced hiring and onboarding tools
- Time tracking tools
- Team management functionality (surveys, performance reviews)
- Project tracking and workforce costing
While it’s significantly more expensive than the Simple plan, many users consider these added features vital once the business begins to scale.
Premium Plan
Gusto’s Premium plan is designed for larger companies or those needing more personalized support and robust HR tools. The pricing for this plan is available only through a custom quote, allowing businesses to select the services they truly need.
Premium includes everything in the Plus plan, and adds:
- Dedicated HR support team
- Certified HR professionals for compliance guidance
- HR resource center with templates and tools
- Employee relations consulting
- Priority customer support
This plan is best for businesses that lack an in-house HR department and need strategic help with compliance, engagement, and risk management.
Contractor Only Plan
For companies that only pay independent contractors, Gusto offers a stripped-down plan that skips employee payroll features.
Includes:
- Unlimited contractor payments via direct deposit
- 1099-NEC forms and electronic filing
- Self-onboarding for contractors
You can start with this plan and upgrade later if you decide to hire full-time employees. It’s cost-effective and attractive for startups and small businesses that rely on freelance workers.
Optional Add-Ons and Integrations
While Gusto’s main plans are comprehensive, you can also purchase additional services depending on your company’s needs. These can increase your monthly bill, so it’s important to budget accordingly.
Some of the popular add-ons include:
- Health insurance and other employee benefits administration
- 401(k) retirement plans (through Guideline, Third-party fees apply)
- 529 college savings plans
- Workers’ Compensation Insurance
- HSA, FSA, and commuter benefits
- Time tracking integrations with platforms like TSheets and Homebase
These extras are not bundled into the monthly base pricing and are generally provided through partnerships with third-party providers. Always double-check for any additional fees.
Transparency and No Hidden Fees
Unlike some other payroll providers that charge hidden setup fees or year-end tax filing fees, Gusto follows a transparent pricing model. All federal, state, and local payroll tax filings are included in the monthly cost, as are W-2s and 1099s.
Additionally, there are no charges for phone or email support, no fees for cancelling (though you do need to pay through the end of the billing cycle), and no extra costs for direct deposit or checks.
Is Gusto Worth the Cost?
Whether Gusto is a good value depends on the size of your business, your internal capabilities, and your growth stage. For many small businesses, the time saved on compliance, payroll stress, and HR tasks makes Gusto’s pricing worthwhile.
Here are some situations where Gusto shines:
- You’re a small business without a dedicated HR person
- You want self-service tools for employees and contractors
- You need help with compliance in multiple states
- You value ease of use and a clean interface
On the other hand, larger businesses looking for advanced financial automation or unique payroll setups may outgrow Gusto and find Enterprise-level payroll software more appropriate.
Conclusion
Gusto payroll costs range from $40 to $80 per month in base fees, plus $6 to $12 per user. With different plans catering to varying business sizes and needs, Gusto is a flexible and user-friendly option for payroll and HR management. Transparent pricing, minimal fees, and excellent integration capabilities make it a go-to choice for small and medium businesses across the U.S.
Still unsure? Gusto offers a one-month free trial, allowing you to test features and functionality before committing. Whether you’re paying a team of five or fifty, knowing the costs upfront helps you make a smarter, more confident decision for your business.
