Gusto Pricing 2026: Plans, Costs & Hidden Fees

The Three Gusto Plans Explained

1. Gusto Simple — $40/mo + $6/employee

The entry-level plan for small businesses that just need payroll to work.

What is included:

• Full-service payroll with unlimited pay runs
• Automatic federal, state, and local tax filing
• Direct deposit (4-day standard, next-day available for extra fee)
• W-2 and 1099 generation and filing
• New hire reporting
• Employee self-service portal
• Basic hiring and onboarding tools
• Gusto Wallet (employee financial tools)

What is NOT included:

• Time tracking
• PTO management
• Health insurance administration
• 401(k) administration
• HR Resource Center

Best for: Very small businesses (under 10 employees) with simple payroll needs who handle HR and time tracking separately.

2. Gusto Plus — $80/mo + $12/employee

The most popular plan for growing small businesses. This is what most companies choose.

Everything in Simple, plus:

• Time tracking (built-in, with project tracking)
• PTO policies and management
• Health insurance administration (Gusto brokers plans)
• FSA and HSA management
• 401(k) administration (via partners like Guideline)
• Commuter benefits
• Advanced hiring and onboarding (offer letters, document signing)
• HR Resource Center (compliance guides, handbook builder)
• Team management tools
• Performance reviews (basic)

What is NOT included:

• Dedicated support
• HR advisory services
• Compliance alerts
• Priority support

Best for: Most small businesses with 10-75 employees who need payroll plus benefits and basic HR tools.

3. Gusto Premium — Custom Pricing

For larger companies that need dedicated support and compliance tools.

Everything in Plus, plus:

• Dedicated customer success manager
• Phone support (not just email/chat)
• HR advisory services (access to HR experts)
• Compliance alerts for federal and state regulations
• Proactive compliance recommendations
• Advanced org chart and permissions
• Priority support queue

Pricing: Gusto does not publish Premium pricing, but based on industry data, expect $15-20 per employee per month for companies with 100+ employees. Base fees may be negotiated.

Best for: Companies with 75-200+ employees who need dedicated support and compliance assistance.

Gusto Contractor-Only Plan — $35/mo + $6/contractor

If you only have contractors (no W-2 employees), Gusto offers a dedicated plan:

• Unlimited contractor payments
• 1099 generation and filing
• Direct deposit or check payments
• Contractor self-service portal
• No W-2 payroll features

Note: If you add even one W-2 employee, you will need to upgrade to Simple, Plus, or Premium.

Real Cost Examples by Company Size

Add-On Costs and Hidden Fees

Gusto is generally transparent about pricing, but there are some add-ons and situations that cost extra:

Next-Day Direct Deposit

Cost: Included on Plus and Premium, $10/month extra on Simple plan

Standard direct deposit takes 4 business days. If you need money in employee accounts faster, next-day direct deposit is available.

Health Insurance Broker Fees

Cost: $0 (Gusto is paid by insurance carriers)

Good news: Gusto brokers health insurance at no additional cost to you. They are compensated by the insurance carriers. However, the insurance premiums themselves obviously cost money and depend on your plan selection and employee enrollment.

401(k) Administration

Cost: Varies by provider (Guideline, Human Interest, etc.)

Gusto integrates with 401(k) providers but does not include 401(k) in the base price. Typical 401(k) costs through Guideline:

• $49/month base fee
• $8/participant/month
• 0.08% annual fee on assets

Workers Compensation

Cost: Varies by state and industry

Gusto offers pay-as-you-go workers comp through their platform. Premiums depend on your industry classification and payroll. This is not a Gusto fee—it is actual insurance that you need regardless of payroll provider.

State Tax Registration

Cost: $99 one-time fee per state (if Gusto handles registration for you)

If you hire employees in a new state, you need to register with that state for tax purposes. You can do this yourself for free, or Gusto can handle it for $99.

Year-End W-2/1099 Filings

Cost: Included

Good news: W-2 and 1099 generation and filing is included in all plans. No per-form fees.

Multi-State Payroll

Cost: Included

Good news: Gusto handles multi-state payroll at no extra charge. Tax filing in all 50 states is included.

What Gusto Does NOT Charge For

Unlike some competitors, Gusto does not charge for:

• Setup or implementation (completely free)
• Data migration from previous provider
• Unlimited payroll runs (run payroll as often as needed)
• Contractor payments (included in all plans)
• W-2 and 1099 filing
• Multi-state tax filing
• Customer support (email/chat included on all plans)
• Integrations (connect to 100+ apps at no extra cost)
• Annual price increases (Gusto has historically been stable)

Gusto Pricing vs. Competitors

Note: ADP and Paychex prices are estimates—they do not publish pricing and you must call for quotes.

Is Gusto Worth the Price?

Yes, for most small businesses. Here is why:

1. Modern UX saves time: Running payroll in Gusto takes 5 minutes. In ADP or Paychex, it often takes 20-30 minutes with a clunkier interface. At $50/hour, that is $150/year in time savings.
2. Benefits brokerage included: Gusto brokers health insurance at no cost. With competitors, you either handle benefits separately or pay extra.
3. No hidden fees: What you see is what you pay. ADP and Paychex are notorious for adding fees and annual price increases.
4. Employee experience: Your employees will actually use and appreciate Gusto self-service. This reduces HR questions and improves satisfaction.

When Gusto might NOT be worth it:

• You have extremely simple needs and just need rock-bottom pricing (consider Patriot or OnPay)
• You have 100+ employees and need dedicated support (consider Gusto Premium or Rippling)
• You need enterprise features like advanced time tracking or job costing (consider ADP or Paychex)

How to Get the Best Price on Gusto

1. Start with the Right Plan

Do not overpay for Plus if Simple meets your needs. If you handle benefits and time tracking separately, Simple at $6/employee might be all you need.

2. Take Advantage of Free Trials

Gusto offers a free trial. Use it to ensure the platform fits before committing.

3. Look for Promotions

Gusto occasionally offers first-month-free or discounted pricing for new customers. Check their website or ask during signup.

4. Annual vs. Monthly

Gusto currently only offers monthly billing. There is no annual discount, but this also means no long-term commitment.

5. Negotiate at Scale

If you have 100+ employees, contact Gusto sales for custom Premium pricing. Volume discounts are available.

The Bottom Line on Gusto Pricing

Gusto is not the cheapest payroll software, but it is excellent value for most small businesses. The Plus plan at $80/month + $12/employee gives you payroll, benefits, time tracking, and HR tools in one modern platform.

For a 25-employee company, you will pay $380/month—roughly $15/employee. That is extremely competitive for what you get, especially compared to legacy providers who charge similar rates for worse software and hidden fees.

If you are on the fence, start with the free trial. You will know within a few payroll runs whether Gusto is worth the investment.