Gusto Pricing Tiers & Costs
A complete overview of Gusto pricing tiers, additional costs, value for money, and how to pick the right plan for you. Plus, alternatives to consider and a side-by-side pricing comparison.
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Gusto is a payroll software that offers multiple pricing tiers and plans on a subscription basis. Payroll specialists use Gusto to manage payroll, benefits, and HR needs efficiently.
Gusto’s pricing structure is more flexible and offers good value compared to its competitors. This guide covers everything you need to know about Gusto pricing, plans, and costs to make an informed purchase decision with confidence.
How Much Does Gusto Cost?
Gusto’s paid plans start from $40 per month plus $6 per person and go up to $80 per month plus $12 per person.
A free version of Gusto is not available, but they do offer a Contractor Only plan for businesses that only need to pay contractors. This plan is priced at $35 per month plus $6 per contractor, but you can get started with a $0 per month discounted base plan for 6 months.
Gusto also provides a custom pricing tier for larger teams and enterprise businesses, which includes additional features and dedicated support.
Gusto Plans & Pricing Tiers
Here's an overview of the available Gusto plans:
| Plan Type | Price | What’s Included? |
| Simple | $40/month + $6/month per person | Full-service single-state payroll with W-2 and 1099-NEC filings, hiring and onboarding tools, benefits administration, payroll reports, employee profiles and self-service, software integrations and more. |
| Plus | $60/month + $9/month per person | Everything in Simple, multi-state payroll, next-day direct deposit, advanced hiring and onboarding tools, PTO management and policies, time and project tracking, team management tools, performance reviews, employee surveys and insights |
| Premium | $135/month +$16.50/month per person | Everything in Plus, dedicated Customer Success Manager, HR Resource Center, compliance alerts, full-service payroll migration and account setup, health insurance broker integration, R&D tax credit discount, waived fees and exclusive pricing, priority support |
| Contractor Only | $35/month + $6/month per contractor | Unlimited contractor payments across all 50 states, 4-day direct deposit, 1099-NECs at the end of the year, new hire reporting (if required in your state) |
Let’s break down the available Gusto plans a bit further:
Gusto Simple Plan
Ideal for small businesses and startups, the Simple plan offers essential payroll software features and is best for companies needing straightforward payroll management. Limitations include single-state payroll and basic support features.
Gusto Plus Plan
Designed for growing businesses, the Plus plan suits companies expanding across states and needing more comprehensive HR tools. Limitations include additional costs for priority support and HR resources.
Gusto Premium Plan
The Premium plan is tailored for larger teams needing scalable payroll and is ideal for businesses with complex needs. Limitations include exclusive pricing and the need to contact sales for details.
Gusto Contractor Only Plan
Perfect for businesses that only employ contractors. Limitations include the exclusion of employee payroll features and additional costs for international contractor payments.
Gusto Pricing vs. Competitors
Gusto is generally considered to have average pricing in the payroll software market. Its three main pricing tiers (Simple, Plus, and Premium) include essential payroll features, with higher tiers offering more advanced tools and HR system integrations.
Gusto's security safeguards and support are robust across all plans. Compared to competitors like Paychex and Square Payroll, Gusto's pricing is competitive, especially for small to mid-sized businesses seeking payroll and HR solutions.
Comparison Chart: Gusto vs. Alternatives
Wondering how Gusto pricing compares to other payroll software? Here’s a comparison chart that breaks down the costs of other payroll software side-by-side:
| Tools | Price | |
|---|---|---|
| Deel | Flat rate user pricing, with a free version for businesses with up to 200 people | Website |
| Papaya Global | From $15/employee/month | Website |
| RUN by ADP | Pricing upon request | Website |
| Rippling | From $8/user/month, (billed annually). | Website |
| TimeTrex | From $5/user/month | Website |
| Paylocity | Pricing upon request | Website |
| Namely | From $9/user/month | Website |
| Patriot Software | From $4/employee/month + $17/month base fee | Website |
| Wave | From $161/year | Website |
| Justworks Payroll | From $8/employee/month + $50/month base fee | Website |
Compare Software Specs Side by Side
Use our comparison chart to review and evaluate software specs side-by-side.
Compare SoftwareAlternatives to Gusto
Gusto is a solid payroll software, but there are plenty of other options out there. Depending on your use case, budget, team size, and other factors, you might consider shopping around for a solution that’s better suited to your needs.
If you’re looking for alternative payroll software options to Gusto, here are a few worth checking out:
Get free help from our HR software advisors to find your match.
How to Choose the Right Gusto Plan
When deciding which Gusto plan to go with, you’ll want to consider the added value and potential drawbacks that come with each plan.
Scrolling through long lists of features can quickly lead to confusion and uncertainty, so here are a few factors to keep in mind as you evaluate and assess your options:
Gusto Scalability and Team Size
Evaluating Gusto's scalability is necessary for aligning with your team’s size and growth trajectory. For a small business with a few employees, the Simple plan at $40/month plus $6 per person offers essential payroll and HR features.
Startups and new businesses might benefit from the Plus plan, which includes multi-state payroll and advanced hiring tools for $60/month plus $9 per person.
Mid-size businesses scaling rapidly can opt for the Premium plan, which provides dedicated support and advanced HR resources. Gusto's flexible plans ensure you can upgrade or downgrade as your team grows.
Industry-Specific Gusto Features
Evaluating if Gusto meets your industry needs will help you ensure your team benefits from tailored features. Gusto offers industry-specific tools such as time tracking with geolocation for construction, project tracking for professional services, and health insurance administration for healthcare.
These features help streamline operations and improve efficiency. For example, the healthcare industry benefits from compliance support with ACA, HIPAA, and ERISA regulations.
It’s worth noting that some features, like advanced hiring tools, are available only on higher-tier plans. Assessing these options ensures you choose the right plan for your industry.
Gusto Integration Capabilities
Gusto offers native integrations with popular tools like QuickBooks, Xero, and FreshBooks for accounting, as well as TSheets and Homebase for time tracking.
You can also connect Gusto to third-party integration tools like Zapier, enabling further customization. Additionally, Gusto provides an API for building custom integrations, allowing you to tailor the platform to your specific needs.
Gusto Security Safeguards
When choosing a Gusto plan, you need to consider the safety and security features included. Gusto offers various security measures across its plans, such as compliance alerts, access to certified HR experts, and payroll and time-off reports.
Each of Gusto’s plans ensures your data is secure and compliant with federal regulations like HIPAA and ACA.
Gusto Pricing FAQs
Here are answers to a few common questions about Gusto pricing:
What additional costs should I anticipate with Gusto?
In addition to the base monthly fees for each plan, you may encounter additional costs for certain features and services. These can include:
- Health insurance broker integration: $6 per eligible employee per month.
- Priority support and HR resources: $6 per person per month.
- International contractor payments: Pricing varies based on foreign exchange rates.
- State tax registration: Pricing varies by state.
- R&D tax credits: 15% of identified tax credits, with discounts available for Premium Plan customers.
- 401(k) retirement savings: Pricing varies by integration.
- Health savings accounts (HSAs): $2.50 per participant per month.
- Flexible spending accounts (FSAs): $4 per participant per month, with a $20 monthly minimum.
- Commuter benefits: $4 per participant per month, with a $20 monthly minimum.
Are there any discounts or promotions available for Gusto?
Yes, Gusto offers several discounts and promotions:
- Limited-time offer: 25% off the Plus plan for the first three months if you create an account by August 2, 2024, and run payroll by August 30, 2024.
- Gusto Global: Discounted pricing of $599 per employee per month for Employer of Record (EOR) services through December 31, 2024.
- Contractor Only plan: Discounted base price of $0 per month for the first six months, then $35 per month plus $6 per contractor.
How often does Gusto change its pricing structure?
Gusto does not frequently change its pricing structure. The last significant update to their pricing was the introduction of the limited-time offer for the Plus plan and the discounted pricing for Gusto Global services.
Historically, Gusto has maintained stable pricing with occasional promotions and discounts to attract new customers.
What is included in Gusto's health insurance administration costs?
With Gusto as your broker, health insurance administration comes at no extra cost beyond the insurance premiums. If you prefer to keep your existing broker, there is a fee of $6 per eligible employee per month. Premium plan customers can integrate their health insurance broker for free.
How does Gusto bill for contractors?
Contractors are billed at the per-person cost for any plan you select. Gusto only bills you for contractors in months when you’ve paid them. For businesses without any W-2 employees, Gusto offers a Contractor Only plan for $35 per month plus $6 per contractor.
Can I upgrade or downgrade my Gusto plan at any time?
Yes, you can upgrade or downgrade your Gusto plan at any time. Upgrades take effect immediately, while downgrades go into effect at the beginning of the next billing period (the first of the month). This flexibility allows you to adjust your plan based on your business needs.
Is Gusto Good Value?
In my opinion, Gusto offers significant value for small to medium-sized businesses looking for an all-in-one payroll and HR solution. The software's user-friendly interface, combined with its extensive features like automated payroll processing, benefits administration, and compliance management, make it a strong contender in the market.
Gusto's pricing is competitive, especially considering the breadth of functionality it provides, including time tracking and employee onboarding. The integration capabilities with other popular business tools further enhance its appeal.
Industries such as tech startups, retail, and professional services will find Gusto particularly beneficial due to its ease of use and the ability to manage both payroll and HR tasks efficiently. The support team is responsive, which is crucial for businesses that may not have dedicated HR personnel.
Verdict: Gusto is a valuable investment for small to medium-sized businesses seeking a comprehensive payroll and HR solution.
Want to learn more about Gusto? Check out their site for additional information.
From $6/user/month + $40 base fee (billed annually)
Free demo available
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