Gusto is the friendliest full-service payroll platform for small US businesses — automated tax filing, benefits and 401(k) in one place. Here's the real 2026 cost, and where it stops being the right choice.
Gusto's Simple plan is $49/month plus $6 per employee; Plus is $80/month plus $12 per employee; Premium is custom. A Contractor Only plan runs $35/month plus $6 per contractor. That covers unlimited payroll runs, automatic federal and state tax filing, W-2s/1099s, PTO and employee self-service — and you can add health benefits and a 401(k). There is no free tier: for a 5-person team you are looking at roughly $79/month on Simple. It is the best all-round pick for US teams under ~50 who want payroll and benefits handled in one place; heavier hourly or multi-state operations should compare Rippling, Homebase and Square Payroll.
Gusto is a US cloud payroll and HR platform built for small and mid-sized businesses. It runs payroll, calculates and files payroll taxes automatically, produces W-2s and 1099s, and adds the pieces small companies usually piece together separately: health insurance administration, 401(k) plans, hiring tools, PTO tracking and employee self-service. It consistently rates around 4.6/5 across thousands of reviews — unusually high for payroll software, where complaints are common.
It is aimed squarely at the team that has outgrown a spreadsheet but does not want — or need — the enterprise sales process that comes with ADP or Paychex.
Verified from Gusto's official pricing page and cross-checked against independent 2026 pricing reviews:
Simple: $49/month + $6 per employee — single-state payroll, unlimited payroll runs, automatic tax filing and payments, W-2s/1099s, basic PTO and holiday pay
Plus: $80/month + $12 per employee — everything in Simple plus multi-state payroll, next-day direct deposit, hiring/onboarding tools and time-off requests
Premium: custom pricing — adds dedicated HR support, compliance help and priority service
Contractor Only: $35/month + $6 per contractor — for businesses with no W-2 employees
Broker add-on: $6/month per eligible employee if a broker manages plans inside Gusto
Prices are USD, monthly. Example: a 5-person team on Simple ≈ $49 + (5 × $6) = $79/month; on Plus ≈ $80 + (5 × $12) = $140/month. Confirm current pricing on gusto.com — plans change.
The key insight: Gusto charges a base fee plus a per-person fee, which is standard for full-service payroll. That structure makes it very affordable at 2-10 employees and progressively more expensive per head as you scale — which is the point at which companies start comparing to per-employee-cheaper platforms.
No — there is no free Gusto plan. Full-service payroll costs money because Gusto calculates, files and pays taxes on your behalf, which is exactly the part most small businesses do not want to do themselves. If you genuinely need free, you can:
These are the platforms to compare, depending on team shape and budget.
Best for: payroll plus HR and IT in one platform
Best for: established businesses that want a big-name provider
Best for: hourly and shift-based teams
Best for: businesses already using Square
Best for: lower per-employee cost
| Platform | Free option | Starting price | Best for |
|---|---|---|---|
| Gusto | No | $49/mo + $6/person | Small teams wanting payroll + benefits |
| Rippling | No | Quote-based | HR + IT + payroll in one |
| ADP Run | No | Quote-based | Established businesses |
| Homebase | Yes (scheduling) | $0 / paid add-ons | Hourly, shift-based teams |
| Square Payroll | Contractors only | Per-person pricing | Square users |
| OnPay | No | Flat monthly fee | Lower per-employee cost |
Simple is $49/month plus $6 per employee; Plus is $80/month plus $12 per employee; Premium is custom. Contractor Only is $35/month plus $6 per contractor. A 5-person team on Simple works out at about $79/month. Confirm on gusto.com.
No. Gusto has no free plan — it is paid full-service payroll. For free bookkeeping alongside payroll, use Wave or Zoho Books' free tier.
Single-state payroll, unlimited monthly payroll runs, automatic federal and state tax filing and payments, W-2s and 1099s, basic PTO policies and holiday pay, plus employee self-service.
Yes — Gusto can administer health benefits and 401(k) plans, and it reviews payroll and benefits data to help estimate your retirement plan tax credit. 2026 401(k) limits are $24,500 for under-50s, with catch-up contributions for older savers.
Rippling (HR + IT + payroll), ADP Run and Paychex Flex (enterprise-grade), Homebase (hourly teams), Square Payroll (simple per-person pricing) and OnPay (lower per-employee cost).
Yes, though it is strongest for salaried and mixed teams under about 50. Businesses with large hourly, multi-location workforces often find Homebase, Square Payroll or Workstream better suited to scheduling-heavy operations.
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