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Gusto

Gusto Pricing Plans & Tiers

Payroll, benefits, and HR platform for small businesses

HR & Peopleper-seatFrom $0/mo

Pricing last verified: March 16, 2026

Data compiled by Arthur Jacquemin, Founder & Lead Analyst
Updated March 16, 2026
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Pricing Analysis

Gusto's pricing ladder (Simple $49/mo, Plus $80/mo, Premium $180/mo) reveals a classic payroll-as-commodity strategy where entry-level price point ($49/mo) anchors perception but drives minimal margin. True profit concentration sits in Plus ($80, multi-state payroll) and Premium ($180, HR expertise access), where customers stop comparison shopping because admin overhead already exceeds price difference.

The contractor-only tier at $0 cost signals Gusto's willingness to subsidize contractor management to build platform stickiness before conversion to paid W-2 payroll. Once a company uses Gusto for contractors, migrating to a competitor's W-2 payroll requires data export and re-setup friction.

Plus tier at $80/month (multi-state payroll, next-day pay, time tracking) is Gusto's sweet spot—growing startups with 15-50 employees deploy multi-state operations and value instant payroll, making $80/month (~$27 per employee at 3 employee-weeks/month average) competitive with ADP and traditional PEOs.

Strengths

  • Entry price at $49/month for basic payroll removes budget objections for first-time Gusto users, creating rapid trial conversion.
  • Plus tier at $80/month bundles multi-state payroll and time tracking—features separate products charge $15-25/mo per add-on, creating perceived value bundling.
  • Premium tier at $180/month adds HR specialist access and performance management—a genuine consulting service often charged at $200+ per hour, making $180/month a 10x value perception.

Considerations

  • Simple tier at $49/month excludes multi-state payroll, creating forced upgrade friction as companies expand beyond single-state operations.
  • Premium tier at $180/month is expensive for companies under 50 employees—admin savings don't justify specialist access until payroll complexity justifies dedicated HR resources.
  • Time tracking features in Plus tier may be feature bloat for companies using Gusto for payroll only, not project costing or capacity planning.
Ideal For

Growing startups with 10-100 employees in 2-4 states seeking accessible payroll without enterprise platform overhead.

Pricing Takeaway

Gusto's $49 entry anchors perception, but Plus at $80 is the real commercial driver—multi-state payroll and time tracking justify cost for expanding teams.

Best choice: Gusto

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Pricing Plans (4)

Contractor Only

$0/mo
  • ✓Contractor payments
  • ✓No W-2 employees required
Start with Contractor Only

Simple

$49/mo

$4/year

  • ✓Single-state payroll
  • ✓Unlimited payrolls per month
  • ✓Tax filings and payments
  • ✓Basic PTO policies and holiday pay
Start with Simple

Plus

$80/mo

$7/year

  • ✓Multi-state payroll
  • ✓Next-day pay
  • ✓Time Tracking
Start with Plus

Premium

$180/mo

$15/year

  • ✓Dedicated Service Advisor
  • ✓Access to certified HR experts
  • ✓Performance & compensation management
  • ✓Custom reports
  • ✓Priority support
Start with Premium

How does Gusto pricing compare?

See how Gusto's 4 pricing plans stack up against similar HR & People tools.

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Frequently Asked Questions

How much does Gusto cost per month?
Gusto is $12-20/employee/month depending on features chosen. The base is $12/employee (payroll + HR) or $5/employee (payroll-only). Add-ons like 401(k) administration are $8/employee/month. A 25-person company on the base payroll+HR plan costs $300/month or $3,600/year. Pricing scales with headcount.
Is Gusto free or does it have a free trial?
Gusto offers a 3-month free trial (usually $0 for the first 3 months), then starts charging. After trial, the base plan ($12/employee/month) applies. The free trial is generous — full access to payroll, tax filing, and HR features. This gives companies time to import employee data before billing begins.
What is included in Gusto's base pricing?
Gusto's base plan ($12/employee/month) includes unlimited payroll runs, tax form filing (W2s, 1099s, state requirements), employee onboarding, and basic HR tools. Add-ons like 401(k) administration ($8/employee/month) and benefits administration cost extra. Most companies use base + one or two add-ons.
How much does Gusto's 401(k) administration cost?
Gusto 401(k) administration costs $8/employee/month (capped at $199/month per company for large organizations). A 25-person company with 401(k) costs an additional $200/month. Gusto handles all filings and compliance, which would otherwise require a separate benefits consultant ($2,000-5,000/year).
How does Gusto pricing compare to ADP or Rippling?
Gusto is $12-20/employee/month (payroll+HR). ADP starts at $8/employee/month for payroll-only but lacks HR features without additional subscription. Rippling is $11-20/employee/month and bundles IT management (no separate IT tool cost). For companies needing payroll+HR+benefits, Gusto and Rippling are similarly priced.
Can I downgrade Gusto features once billing starts?
Yes — Gusto allows downgrading mid-month. If you added 401(k) administration but cancel it mid-cycle, you are prorated. This flexibility makes it less risky to test Gusto's full feature set during trial and then settle on core features for billing.

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Sources

  1. Gusto Official Pricing— Vendor pricing page

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