Gusto Pricing

Gusto is a top choice for companies transitioning their HR processes from paperwork and Excel sheets to modern, digital solutions. Starting at $40 per month Gusto offers incredible features that make managing payroll and HR tasks a breeze. This plan offers basic hiring and onboarding tools, employee profiles, integrations for accounting, and more.

The higher tiers include Simple, Premium, and Contractor Only. These plans offer more advanced hiring and onboarding tools such as full-service multi-state payroll, time tracking, compliance alerts, and so forth.

This Gusto pricing review will show you what features to expect on each plan and how much it would cost. With clear value metrics, you’ll know exactly what you’re paying for and determine if it’s worth it. Let’s dive into Gusto’s pricing structure. 

How Much Does Gusto Cost?

Value Metrics

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Gusto Pricing Plan Overview

Gusto offers four pricing plans: Simple, Plus, Premium, and Contractor Only.

1. Simple Plan

The Simple plan is Gusto’s basic offering. This plan provides a solid foundation for managing payroll and basic HR tasks. With automatic payroll features and benefits integrations, small businesses can focus on growth and success without getting bogged down by administrative burdens.

Here are some features you can explore on this plan for $40 a month: 

• Full-service single-state payroll including W-2s and 1099s,
• Employee profiles and self-service,
• Basic hiring and onboarding tools,
• Gusto-brokered health insurance administration,
• Employee financial benefits,
• Payroll and time-off reports,
• Custom admin permissions.

The simple plan is meant to accommodate a maximum of 10 employees. For each additional person beyond the included limit, the cost is $6 per person per month.

2. Plus Plan

The Plus plan builds upon the Simple plan by adding more advanced features. It is offered at $60 per month and can accommodate around 20-plus employees. For each additional person beyond the included limit, the cost is $9 per person per month. With a Plus subscription, you get everything in the Simple plan, plus:

• Full-service multi-state payroll including W-2s and 1099s,
• Next-day direct deposit,
• Advanced hiring and onboarding tools,
• PTO management and policies,
• Time tracking and project tracking,
• Time Kiosk,
• Workforce costing and reports,
• Team management tools,
• Performance reviews,
• Employee surveys and insights.

Priority support and HR resources on the Plus plan are available as an optional add-on. For $6 a month per person, you can unlock unlimited access and dedicated support from Gusto’s customer service and certified HR experts.

3. Premium Plan

The Premium plan provides access to all the features of the Plus plan along with additional services and support. Unlike the Plus plan where you purchase dedicated support separately, the Premium plan comes with a Dedicated Customer Success Manager. Other added features include:

• HR Resource Center,
• Compliance alerts,
• Access to certified HR experts,
• Full-service payroll migration and account setup,
• Health insurance broker integration,
• R&D tax credit discount,
• Waived fees and exclusive pricing,
• Priority support.

For the Premium plan, pricing details are available when you contact Gusto for a custom quote. Employee numbers beyond the plan’s limit cost extra. You can also ask the sales team to find out. 

4. Contractor Only Plan

The Contractor Only plan is meant for businesses that primarily work with independent contractors rather than traditional employees. It includes all the essential features needed to manage contractor payments and tax filings, such as: 

• Unlimited contractor payments across all 50 states,
• 4-day direct deposit,
• 1099-NECs at the end of the year,
• New hire reporting, 
• International contractor payments (available as an add-on).

Gusto’s Contractor plan costs $35 per month. But new users can get a discounted base price of $0/mo for 6 months. The additional cost for contractors beyond the specified limit is $6 per contractor per month. 

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Overview of Pricing Model

Did You Know?

About 80 percent of HR professionals believe that using new HR technologies improves employee attitude toward the company.

Gusto’s Pricing and Integrations 

Gusto connects with different apps and services to automate data transfer and reduce potential errors of manual entry. All pricing plans share the same level of integration. Regardless of the subscription plan, you can sync payroll data with accounting software like QuickBooks, Freshbooks, and Xero. Gusto also integrates with time-tracking tools like TSheets, Homebase, WhenIWork, and more. 

Besides these software categories, all Gusto plans integrate freely with about 191 apps in the following categories: 

• Business operations,
• Collaboration,
• Embedded partner,
• Expense management,
• Financial benefits,
• Hiring and onboarding,
• Insights and analytics,
• Learning management,
• Legal and compliance,
• Performance management,
• Point of sale,
• Rewards and recognition,
• Tax preparation.

These seamless connections are mostly free. However, integrating your benefits broker into the system costs $6 per eligible employee per month. This fee applies to businesses that integrate with external brokers only. If you use Gusto as your broker, you won’t have to pay any additional fees 

This broad level of integration means Gusto will easily connect with your existing tools and systems, so you’ll have a smooth transition with minimal disruption to your workflow.

Gusto also allows custom integration for special business needs. Through its unique API, Gusto Embedded, developers can build and customize their in-app payroll solutions. They just have to contact Gusto’s partnerships team to discuss pre-approval before getting started.

Pricing and Support

Gusto offers quality support starting from the Simple plan where users have: 

• 24/7 access to Gusto’s online help center, 
• Call, email, or chat with the support team,
• Access to extended live support hours.

The same level of support is available on the Plus plan but you can step it up a notch by purchasing the Priority support add-on for $6 per month per person. This added support unlocks:

• Direct line to phone and email support with expedited priority access,
• Live, unlimited access to certified HR experts,
• SHRM and HRCI-certified,
• Phone and secure messaging,
• Local law expertise,
• HR compliance support,
• Employee relations advising.

The Premium plan comes with this level of support. You don’t have to purchase the Priority Support package separately. This makes it the best plan for support.

Upgrade to Premium 

Unlock the full potential of your HR department with Gusto’s Premium plan. Sign up to explore advanced features and dedicated support.

What is the Most Popular Gusto Pricing Plan? 

Gusto’s Plus Plan is the most popular choice for several reasons. It offers expanded payroll automation and management features at a reasonable price of $60 per month. Safe to say it’s the perfect balance of features and affordability.

Growing organizations can benefit from the flexibility and scalability of the Plus plan. They can access robust and comprehensive payroll and HR solutions without the complexity associated with the Premium plan.

Speaking of flexibility, the Plus plan provides optional access to Priority support and HR resources. This means you’ll have the help of HR experts to guide you on complex employment laws at the state and federal levels. This additional support is particularly important as businesses expand and face more complex HR challenges.

Additional Pricing Information

Extra function and cost

Gusto provides functions that are sold separately. Businesses have diverse needs, and these additional functions allow them to customize their Gusto experience so that they only pay for what they need.  These extra functions include: 

• Workers’ Compensation Insurance: Ppay-as-you-go, with no administration fees, and you only pay for the premiums.

• Health Insurance: Administration for health insurance without additional fees. Costs depend on the selected health insurance plans.

• Broker Integration: Integrate benefits broker into the system for $6 per eligible employee per month.

• 401(k) Retirement Savings Plans: Starts at $49 per month plus $8 per participant per month)

• 529 College Savings Plan: Employees can save for their kids’ college at $6 per month per participant, with a minimum monthly fee of $18.

• Health Savings Account (HSA): $2.50 per participant per month, with no minimum fee.

• Flexible Spending Account (FSA): $4 per participant per month, with a $20 minimum.

• Dependent Care FSA: $4 per participant per month, with a $20 minimum.

• Commuter Benefits: $4 per participant per month, with a $20 minimum.

• International Contractor Payments: Gusto can handle international contractor payments. Foreign exchange rates vary.

• State Tax Registration: Fees for state tax registration vary.

• Research and Development Tax Credits: Gusto offers R&D tax credit services for 15% of tax credits used plus fees.

Recommendation: Plus Plan 

The Plus plan is where you get insane value for money. It’s a huge leap from the Simple plan.  With the Plus plan, you unlock more automation and access to health benefit administration. It also helps you handle payroll requirements across states.

How do I pay for my Gusto subscription?

The most popular option is through your company bank account. When you connect your bank account, you can handle every payment from here including your subscription fee, employee pay, contractor payments, or payroll taxes

A $100 debit failure fee will be added to your invoice if sufficient funds are not available when Gusto debits your bank account. To avoid debit failure fees, make sure sufficient funds are in your account and use Instant Bank Verification.

Can I use Gusto for free?

Gusto does not offer a free plan. However, it does offer the Contractor Only plan for free for the first six months, after which it costs $35 per month. This plan allows for unlimited payments to contractors in all 50 U.S. states and includes international contractor payment add-ons. 

Do Gusto’s prices vary by location?

No, Gusto’s pricing does not vary by location. The pricing plans offered are standardized across all regions where it operates. However, there may be location-based differences in fees for international contract payments because of varying foreign exchange rates. State tax registration fees also vary depending on local regulations.

Do Gusto offer any discounts? 

Gusto’s Plus and Contractor Only plans are currently available (as of March 2024) at a discount. The Plus plan goes for $60 a month instead of $80, and the additional cost per person is $9 a month instead of $12. For the contractor plan, new users can enjoy the first 6 months for free before paying the regular price. 

Gusto also offers discounts through other promotions. For instance, there is an offer through Amazon Business that provides a 50 percent discount for the first 12 months of Gusto plans.

How to Save Money Using Gusto 

Managing your costs while using Gusto is essential to help avoid overspending. Here are some simple steps to optimize your Gusto expenses:

1. Regularly Review Plan Usage

Check your actual usage on your Gusto dashboard to see what functions you use the most, and those you barely use. This step will help you identify unnecessary features so you can cut them off and save money.

2. Avoid Unnecessary Add-ons

Before purchasing an add-on, consider its usefulness thoroughly to determine whether it aligns with the company’s goals and if it’s worth the expense.

3. Set Budget Limits

Create clear budget limits for HR and payroll expenses, and regularly review spending against these limits to make sure you stay within your boundaries.

4. Use Self-Service Features

Encourage employees to use the Gusto employee portal to manage tasks themselves. This approach reduces the need for manual intervention and potentially saves time and resources

5. Avoid Costly Payroll Errors

Implement thorough review processes to avoid costly payroll errors, which can lead to financial implications such as penalties or overpayments.

Simplify Contractor Management with Gusto

Streamline your contractor payments and compliance with Gusto’s contractor management features. Sign up now to efficiently manage your contract workforce and simplify 1099 payments.

Gusto vs Rippling

Like Gusto, Rippling is a popular tool for simplifying HR and payroll management. However, they differ in integrations and additional features like IT automation and talent management. 

Rippling’s least tier, the Core plan, starts at $35 plus $8 per user, per month. Other plans include Pro, Unlimited, and Enterprise.  The exact pricing for these plans is determined in custom quotes. Let’s see how these plans differ from Gusto’s offerings.

1. Core

Unlike Gusto’s Simple plan, Core doesn’t have employee benefits functions, but it offers many more features that are absent in Gusto’s Simple. These functions include:

• Global Employee Graph,
• Global Org Chart,
• Global Workforce Analytics,
• Workflow & Employee Lifecycle Automation,
• Advanced Document Management,
• Automated Compliance Management (Compliance 360),
• Compensation Bands,
• Vacation & Leave Management,
• Auto-Localization for 150+ Countries.

2. Pro

The Pro plan gives you everything in Core, plus:

• Workflow Studio,
• 10 Custom Workflows,
• 10 Formula Fields,
• 10 Advanced Reports.

3. Unlimited

This plan has everything in Pro, plus:

• Unlimited Workflows,
• Unlimited Formula Fields,
• Unlimited Advanced Reports,
• Webhooks.

4. Enterprise 

This is the highest plan which includes everything in Unlimited and unlocks access to Rippling API.

Given this data, you can see that Gusto’s pricing starts at a lower per-employee cost compared to Rippling. However, Rippling has more integrations. This makes Gusto well-suited for small businesses and start-ups, especially those working with contractors, and operating across multiple states. 

On the other hand, Ripplin is ideal for mid-sized to large enterprises with high automation requirements and a global workforce.

Summary

With Gusto’s automation and employee insights, managing your workforce has never been easier. 

Remember, when comparing the different Gusto pricing plans, do not only consider the base price but also the additional cost per person beyond the included limit. Considering potential scalability needs will ensure that you choose a plan that can accommodate your business’s future expansion without unexpected overages.