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Gusto

Pricing: Paid

Verified: Yes

Editor rating: 4.2/5

Updated: July 2026

Gusto automates payroll processing, federal and state tax filings, employee benefits administration, and HR workflows for small and growing businesses.

Editor's take: “AI HR tool with practical hiring and workflow features” — Sohail Akhtar

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Editor's Verdict

Official Review

Gusto is a reliable payroll and HR platform for US-based small and mid-sized businesses that need automated tax filing, benefits administration, and employee self-service without the overhead of managing multiple payroll compliance tools. The per-person pricing model requires ongoing budget attention as teams grow, and businesses with international workforce needs will require additional solutions outside Gusto's scope.

4.2 / 5.0

Editor Rating

Reviewed by Sohail Akhtar

Lead Editor & Founder

Pros

What we like

Automated federal and state tax filing removes the manual compliance burden that frequently causes errors and penalties for small businesses managing payroll without dedicated accounting staff
The contractor-only plan at $0 per month plus $6 per contractor provides an accessible entry point for businesses paying contractors before they hire their first W-2 employee
The Employee App provides self-service access to pay stubs, tax documents, and benefits information, reducing the volume of routine HR inquiries that would otherwise require manual team member responses

Cons

Limitations

Per-person pricing on top of the base monthly fee means costs scale directly with headcount, making Gusto progressively more expensive as team size grows and requiring careful budget projections for fast-growing companies
Gusto is limited to US-based businesses and does not support international payroll or payments to employees outside the United States, requiring a separate solution for companies with global teams

Pricing

Plan	Details
Paid	Simple: $49/month + $6/person — single-state payroll, contractor payments, basic HR, employee self-service. Plus: $80/month + $12/person — multi-state payroll, time tracking, next-day direct deposit, advanced HR features. Premium: $180/month + $22/person — dedicated HR support, compliance guidance, priority service. Contractor-only: $0/month + $6/contractor/month.

Gusto plans are Simple at $49 per month plus $6 per person, Plus at $80 per month plus $12 per person with multi-state payroll and time tracking, and Premium at $180 per month plus $22 per person with dedicated HR support. A contractor-only plan starts at $0 per month plus $6 per contractor per month.

What is Gusto?

Quick Summary

Gusto is an all-in-one payroll, employee benefits, and HR management platform that automates payroll runs, handles federal and state tax filings, and manages employee benefits administration for small and mid-sized businesses. It is designed for business owners, HR managers, and finance teams that need reliable payroll compliance and employee management tools without maintaining a dedicated payroll specialist. Gusto supports both W-2 employees and contractors across multiple states, with plans starting at $49 per month plus $6 per person.

Gusto is a payroll, benefits, and HR platform that handles the full cycle of employee compensation and compliance for small and mid-sized businesses in the United States. The platform runs payroll automatically on defined schedules, calculates federal, state, and local tax withholdings, and files payroll taxes directly with the relevant government agencies without requiring manual form submission by the employer. Employees and contractors receive pay via direct deposit, with next-day direct deposit available on higher-tier plans for faster payment processing. The Gusto Employee App gives team members self-service access to pay stubs, tax documents, benefits enrollment, time-off requests, and personal details without requiring HR intervention for routine information requests. Health benefits administration allows businesses to offer and manage employee medical, dental, and vision coverage through Gusto's licensed broker network, with benefits enrollment, carrier communications, and cost tracking handled within the platform. See related. Time tracking and project tracking features are available on higher plans, feeding worked hours directly into payroll calculations to reduce manual data entry and payroll errors. Gusto is used by startups and small businesses running their first formal payroll process who need automated tax compliance without hiring a dedicated payroll accountant, by growing companies adding employee benefits administration alongside payroll as their team size increases, and by businesses managing a mixed workforce of full-time employees and contractors who need to process both W-2 and 1099 payments from the same system. A standard payroll workflow involves entering or confirming hours worked, reviewing payroll calculations before approval, and initiating the pay run—with Gusto handling tax calculations, direct deposit scheduling, and tax filing automatically. Multi-state payroll support covers employees working across different states with the corresponding state tax registration and filing requirements managed within the platform Compare alternatives.

Read the full overview

Gusto's Simple plan is $49 per month plus $6 per person and covers single-state payroll, contractor payments, and basic HR tools. The Plus plan is $80 per month plus $12 per person and adds multi-state payroll, time tracking, next-day direct deposit, and advanced HR features. The Premium plan is $180 per month plus $22 per person with dedicated HR support, compliance guidance, and priority service. See related. A contractor-only plan starts at $0 per month plus $6 per contractor per month for businesses paying contractors without W-2 employees. Gusto is available only for US-based businesses and does not support international payroll. Organizations requiring global employee payment capabilities will need a separate international payroll tool Compare alternatives.

Associated Tags

payroll automation, employee benefits administration, HR management software, tax filing automation, small business payroll, W-2 and contractor payroll

Key Features

Automated payroll with direct deposit

Federal and state tax calculation and filing

Employee benefits enrollment and management

Employee self-service app for pay and HR

W-2 and 1099 contractor payroll support

Multi-state payroll on Plus and above

Time tracking and project tracking

Hiring, onboarding, and HR document tools

Target Audience

Who should use Gusto?

Small business owners running payroll for the first time who need automated tax complianceStartups adding employee benefits administration as their team growsHR managers at growing companies managing multi-state remote teamsBusinesses paying a combination of W-2 employees and 1099 contractorsFinance teams that want payroll, benefits, and HR data in a single system

Real Use Cases

How professionals leverage Gusto – Payroll, Benefits, and HR Software for Small Businesses

Discover practical workflows and real-world scenarios where Gusto delivers key solutions.

Running automated bi-weekly payroll for a team of 15 employees with Gusto calculating tax withholdings, filing payroll taxes, and initiating direct deposits without manual intervention

Managing health benefits enrollment for employees during an open enrollment period, with Gusto handling carrier communication and payroll deduction updates within the same system

Paying a mix of full-time employees and freelance contractors in the same payroll run, with Gusto generating both W-2 and 1099 forms at tax filing time

Using the employee self-service app to allow team members to update their bank details, access historical pay stubs, and submit time-off requests without contacting HR directly

Setting up multi-state payroll on the Plus plan after hiring remote employees in different states, with Gusto managing the applicable state tax registrations and filing requirements

Using Gusto's onboarding tools to send new hire paperwork, collect signatures, and set up direct deposit for a new employee before their first day without manual document handling

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Frequently Asked Questions

What is Gusto?

Gusto is an all-in-one payroll, employee benefits, and HR platform for US-based businesses that automates payroll runs, tax filings, benefits enrollment, and employee management.

How much does Gusto cost?

Gusto plans are Simple at $49/month + $6/person, Plus at $80/month + $12/person, and Premium at $180/month + $22/person. A contractor-only plan starts at $0/month + $6/contractor.

Does Gusto handle tax filings automatically?

Yes—Gusto automatically calculates, withholds, and files federal and state payroll taxes on behalf of the business, including year-end W-2 and 1099 form generation.

Can Gusto pay contractors?

Yes—Gusto supports both W-2 employees and 1099 contractors in the same payroll run, with a contractor-only plan available for businesses paying contractors without W-2 employees.

Does Gusto support multi-state payroll?

Yes—multi-state payroll with applicable state tax registration and filing is available on the Plus plan at $80 per month plus $12 per person.

Who should use Gusto?

Gusto is best suited for US-based small and mid-sized businesses, startups, and HR teams that need automated payroll compliance, benefits administration, and employee self-service in one platform.