How Much Does Gusto Cost?

Last Updated on December 8, 2024
Written by CPA Alec Pow | Content Reviewed by CFA Alexander Popinker

Gusto provides an appealing suite of cloud-based payroll, HR, benefits, and other services to streamline needs for modern small businesses. But like any subscription-based platform, determining the total cost of ownership requires looking beyond basic advertised pricing.

This extensive guide will unravel all the nuances of Gusto’s pricing and cost structure across their tiered plans. You’ll see realistic usage cost examples, gain insider insights into key factors impacting pricing, and get expert advice on maximizing value. Whether you’re evaluating Gusto or already use it, read on to master the financial nuts and bolts to ensure it aligns with your budget.

How Much Does Gusto Cost?

Gusto offers three primary plans targeting businesses of different sizes and needs:

• Basic – Starts at $39/month plus $6 per employee
• Plus – Starts at $79/month plus $12 per employee
• Premium – Starts at $149/month plus $12 per employee

Assuming 5 employees, you can expect monthly Gusto costs of around $99 for Basic, $179 for Plus, and $259 for Premium before any add-ons. Costs scale up incrementally with more employees and extra features added.

According to SaaS Genius, Gusto offers several pricing tiers starting with the Simple plan at $40 per month, which includes an additional fee of $6 per employee per month. For businesses requiring more features, the Plus plan is available for $60 per month plus $9 per employee, while the Premium plan requires contacting Gusto for custom pricing.

Another source, RevPilots, confirms that the Simple plan starts at $40 per month with an additional charge of $6 per employee. The Plus plan begins at $80 per month plus $12 per employee, providing more advanced features such as onboarding tools and enhanced reporting capabilities. The Premium plan is tailored for larger businesses and offers custom pricing based on specific needs.

According to Tech.co, Gusto’s pricing structure includes a Contractor Only plan priced at $35 per month plus $6 per contractor. This option is ideal for businesses that primarily hire contractors rather than full-time employees. The site emphasizes that while Gusto’s prices may seem high initially, the value offered through its comprehensive features justifies the cost.

Vertice Vendors outlines that Gusto’s pricing is straightforward, with no long-term contracts required. The Simple plan costs $40 per month plus $6 per person, while the Plus plan is priced at $80 per month plus $12 per person. For businesses with specific needs, the Premium plan offers tailored solutions and requires direct contact for pricing.

Finally, TrustRadius provides a comprehensive overview of Gusto’s pricing, stating that it has three main plans: Simple at $40/month + $6/month per person, Plus at $80/month + $12/month per person, and a Premium option with exclusive pricing available upon request. They also mention that Gusto offers a free trial to help potential users evaluate the service before committing.

Businesses Need Clarity on Costs

Gusto’s user-friendly interface and robust integration capabilities make it enticing for many companies. However, its pricing model involves monthly per-employee fees alongside charges for numerous add-ons that can quickly compound. Without full visibility into everything that goes into Gusto’s pricing and resulting cash outlays over time, businesses risk unexpected subscription costs undermining the benefits.

This guide aims to provide the missing clarity and transparency so you can accurately anticipate expenses and budget intelligently when comparing Gusto to alternatives and determining if it suits your needs. We’ll outline in detail what contributes to costs longitudinally so you can make fully informed software purchasing decisions.

Realistic Usage Cost Examples

To demonstrate how costs accumulate in real-world scenarios, here are two examples:

5 Employees on Basic Plan

• $39/month base charge
• Plus 5 x $6 per employee = $30
• Total Monthly Cost = $69

15 Employees on Plus Plan

• $79/month base charge
• Plus 15 x $12 per employee = $180
• Plus HR add-ons = $40/month
• Plus payroll transaction fees = $60/month
• Total Monthly Cost = $359

Once you incorporate taxes, payroll processing, and bolt-ons, total costs grow considerably.

Factors Influencing Gusto’s Costs

Several factors affect ongoing pricing and demand close monitoring:

• Number of Employees – More employees mean higher per-head fees, which often far exceed base charges.
• Transaction Volumes – Busy seasons with overtime, commissions, and bonuses can drive up per-transaction costs quickly.
• Add-On Services – Additional modules like time tracking, applicant management, and support packages carry extra recurring fees.
• Compliance Burden – Increased state or federal payroll complexities cascade to compliance staffing/tooling costs.
• Minimum Wage Changes – Hourly employee raises manifest in higher employer payroll tax expenses.
• Interest and Penalties – Any payroll or compliance mistakes can result in unplanned interest charges or fines.
• Manual Support Needs – Complex integrations require extensive monitoring and troubleshooting assistance from Gusto’s team.

Proactive planning and budgeting around these cost factors prevents unexpected overages or surprises down the line.

Gusto vs QuickBooks Payroll, ADP, Paychex

QuickBooks Payroll – Slightly more affordable at very low employee counts but lacks Gusto’s extensive HR functionality.

ADP – More expensive for companies under 50 employees but offers superior enterprise platform integrations.

Paychex – Similar base subscription pricing but charges extra nuisance fees for each tax filing.

OnPay – A budget option focused purely on payroll, lacking broader HR tools.

Each platform has particular pros, cons, and nuances to weigh closely based on your size, feature needs, and budget limitations before committing.

Minimize Gusto Expenses

Payroll specialists and cost management consultants recommend several tactics like:

• Scrutinizing your feature needs using extensive free trials of Gusto to right-size plans initially.
• Discussing potential combo discounts when bundling multiple offerings like payroll, benefits enrollment, applicant tracking, etc.
• Automating key workflows using Gusto’s APIs to avoid manual data entry and reconciliation where possible.
• Encouraging employees to leverage Gusto’s robust self-service support resources to reduce costly one-on-one assistance sessions.
• Frequently checking for updated promotional offers like temporarily discounted annual contracts.

Their advice helps optimize technology investments in Gusto’s capabilities based on your organization’s circumstances.

Customer Feedback

Analysis of user reviews reveals several key themes:

• Many appreciate the added people management insight gained from Gusto’s employee data aggregation, meriting the subscription costs.
• Gusto’s built-in applicant tracking and onboarding functionalities reduce the need for separate niche systems.
• The predictable pricing structure devoid of hidden fees is frequently favorably compared to competitors.
• Gusto’s payroll accuracy, automated compliance, and accessible support provide peace of mind for HR managers.

For rapidly growing companies, Gusto’s all-in-one platform beyond basic payroll processing and remittance justifies the sticker price for most.

Gusto’s Pricing Strategy in the Future

Based on industry norms, Gusto will likely retain its straightforward pricing framework but gradually inflate base plan costs across the board by around 5% annually.

Major new capabilities like financial planning integrations could enter as optional add-ons to avoid driving up core pricing. Support tiers may diversify further to balance DIY and premium assisted services costs.

The key uncertainty remains whether fresh payroll software market entrants will pressure Gusto to curb price hikes amidst maturing competition in the SMB tools space as businesses scrutinize costs closely in challenging economic environments.

Gusto’s approach artfully targets the “sweet spot” of user-friendly payroll and HR, winning over micro-businesses and sole proprietors up to mid-sized firms with around 20 employees. But as needs scale and sophistication grows, some gravitate towards platforms catering specifically to enterprise requirements.

Still, Gusto’s model successfully monetizes the desire for automation, convenience, and regulatory confidence. New players must significantly undercut on subscription costs or overdeliver on compliance and analytics to threaten Gusto’s foothold.

In summary, developing a detailed view into Gusto’s pricing empowers smart budget planning. While overheads climb quickly, proactive management and close feature targeting helps ensure value outpaces accruing costs.

Answers to Common Questions

How Does Gusto Charge for Various Payment Processing Transactions?

• ACH Payments – $0.25 per transaction
• Paper Checks – $1 per check
• Paycards – $1 per paycard
• International Payments – 1% of transaction volume

High transaction volumes like weekly payroll runs can significantly increase monthly costs.

What Specific HR Add-Ons Does Gusto Offer with Associated Fees?

Add-On Service	Monthly Fee
Applicant Tracking	$6 per user
Employee Surveys	$2 per employee
Gusto Conversations	$6 per employee
Time Tracking	$6 per active user

These extras must be budgeted on top of base plan fees.

What Perks or Discounts Help Offset Gusto Costs?

• Referral credits – $100 account credit per referral
• Nonprofits receive discounted rates
• Annual contracts offered sporadically with 1-2 months free
• Partner add-ons like worker’s compensation bring bundled savings

Leveraging these periodically can help manage cash outlays.

Expert Opinions

“Review support usage analytics to identify common issues requiring training.” – Catherine W., IT Director

“Compare payment processing volume discounts across vendors annually.” – Dennis R., Finance Manager

“Consolidate systems to simplify integrations that introduce compliance risks.”– Elizabeth G., Payroll Specialist

Average Annual Gusto Cost

Number of Employees	Average Annual Cost
5 Employees	$1,500/year
15 Employees	$5,000/year
25 Employees	$9,500/year
50 Employees	$25,000/year

Customer Feedback on Gusto Costs

“Initially cheap but the per-employee charges really balloon.”

“Great ROI but rearrange budgets to accommodate increasing costs over time.”

“Pricey compared to basic payroll-only services but worth it for compliance peace of mind.”

Their experiences highlight the need to provision for growth when budgeting annual SaaS outlays.