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Decoding Gusto Payroll Costs: A Deep Dive for Savvy Business Owners

So, you’re eyeballing Gusto payroll for your business? Excellent choice. It’s a favorite for its user-friendly interface and comprehensive feature set. But let’s cut to the chase: How much does Gusto payroll cost?

Gusto’s pricing operates on a tiered structure, primarily focusing on the breadth of features and the number of employees you’re paying. As of today, here’s a snapshot of their core plans:

Simple: Starting at $40 per month plus $6 per person per month. This plan is ideal for very small businesses with basic payroll needs. It includes single state payroll, worker’s comp administration, employee self-service, and health benefits administration.
Plus: Starting at $80 per month plus $12 per person per month. This is their most popular option, suitable for growing businesses. You get everything in the Simple plan, plus multiple state payroll, advanced reporting, time tracking, project tracking, and next-day direct deposit.
Premium: Available upon quote. This enterprise-level plan offers everything in the Plus plan, plus dedicated support, compliance alerts, HR resource center and custom employee onboarding.
Contractor Only: At $0 per month plus $6 per person per month, this plan is designed for businesses that primarily work with contractors. This includes contractor payments, 1099 filing, and contractor self-service.

Keep in mind these prices are current as of today and Gusto’s pricing is subject to change. Always verify the most up-to-date costs directly on Gusto’s website before making a decision. Let’s get into the details of each plan and explore the frequently asked questions surrounding Gusto’s costs.

Unpacking Gusto’s Pricing Tiers

Let’s dissect each Gusto plan, illuminating the value they offer and helping you determine the best fit for your business.

Simple Plan: Basic, But Effective

The Simple plan is Gusto’s entry-level offering. It’s designed for solo entrepreneurs or very small businesses with uncomplicated payroll needs. It includes:

Basic Payroll Processing: Calculates and processes payroll taxes at the state and federal levels.
Employee Self-Service: Employees can access pay stubs and manage personal information.
Worker’s Compensation Administration: Simplifies the management of worker’s comp.
Health Benefits Administration: Helps with managing health insurance benefits.
Customer Support: Access to Gusto’s support team.

While the price might seem appealing, consider whether its limitations will hinder your business. For instance, if you operate in multiple states, this plan won’t cut it.

Plus Plan: The Sweet Spot for Growth

The Plus plan is Gusto’s most popular option. It expands on the Simple plan with features that cater to growing businesses. Key additions include:

Everything in Simple Plan: Includes all features of the Simple plan.
Multiple State Payroll: Pay employees who live and work in different states.
Advanced Reporting: Provides deeper insights into payroll data.
Time Tracking: Allows employees to track their work hours.
Project Tracking: Track time spent on different projects.
Next-Day Direct Deposit: Provides faster payment to employees.

For many businesses, the Plus plan strikes the right balance between affordability and functionality. The ability to handle multi-state payroll and the inclusion of time tracking are significant advantages.

Premium Plan: Enterprise-Grade Power

The Premium plan is tailored for larger organizations with complex HR and payroll needs. Because it’s a custom solution, you need to contact Gusto for a personalized quote. Expect to see a significant increase in cost compared to the Plus plan, but you also gain access to:

Everything in Plus Plan: Includes all features of the Plus plan.
Dedicated Support: Access to a dedicated support representative.
Compliance Alerts: Receive alerts about changes in employment laws.
HR Resource Center: Access HR templates and resources.
Custom Employee Onboarding: Tailor the onboarding process for new hires.

This plan is suitable for businesses that require a high level of support and have more complex HR needs.

Contractor Only Plan: Streamlined Payments

If you primarily work with contractors, the Contractor Only plan is a cost-effective solution. It focuses on managing payments and tax forms for independent contractors. It includes:

Contractor Payments: Pay contractors via direct deposit.
1099 Filing: Automates the generation and filing of 1099 forms.
Contractor Self-Service: Contractors can access payment history and update their information.

It’s a no-frills plan, but highly effective if you’re primarily dealing with freelancers or consultants.

Beyond the Base Price: Hidden Costs and Considerations

While Gusto’s pricing appears straightforward, there are a few extra factors to consider that could influence the overall cost:

Add-ons: Gusto integrates with many third-party applications. Some integrations are free, while others may require additional subscriptions.
State Tax Filing Fees: While Gusto handles payroll tax filings, some states might have fees associated with those filings.
Implementation Fees: While Gusto prides itself on being user-friendly, complex implementations or data migrations might incur fees.
Growth and Scaling: As your company grows and you add employees, your monthly cost will increase proportionally. Budget accordingly.

FAQs: Your Burning Gusto Cost Questions Answered

Let’s address some of the most common questions related to Gusto’s pricing and features:

1. Does Gusto offer a free trial?

Yes, Gusto often provides a free trial period, allowing you to explore the platform’s features before committing to a paid plan. Check Gusto’s website for current trial offers.

2. Can I upgrade or downgrade my Gusto plan?

Yes, you can upgrade or downgrade your plan as your business needs evolve. However, consider the timing of your changes, as it might affect the billing cycle.

3. What payment methods does Gusto accept?

Gusto typically accepts credit cards and bank transfers for payment of their services.

4. What happens if I have employees in multiple states?

You’ll need the Plus plan or higher, as the Simple plan only supports single-state payroll. The Plus and Premium plans allow you to pay employees in different states.

5. Does Gusto handle all payroll tax filings?

Yes, Gusto handles federal, state, and local payroll tax filings. This includes calculating, withholding, and remitting taxes on your behalf, which is a major time-saver.

6. Is there a discount for non-profits?

While Gusto doesn’t explicitly advertise a non-profit discount, it’s always worth contacting their sales team to inquire about potential special pricing or offers for non-profit organizations.

7. What’s included in Gusto’s customer support?

The level of customer support varies depending on your plan. All plans include access to email, phone, and chat support. The Premium plan offers dedicated support for more personalized assistance.

8. Can I integrate Gusto with my accounting software?

Yes, Gusto integrates with popular accounting software like QuickBooks, Xero, and FreshBooks. This integration streamlines your financial management process.

9. What are the benefits of using Gusto for employee benefits administration?

Gusto simplifies employee benefits administration by allowing you to manage health insurance, 401(k) plans, and other benefits through their platform. They also help with compliance and enrollment.

10. Is Gusto a good fit for small businesses?

Absolutely. Gusto is designed with small businesses in mind. Its user-friendly interface, scalable pricing, and comprehensive features make it an excellent choice for businesses of all sizes.

11. How does Gusto handle employee onboarding?

Gusto provides tools for streamlining the employee onboarding process. You can send offer letters, collect employee information, and set up payroll all within the platform. The Premium plan offers customizable onboarding workflows.

12. What happens if I cancel my Gusto subscription?

When you cancel your Gusto subscription, you’ll retain access to your data for a limited time. You can export your payroll history and employee information. Gusto will also help you transition your payroll to another provider if needed.

Making the Right Choice for Your Business

Choosing the right payroll provider is a critical decision for any business. Gusto offers a compelling package with its user-friendly interface, comprehensive features, and scalable pricing. Understanding the nuances of each plan and considering the potential add-on costs will help you make an informed decision. Remember to carefully evaluate your business needs and compare Gusto’s offerings with other payroll solutions before committing. By doing your homework, you can ensure that you choose the best payroll provider for your unique circumstances.