Gusto Contractor-Only Plan: Pricing, Features, and Limitations
For businesses that pay 1099 contractors with no W-2 employees, Gusto's Contractor Only plan offers a low-cost starting point at $35/month base plus $6 per contractor. Here is exactly what you get and what you do not.
No W-2 payroll. No benefits administration. Contractors only.
Cost by Number of Contractors
| Contractors | Monthly | Annual |
|---|---|---|
| 1 contractor | $41/mo | $492/yr |
| 2 contractors | $47/mo | $564/yr |
| 3 contractors | $53/mo | $636/yr |
| 5 contractors | $65/mo | $780/yr |
| 7 contractors | $77/mo | $924/yr |
| 10 contractors | $95/mo | $1140/yr |
| 15 contractors | $125/mo | $1500/yr |
| 20 contractors | $155/mo | $1860/yr |
What Is Included
What Is NOT Included
When to Upgrade from Contractor Only
The moment you hire your first W-2 employee, you must upgrade to Simple or Plus. Gusto does not allow W-2 payroll on the Contractor Only plan. This is a hard technical gate, not a soft guideline.
If you anticipate hiring a W-2 employee within the next 6 months, consider starting on Simple directly to avoid a mid-cycle plan change and any potential payroll disruption.
Contractor Only vs Simple: Mixed Team Cost
| Team | Contractor Only | Simple |
|---|---|---|
| 5 contractors, 0 employees | $65/mo | N/A - no employees |
| 3 contractors, 1 employee | N/A - has W-2 | $61/mo |
| 5 contractors, 5 employees | N/A - has W-2 | $109/mo |
Frequently Asked Questions
How much does the Gusto Contractor Only plan cost?
The Gusto Contractor Only plan costs $35/month base plus $6 per contractor per month. For example, paying 5 contractors costs $65/month; paying 10 contractors costs $95/month. There is no per-payment fee on top of these monthly charges for domestic contractor payments.
What does the Gusto Contractor Only plan include?
The plan includes: contractor payments (ACH direct deposit), 1099-NEC preparation and filing with the IRS, contractor self-service onboarding portal, international contractor payments in 120+ countries, contractor payment history and records, and Gusto Wallet access for contractors. It does not include W-2 employee payroll, employer tax filing, or benefits administration.
Can I use Gusto Contractor Only if I have one W-2 employee?
No. The Contractor Only plan is exclusively for companies with no W-2 employees. The moment you hire your first W-2 employee, you must upgrade to the Simple plan ($49/mo + $6/person) or Plus ($80/mo + $12/person). Gusto will not allow you to run W-2 payroll on the Contractor Only plan.
Does Gusto file 1099s automatically?
Yes. Gusto Contractor Only includes automatic 1099-NEC preparation and filing at year-end. Gusto sends the 1099-NEC to both the IRS and the contractor directly. This is included at no extra charge and covers both federal and state 1099 requirements.
Can Gusto pay international contractors?
Yes. Gusto supports international contractor payments in 120+ countries through Gusto Global. International contractor payments cost $6 per contractor per month plus foreign exchange fees. For international contractors with a US bank account, there is a $5 per payment fee instead of the monthly rate.