Gusto for Small Business: Real Cost Scenarios
Updated with the March 2026 Simple plan price increase ($49/mo base, up from $40). Here are five real small business scenarios showing exactly what Gusto costs at different team sizes, with all add-ons included.
Real Cost Scenarios
Single state, no contractors. Simple plan is the right choice. Full-service payroll, tax filing, and employee self-service for $79/month.
10 employees + 2 contractors on Simple. Contractor surcharge adds $12/month.
Two states requires upgrading to Plus. At 15 employees, Plus costs $260/month. State registration is a one-time $200 fee per state, not included here.
20 employees + 3 contractors on Simple + 401(k) via Guideline for all 20 employees.
Single state, no contractors. Simple at $199/month. If tips and complex scheduling are needed, consider upgrading to Plus for time tracking.
Setup Checklist: What You Need Before Starting Gusto
Startup Discounts
Gusto offers 20% off your first 12 months if you are a graduate of Y Combinator, Techstars, or select other accelerators. These discounts are applied through the accelerator partner portal, not through Gusto's main website. Check your accelerator's benefits page for a referral link.
When to Look Beyond Gusto
Gusto works well for most businesses up to 50 to 75 employees. Consider evaluating alternatives when:
ADP's lower per-person fee ($4/person vs $12 on Plus) starts to generate meaningful savings.
EOR at $699/person is expensive. Rippling's global payroll is often more cost-effective at scale.
Rippling unifies HR and IT management in one system; Gusto is payroll and HR only.
Only Premium ($180/mo) includes phone support. Paychex offers it on all plans.
Frequently Asked Questions
What does Gusto cost for a small business of 10 employees?
A 10-person single-state business with no contractors pays $109/month on Gusto Simple ($49 base + $6 x 10). If you have contractors or need multi-state, costs increase. On Plus, 10 employees cost $200/month. Optional add-ons like 401(k) ($49 + $8 x 10 = $129/month) are on top of the base plan cost.
Does Gusto offer discounts for startups or small businesses?
Yes, in limited circumstances. Gusto has offered 20% off for the first 12 months through Y Combinator, Techstars, and a few other accelerator partnerships. These discounts are available through the accelerator program or their partner pages. Standard customers cannot typically negotiate discounts on published pricing without significant headcount.
When does Gusto become too expensive for a small business?
Gusto remains competitive for most businesses up to 50 to 75 employees. Beyond that, ADP's lower per-person fee makes it worth evaluating. The March 2026 price increase made Gusto less competitive at the very bottom of the market (1-5 employees), where OnPay ($40 base) is now noticeably cheaper. For 5 to 50 employees, Gusto remains a strong value proposition.
Is Gusto good for a restaurant or retail business?
Gusto works well for restaurants and retail businesses. It handles tipped employee payroll, hourly workers, and multiple pay rates. The Plus plan's time tracking tools are particularly useful for managing shift schedules. Multi-state businesses need Plus. For very large restaurant groups with complex scheduling and labor law compliance needs, a dedicated hospitality payroll platform may eventually be needed.
What is the setup process when starting Gusto?
Gusto's setup typically takes 1 to 2 hours for a simple single-state business. You will need: your EIN (Employer Identification Number), state unemployment insurance account number, bank account details for payroll funding, employee information (SSN, address, salary/wage, W-4), and prior payroll records if switching mid-year. Gusto's guided setup flow walks you through each step with contextual help.