Gusto Plans Compared: Simple vs Plus vs Premium
A complete feature-by-feature breakdown of all three Gusto plans with updated 2026 pricing, cost scenarios, and a decision guide to help you choose the right tier.
Full Feature Comparison
| Feature | Simple | Plus | Premium |
|---|---|---|---|
| Base price/month | $49 | $80 | $180 |
| Per employee/month | $6 | $12 | $22 |
| Full-service payroll | Yes | Yes | Yes |
| Unlimited payroll runs | Yes | Yes | Yes |
| Automated tax filing | Yes | Yes | Yes |
| W-2 and 1099 filing | Yes | Yes | Yes |
| Employee self-service | Yes | Yes | Yes |
| Gusto Wallet app | Yes | Yes | Yes |
| Benefits administration | Yes | Yes | Yes |
| Workers comp admin | Yes | Yes | Yes |
| Multi-state payroll | No | Yes | Yes |
| Next-day direct deposit | add-on ($15+$3/person) | Yes | Yes |
| Time tracking | No | Yes | Yes |
| Advanced onboarding | basic | Yes | Yes |
| Contractor payments | $6/contractor/mo | free | free |
| Workforce cost reports | No | Yes | Yes |
| Compliance alerts | No | No | Yes |
| Dedicated CSM | No | No | Yes |
| HR resource center | No | No | Yes |
| Support | Chat/email | Chat/email/phone | Priority + dedicated CSM |
Monthly Cost at Different Team Sizes
| Team Size | Simple | Plus | Premium | Simple vs Plus diff |
|---|---|---|---|---|
| 10 employees | $109/mo | $200/mo | $400/mo | +$91/mo |
| 25 employees | $199/mo | $380/mo | $730/mo | +$181/mo |
| 50 employees | $349/mo | $680/mo | $1280/mo | +$331/mo |
Which Plan Do You Need?
- All employees are in the same state
- You have fewer than 7 contractors
- You do not need time tracking
- Standard 2-4 day direct deposit is fine
- Budget is the top priority
- You have employees in 2+ states
- You need next-day direct deposit
- You pay 7+ contractors regularly
- Time tracking and scheduling matter
- You want advanced onboarding tools
- You have 30+ employees
- You need a dedicated HR contact
- Compliance monitoring is critical
- You want on-demand HR professionals
- Budget is secondary to support quality
Contractor crossover point
On Simple, you pay $6/contractor/month. On Plus, contractors are free. If you have 7 or more active contractors, the contractor savings alone ($42+/month) offset most of the $31/month plan upgrade premium. At 7 contractors on Simple, you spend $42 extra vs Plus. The break-even is exactly 6 contractors.
Contractor-Only Plan: $35/mo + $6/Contractor
If you have no W-2 employees at all, Gusto's Contractor Only plan is $35/month plus $6 per contractor per month. It includes 1099-NEC filing, contractor onboarding, and payments to international contractors in 120+ countries. The moment you hire your first W-2 employee, you must upgrade to Simple or Plus.
Frequently Asked Questions
What is the difference between Gusto Simple and Plus?
The main differences are multi-state payroll support, next-day direct deposit, time tracking, and contractor payment pricing. Simple is limited to a single state and charges $6/contractor/month. Plus adds multi-state, includes contractors at no extra cost, and includes time tracking tools. Plus costs $80/month base vs $49 for Simple, and $12/person vs $6/person.
Is Gusto Premium worth the cost?
Gusto Premium costs $180/month base plus $22/person, which is very expensive for small teams. The key additions over Plus are compliance alerts, a dedicated Customer Success Manager, and an HR resource center with on-demand HR professionals. Premium makes sense for companies at 30+ employees that need hands-on HR support and proactive compliance monitoring. For most small businesses, Plus provides sufficient features.
Can I start on Simple and upgrade to Plus later?
Yes. You can upgrade your Gusto plan at any time mid-month. The pricing difference is prorated for the remainder of the billing cycle. There is no contract, no cancellation fee, and no penalty for upgrading or downgrading between plans.
Does Gusto offer a free plan?
No. Gusto does not offer a permanent free plan. There is a Contractor Only plan at $35/month base which is cheaper than Simple, but it does not include W-2 employee payroll. Gusto occasionally offers promotional periods for new customers, particularly through accelerator programs like Y Combinator or Techstars.
What happens if I have employees in multiple states on Simple?
You cannot run payroll in multiple states on the Simple plan. If you hire employees in a second state, Gusto will require you to upgrade to the Plus plan before adding those employees. Multi-state payroll is a hard gate at the Plus plan, not an optional add-on.