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Gusto review from an Enrolled Agent: $49/mo + $6/person, automatic tax filing in all 50 states, and the honest tradeoffs for teams comparing Gusto vs ADP.
From an Enrolled Agent who sets up client payroll
Gusto is the platform I recommend most often for client teams under 25 employees. Setup is typically same-day, and owners who aren't HR people can run payroll without calling me first. The tradeoff I warn clients about: per-employee pricing adds up fast after 20–25 people — that's when I start pricing ADP alongside Gusto.
Bottom line
Gusto stands out as one of the most user-friendly payroll solutions for small businesses, especially if you want integrated HR and benefits without enterprise complexity. It is not the cheapest option, but automation and support make it worth the investment for teams under 50 employees.
What is Gusto?
Gusto is a cloud-based payroll and HR platform designed for small to medium-sized businesses. Founded in 2011, it serves over 400,000 U.S. businesses with payroll processing, automated tax filings, benefits administration, and hiring tools.
At its core, Gusto simplifies the administrative side of running a business—calculating deductions, filing taxes automatically, and ensuring compliance with federal, state, and local regulations. Gusto also acts as a licensed benefits broker, offering health insurance without extra brokerage fees.
For more options, see our best payroll software for small business guide, ADP payroll review, and Gusto vs ADP.
Gusto pricing (2026)
Gusto's pricing is transparent and month-to-month, with no long-term contracts and a 30-day free trial.
Simple
- Basic payroll
- Single-state
- Standard support
- Auto tax filing
Plus
- Time tracking
- Benefits admin
- Performance reviews
- PTO management
Premium
- Dedicated support
- Full-service payroll
- Priority HR help
- Advanced compliance
Contractor Only
- 1099 contractors only
- No W-2 employees
- Tax form filing
Add-ons & fees
- Gusto Global: From $199/month per country
- State tax registration: $199 per additional state
- Tax filing: Included in all plans (no extra fee)
Key features
Payroll processing
Unlimited payrolls in all 50 states with automatic wage, tip, bonus, and deduction calculations. Taxes filed and paid at federal, state, and local levels.
HR & talent
Applicant tracking, digital onboarding with e-signatures, performance reviews, and employee surveys on higher plans.
Benefits admin
Licensed broker for health insurance, 401(k), HSAs, and commuter benefits—administered through the platform at no extra brokerage cost.
Time & attendance
Integrated time tracking syncs with payroll. Mobile clock-in, overtime alerts, and PTO management on Plus and above.
Reporting
Customizable reports on payroll costs, tax summaries, and workers' comp. Compliance alerts for labor law changes.
Integrations
200+ app integrations including QuickBooks, Xero, Expensify, TSheets, Google Workspace, and Slack.
Pros and cons
What we liked
- User-friendly: Intuitive dashboard for non-HR pros
- Automation: Auto tax filing saves 80+ hours annually
- Benefits & HR: Health insurance and onboarding in one place
- Support: Phone support Mon–Fri, 6AM–6PM MST
- Scalable: Handles growth from 1 to 100+ employees
- Tax credits: Identifies savings opportunities
Room to improve
- Pricing scales: Per-person costs add up for larger teams
- International: Gusto Global is an extra fee
- Plan gating: Performance reviews need Plus/Premium
- Support delays: Longer waits during tax season
- Multi-state: $199/state registration fee
- No free W-2 plan: Unlike some competitors
Who is Gusto best for?
Ideal for
- Solopreneurs & S Corps: Compliant salary payments
- Startups: Seamless onboarding and scaling
- Service industries: Tips and variable pay support
- Non-experts: Owners without dedicated HR staff
May not fit
- Enterprise scale: 100+ employees with complex needs
- Global payroll: Requires expensive add-ons
- Union/multi-entity: Highly complex payroll rules
Alternatives to consider
ADP
Best for: Larger businesses needing global payroll and advanced analytics.
Our verdict
Gusto remains a top contender for small businesses seeking simplicity and integration. Its automation, benefits brokerage, and user-friendly design make it a smart choice if you want payroll, HR, and benefits in one platform.
We recommend the Plus plan ($80/mo + $12/person) for most growing businesses—it balances features and value. Time savings and peace of mind often justify the investment.
Ready to try Gusto?
Start your 30-day free trial—no credit card required upfront.
Frequently asked questions
Is Gusto good for a one-person business?
Yes. Gusto Solo is designed for solopreneurs and S-corp owners with compliant salary payments. The Simple plan at $49/month + $6 per person works well for one-person operations.
Does Gusto handle multi-state payroll?
Yes, Gusto processes payroll in all 50 states. State tax registration costs $199 per additional state. Complex multi-state needs may benefit from Plus or Premium plans.
Can I run payroll for contractors only?
Yes. Gusto offers a Contractor Only plan at $0 base fee (limited-time) + $6 per contractor—ideal if you have no W-2 employees.
Does Gusto file taxes automatically?
Yes. Gusto automatically calculates, files, and pays federal, state, and local payroll taxes including quarterly filings and year-end W-2s and 1099s—included in all plans.
How does Gusto compare to ADP?
Gusto is more affordable and user-friendly for small businesses (1–50 employees). ADP suits larger enterprises with complex needs. Read our full Gusto vs ADP comparison.
Is there a free trial?
Yes. Gusto offers a 30-day free trial with no credit card required upfront.
What integrations does Gusto support?
Gusto integrates with 200+ apps including QuickBooks, Xero, Expensify, TSheets, Google Workspace, and Slack.
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Affiliate disclosure: We may earn a commission when you sign up for Gusto through our links. Gusto is a trademark of Gusto, Inc. Pricing as of December 2025.
Thomas Camp Jr., EA
Thomas is an Enrolled Agent and tax accountant with over 14 years of experience helping small businesses choose payroll, accounting, and operational tools. His recommendations come from hands-on implementation—not just feature lists. Verify EA credentials →
