Gusto Pricing Breakdown: Everything You Need to Know

Budget constraints often drive critical business decisions. While features, automation, and integrations matter, the numbers should ultimately favor the business. That’s why it’s crucial to take a deeper look at the Gusto pricing and explore other suitable alternatives.

We know Gusto is a well-known name in the payroll and EOR space. Its pricing might look reasonable at first glance, but how does it hold up when you consider  real-world business needs? Are you actually getting the best value for your money, or is there a more cost-effective option out there?

Let’s break it down.

Gusto Pricing Breakdown

Gusto offers three major pricing plans:*

• Simple – $49 per month + $6 per month per person
• Plus – $60 per month + $12 per month per person
• Premium – $135 per month + $22 per month per person

Major offerings provided:

• Full-service payroll
• Hiring and onboarding
• Employee benefits
• Insights and reporting
• Managing teams
• Support

A Contractor Only plan also works exclusively with 1099 contractors who have not yet hired W-2 employees.

The contractor-only pricing is $0/month for the first 6 months (limited-time offer), then a $35/month base fee + $6 per contractor per month.

Key features

• Unlimited payments to contractors in all 50 states
• Four-day direct deposit
• 1099-NEC tax forms at year-end
• New hire reporting (if required)
• Global contractor payments

Limitations

• This plan does not cover backup withholding or state-mandated contractor tax withholdings. 
• Additional add-ons are not included, except for global contractor payments.

*(Data as on March 27th 2025)

Refer to their complete pricing details here. 

Gusto’s Pricing: What Paying Customers Feel

While Gusto has positioned itself as a leading payroll and EOR provider, customer feedback suggests that its pricing structure has some notable downsides. 

Across review platforms and discussions on Reddit, users have voiced concerns about rising costs, tax filing issues, and unexpected expenses. Here is what customers are saying:

A recent price hike of 23%

Many users are frustrated with Gusto’s latest price increase, which raises costs by 23% across all tiers without adding features. This has led some customers to explore alternative payroll providers.

“They’re about to find out where the hard deck is for many people. People will leave you when you raise prices just for the sake of raising prices and don’t add value to your product.“

Challenges around tax computations for some states

Users have reported serious issues with Gusto’s ability to handle state tax filings, particularly in Indiana. Some businesses have spent hours on support calls each month, only to face repeated errors and no resolution in sight.

“I spent no less than 30 hours on the phone with them over the course of the year trying to help fix the problem, and every month it was the same thing.“

Hidden costs as you scale

While Gusto’s base pricing seems affordable, additional services like 401(k) administration, workers’ comp, and benefits can significantly increase costs.

“I received what I hope is my final invoice, and I see that Gusto is charging $100 for State and another $100 for Federal filings, plus an additional $5 for W-2 and 1099 filings, totaling $205 for filings alone… I feel this is buried somewhere in their terms of service agreement, hidden within an 800-word paragraph that no one reads.“

Delays in multi-state payroll processing and incorrect filings

Due to Gusto’s errors, businesses operating in multiple states have reported delays, incorrect tax filings, and costly fixes. Some have had to spend thousands to resolve compliance issues caused by the platform.

“I’ve had to spend an extra $1,000 just to fix their mistakes, plus hire another payroll manager to clean up the mess.”

Delays in payroll processing

Some users have faced payroll delays, with Gusto failing to process timely payments. Even after multiple support tickets and assurances from customer service, the issues were unresolved.

“They did not process an employee’s last paycheck, three reps insisted that they had done so, gave us an ACH trace number, and then ultimately admitted they hadn’t.”

How Much Will Gusto Cost Your Business?

Let’s say you run a business with 15 employees and choose the Plus plan. Your costs would be:

• Base fee: $60 per month
• Employee fees: 10 × $12 = $120 per month
• Contractor fee: 5 x $6 = $30/month
• Total monthly cost: $210 per month
• Annual cost: $2,520 per annum

(This does not include additional services like 401(k) administration, workers’ comp, and benefits, which can further increase costs.)

Tarmack’s Pricing Breakdown

Tarmack offers a flat $199/month plan with no hidden costs. Unlike Gusto, multi-state compliance, global hiring, and tax handling are built-in, ensuring seamless payroll operations without extra fees.

Provider	Base Cost	Employee Fees	Contractor Fees	Total Monthly Cost
Gusto (Plus Plan)	$60	$120 (10 × $12)	$30 (5 × $6)	$210+ (excludes add-ons)
Tarmack	$199 (all-inclusive)	$0	$0	$199

With Tarmack, you save at least $11/month or $132 per annum upfront. And even more when you factor in Gusto’s add-ons and hidden fees.

With Tarmack, you get a straightforward pricing model that remains cost-effective as your business scales. Unlike Gusto (which charges $199+ per month), Tarmack delivers competitive pricing with greater value.

Want to see exactly how much you can save? Use our Employer Cost Calculator to compare costs and discover the best payroll solution for your business.Try the Employer Cost Calculator Now

Why Choose Tarmack?

Expanding your business globally comes with challenges – payroll, compliance, hiring, and tax complexities can quickly become overwhelming. Tarmack simplifies this entire process, acting as your one-stop partner for international business expansion. Whether you need payroll management, an Employer of Record (EOR), or recruiting solutions, Tarmack helps you navigate global markets seamlessly.

Global coverage, no limits

Most EOR service providers operate in specific regions, which restricts your expansion plans. Tarmack is a truly global payroll, EOR, and recruitment service that covers 140+ countries. 

Whether you want to hire remote employees in Europe, contractors in Asia, or open a new office in South America, Tarmack offers everything you need to ensure compliance and efficiency, all within an affordable budget.

Unmatched ease of use

Payroll, hiring, and compliance can be tedious and time-consuming, but not with Tarmack. It is designed to be user-friendly and has a quick learning curve. There is no manual paperwork or email chaos. Tarmack offers a smooth and efficient experience that lets you focus on what really matters: growing your business globally.

Complete Compliance, Zero Guesswork

Operating across different countries means dealing with complex local regulations. Tarmack ensures you remain fully compliant with local employment laws and policies worldwide. 

Speed that saves you money

Hiring, payroll processing, or market entry delays can significantly cost your business. In global expansion, time is of the essence. Tarmack helps accelerate every step of the expansion process by enabling faster employee onboarding, on-time payments for contractors, and seamless entry and growth in new markets without delays.

An innovative approach to payroll and hiring

Tarmack takes a technology-first approach that is seamless and automated to streamline all the hassles of payroll management, contractor invoice processing, and recruitment. Replacing paper-driven processes streamlines operations for a smoother, more efficient experience.

With global coverage, effortless compliance, cost savings, and a tech-first approach, Tarmack is the more intelligent choice for businesses looking to scale internationally. 

What Makes Tarmack More Preferable?

Choosing the right payroll and Employer of Record (EOR) provider comes down to two key factors: cost and capability. With its recent price hikes, hidden costs for additional services, and compliance challenges, Gusto’s pricing structure makes it an expensive and not-so-viable option for businesses.

Tarmack, on the other hand, provides a cost-effective, globally scalable, and technology-driven solution. Its transparent pricing, assured global compliance and user-friendly experience ensure you get more value for your money while avoiding the pitfalls of traditional, inefficient payroll systems. 

Ready to cut costs and simplify payroll? Request a demo.

Frequently Asked Questions (FAQs)

How much does Gusto cost per month?

Gusto offers three major pricing plans:

• Simple – $49 per month + $6 per month per person
• Plus – $60 per month + $12 per month per person
• Premium – $135 per month + $22 per month per person

Additional services like 401(k) management, workers’ comp, and multi-state payroll can increase costs.

Does Gusto charge a fee?

Yes, Gusto charges a monthly base fee plus a per-employee fee, depending on your chosen plan. Some additional services, such as global contractor payments or benefits administration, may come with extra charges.

Is Gusto or Tarmack cheaper?

Tarmack is cheaper by $11 per month or $132 per annum. The cost savings will be greater if Gusto’s cost of additional services is factored in. 

Can I use Gusto for free?

No, Gusto does not offer a completely free plan. However, they often provide limited-period promotions, the recent being six months of access at a $0 base fee for contractor-only businesses.