Gusto review covering its payroll, benefits, and HR platform for small businesses, 2026 pricing plans, key features, pros, cons, and top alternatives.
Category
Payments
Pricing
Subscription (base fee plus per-employee/per-month), from $49/month base + $6/employee/month (Simple plan)
Verified
Not yet
Last updated
July 18, 2026
Founded
2011
Headquarters
San Francisco, United States
Web AppiOSFree TrialAndroidAPI
Overview
Gusto is a cloud-based payroll, benefits, and HR platform for small and medium-sized businesses, founded in 2011 by Joshua Reeves, Tomer London, and Edward Kim and originally launched under the name ZenPayroll before rebranding to Gusto in 2015.
Headquartered in San Francisco, Gusto has raised roughly $718 million in funding, surpassed $1 billion in annual revenue by early 2026, and now serves more than 500,000 businesses with a valuation of about $9.3 billion.
Key Features
Gusto's core product automatically calculates, withholds, files, and remits federal, state, and local payroll taxes on the employer's behalf, alongside direct deposit for both W-2 employees and 1099 contractors.
Beyond payroll, the platform bundles benefits administration and brokerage for health insurance, retirement plans, and other perks, plus HR tools like onboarding, time tracking, PTO management, and compliance support.
Pricing
Gusto's 2026 pricing follows a base-fee-plus-per-employee model across three plans: Simple at $49 per month plus $6 per employee, Plus at $80 per month plus $12 per employee, and Premium at $180 per month plus $22 per employee.
A dedicated Contractor Only plan at $35 per month plus $6 per contractor per month serves businesses with no W-2 employees, skipping payroll tax withholding features that aren't needed for 1099-only relationships.
Key Features
Full-service payroll — Automatically calculates, withholds, files, and remits federal, state, and local payroll taxes, with flexible pay schedules and direct deposit.
Benefits administration and brokerage — Offers health insurance, dental and vision coverage, 401(k) retirement plans, and HSAs, often at group rates negotiated on behalf of small employers.
Contractor payments — Supports paying 1099 contractors alongside W-2 employees, including a dedicated Contractor Only plan for businesses with no traditional employees.
Time tracking and PTO management — Plus and Premium plans include time tracking and paid-time-off management integrated directly with payroll.
Employee self-service portal — Employees can view pay stubs, tax documents, and benefits information, and manage their own profile, without HR needing to intervene.
Onboarding workflows — Automates new-hire paperwork, tax form collection, and benefits enrollment as part of the onboarding process.
Compliance support — Helps small businesses stay compliant with new-hire reporting, workers' compensation, and other regulatory requirements tied to payroll and employment.
HR support resources — Premium plan customers get access to more advanced HR support and compliance resources for complex workforce needs.
Pros & Cons
Pros
Transparent, published pricing makes it easy to estimate costs upfront, unlike many legacy payroll providers that require a custom quote.
Automatic tax calculation, filing, and remittance significantly reduces the compliance burden on small business owners.
Integrated benefits brokerage lets small employers offer competitive health insurance and retirement plans without a separate broker relationship.
Modern, self-service interface is designed specifically for small business owners rather than enterprise HR departments.
Dedicated Contractor Only plan offers a lower-cost option for businesses that don't need full payroll tax handling.
Cons
Per-employee pricing on top of the base fee means costs scale up meaningfully as headcount grows, particularly on the Premium tier.
Advanced HR and compliance features are reserved for the higher-priced Plus and Premium tiers rather than being available on Simple.
Simple plan base pricing increased from $40 to $49 per month in March 2026, raising the entry cost for the smallest businesses.
Less suited to companies with significant international or globally distributed workforces compared to competitors like Deel.
As the company has grown toward and past $1 billion in revenue scale, some smaller customers report that support responsiveness has become less personal than in Gusto's earlier years.
Pricing
Simple $49/month + $6/employee/month Monthly
Plus $80/month + $12/employee/month Monthly
Premium $180/month + $22/employee/month Monthly
Contractor Only $35/month + $6/contractor/month Monthly
Frequently Asked Questions
How much does Gusto cost?
Gusto's 2026 pricing has three main tiers: Simple at $49 per month plus $6 per employee per month, Plus at $80 per month plus $12 per employee per month, and Premium at $180 per month plus $22 per employee per month.
When was Gusto founded?
Gusto was founded in 2011 by Joshua Reeves, Tomer London, and Edward Kim, launching publicly in December 2012 under the name ZenPayroll before rebranding to Gusto in 2015.
Does Gusto handle payroll taxes automatically?
Yes, Gusto automatically calculates, withholds, files, and remits federal, state, and local payroll taxes on the employer's behalf as part of every plan.
Can Gusto pay contractors as well as employees?
Yes, Gusto supports paying both W-2 employees and 1099 contractors, and offers a dedicated Contractor Only plan for businesses that have no traditional employees.
Does Gusto offer employee benefits?
Yes, Gusto provides benefits administration and brokerage services covering health insurance, dental and vision coverage, retirement plans, and health savings accounts.
How big is Gusto as a company?
As of 2026, Gusto employs approximately 4,000 people, serves more than 500,000 businesses, has surpassed $1 billion in annual revenue, and carries a valuation of roughly $9.3 billion.