Question 1

What are Gusto's pricing plans and per-employee costs?

Accepted Answer

Gusto offers four main pricing tiers as of December 2024. The Simple plan costs $40 per month plus $6 per person for single-state payroll with basic features. The Plus plan at $80 per month plus $12 per person adds multi-state payroll, advanced HR tools, and time tracking. The Premium plan includes dedicated support and compliance alerts at custom pricing. For contractor-only businesses, there's a $35 per month base plus $6 per contractor. All plans include unlimited payroll runs, automatic tax filing, and free account setup with no contracts required. Promotional pricing occasionally waives the base fee for six months.

Question 2

How does Gusto compare to Deel, Rippling, and ADP?

Accepted Answer

Gusto excels for US-based small businesses seeking simplicity, with 88% of G2 reviewers being SMBs. As of December 2024, Rippling (starting at $7 per user monthly) better serves mid-market companies needing IT integrations and device management. Deel specializes in global hiring with Employer of Record services across 100+ countries at $49 per contractor monthly. ADP targets enterprises with maximum customization and 810,000 clients in 140+ countries. Gusto scores 9.5 for payroll entry on G2, slightly above Rippling's 9.4, but Rippling leads in benefits administration at 9.5 versus Gusto's 8.8. Choose Gusto for US-focused simplicity; Deel for international hiring; Rippling for growing mid-market needs.

Question 3

What benefits can I offer employees through Gusto?

Accepted Answer

Gusto provides comprehensive benefits administration including medical, dental, vision, life insurance, and disability coverage with access to 3,500+ health insurance plans from leading carriers. As of December 2024, benefits deductions sync automatically with payroll at no extra charge. You can also offer 401(k) retirement plans through integrated partners like Guideline, Human Interest, and Betterment, plus tax-advantaged accounts including HSAs, FSAs, and commuter benefits. Gusto handles open enrollment annually, manages qualifying life events, and processes benefit enrollments and terminations. Customers with 25+ employees report saving 50+ hours annually on benefits administration compared to using traditional brokers.

Question 4

Does Gusto handle payroll tax filing and compliance?

Accepted Answer

Yes, Gusto automatically calculates, withholds, and files all federal and state payroll taxes at no additional cost across all 50 states. As of December 2024, Gusto handles Form 941 or 944 quarterly/annual filings, FUTA Form 940, state unemployment taxes, and year-end W-2s and 1099s. The platform provides state tax registration assistance, sends compliance deadline alerts, and helps identify tax credits like R&D credits. Gusto also assists with Beneficial Ownership Information (BOI) filing required under the Corporate Transparency Act. For remote workers, Gusto guides you through multi-state setup and ensures proper withholding regardless of where employees are located.

Question 5

How does Gusto handle contractor payments versus employee payroll?

Accepted Answer

Gusto processes 1099 contractor payments separately from W-2 employee payroll due to different tax treatments. As of December 2024, contractors can receive funds via direct deposit or check, with the same deposit speed as employees. All plans include contractor payments at $6 per contractor monthly, with automatic 1099-NEC filing and delivery for those paid $600+ annually. Unlike employee payroll which is unlimited, contractors are limited to 10 payments per month on standard plans. Gusto only bills for contractors in months when you pay them. If someone works as both employee and contractor, Gusto maintains separate profiles for proper W-2 and 1099 reporting.

Question 6

How do I set up a 401(k) plan through Gusto?

Accepted Answer

Gusto integrates with four 401(k) providers: Guideline, Human Interest, Betterment, and Vestwell. As of December 2024, Guideline is the primary partner offering full-service plans with 3(38) fiduciary investment management and 3(16) administrative services. Setup syncs directly with Gusto payroll, automatically calculating and remitting employee contributions each pay period. Most plans can be configured within days, and employees self-enroll through the Gusto dashboard. Vestwell integration eliminates manual deduction management entirely. Plans typically cost $8-12 per participant monthly plus a monthly base fee, though pricing varies by provider and plan features.

Question 7

Can Gusto handle employees in multiple states?

Accepted Answer

Yes, Gusto provides built-in payroll tax and hiring compliance for all 50 states. As of December 2024, the Simple plan covers single-state payroll while the Plus and Premium plans include full multi-state support. When you hire an out-of-state employee, Gusto guides you through state tax registration and ensures proper withholding. The platform handles varying state tax rates, local taxes where applicable, and different state compliance requirements automatically. This makes Gusto particularly valuable for startups with remote teams, as you can expand hiring nationally without adding payroll complexity or working with multiple state-specific providers.

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