Gusto review: the best all-round payroll for small US businesses

Gusto is a cloud payroll and HR service for small US businesses from Gusto, Inc., a San Francisco company founded in 2011 as ZenPayroll. It runs payroll, files federal, state and local payroll taxes, and adds health insurance, 401(k) plans, onboarding and time tracking in one account. Plans start at $49 a month plus $6 per person, which works out to $79 a month for five employees.

On the Cybernock research rubric Gusto scores 8.8/10, first in our best payroll software ranking. For a business with 2 to 50 employees, no rival balances price, tax coverage and built-in HR as well. Two weaknesses cost it points: weekday-only support and a steep jump from Simple to Plus.

How does Gusto work?

When you sign up, you enter company details, a bank account and your staff, and the service takes over. Every run computes wages, withholding and employer contributions. People are paid by direct deposit, and the taxes are deposited and filed with the IRS and state and local agencies. At year end, W-2s go out for employees and 1099s for contractors.

Staff get self-service logins and the Gusto Wallet app for pay stubs, tax forms and benefits. New-hire paperwork with e-signatures, PTO policies and, on higher tiers, time tracking and performance reviews all sit in the same place. More than 185 integrations, including QuickBooks, QuickBooks Time and Xero, push payroll costs into your books.

One thing most people miss: outsourcing the filing doesn’t outsource the liability. The IRS page on outsourcing payroll duties states it plainly: “The employer is ultimately responsible for the deposit and payment of federal tax liabilities.” So check every new hire’s state, tax setup and classification yourself, and ask a CPA or enrolled agent when you’re unsure whether someone is an employee or a contractor.

How much does Gusto cost for 5 and 20 employees?

On Simple, about $79 a month for 5 people and $169 for 20. The math is a base fee plus a fee per person paid. Contractors are billed only in months when you pay them.

These US list prices were reported in October 2026 by Merchant Maverick and other pricing guides, because the official pricing page didn’t load for us. Some guides call Premium quote-based, so treat $180 as a floor. There’s no setup fee and nothing is billed until your first payroll. There’s also no conventional free trial.

The real decision is Simple versus Plus. Simple fits a single-state employer that doesn’t need clock-ins. The moment you hire in a second state, need time tracking, or want next-day deposit included, Plus roughly doubles the bill. At 20 people the gap is $151 a month. If next-day deposit is your only reason, price it as an extra on Simple before you upgrade.

Which Gusto features matter most?

• Tax filing everywhere: payroll taxes are calculated, filed and paid in all 50 states, local taxes included, with no extra fee for multi-state payroll on Plus and Premium. W-2s, 1099s and amendments carry no extra charge.
• Benefits in the same account: the company runs its own licensed health insurance brokerage, and its 401(k) now comes from Guideline, acquired in 2025 for about $600 million according to TechCrunch. Workers’ comp is offered in the app. Keeping an outside broker costs $6 per employee a month through the broker integration.
• Onboarding and documents: offer letters, new-hire forms and e-signatures on every plan.
• Time tracking and PTO: basic PTO policies on Simple; time tracking and scheduling on Plus and Premium.
• Faster pay: 4-day, 2-day and next-day direct deposit. Next-day is included on Plus and Premium; same-day payroll is a paid extra below Premium, according to Fit Small Business.
• Compliance help: Premium adds certified HR experts and Gusto Business Compliance, which is also sold as an add-on at $85 a month per state on an annual contract.

What changed at Gusto in 2026?

On October 1, 2026, the tiers were reshuffled without any change to list prices, according to the pricing trackers PricingSaaS and UsagePricing. Performance reviews moved into Plus. Time off and expense reimbursements reached Simple. The Contractor Only plan closed to new sign-ups. If you’ve read an older review recommending Contractor Only, that advice no longer applies.

Where does Gusto fall short?

Support is the main gap. Phone and chat run on weekdays, roughly 8 a.m. to 8 p.m. Eastern, with no live help at weekends, and priority support costs extra on Simple. ADP RUN and Paychex advertise 24/7 support. Justworks offers round-the-clock help on its PEO plans.

There’s also no published tax-penalty guarantee with clear terms and limits. QuickBooks Payroll’s Elite plan, by contrast, promises to pay up to $25,000 a year in payroll-tax penalties. Don’t forget the add-ons, either. New Simple accounts are limited to one custom earning type, while Business Compliance, remote I-9 checks and E-Verify are now billed separately.

Who should not use Gusto?

Skip the subscription if you’re hiring abroad; Deel handles international employment, which this service doesn’t. Businesses that process payroll at weekends should weigh the weekday-only help desk seriously, since a provider with 24/7 phone lines fixes weekend errors faster. Budget-first and multi-state cases are covered in the verdict below.

How does Gusto compare with OnPay, QuickBooks Payroll and Rippling?

In practice, OnPay costs the same as Simple but includes multi-state payroll in its only plan, which makes it cheaper for a business spread across states. QuickBooks Payroll is the easier choice when your books already live in QuickBooks Online and you want same-day deposit plus a penalty guarantee. Rippling costs more once modules pile up, yet it grows into a full HR and IT platform for a fast-hiring company.

Should you choose Gusto?

Yes, if you run a US business with fewer than about 50 employees and want payroll, benefits and onboarding in one place. The evidence: at five people, $79 a month buys all-state tax filing, an in-house broker and a Guideline 401(k) in the same account. Start on Simple if everyone works in one state. Move to Plus when you add a second state or need time tracking.

The verdict flips in three cases. Staff in several states plus a tight budget point to OnPay, at $49 plus $6 per person. The lowest bill, with 4-day deposits accepted, points to Patriot Payroll. A PEO that gives your team large-group health plans points to Justworks. The full best payroll software ranking and all payroll and HR reviews hold the details.