Gusto Benefits Pricing 2026

Basic benefits features are included, but integrating health insurance plans costs an additional $6 per employee per month. Tax-advantaged accounts (HSA, FSA, commuter benefits) also have separate per-participant fees.

For the Simple plan, you'd pay $49 base + $6/employee for payroll + $6/employee for health insurance + additional fees for HSA/FSA if needed. For a 10-person company, this would be $49 + $120 = $180/month base, plus any HSA/FSA fees.

No, Gusto's benefits administration is bundled with their payroll service. You cannot purchase benefits administration separately.

Multiple users report tax compliance issues with Gusto, including incomplete state tax setups, unexpected tax bills despite correct payroll deduction configuration, and lack of support for certain regional taxes like Portland Metro taxes. Some users describe the tax withholding system as 'complicated and non-intuitive' with uncertainty about whether deductions are correct.

Users consistently report hour-long wait times as standard, with some waiting 6+ hours for simple answers. Multiple reviews indicate support staff primarily refer users to help articles rather than resolving issues directly, and tickets requiring escalation can take weeks or months to resolve.

Yes, users report that when holidays fall on Wednesday or Friday, payments may be delayed until the following Tuesday, regardless of the actual pay date schedule. This appears to be a recurring issue affecting timely employee payments.

Several users report that while initial setup is easy, making changes after configuration is difficult. The interface for adding bonus payments or adjusting tax withholding is described as 'nigh on impossible' to navigate while ensuring correct tax treatment. Recent timesheet interface updates have also made workflow significantly more complex.

Yes. The Contractor Only plan is free and includes unlimited contractor payments and 1099 filing at no monthly cost. It is sufficient if you only pay independent contractors (1099) and have no W-2 employees. You will need to upgrade to a paid plan (starting at $49/month for Simple) the moment you hire your first W-2 employee.

The Simple plan at $49/month is the entry-level paid plan that supports W-2 employee payroll. The free Contractor Only plan covers independent contractors only and cannot be used for W-2 payroll.

Simple ($49/month) covers W-2 payroll and basic HR tools. Plus ($80/month) and Premium ($180/month) add more advanced HR features, workforce analytics, and higher-tier support. All three plans support W-2 employee payroll. The free Contractor Only plan is available for businesses that exclusively pay independent contractors.

Yes. Users report that Gusto bills retroactively — meaning you are charged for the full month even when canceling within the first few days of a billing period. Users also report that Gusto has continued billing after cancellation in some cases, so it is advisable to monitor your bank account after canceling and confirm the cancellation in writing.

Yes. Third-party services such as Middesk for state tax account registration can add approximately $400 to setup costs. Benefits administration can also generate unexpected charges — for example, being billed as an employer for a terminated employee's dental or vision coverage that was enrolled through Gusto.

User reviews raise significant concerns. Multiple users report that Gusto has cancelled employee dental and vision plans without notifying the employer, enrolled employees in benefits without clear authorization flows, and declined to correct billing errors for terminated employees' coverage. If benefits administration is critical to your business, these reviews suggest maintaining an independent audit of your coverage status.

The Contractor Only plan is free ($0/month) and covers payments to unlimited independent contractors and 1099 filing. It does not support W-2 employees, benefits administration, or time tracking. You will need to upgrade to the Simple plan ($49/month) or higher as soon as you hire a W-2 employee.

Cancellation requires completing a survey through Gusto's interface. Multiple users report being charged for full months of service after cancelling, even when no payroll or filings were processed. If you have add-on services such as a 401(k) plan, those are billed as separate products and may continue to bill independently unless explicitly cancelled.

Based on user reports, Gusto's 401(k) service is billed as a separate product from the core payroll subscription. Users have reported that cancelling the payroll service did not automatically cancel the 401(k), resulting in continued bank withdrawals months after cancellation.

The Simple plan at $49/month covers basic payroll for W-2 employees. Users note that running payroll itself is quick once the platform is configured. The Plus plan ($80/month) adds time tracking and scheduling, while Premium ($180/month) includes dedicated HR support.

Gusto's paid plans start at $49/month for the Simple plan, $80/month for Plus, and $180/month for Premium. The Contractor Only plan is $0/month and is limited to paying independent contractors and filing 1099s — it does not support W-2 employee payroll or benefits.

Yes. The Contractor Only plan is permanently free and supports unlimited contractor payments and 1099 filing. It does not include W-2 employee payroll, benefits administration, or employee time tracking.

Based on user reports, Gusto has doubled monthly rates without prior notice for at least some customers. When affected customers successfully negotiated back to their original rate, the lower rate was not always maintained in subsequent billing cycles.

Some users report that Gusto continued billing after they explicitly suspended their accounts. It is advisable to confirm cancellation in writing and monitor credit card statements closely after any account suspension or cancellation request.

Multiple users have reported errors with W-2 preparation, 941 mismatches, and state tax filing (including L&I filings), and found support slow or unable to resolve the underlying issues. Some customers report having had to file state taxes manually or hire outside professionals as a result.

Some users report that Gusto FSA cards have failed at point of sale for valid covered expenses, and that resolving benefits discrepancies through support has taken weeks or gone unresolved. At least one case involved employees at risk of forfeiting FSA funds due to a system error on Gusto's side.