Gusto Benefits Pricing 2026

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.

No. Gusto closed its Contractor Only plan to new sign-ups on October 1, 2026. New customers can pay US contractors on any plan, billed at that plan's per-person rate only in months when a contractor is paid.

The Simple plan ($49/month + $6 per person) is the entry-level plan for W-2 payroll. Plus ($80/month + $12 per person) and Premium ($180/month + $22 per person) also support W-2 payroll.

Simple ($49/month + $6/person) runs basic payroll in one state. Plus ($80/month + $12/person) adds multi-state payroll, time tracking and scheduling, and next-day pay. Premium ($180/month + $22/person) adds Premium Account Support, HR guidance and tools, Gusto Business Compliance, and same-day and instant pay.

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.

Gusto closed the Contractor Only plan on October 1, 2026. New customers cannot sign up for it or switch to it, while companies already on it keep it unchanged. Contractors can be paid on any Gusto plan.

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 plans cost $49/month + $6 per person (Simple), $80/month + $12 per person (Plus) and $180/month + $22 per person (Premium). Contractors are billed at the plan's per-person rate in months they are paid.

No, not for new customers. Account setup is free, but running payroll requires a paid plan starting at $49/month + $6 per person. The Contractor Only plan closed to new sign-ups on October 1, 2026.

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.

Based on user reports, Gusto may acknowledge the error but its stated policy is to not pay overdue taxes even when at fault. Multiple users report absorbing IRS penalty costs themselves, including one user who absorbed approximately a $3,000 tax bill following a mid-year provider switch. One user on the Simple plan reported: 'If Gusto makes a mistake then the onus is on you to correct the problem.' Plan for independent resolution if tax issues arise.

Cancellation requires explicit action beyond suspension — suspending your account does not stop billing. Users report needing three or more contacts with support to fully cancel. Get written confirmation that your account is canceled (not just suspended) to stop charges. One user was billed $260/month after suspension before finally resolving the issue.

Not to new customers. Gusto closed the Contractor Only plan on October 1, 2026; existing contractor-only companies keep their plan, and adding W-2 employees requires moving to Simple, Plus or Premium.

The Premium plan is marketed as including priority support and a dedicated representative. However, at least one Premium plan user reports waiting over three weeks for a benefits issue resolution, stating: 'Oh by the way, this is their "premium" service plan. They claim we get priority support and a dedicated representative. What's the point of either of these things if we can't get an answer from them?'