Web Analytics Made Easy - Statcounter

Demystifying Gusto Payroll Pricing: All You Need to Know

Choosing the right payroll software for your business is a crucial decision. Gusto has emerged as a popular choice for small to medium-sized businesses due to its user-friendly interface and comprehensive features. However, understanding Gusto's pricing structure can be tricky. This article provides a detailed breakdown of Gusto's pricing plans, features, add-ons, and hidden costs, helping you make an informed decision about whether it's the right fit for your company.

Understanding Gusto's Core Plans

Gusto offers a tiered pricing structure, with different plans catering to varying business needs and budgets. Let's explore the core plans:

Gusto Simple

The Gusto Simple plan is designed for very small businesses with basic payroll needs and minimal HR requirements. It's the most affordable option, but it comes with limitations. Here's what you need to know:

  • Key Features:
    • Full-service payroll in a single state.
    • Health benefits administration (integrates with insurance providers).
    • Workers' compensation administration (integrates with insurance providers).
    • Employee self-service portal.
    • Basic reporting.
    • Limited HR support.
  • Limitations:
    • Only supports payroll in one state.
    • Limited access to HR tools and resources.
    • No time tracking features.
    • No project tracking or job costing.
  • Who it's best for: Businesses with very simple payroll needs, operating in a single state, and with minimal HR requirements.

Gusto Plus

The Gusto Plus plan is the most popular option and provides a more robust set of features suitable for growing businesses. It offers a balance between affordability and functionality. Here's a detailed look:

  • Key Features:
    • Everything in the Simple plan, plus:
    • Multi-state payroll.
    • Time tracking.
    • Project tracking.
    • Advanced reporting.
    • HR support center.
    • Employee surveys.
    • PTO management.
    • Performance reviews.
  • Limitations:
    • Access to dedicated HR advisors requires an additional cost (Gusto Concierge plan).
  • Who it's best for: Growing businesses with employees in multiple states, needing robust HR tools, and wanting to streamline time tracking and project management.

Gusto Premium

The Gusto Premium plan is the most comprehensive option, offering the full suite of features and dedicated HR support. It's designed for larger businesses with complex HR needs. Let's dive into the details:

  • Key Features:
    • Everything in the Plus plan, plus:
    • Dedicated HR advisors.
    • HR resource center with customizable templates.
    • Compliance alerts.
    • Employee handbook builder.
    • Priority support.
    • Advanced access controls and permissions.
  • Limitations:
    • The most expensive option.
    • May be overkill for businesses with simpler HR needs.
  • Who it's best for: Larger businesses with complex HR needs, requiring dedicated HR support, and needing advanced compliance tools.

Gusto Concierge (Now Premium)

The Gusto Concierge plan has been replaced by the Premium plan. Functionality and previous offerings have been rolled into Gusto Premium.

Understanding the Pricing Components

Gusto's pricing is typically structured with a base fee plus a per-person fee. This means you pay a flat monthly fee plus an additional charge for each employee you pay through the system. The specific pricing varies depending on the plan you choose.

  • Base Fee: This is the fixed monthly fee you pay regardless of the number of employees you have. It covers the cost of the platform and core features.
  • Per-Person Fee: This is the additional charge you pay for each employee you process payroll for. It covers the cost of processing payroll, generating tax forms, and providing employee self-service access.

It's important to note that Gusto often offers discounts or promotions, especially for new customers. Be sure to check their website for the latest pricing information and any available deals.

Hidden Costs and Add-ons to Consider

While Gusto's pricing is generally transparent, there are some potential hidden costs and add-ons you should be aware of:

Additional State Filings

While the Plus and Premium plans support multi-state payroll, there may be additional fees associated with filing taxes in certain states, particularly if you have a large number of employees in those states. Always verify state specific costings.

Integration Fees

Gusto integrates with a variety of other business software, such as accounting platforms and time tracking systems. While many integrations are free, some may require a paid subscription to the third-party software. Consider these costs as part of your overall expense.

Workers' Compensation Insurance

Gusto integrates with workers' compensation insurance providers, making it easy to manage your coverage. However, the cost of workers' compensation insurance itself is a separate expense that you'll need to factor in.

Health Benefits Administration

Gusto provides tools for managing health benefits, but the cost of the health insurance premiums is a separate expense that you'll need to budget for.

401(k) and Other Retirement Plans

Gusto supports 401(k) and other retirement plans, but there may be administrative fees associated with setting up and managing these plans. These fees are typically charged by the retirement plan provider, not Gusto directly.

Gusto Wallet

Gusto Wallet is a free mobile app for employees to receive, save, and spend their money. While the app itself is free, some features, like cash advances (Cashout) may have fees or interest associated.

Gusto Alternatives: A Quick Comparison

While Gusto is a popular choice, it's essential to compare it to other payroll software options to ensure you're making the best decision for your business. Here's a brief comparison of some common Gusto alternatives:

Paychex

Paychex is a well-established payroll provider offering a wide range of services, including payroll, HR, and benefits administration. It's a good option for larger businesses with more complex needs, but it can be more expensive than Gusto.

  • Pros: Comprehensive services, dedicated support, suitable for larger businesses.
  • Cons: Can be more expensive than Gusto, contract requirements.

ADP

ADP is another large payroll provider offering a similar range of services to Paychex. It's a good option for businesses of all sizes, but its pricing can be opaque. Also consider ease of use in your decision.

  • Pros: Wide range of services, scalable solutions, established reputation.
  • Cons: Pricing can be opaque, may require a contract.

QuickBooks Payroll

QuickBooks Payroll is a popular option for businesses already using QuickBooks accounting software. It integrates seamlessly with QuickBooks, making it easy to manage your finances. However, it may not offer as many HR features as Gusto.

  • Pros: Seamless integration with QuickBooks, affordable for QuickBooks users, simple to use.
  • Cons: Limited HR features compared to Gusto.

Square Payroll

Square Payroll is a good option for businesses already using Square's point-of-sale system. It integrates seamlessly with Square, making it easy to manage payroll and payments. It's particularly well-suited for small businesses with hourly employees.

  • Pros: Seamless integration with Square POS, affordable for small businesses, easy to use.
  • Cons: Limited HR features, primarily designed for businesses with hourly employees.

Zenefits

Zenefits is an HR platform that includes payroll functionality. It offers a comprehensive suite of HR tools, including benefits administration, time tracking, and performance management. However, its pricing can be complex.

  • Pros: Comprehensive HR platform, wide range of features, good for businesses with complex HR needs.
  • Cons: Pricing can be complex, may be overkill for businesses with simpler needs.

Tips for Choosing the Right Gusto Plan

Selecting the right Gusto plan requires careful consideration of your business needs and budget. Here are some tips to help you make the right choice:

  • Assess your current needs: Identify your current payroll and HR needs. How many employees do you have? Do you need multi-state payroll? What HR features are essential for your business?
  • Project your future needs: Consider your future growth plans. Will you be hiring more employees? Will you be expanding into new states? Choose a plan that can scale with your business.
  • Compare features: Carefully compare the features of each Gusto plan. Make sure the plan you choose includes all the features you need.
  • Consider your budget: Determine how much you're willing to spend on payroll software. Choose a plan that fits within your budget while still meeting your needs.
  • Read reviews: Read online reviews of Gusto and its competitors. Get insights from other businesses that have used the software.
  • Take advantage of free trials: Many payroll software providers, including Gusto, offer free trials. Take advantage of these trials to test out the software and see if it's a good fit for your business.
  • Talk to a sales representative: Contact a Gusto sales representative to discuss your specific needs and get personalized recommendations.

Negotiating Gusto Pricing

While Gusto's pricing is generally fixed, there may be opportunities to negotiate, especially if you're a larger business or have specific needs. Here are some tips for negotiating Gusto pricing:

  • Ask for a discount: Don't be afraid to ask for a discount, especially if you're a new customer or are switching from a competitor.
  • Negotiate the per-person fee: If you have a large number of employees, you may be able to negotiate a lower per-person fee.
  • Bundle services: If you're interested in multiple Gusto services, such as payroll and benefits administration, you may be able to negotiate a bundled discount.
  • Commit to a longer contract: Gusto may be willing to offer a discount if you commit to a longer contract.
  • Compare pricing with competitors: Use competitor pricing as leverage in your negotiations. Show Gusto that you're considering other options and that you're looking for the best value.
  • Highlight your value: Emphasize the value you bring to Gusto as a customer. If you're a growing business with the potential to add more employees in the future, Gusto may be more willing to negotiate.

Frequently Asked Questions (FAQs) About Gusto Pricing

What happens if I exceed the employee limit on my plan?

If you exceed the employee limit on your plan, you'll typically be automatically upgraded to the next plan level. Gusto will notify you before upgrading your plan.

Can I change my Gusto plan at any time?

Yes, you can typically change your Gusto plan at any time. However, changes may take effect at the beginning of your next billing cycle.

Does Gusto offer a free trial?

Yes, Gusto typically offers a free trial for new customers. The length of the trial may vary depending on the plan you choose.

What payment methods does Gusto accept?

Gusto typically accepts credit cards and bank transfers for payment.

How does Gusto handle payroll taxes?

Gusto automatically calculates, files, and pays your payroll taxes, including federal, state, and local taxes. This is a key benefit of using a full-service payroll provider.

Is Gusto secure?

Yes, Gusto uses industry-standard security measures to protect your data, including encryption and multi-factor authentication.

What kind of customer support does Gusto offer?

Gusto offers customer support via phone, email, and chat. The level of support may vary depending on your plan.

How do I cancel my Gusto subscription?

You can cancel your Gusto subscription at any time by contacting Gusto support or through your account settings. Be sure to follow their cancellation procedure to avoid unexpected charges.

Conclusion

Gusto offers a compelling payroll solution for businesses of various sizes. By carefully evaluating your needs, understanding the pricing structure, and considering potential add-ons, you can choose the right Gusto plan to streamline your payroll process and ensure compliance. Remember to compare Gusto with other payroll software options and negotiate pricing to get the best value for your business. Ultimately, a well-informed decision will save you time, money, and headaches in the long run.