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Gusto vs QuickBooks Payroll: local taxes on Gusto, extra states on QuickBooks
Updated Oct 15, 2026
Gusto Simple costs $49 a month plus $6 per person, $79 for five employees, and files federal, state and local payroll taxes, in one state only. QuickBooks Workforce Payroll costs $50 plus $7 per employee, $85 for five, and files federal and state taxes but not local ones. It includes one state and charges $12 a month for each extra state. QuickBooks includes next-day direct deposit; on Gusto Simple it's an add-on.
At a glance, by our score
- Lowest price
#2 Gusto
Single-state teams that want federal, state and local taxes filed for $79 a month for five employees
9.0/10ExcellentOur scoreVisit GustoOn gusto.com #6 QuickBooks Payroll
QuickBooks Online users who want federal and state payroll taxes filed from $85 a month for five
6.7/10FairOur scoreVisit QuickBooks PayrollOn quickbooks.intuit.com
Gusto's lowest monthly price is lower than QuickBooks Payroll's, checked Sep 27, 2026 and Sep 27, 2026.
Side by side
| Criterion | Gusto | QuickBooks Payroll |
|---|---|---|
| Overall score | 9.0/10ExcellentOur score #2 of 7 | 6.7/10FairOur score #6 of 7 |
| Cost for five employees (35%) | 8.6 / 10 | 8.2 / 10 |
| Included on the entry plan (20%) | 10.0 / 10 | 8.0 / 10 |
| Tax filing (20%) | 10.0 / 10 | 6.0 / 10 |
| Tax accuracy guarantee (10%) | 10.0 / 10 | 0.0 / 10 |
| Support (10%) | 10.0 / 10 | 10.0 / 10 |
| Free trial (5%) | 0.0 / 10 | 0.0 / 10 |
| Price from | $6 / month | $7 / month |
| Best for | Single-state teams that want federal, state and local taxes filed for $79 a month for five employees | QuickBooks Online users who want federal and state payroll taxes filed from $85 a month for five |
| Visit | Visit GustoOn gusto.com | Visit QuickBooks PayrollOn quickbooks.intuit.com |
Who should pick which
- Gusto: Single-state teams that want federal, state and local taxes filed for $79 a month for five employees
- QuickBooks Payroll: QuickBooks Online users who want federal and state payroll taxes filed from $85 a month for five
At a glance
| Gusto | QuickBooks Payroll | |
|---|---|---|
| Entry plan and billing | Simple: $49 a month + $6 per person, monthly, no contract | Workforce Payroll: $50 a month + $7 per employee, monthly only |
| Cost for five employees | $79 a month | $85 a month |
| Tax filing | Federal, state and local, plus W-2s and 1099s; one state only | Federal and state, one state included (each extra $12 a month); no local taxes (disclosures) |
| Included on the entry plan | Unlimited runs, direct deposit, employee app, contractor payments, state new-hire reporting | Unlimited runs, direct deposit, employee portal, 1099 e-file; new-hire filing read as Premium and Elite only |
| Tax penalty guarantee | Yes, for penalties from a "Gusto Error" (payroll terms) | Elite only, up to $25,000 a year |
| Support | Call or chat in business hours; 24/7 help centre | Phone and chat in business hours |
| Free trial | No; you pay nothing until you run payroll | None on the pricing page; 50% off the base fee for 3 months |
Prices and features from Gusto's pricing page and QuickBooks Payroll's pricing page, read Sep 27, 2026.
Price
One employee costs $55 a month on Gusto Simple and $57 on QuickBooks Workforce Payroll. Five cost $79 and $85, a $6 gap.
QuickBooks shows an introductory offer: 50% off the monthly base price for the first 3 months ($25 instead of $50) for new customers on the monthly plan. Per-employee and state fees aren't discounted, so five employees cost $60 a month for those 3 months, then $85. No end date is given, and only monthly prices are published. Gusto shows no introductory price on Simple.
States change the sums. With staff in two states, QuickBooks Workforce Payroll is $97 a month for five. On Gusto you need Plus, $80 plus $12 per person: $140 for five.
Where they differ
- Local taxes. Gusto files federal, state and local tax forms on every plan (pricing page). QuickBooks' disclosures say "QuickBooks Workforce Payroll does not offer local tax payments and filings"; certain local taxes are automated on Premium and Elite only.
- Pay speed. Workforce Payroll includes next-day direct deposit if you run payroll by 5:00 PM (pricing page). Gusto sells next-day pay to Simple at $15 a month plus $3 per person.
- New-hire reporting. Gusto ticks state new hire reporting on Simple. Intuit's pages conflict: one section of the disclosures puts automatic new-hire filing on Premium and Elite only, another includes Workforce Payroll. We use the worse reading.
- Penalty guarantee. Gusto's payroll terms cover penalties from a "Gusto Error". QuickBooks' tax penalty protection, up to $25,000 a year, is on Elite only ($134 + $17 per employee).
- Contractors. Gusto bills a contractor the $6 per-person fee in months they're paid. QuickBooks charges $7 a month on Workforce Payroll for contractor direct deposit, "per contractor payment".
Who should pick which
Pick Gusto if your team is in one state and you have local payroll taxes to file, or you want new-hire reports and a penalty commitment on the entry plan.
Pick QuickBooks Payroll if you pay staff in more than one state without local taxes, want next-day direct deposit included, or want payroll from the company that sells QuickBooks Online.
Both appear in our payroll services ranking and our list for construction and trades. Scoring is on the methodology page.