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Gusto review: Simple files local taxes for $79, but only in one state
Updated Oct 1, 2026 · scored under rubric v1
Gusto suits single-state teams that want federal, state and local taxes filed for $79 a month for five employees. The catches: a second state means Plus at $140 for five, and next-day pay is an add-on on Simple.
Gusto's entry plan, Simple, costs $49 a month plus $6 per person paid, so five employees cost $79 a month. Gusto files federal, state and local payroll taxes and W-2s and 1099s on every plan, with unlimited payroll runs. Simple covers payroll in a single state; multi-state payroll starts at Plus, $80 a month plus $12 per person. There is no free trial, but you pay nothing until you run payroll.
What it does well
- Files federal, state and local taxes and W-2s and 1099s on every plan
- Unlimited payroll runs, including off-cycle payrolls
- Call or chat support in business hours on Simple
- Pays penalties from its own late filings, per its payroll terms
- No contracts; switch or cancel anytime
Where it falls short
- Simple is single-state; more states need Plus
- Next-day pay costs $15 a month + $3 per person on Simple
- No free trial on Simple
- Project labour costing is on Plus and Premium only
What Gusto costs
| Plan | Base fee | Per person | Five employees |
|---|---|---|---|
| Simple | $49 a month | $6 a month | $79 a month |
| Plus | $80 a month | $12 a month | $140 a month |
| Premium | $180 a month | $22 a month | $290 a month |
| Contractor Only | $35 a month | $6 per contractor | For businesses with no W-2 employees |
Prices from its pricing page, read Sep 27, 2026. US contractors are billed at the per-person fee in months they are paid. A Solo plan for S corp owners paying themselves is also $49 plus $6 per person. When we read the page, Contractor Only had a $0 base fee for the first 6 months as a promotion.
Add-ons on Simple: next-day pay at $15 a month plus $3 per person, and priority support at $30 a month plus $3 per person. Gusto also lists same-day pay at $90 and instant pay at $100 per payroll, and workers' comp from $14 a month.
Over time
Total = monthly price × 12 × years, or yearly price × years, or a one-time price once; a per-seat plan is multiplied by seats. Only current plan prices; fees are listed separately. Taxes, add-ons and promotional prices are not included.
Current prices
| Plan | Price | Checked |
|---|---|---|
| Per contractor (Contractor Only) Per contractor paid. | $6 per month per seat | Sep 27, 2026 |
| Per person (Simple) Per active employee; US contractors billed at the same per-person cost only in months they are paid. | $6 per month per seat | Sep 27, 2026 |
| Per person (Solo) Per person; 'Pay Myself' tab. | $6 per month per seat | Sep 27, 2026 |
| Per person (Plus) Per active employee. | $12 per month per seat | Sep 27, 2026 |
| Per person (Premium) Per active employee. | $22 per month per seat | Sep 27, 2026 |
| Contractor Only For businesses with no W-2 employees (not an entry-plan candidate); plus $6/mo per contractor. Regular price stated in the pricing FAQ 'How do you bill for contractors?' (click to open). | $35 per month | Sep 27, 2026 |
| Simple Base fee; plus $6/mo per person paid (employees, and US contractors in months they are paid). Single-state payroll. | $49 per month | Sep 27, 2026 |
| Solo For solopreneurs paying themselves as an S corp; plus $6/mo per person. Shown after clicking the 'Pay Myself' tab on the pricing page. | $49 per month | Sep 27, 2026 |
| Plus Base fee; plus $12/mo per person. Multi-state payroll, next-day pay, time tracking. | $80 per month | Sep 27, 2026 |
| Premium Base fee; plus $22/mo per person. Dedicated Service Advisor, priority support, same-day and instant pay. | $180 per month | Sep 27, 2026 |
Fees and other costs
| Cost | Kind | Amount | Checked |
|---|---|---|---|
| Next-Day pay add-on (Simple) Optional add-on on Simple: $15/mo plus $3/mo per person; included in Plus and Premium. | Fee | $15 per month | Sep 27, 2026 |
| Priority Support add-on Optional on Simple and Plus: $30/mo plus $3/mo per person. | Fee | $30 per month | Sep 27, 2026 |
What you get on Simple
Gusto says: "We file federal, state, and local payroll tax forms on your company's behalf", including W-2s, 1099s and Forms 940 and 941. "Every Gusto plan comes with unlimited payroll runs", with no charge for off-cycle payrolls. The compare table ticks direct deposit or printable checks, the Gusto employee app, employee self-onboarding, domestic contractor payments and state new hire reporting on Simple.
Gusto's payroll terms say it will reimburse you or pay the agency for penalties arising from a "Gusto Error", such as a late filing, when your own payments were in order.
Catches and fine print
- One state on Simple. The pricing page lists Simple as "single-state payroll" and multi-state payroll on Plus. Gusto's payroll page says it's "the same price whether you run payroll in one state or all 50". We use the pricing page, the worse reading. If you have staff in two states, budget for Plus: $140 a month for five. Registering for state tax in a new state is a separate add-on, priced by state.
- Pay speed. The pricing page sells next-day pay to Simple as an add-on. A Gusto help article lists it as included for accounts in good standing but also says most new employers start on 4-day pay. We use the pricing page.
- No free trial. Setup is free and you pay nothing until you run payroll, but that isn't a trial of payroll.
- Construction features. Pay-as-you-go workers' comp is an add-on on any plan. Project labour cost reports are a Plus and Premium feature, per Gusto's time tools page. Its pages don't say it produces certified payroll reports.
Support
Simple comes with Basic Support: 24/7 access to Gusto's online help centre, and call or chat with its support team during business hours. Priority access to phone and chat is the paid add-on above.
Who it suits
Gusto suits a small team in one state that wants every payroll tax, including local ones, filed for $79 a month for five employees, with no contract. It also suits teams that want benefits and HR later from the same company.
Look elsewhere if your staff work in more than one state and you want to stay on the cheapest plan, or if you need next-day pay included. Gusto appears in our payroll services ranking and our list for construction and trades. Scoring is on the methodology page.
Alternatives in Payroll services
| Alternative | Score | Best for | Visit |
|---|---|---|---|
| OnPay | 9.5/10ExcellentOur score | Small teams that want local taxes, W-2s and multi-state payroll in one $79 plan, first month free No affiliate relationship | Visit OnPayOn onpay.com |
| Square Payroll | 8.4/10Very goodOur score | Square sellers who want tips and timecards imported, at $65 a month for five employees No affiliate relationship | Visit Square PayrollOn squareup.com |
| Paychex Flex | 8.3/10Very goodOur score | Teams under 20 employees that sign up online from $64 a month for five, with tax filing billed extra No affiliate relationship | Visit Paychex FlexOn paychex.com |