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HR & Payroll Software · Review · 2026

Gusto Review 2026: Payroll & HR Features, Pricing, Pros, Cons & Alternatives

🏆 Community Favorite for Small Business Payroll📅 Last updated: April 29, 2026

Gusto review covering payroll features, HR tools, pricing, G2/Capterra scores, pros, cons, and the best alternatives for small businesses in 2026.

TL;DR

Gusto is the most recommended payroll and HR platform for small businesses (1–100 employees). It handles payroll taxes automatically, bundles health benefits, and has one of the cleanest UIs in the category. It's more expensive than DIY alternatives but significantly cheaper than ADP or Paychex for comparable service. Main limitation: customer support responsiveness on lower plans can be slow during tax season.

Gusto at a Glance

ProductGusto
CategoryPayroll & HR Software
Best ForSmall businesses (1–100 employees) needing payroll + benefits
Community Score4.5 / 5.0 — top pick for payroll ease-of-use
G2 Score4.5 / 5.0 (2,200+ reviews)
Capterra Score4.6 / 5.0 (3,900+ reviews)
Trustpilot Score2.4 / 5.0 — lower, primarily due to support complaints
Simple Plan$49/mo base + $6/person/mo
Plus Plan$80/mo base + $12/person/mo
Premium Plan$180/mo base + $22/person/mo
Free TrialYes — first month free
Official Websitegusto.com

Quick Verdict

Gusto wins community discussions for small business payroll by a wide margin. It handles the painful parts of payroll — tax filings, W-2s, state compliance — automatically. For a 10-person company that was previously doing payroll manually or via an accountant, Gusto typically pays for itself in time savings within the first month.

✓ Choose Gusto if you…
  • • Have 1–100 employees in the US
  • • Want payroll, benefits, and HR in one platform
  • • Need automatic federal, state, and local tax filings
  • • Have both W-2 employees and 1099 contractors
  • • Value ease of use over maximum customization
✗ Skip Gusto if you…
  • • Have 200+ employees (consider ADP or Workday)
  • • Need international payroll (use Rippling or Deel)
  • • Require deep HR customization or HRIS features
  • • Need 24/7 phone support on a basic plan
  • • Want the absolute cheapest option (try Wave Payroll)

Pricing Breakdown

Simple
$49/mo + $6/person
  • Full-service payroll
  • Employee profiles
  • Health benefits admin
  • 2-day direct deposit
  • W-2s & 1099s
  • Basic reporting
Plus
$80/mo + $12/person
  • Everything in Simple
  • Next-day direct deposit
  • Time tracking
  • PTO management
  • HR resource center
  • Performance reviews
Premium
$180/mo + $22/person
  • Everything in Plus
  • Same-day direct deposit
  • Dedicated support
  • HR advisory services
  • Compliance alerts
  • Priority support

Gusto vs Competitors

FeatureGustoADP RunRippling
Auto Tax Filings
Benefits Admin
Time Tracking✓ (Plus+)✓ (add-on)
International Payroll
IT Management
Base Pricing$49/mo + $6/pCustom quote$8/p/mo + base
Ease of Use⭐⭐⭐⭐⭐⭐⭐⭐⭐⭐⭐⭐
Free TrialFirst month free3 months freeDemo only

Pros and Cons

Pros

  • Automatic federal, state, and local payroll tax filing
  • Clean, user-friendly interface — non-HR people can use it
  • Handles W-2s and 1099s automatically at year-end
  • Benefits administration bundled in (health, dental, 401k)
  • Excellent onboarding flow for new hires
  • First month free for new accounts

Cons

  • Customer support can be slow during peak tax periods
  • No international payroll (US-only)
  • Higher-tier plans get expensive for larger teams
  • Limited HR customization vs enterprise HRIS tools
  • Some users report errors in state tax filings (rare but documented)

Best Gusto Alternatives

AlternativeBest ForStarting Price
ADP RunCompliance-heavy businesses, larger teamsCustom quote
RipplingCompanies wanting HR + IT in one platform$8/employee/mo
BambooHRHR-first companies with structured HRIS needs~$6–$9/employee/mo
JustworksPEO model — outsource HR & benefits entirely~$59–$99/employee/mo
Wave PayrollCheapest option for simple payroll needs$20/mo + $6/person

Final Recommendation

Gusto is our top recommendation for US small businesses with 5–100 employees that need payroll, tax compliance, and basic HR in a single platform. The Simple plan covers 90% of what most small businesses need at a predictable monthly cost.

If you need international payroll, look at Rippling or Deel. If you're more HR-focused than payroll-focused, BambooHR may be a better fit.

Frequently Asked Questions

Q: How much does Gusto cost?
A: Gusto Simple is $49/month base + $6/person/month. Plus is $80/month + $12/person/month. Premium is $180/month + $22/person/month. The first month is free for new accounts.
Q: Is Gusto good for small businesses?
A: Yes — Gusto is one of the top-rated payroll tools for businesses with 1–100 US employees. It handles payroll taxes automatically, manages benefits, and has an easy-to-use interface that non-HR staff can navigate.
Q: Does Gusto handle payroll taxes automatically?
A: Yes. Gusto automatically calculates, withholds, and remits federal, state, and local payroll taxes. It also files W-2s and 1099s at year-end.
Q: Can Gusto handle contractors?
A: Yes. Gusto supports both W-2 employees and 1099 contractors. Contractor-only plans are available at $6/contractor/month with no monthly base fee.
Q: What is the best alternative to Gusto?
A: ADP Run for compliance-heavy businesses. Rippling for HR + IT integration. BambooHR for HR-focused companies. Justworks for PEO services. Wave Payroll for the cheapest option.