The moment you pay anyone — W-2 employee or 1099 contractor — you're on the hook for tax withholding, filings, and paperwork you don't want to handle by hand.
Full-service payroll that files your taxes for you — with a plan for businesses that only have contractors, too.
Gusto runs payroll, calculates and files federal, state, and local payroll taxes automatically, and handles W-2s and 1099s at year-end without extra work on your part. Setup is genuinely fast — most businesses are running their first payroll within a day — and the interface is built for a first-time employer, not a corporate HR department. If you're not ready to hire W-2 employees yet, the Contractor Only plan covers 1099 payments at a lower cost.
| Best for | The first W-2 hire or 1099 contractor payment for a small business |
|---|---|
| Starting price | Simple: ~$49/month + $6 per person. Contractor Only: ~$35/month + $6 per contractor |
| Higher tiers | Plus (~$80–89/mo + $12–13/person) adds multi-state payroll and time tracking; Premium (~$180–199/mo + $22–24/person) adds HR advisors |
| Free trial | Gusto runs promotional pricing periodically, including reduced first-months pricing on some plans |
| Pairs well with | QuickBooks Online for bookkeeping; syncs payroll data directly |
Pricing checked August 2026, based on published rates — per-person fees mean your real monthly cost depends on headcount, not just the base price.
If cash flow is tight and you need same-day direct deposit, Gusto doesn't offer it — some competitors, including QuickBooks Payroll, do. And if you're managing a large hourly team where per-person fees add up fast, it's worth running the math against flat-rate competitors before committing, since Gusto's cost scales directly with headcount plus any HR add-ons you turn on.
You still need something handling 1099 forms and payment records — Gusto's Contractor Only plan covers exactly that at a lower price than the full payroll plans.
Most businesses can complete setup and run a first payroll within a day, assuming you have your bank details and employee information ready.
Yes, starting on the Plus plan — the entry-level Simple plan is built for single-state payroll.
Available, but priced as add-ons on top of the base plan — factor that in if you're planning to offer benefits soon after your first hire.