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Gusto Review (2026)

4.8RatingBest for: small trade businesses and contractors who want all-in-one payroll, benefits, and HRStarting price: $40/moPayroll types: W-2, 1099, Multi-state
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Quick verdict

Our take in a nutshell.

Gusto is our top pick for most contractors and small trade businesses. It handles W-2 and 1099 payroll in one platform, automates tax filing and deposits, and bundles benefits and HR tools so you don't need a patchwork of apps. Setup is straightforward, and the contractor self-service portal keeps everyone aligned on pay stubs and documents.

We like Gusto for its clarity: pricing is easy to understand, there are no long-term contracts, and it scales well from a handful of employees to dozens. Multi-state payroll and compliance are built in, which matters for contractors who work across state lines.

Limitations to keep in mind: costs can add up as headcount grows, some advanced reporting lives on higher tiers, and phone support isn't 24/7 on the base plan. For most small crews and mixed W-2/1099 setups, Gusto still offers the best balance of features and ease of use.

Rating breakdown

How we scored this product.

  • Features

    4.8

    Strong set of payroll, tax, benefits, and HR features in one product. W-2 and 1099 support, automatic tax filing, contractor portal, and integrations with major accounting and time-tracking tools.

  • Pricing

    4.6

    Clear tiered pricing with no hidden fees or long-term contracts. Base plan is competitive; per-person costs can add up for larger teams.

  • Ease of Use

    4.9

    One of the easiest payroll products to set up and run. Onboarding is guided, and the contractor self-service experience is straightforward.

  • Support

    4.5

    Email and chat support plus a solid help center. Phone support and dedicated experts are available on higher tiers.

  • Integrations

    4.7

    Integrates with QuickBooks, Xero, FreshBooks, TSheets, When I Work, Expensify, and other tools contractors already use for accounting and time tracking.

Pros and cons

What we liked and what to watch for.

Pros

  • Full W-2 and 1099 support with automatic tax filing
  • Contractor self-service portal for pay stubs and documents
  • Built-in benefits (health, 401k) and HR tools
  • Clear pricing and no long-term contracts
  • Strong for multi-state and remote teams

Cons

  • Can get pricey as headcount grows
  • Some advanced reporting requires higher tiers
  • Phone support not 24/7 on base plans

Who this software is best for

Ideal users and use cases.

Gusto is best for small trade businesses, contractors, and field service teams that want a single platform for payroll, benefits, and HR. Ideal users include HVAC and plumbing companies, electrical contractors, landscapers, roofing crews, and cleaning businesses that run a mix of W-2 employees and 1099 subcontractors. It fits teams that value simplicity and don't want to juggle multiple vendors for pay runs, tax filing, and benefits.

Who should avoid it

Very large employers (hundreds of employees) may find per-person costs prohibitive and may need enterprise-focused features. Businesses that need heavy job-costing or project-based payroll might want a construction-specific suite. If you need 24/7 phone support on the cheapest plan, look at alternatives that include it.

Pricing overview

What to expect to pay.

Gusto's pricing is tiered by plan and number of people paid. The Simple plan starts at $40/month plus $6 per person. Core and Full add more features like time tracking, PTO, and expert support. For contractors, the per-person cost applies to both employees and contractors paid per run.

Simple covers core payroll and tax filing. Core adds time tracking, PTO, and hiring tools. Full adds R&D tax credits, workforce planning, and priority support. Add-ons include health benefits administration and 401(k).

Gusto sits in the mid-to-upper range for small-business payroll. It's more affordable than full-service providers like ADP or Paychex for small teams, and competitive with OnPay and QuickBooks Payroll. The main cost driver is headcount; compare per-person fees if you have many employees or contractors.

Starting price: $40/mo

Key features

What stands out.

  • W-2 and 1099 payroll

    Run pay for employees and contractors in one place. Unlimited pay runs, automatic tax calculations, and support for multiple pay rates and schedules.

  • Automated tax filing

    Federal and state tax filing and deposits are handled by Gusto. You stay compliant without managing deadlines and forms manually.

  • Employee and contractor self-service

    Workers can access pay stubs, tax documents, and update their info in a portal. Reduces back-and-forth and keeps records in one place.

  • Contractor management

    Pay 1099 contractors, track payments, and generate 1099-NEC forms. Contractors can view payment history and download documents.

  • Benefits administration

    Offer health, dental, vision, 401(k), and other benefits through Gusto. Administration is built in so you don't need a separate benefits broker for basics.

  • Time tracking and PTO

    On Core and Full plans, track hours and manage PTO. Integrates with payroll so approved time flows into pay runs.

  • Multi-state payroll

    Run payroll across multiple states with the right tax and compliance handling. Useful for contractors who work or have workers in different states.

  • Accounting and time-tracking integrations

    Syncs with QuickBooks, Xero, FreshBooks, TSheets, When I Work, Expensify, and others so payroll data flows into the tools you already use.

Integrations

Plays well with your stack.

For contractors, integrations matter because payroll rarely lives in a vacuum. You need time from the field to flow into pay runs, and payroll data to sync with your accounting software for job costing and taxes. Gusto connects to the tools many trade businesses already use, so you can keep one source of truth without re-entering data.

  • QuickBooks Online
  • Xero
  • FreshBooks
  • TSheets
  • When I Work
  • Expensify

How contractors use this software

Real-world workflows for trade businesses.

  • Paying field crews: Run payroll for W-2 technicians and office staff on a regular schedule, with hours from time tracking or manual entry.
  • Handling subcontractors: Pay 1099 subs per job or on a schedule. Track payments and issue 1099-NEC at year-end without a separate system.
  • Seasonal employees: Add and remove seasonal workers without long-term contracts. Gusto scales up and down with your busy and slow seasons.
  • Job costing integration: Send payroll data to QuickBooks or Xero so labor costs land on the right jobs and projects for accurate margins.

Alternatives

Other options we review.

  • QuickBooks Payroll

    Tight integration with QuickBooks; good if you already run everything in Intuit's ecosystem.

  • OnPay

    Straightforward pricing and strong for small teams; fewer bells and whistles than Gusto.

  • ADP

    Enterprise-scale features and support; often better for larger employers.

  • Paychex

    Full-service payroll and HR; suited to businesses that want a dedicated rep and more hand-holding.

  • Rippling

    Payroll plus HR and IT in one platform; good for growing teams that want automation and breadth.

  • Square Payroll

    Simple payroll for businesses already using Square; easy setup and straightforward pricing.

  • Patriot Payroll

    Budget-friendly payroll; good if you want lower cost and simpler basics.

  • Justworks

    PEO-style payroll and benefits; good if you want large-group benefits and one vendor.

  • Deel

    Global contractor and employee payments; use when you have or plan to have international workers.

Compare with other payroll software

See how Gusto stacks up head-to-head.

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Gusto FAQs

Quick answers.