Gusto Hidden Fees and Add-Ons: The Full Picture
Gusto's base plan pricing is more transparent than most competitors, but there are still significant costs that the main pricing page does not surface prominently. Here is every fee you might encounter.
Complete Add-On and Fee Breakdown
One-time fee per state when Gusto registers your business for payroll tax. Some sources report $99; the $200 figure is more commonly cited for 2026. Required for each new state where you hire employees.
The default on Simple is 2-4 business day direct deposit. Upgrading to next-day costs $15/month plus $3 per employee per month. For a 10-person team, that is $45/month extra. This fee disappears entirely on Plus and Premium, where next-day is included.
Each contractor you pay through Gusto Simple costs $6/month extra. On Plus and Premium, contractor payments are included at no extra charge. If you regularly pay 7+ contractors, this cost alone can justify upgrading to Plus.
If you use your own benefits broker rather than Gusto's built-in broker, Gusto charges $6 per eligible employee per month for benefits administration. This is waived if you use Gusto's benefits broker directly.
Gusto partners with Guideline for 401(k) retirement plans. The cost is $49/month base plus $8 per participating employee per month. A 10-person team where all participate pays $129/month for 401(k) administration. This is entirely optional.
Gusto offers an R&D tax credit identification and filing service for qualifying tech companies. At $50 per eligible employee per month, this is only cost-effective for companies with significant R&D activity and large potential credits. Purely optional.
Paying contractors outside the US costs $6 per contractor per month plus foreign exchange fees for payments in local currency. Payments to international contractors with US bank accounts are $5 per payment. Available through Gusto Global.
Gusto's Employer of Record service lets you hire international employees without setting up a foreign entity. It was raised from $599 to $699 per person per month in March 2026. A promotional rate of $599 may be available through the end of 2026 for new signups.
If you have your own legal entity in a foreign country, Gusto can run payroll there for $29 per employee per month. This is much cheaper than EOR but requires you to have already established a legal presence in that country.
Real Total Cost Scenario: 15 Employees, 5 Contractors, 3 States
| Cost Item | Simple | Plus |
|---|---|---|
| Base plan fee | $49 | $80 |
| 15 employees | $90 | $180 |
| 5 contractors | $30 | $0 |
| Next-day deposit (10p add-on or included) | $45 | $0 |
| Monthly payroll subtotal | $214 | $260 |
| 401(k) for 15 (optional) | $169 | $169 |
| State registration x3 (one-time) | $600 | $600 |
| Total first month (with 401k + states) | $983 | $1029 |
| Ongoing monthly (with 401k) | $383 | $429 |
In this scenario, Simple and Plus are close in ongoing monthly cost once you factor in contractor fees and the next-day deposit add-on on Simple. Multi-state teams almost always find Plus is the better value once all add-ons are included.
How Competitors Compare on Fees
| Fee Type | Gusto | ADP | Paychex |
|---|---|---|---|
| Per payroll run fee | None | $0.90-$2.50/run | Varies |
| Year-end W-2 filing | Included | Included on most plans | Included |
| Multi-state payroll | Plus plan required | Extra fee | All plans |
| New state setup | ~$200/state | ~$25-$100/state | Varies |
| Implementation/setup | None | $25-$150 typical | Varies |
| Contract lock-in | None | Sometimes required | Sometimes required |
Frequently Asked Questions
What are Gusto's most common hidden fees?
The most common surprise costs are: state tax registration at $200 per state when you expand to new states; next-day direct deposit on Simple at $15/mo plus $3/person; contractor payment fees on Simple at $6 per contractor per month; and 401(k) administration at $49/mo plus $8 per participant if you offer retirement benefits. Most of these can be avoided by choosing Plus instead of Simple.
How much does Gusto state registration cost?
Gusto charges approximately $200 per state as a one-time registration fee when setting up payroll in a new state. Some sources cite $99, and the exact fee may vary by state complexity. This covers Gusto filing the employer registration paperwork with the state tax authority on your behalf. It is charged once per state, not monthly.
Does Gusto include 401(k) in the base price?
No. 401(k) retirement plan administration is a separate add-on through Gusto's partnership with Guideline. The cost is $49/month plus $8 per participating employee per month. For a 15-person team where all participate, that is $169/month on top of your base payroll plan cost.
How much does Gusto EOR cost in 2026?
Gusto's Employer of Record (EOR) service costs $699 per person per month as of March 2026, raised from $599. This service allows you to hire international employees in countries where you do not have a legal entity. A promotional rate of $599 may be available for new signups through the end of 2026.
Are there fees to cancel Gusto?
Gusto has no long-term contracts and no early termination fees. You can cancel your account at any time. However, you should complete the current payroll period and ensure all tax filings are submitted before canceling, as mid-cycle cancellations can create compliance issues with outstanding payroll tax obligations.