Gusto Simple vs Plus: Which Plan Is Right for Your Team?
Simple costs $49/mo + $6/person. Plus costs $80/mo + $12/person. The $31/month base difference and $6/person premium buys you three things: multi-state payroll, free next-day deposit, and free contractor payments. Here is exactly when each plan makes sense.
10 employees: $109/mo
25 employees: $199/mo
50 employees: $349/mo
10 employees: $200/mo
25 employees: $380/mo
50 employees: $680/mo
What You Lose on Simple
Simple is single-state only. If you hire your first employee in a second state, Gusto will not let you run their payroll without upgrading. Multi-state is a hard gate, not a soft limitation.
Simple offers 2-4 business day direct deposit by default. Next-day deposit is available as a paid add-on at $15/month plus $3/person/month. For a 10-person team that adds $45/month. On Plus, next-day deposit is included at no extra charge.
Plus includes Gusto's built-in time tracking and scheduling tools. On Simple, you would need a third-party time tracking app with integration. If your team tracks hours for payroll, this is a meaningful gap.
On Simple, each contractor costs $6/month extra. On Plus, contractor payments are free. This becomes a significant cost driver if you work with several contractors regularly.
Plus includes custom onboarding checklists, offer letter templates, and electronic signatures. Simple has basic onboarding. For companies that hire frequently, Plus saves meaningful admin time.
The Contractor Crossover Point
At 6 contractors, Simple and Plus cost the same.
On Simple: $49 base + ($6 x employees) + ($6 x 6 contractors) = $49 + employee costs + $36 extra.
On Plus: $80 base + ($12 x employees), but contractors are free. At exactly 6 contractors, the Simple contractor surcharge ($36) covers almost the full base fee difference ($31). At 7+ contractors, Plus is cheaper.
| Contractors | Simple contractor surcharge | Base fee difference | Net cost of upgrading |
|---|---|---|---|
| 1 contractors | +$6/mo | $31/mo | $25/mo more for Plus |
| 2 contractors | +$12/mo | $31/mo | $19/mo more for Plus |
| 3 contractors | +$18/mo | $31/mo | $13/mo more for Plus |
| 4 contractors | +$24/mo | $31/mo | $7/mo more for Plus |
| 5 contractors | +$30/mo | $31/mo | $1/mo more for Plus |
| 6 contractors | +$36/mo | $31/mo | $5/mo cheaper on Plus |
| 7 contractors | +$42/mo | $31/mo | $11/mo cheaper on Plus |
| 8 contractors | +$48/mo | $31/mo | $17/mo cheaper on Plus |
| 10 contractors | +$60/mo | $31/mo | $29/mo cheaper on Plus |
Calculation ignores the $6/person per-employee difference between plans. Actual crossover point also depends on your employee count.
Decision Checklist
Upgrade to Plus if you answer yes to any of these:
- ■ Do you have employees in two or more states?
- ■ Do you regularly pay 7 or more contractors?
- ■ Do you need next-day direct deposit?
- ■ Do you track employee hours for payroll?
- ■ Do you hire frequently and need onboarding automation?
Stay on Simple if:
- ■ All your employees are in one state
- ■ You have 6 or fewer contractors (or none)
- ■ Standard 2-4 day direct deposit is acceptable
- ■ You handle time tracking outside Gusto
Frequently Asked Questions
What does Gusto Plus include that Simple does not?
Gusto Plus adds multi-state payroll, next-day direct deposit (free, vs $15/mo add-on on Simple), time tracking tools, advanced onboarding workflows, workforce cost reporting, and contractor payments at no extra charge per contractor. Simple charges $6/contractor/month and is limited to a single state.
Is Gusto Plus worth the extra cost?
Plus is worth it if any of these apply: you have employees in two or more states, you need next-day direct deposit (saves $15+/month vs the Simple add-on), or you pay 7 or more contractors regularly (contractor savings alone offset the upgrade cost). For single-state teams with few contractors, Simple is usually sufficient.
How much more does Gusto Plus cost vs Simple?
The base fee difference is $31/month ($80 minus $49). The per-person fee difference is $6/person/month ($12 minus $6). For a 10-person team, Plus costs $91 more per month than Simple ($200 vs $109). For a 25-person team, the difference is $181/month ($380 vs $199).
Can I switch between Simple and Plus anytime?
Yes. Gusto allows you to upgrade or downgrade your plan at any time. Upgrades take effect immediately and the additional cost is prorated for the remaining billing period. Downgrades typically take effect at the next billing cycle. There is no contract or early termination fee.
If I upgrade to Plus, do I get next-day deposit for free?
Yes. Next-day direct deposit is included at no extra charge on Plus and Premium. On Simple, it requires a paid add-on at $15/month plus $3 per employee per month. For a 10-person team, that add-on costs $45/month on Simple. Combined with the base fee difference, upgrading to Plus can actually be cheaper if you want next-day deposit.