Gusto vs Justworks (2026): Payroll Software or PEO for a Startup, With Costs by Stage
This is mostly a choice between payroll software and a PEO. Pick Gusto if you are US-only, want to stay the sole employer and buy health insurance through a broker: at seed it costs $2,688 a year on Plus. Pick Justworks Payroll if you only need payroll across several states: $1,752 a year for the same team, the cheapest option here. Pick Justworks PEO if you want its group health plans and HR support, and the premiums you are quoted beat the small-group market by more than $79 to $124 per person a month. If you will employ people abroad, neither is a clean answer: Gusto refers new customers to Remote, and Justworks only sells EOR with a PEO plan.
Cost side by side
| US-only team | Pre-seed: 3 people, 1 state | Seed: 12 people, 2 states | Series A: 40 people, 2 states |
|---|---|---|---|
| Gusto (Simple at pre-seed, then Plus) | $804 | $2,688 | $6,720 |
| Gusto Premium | $2,952 | $5,328 | $12,720 |
| Justworks Payroll | $888 | $1,752 | $4,440 |
| Justworks PEO Basic | $2,844 | $11,376 | $37,920 |
| Justworks PEO Plus | $4,464 | $17,856 | $59,520 |
| US employer payroll taxes | $26,421 | $114,650 | $431,753 |
| Health cover + workers' comp | $24,942 | $99,768 | $332,560 |
Annual fees from our payroll cost model, prices read October 13, 2026. Salaries $110K / $120K / $135K; pre-seed all in California, seed 10 California + 2 Texas, Series A 32 California + 8 New York; 2026 federal and new-employer state rates; health = KFF average employer share of single cover.
| US + abroad team | Pre-seed: 2 US + 1 abroad | Seed: 8 US + 4 abroad | Series A: 28 US + 12 abroad |
|---|---|---|---|
| Gusto + Remote EOR at $599 | $7,920 (16 runway days) | $30,864 (27 days) | $91,248 (29 days) |
| Justworks PEO Basic + Justworks EOR at $599 | $9,084 (18 days) | $36,336 (31 days) | $112,800 (36 days) |
| EOR fees alone | $7,188 | $28,752 | $86,256 |
Same model. Abroad: Germany at pre-seed; Germany, UK, Canada and India at seed; two each in Germany, UK, Canada, India, Poland and Brazil at Series A. Runway assumes $500K / $3M / $12M cash and $10K / $50K / $250K MRR. Remote's EOR list price has shown both $599 and $699 this year, and Remote offers Gusto customers $100 a month off for the first year; neither is applied here.
On a US-only team the software gap is a rounding error next to taxes and benefits; even PEO Plus is about 10 days of runway at seed. Once people sit abroad, the EOR fee is most of the bill, and the Justworks route costs more only because it forces the PEO on your US staff.
Run your own team with your states, salaries and countries.
Prices
| Plan | Price (monthly / billed yearly) | For / limits |
|---|---|---|
| Simple | $49/mo + $6/mo per person | Run basic payroll in one state: unlimited payrolls, tax filings and payments, basic PTO and holiday pay; Single state only (support.gusto.com: 'Simple covers one state; Plus and above cover multiple states') |
| Plus | $80/mo + $12/mo per person | Multi-state payroll, time tracking and scheduling, unlimited next-day pay, contractor invoice management, workforce cost reports |
| Premium | $180/mo + $22/mo per person | Named advisor (Premium Account Support), HR guidance and tools, Gusto Business Compliance, unlimited same-day and instant pay, project-based costing |
| Solo | $49/mo + $6/mo per person | Owner-only businesses (no W-2 employees besides the owner), S corp self-pay |
| Contractor Only (legacy) | Closed to new customers | |
| Add-on: Global contractor payments | No monthly per-contractor fee; $5 per payment to a US bank account; local-currency payouts 1.5%-2% (or 1%-1.5% per another section of the same article), USD to local bank 0.75%-1.5% min $15 max $100; FX markup built into the rate, not disclosed | support.gusto.com/article/106622337100000; requires at least one US employee on non-contractor plans |
| Add-on: State tax registration | Pricing varies by state | Done via Middesk; price shown in-app before ordering |
| Add-on: Gusto Business Compliance | $85/mo per state, annual contract | Included in Premium |
| Add-on: Next-day pay | $15/mo + $3/mo per person | Simple only; included in Plus and Premium |
| Add-on: Same-day pay | $90 per payroll | Included in Premium |
| Add-on: Instant pay | $100 per payroll | Included in Premium |
| Add-on: Time & Attendance Plus | Free trial, then $6/mo per person | Simple plan |
| Add-on: Priority Support | $30/mo + $3/mo per person | Simple and Plus |
| Add-on: Remote I-9 | $20/submission | Included on Premium |
| Add-on: E-Verify | $5/submission on top of Remote I-9 | Included on Premium |
| Add-on: Health insurance with Gusto as broker | Premiums only, no admin fee | |
| Add-on: Broker integration | $6/mo per eligible employee | |
| Add-on: Workers' compensation | Starting at $14/mo | Through NEXT Insurance |
| Add-on: HSA | $2.50/mo per participant | One $200 annual service charge covers HSA/FSA/DCFSA/commuter |
| Add-on: FSA / Dependent care FSA / Commuter | $4/mo per participant each, $20/mo minimum | |
| Add-on: R&D tax credits | 15% of identified credits | |
| Add-on: Gusto Money Plus | $19/mo | |
| Add-on: International employees (EOR) | New customers since May 1, 2026 are referred to Remote; Gusto help center states 'as low as $599 per employee per month' | support.gusto.com/article/231027160926237 |
Prices verified on gusto.com/product/pricing on October 13, 2026.
| Plan | Price (monthly / billed yearly) | For / limits |
|---|---|---|
| Payroll | $8/month/employee + $50/month base fee | Payroll and HR tools, multi-state payroll, access to time tracking; any company size |
| PEO Basic | $79/month/employee, no base fee | PEO: payroll, compliance, HR consulting, 24/7 support, 401(k), EPLI, workers' comp access (required for PEO); PEO needs at least two full- or part-time W-2 employees |
| PEO Plus | $124/month/employee, no base fee | Adds medical, dental, vision administration, COBRA, HSA/FSA, mental health and fertility benefits; PEO needs at least two W-2 employees |
| EOR | $599/month/employee, no base fee | International full-time employees; Add-on available in PEO Basic and PEO Plus only |
| Add-on: Time Tracking | $8/month per employee | |
| Add-on: International contractors | $39/month per paid contractor + exchange rate fees | 60+ countries; FX 'with operating costs built in' |
| Add-on: US-based contractors | $8/month per paid contractor, only in months paid | |
| Add-on: Payroll + Health Insurance | $8/month per benefits-eligible employee | Payroll plan only |
| Add-on: Dedicated HR Consulting | $30/month per employee | PEO Basic and Plus |
| Add-on: Health Insurance Reimbursements (CHOICE, via Thatch) | $25/month per enrolled employee | |
| Add-on: Part-time employees | $79 per part-time employee on PEO; $8 on Payroll | Part-time (29 or fewer hours) not benefits-eligible on PEO |
Prices verified on justworks.com/pricing on October 13, 2026.
What actually decides it
1. Do you want a co-employer?
Gusto's plans are payroll and HR software: you stay the only employer of record. Justworks PEO makes Justworks a co-employer, which is how it gets you into its group health plans and why workers' comp through Justworks is required. Justworks Payroll is plain software like Gusto. Justworks PEO needs at least two W-2 employees.
2. Health insurance
Gusto brokers health plans with no admin fee (you pay premiums only), or connects your own broker for $6 per eligible employee a month. Justworks PEO Plus includes medical, dental and vision administration, COBRA, HSA and FSA. The question to price is the premium, not the fee: get a small-group quote and a Justworks quote for the same people.
3. More than one state
Gusto Simple covers one state only, so the first hire in a second state moves you to Plus ($80 + $12 per person). Justworks Payroll includes multi-state payroll at $50 + $8. That is why Justworks Payroll is cheaper from seed on in the table above.
4. People outside the US
Gusto pays international contractors with no monthly fee but per-payment charges; its help article gives both "1.5%-2%" and "1%-1.5%" for local-currency payouts, with FX markup built in. Since May 1, 2026 it refers new customers to Remote for EOR. Justworks charges $39 per paid international contractor a month plus exchange-rate fees, and $599 per EOR employee, but only on PEO Basic or Plus.
5. Price direction
Both have raised prices recently. Gusto Simple went from $40 to $49 in spring 2025. Justworks raised PEO Basic from $59 to $79 in mid-2025 and PEO Plus from $109 to $124 in June 2026, after $99 to $109 in 2024. Neither offers an annual contract discount; both bill monthly.
6. Contractors only
Gusto closed its Contractor Only plan to new customers on October 1, 2026. Justworks Payroll charges $8 per US contractor in months you pay them, on top of the $50 base.
Switching and lock-in
Neither has a contract term: Gusto is month to month, Justworks bills monthly. The real lock-in sits elsewhere. Leaving a PEO means replacing the group health plan your team is on, so plan an exit around open enrollment. Changing payroll provider mid-year means the new one needs your year-to-date wages and tax payments for W-2s, so the cleanest switch is at the start of a quarter. Download every payroll register and tax filing before you close the old account.
Not hands-on tested yet: we have not run a live account on Gusto or Justworks. Prices and terms come from each vendor's published pricing page and help center, read on October 13, 2026.
Frequently asked questions
Is Gusto a PEO?
No. Gusto sells payroll and HR software and brokers benefits; you remain the employer. Justworks offers both a PEO (Basic, Plus) and plain payroll software.
Which is cheaper, Gusto or Justworks?
For payroll software across two or more states, Justworks Payroll: $1,752 a year at 12 people vs $2,688 on Gusto Plus. In one state with three people, Gusto Simple is slightly cheaper ($804 vs $888). Justworks PEO costs several times either.
Can Gusto or Justworks pay employees outside the US?
Both pay international contractors. For employees abroad, Gusto refers new customers to Remote, and Justworks sells EOR at $599 a month only with its PEO.
What is the Justworks minimum?
Two W-2 employees for the PEO; no minimum for Justworks Payroll.
More: Gusto pricing, Justworks pricing, Gusto alternatives and the payroll and EOR hub. To see what the next hires do to burn, use the headcount calculator.