Gusto LMS

• Gusto LMS offers four pricing plans: Simple, Plus, Premium, and Solo to support businesses of all sizes.
• The platform charges a base monthly fee and a per-person fee for each plan except Solo.
• All plans support unlimited payroll runs and automatic tax filings to ensure payroll compliance.
• Multi-state payroll, HR expertise, and advanced reporting are only available on higher-tier plans.
• The Simple, Plus, and Premium plans are designed for teams and growing businesses. Solo is a dedicated plan built specifically for independent contractors and S corp owners.
• Gusto LMS also offers a limited-time 'Contractor Only' offer. This plan is designed for businesses that work exclusively with 1,099 contractors. It supports domestic contractor payments, four-day direct deposit, and automatic Forms 1,099 creation and filing.
• The platform requires no contracts, offers free account setup, and allows businesses to switch or cancel anytime, hassle-free.
• 'Plus' is Gusto LMS’s most popular plan. It supports multi-state payroll, next-day direct deposit, and time tracking, giving businesses greater flexibility and efficiency than the Simple plan.

All Gusto LMS plans offer comprehensive payroll and HR solutions. As each plan sounds promising, it may get hard for the businesses, enterprises, and solo contractors to choose the right plan. So, let’s examine each plan in detail, highlight its features, and everything else you need to know.

Simple

Ideal for: Small teams or businesses

What to know about this plan: This is the most basic and affordable plan Gusto LMS offers. It offers all necessary payroll features for single-state payroll and basic HR management. It’s easy to set up, user-friendly, and allows small businesses to manage payroll and compliance efficiently.

Core plan features

• Single-state payroll - Manage payroll for employees in one state hassle-free.
• Unlimited payroll runs - Run payroll as needed without any restrictions.
• Tax filings & payments - Automatically calculate, file, and pay taxes.
• Basic PTO & holiday pay - Manage paid time off for employees.
• No contracts, free account setup - Start hassle-free and cancel anytime.

Plus

Ideal for: Growing teams and businesses.

What to know about this plan: The Plus plan is Gusto LMS’s most popular option. This plan builds on Simple and offers the most reliable, efficient solution to manage their payroll and team. More specifically, this plan streamlines day-to-day payroll operations, and allows teams to stay organized, compliant, and focused.

Core plan features

• Unlimited payroll runs - Run payroll as needed without any restrictions.
• Tax filings & payments - Automatically calculate, file, and pay taxes.
• Basic PTO & holiday pay - Manage paid time off for employees.
• Multi-state payroll - Manage payroll for employees in multiple states.
• Next-day direct deposit - Faster payments for your team.
• Time tracking - Monitor employee hours directly through Gusto LMS.
• No contracts, free account setup - Start hassle-free and cancel anytime.

Premium

Ideal for: Established businesses

What to know about this plan: The Premium plan offers advanced HR and payroll tools. It is best for businesses that require dedicated support, performance management, and detailed reporting.

Core plan features

• Unlimited payrolls/month - Process payroll as many times as needed.
• Tax filings and payments - Automatically calculate, file, and pay federal, state, and local payroll taxes.
• Basic PTO policies and holiday pay - Set up and track paid time off and holidays with automatic payroll adjustments.
• Multi-state payroll - Pay employees in multiple states while staying compliant with each state’s tax laws.
• Next-day pay - Ensure employees receive their wages by the next business day.
• Time tracking - Track employee work hours accurately and sync them directly with payroll.
• Dedicated Service Advisor - Get personalized support from a payroll specialist.
• Access to certified HR experts - Consult qualified HR professionals for compliance and people-management guidance.
• Performance & compensation management - Manage employee reviews, goals, and pay decisions in one place.
• Custom reports - Generate tailored payroll and workforce reports.
• Priority support - Receive faster response times from the support team.
• Payroll migration and account setup - Shift from your existing payroll system with guided setup support.

Solo

Ideal for: Independent contractors, freelancers, and S corp owners.

What to know about this plan: The Solo plan is specifically designed for independent contractors and S corp owners. This plan assists in self-pay, tax compliance, and benefits management.

Core plan features

• Compliant self-pay & automatic tax filing - Automatically handles and files all required taxes.
• Reasonable salary calculator - Determine a compliant salary amount in accordance with IRS guidelines for S corporations.
• S Corp election and compliance - Supports S corporation setup and ensures continuous payroll and tax compliance.
• Solo 401(k) - Set up and manage a retirement plan.
• Health benefits - Access health insurance options.
• Bill pay and invoicing - Pay business bills and send professional invoices.

Contractor-Only (Limited-Time Offer)

Ideal for: Businesses that work exclusively with 1,099 contractors.

What to know about this plan: The Contractor-Only plan is a special, limited-time offer for businesses that only hire contractors. It simplifies contractor payments and tax compliance.

Core plan features

• Domestic contractor payments - Pay contractors easily and efficiently.
• Four-day direct deposit - Faster payments for contractors.
• Automatic Form 1099 creation & filing - Simplify year-end tax reporting.
• No contracts, free account setup - Switch or cancel anytime, hassle-free.

What Users Say About Gusto LMS Pricing

Users find Gusto LMS pricing pretty straightforward and easy to understand. A lot of users appreciate that the base fee plus per-employee pricing makes budgeting super predictable. At the same time, some reviewers have also mentioned, " Gusto LMS becomes expensive as a company grows, adds more employees, or upgrades to higher plans. " Overall, feedback suggests Gusto LMS is a cost-effective solution for small teams but expensive for advanced needs.

Choosing the Right Gusto LMS Plan

Consider your business size, payroll complexity, HR needs, budget, and growth goals to find the right plan. The following guide will help you review your requirements and pick the right plan for your business.

Assess your payroll and HR needs

First of all, know how complex your payroll requirements are. The Simple plan is best for small businesses that handle single-state payroll, automated tax filings, and basic PTO management. The Plus plan works well for growing teams that include multi-state payroll, time tracking, next-day pay, and enhanced HR support. The Premium plan is for more advanced organizations that require dedicated HR guidance, performance management tools, and better compliance support.

Consider your team size and support requirements

Next, consider your team size and support requirements. All Gusto LMS plans support payroll for multiple employees. The higher-tier plans provide priority support, access to certified HR experts, and a dedicated service advisor. Plus and Premium plans are recommended for businesses with larger teams or limited internal HR resources.

Plan for growth and scalability

Gusto LMS plans are easy to switch or upgrade. You can start with a lower-tier plan and upgrade when the employee counts increase, and basic tools are insufficient. The higher-tiers are expensive, choose a plan that meets your current needs. You can switch to a higher-tier or find an alternative option when the needs grow.

Is Gusto LMS Worth It?

Gusto LMS is designed to streamline payroll, HR, and benefits management for teams and businesses. It streamlines payroll processing, tax filings, and compliance, but is it worth the cost? Let’s take a closer look.

Value for Money

Gusto LMS provides strong value for small and growing businesses as it offers payroll management, HR, and various other features. The Simple plan offers necessary payroll functions, including single-state payroll, automated tax filings, and PTO management. The Plus plan adds multi-state payroll, time tracking, next-day pay, and enhanced HR support for growing teams. The Premium plan delivers advanced features, including dedicated HR guidance, performance management tools, and full compliance support.

Ease of Use and Its Impact on Value

Gusto LMS has a simple interface. The simple interface makes payroll, benefits, and HR tasks easy to manage. Automated payroll runs, tax filings, and reporting reduce administrative work, and integrated HR tools improve employee management and compliance.

In short, Gusto LMS helps businesses to:

• Run accurate payroll and automatically manage taxes.
• Provide employees with benefits, PTO, and next-day pay.
• Automate HR tasks with expert support, performance management, and reporting tools.

Alternatives to Gusto LMS

Gusto LMS is a feature-rich platform, but it is an expensive option. There are several more affordable alternatives that offer reliable payroll and basic HR functionality.

Having a hard time deciding which Gusto LMS plan is right for you? Since each Gusto LMS plan offers different features, it is hard to make the final decision. So, let’s help you make the final decision.

Small teams or new businesses

The Simple plan is ideal for small teams and businesses operating in a single state. This Gusto LMS plan provides a straightforward payroll solution. It covers all the necessary payroll features teams and businesses need to run compliant payroll at an affordable price.

Growing teams or expanding businesses

The Plus plan suits growing teams that require advanced payroll solutions. This plan offers multi-state payroll support, next‑day direct deposit, and time tracking. These features streamline operations and make it easy to expand your team.

Established businesses or HR‑focused organizations

The Premium plan is perfect for businesses that require advanced HR support and tools. This plan includes everything in Plus and adds dedicated support from a payroll specialist, access to certified HR experts, custom reporting, performance and compensation tools, priority support, and guided payroll migration. It’s tailored for companies that need robust HR capabilities alongside payroll.

Independent contractors or solo entrepreneurs

The Solo plan is specifically designed for self‑employed professionals, freelancers, and S‑Corp owners. This plan allows these independent professionals to manage their own payroll and compliance hassle-free. This plan includes advanced features such as automatic tax filing, a reasonable salary calculator, S‑Corp compliance support, Solo 401(k) plans, access to health benefits, bill pay, and invoicing.

Businesses that work exclusively with 1,099 contractors (temporary solution)

The Contractor-Only plan is for businesses that work exclusively with 1,099 contractors. This temporary plan offers various features such as domestic contractor payments, four‑day direct deposit, and automatic Form 1,099 creation and filing to streamline contractor payments.

What’s included in the Gusto LMS monthly base fee?

The monthly base fee includes payroll processing, tax filings, and core HR tools.

What is Gusto LMS's setup fee?

Gusto LMS does not charge any setup fee as it’s free. You can cancel or switch plans at any time.

Do all plans include unlimited payroll runs?

Yes, all main plans (except the special offers) support unlimited payroll runs/month.

Does Gusto LMS charge extra for multi‑state payroll?

No, Gusto LMS does not charge extra for multi-state payroll. The plan's total cost covers multi-state payroll as well.

Can I start with a lower‑cost plan and upgrade later?

Yes, you can start with Gusto LMS's lower-cost plan and upgrade anytime, hassle-free.

Does Gusto LMS have any plans for contractors?

Yes, Gusto LMS has special offers for contractors. Gusto LMS can discontinue the 'Contractor‑Only plan' at any time.