Guide

Gusto vs Paychex for small contractors

· Last updated Nov 2026 · Figures are estimates, not tax or insurance advice.

A one-person trade shop that just hired a helper needs payroll that can withhold taxes, file federal and state forms, and handle a single work state without a lot of ceremony. Gusto and Paychex both sell that. They are not identical, and they do not disclose pricing the same way. This comparison sticks to what each company publishes and says so when a figure could not be verified.

What Gusto publishes

Gusto's pricing page, fetched November 9, 2026, lists three team plans:

• Simple: $49 per month plus $6 per person per month. Described as basic payroll in one state, with unlimited payrolls, tax filings and payments, and basic PTO and holiday pay.
• Plus: $80 per month plus $12 per person. Adds time tracking and scheduling, unlimited next-day pay, multi-state payroll, and contractor invoice management.
• Premium: $180 per month plus $22 per person. Adds a named advisor, HR guidance, Gusto Business Compliance, and faster pay options.

The same page says plans are month-to-month with no long-term contract, that every plan includes unlimited payroll runs, and that U.S. contractors are billed at the per-person rate only in months you pay them. For a contractor with one W-2 employee on Simple, the public arithmetic is $49 + $6 = $55 a month, or $660 a year. That is the default payroll-software line in our calculator. Add-ons such as next-day pay, same-day pay, or time tracking have separate prices listed on that page if you need them.

What Paychex publishes — and what it does not

Paychex's official Compare Payroll Packages page describes four packages: Basic (essential payroll and HR), Foundations (described as best value, with AI and HR features), Advanced, and Complete. The page lists capabilities rather than dollar amounts: unlimited payroll processing, tax filing through Taxpay, W-2 and 1099 processing, garnishment payments, employee self-service, and, at higher tiers, things like labor-law posters, handbooks, time and attendance, and more involved support. Setup is described as self, assisted, or managed, depending on the package.

The FAQ on that page asks “How much does it cost to outsource payroll?” and answers by telling you to contact Paychex to find a solution for your business and budget. It also says a representative can discuss pricing, discounts, and demos. We could not verify a current official dollar price for Paychex Flex or these packages from that page, so this guide does not invent one or treat a third-party blog estimate as Paychex's price. If you need a number, ask Paychex for a written quote that matches your headcount and state.

How a small contractor might choose

If you want a published, month-to-month price and you only run payroll in one state, Gusto's Simple plan is the option we could price from a public page. If you already want printed labor posters, a handbook builder, a dedicated specialist, or a bundle that is quoted to your shop, Paychex may still be a fit — you just have to get the price from them. Both companies also discuss workers' compensation and benefits as add-on or adjacent services on their sites; those premiums are separate from payroll subscription fees and should be compared with a local insurance quote, including Indiana advisory rates discussed in our workers' comp guide.

Neither product replaces your legal duties: EIN, I-9, W-4, new-hire reporting, and tax deposits still have to happen on time. See the first employee checklist.

Partner links: Gusto Paychex. Read each provider's current terms. This site may earn a commission if you sign up through those links.

Read each provider's current terms on their official site before you sign up. Official pricing sources for this comparison are linked above.

Pricing was read from official public pages on November 9, 2026. It can change without notice. Paychex's lack of a public sticker price is a fact about that page, not a judgment about the product.