Gusto vs Paychex

Gusto's Simple plan ($49/mo + $6/person, after a 23% increase in March 2026) lacks multi-state payroll, time tracking, and PTO management. A 50-person company on Plus ($80/mo + $12/person) pays $680/month — $8,160/year — before benefits administration fees.

Gusto charges additional monthly fees for state tax registration in each state where you have employees. Companies with remote workers across 10+ states report $50-100/month in additional state registration fees.

Benefits administration adds broker fees and per-employee surcharges on top of insurance premiums. Users report Gusto's health insurance options are often 10-20% more expensive than going directly through a broker.

Gusto's customer support has degraded significantly according to recent reviews. Users report 2-4 hour wait times for phone support and critical payroll issues taking days to resolve — a serious risk when employees depend on timely pay.

Paychex does not publish pricing on its website — all quotes require a sales call. Users report base fees of $39-150/month plus $5-15 per employee per pay period. A 50-person company running biweekly payroll can pay $500+/month.

Paychex charges setup fees ranging from $50 to over $1,000 depending on company size and services. Users report these fees are negotiable but not disclosed upfront, creating sticker shock after the sales process.

Annual price increases of 8-15% are widely reported on Reddit and Trustpilot. Multiple users report calling to cancel as the only effective way to negotiate prices back down — a waste of management time every renewal cycle.

The platform's interface is described as dated and difficult to navigate. Users report that basic tasks like running reports or adjusting withholdings require multiple clicks through unintuitive menus, increasing the time cost of every payroll run.