Justworks vs Gusto (2027): Which Is Better?

Gusto is the better choice for most small businesses that just need payroll. Justworks is mainly a PEO: it becomes a co-employer of your staff, files payroll taxes under its own tax ID and, on PEO Plus, administers health insurance. That costs far more per person. This comparison uses each vendor's pricing pages and help docs, checked November 12, 2026.

Monthly cost at 5, 20 and 50 employees

Regular published prices, one state, employees only.

Plan	5	20	50
Gusto Simple (1 state)	$79	$169	$349
Gusto Plus	$140	$320	$680
Justworks Payroll (non-PEO)	$90	$210	$450
Justworks PEO Basic	$395	$1,580	$3,950
Justworks PEO Plus	$620	$2,480	$6,200

Justworks' payroll-only plan is $50/mo + $8 per employee. PEO Basic is $79 and PEO Plus $124 per employee per month with no base fee, per its pricing page. Gusto Simple is $49/mo + $6 per person.

Taxes, states, deposit speed and support

Gusto files federal, state and local payroll taxes plus W-2s and 1099s on every plan, per its pricing page. Justworks includes employer payroll tax filings and W-2 and 1099 filings on every plan. On the PEO plans its help center says it e-files federal, state and local taxes under its own EIN, so you get your tax data from reports rather than your own filings.

Justworks includes all 50 states on every plan, though on the payroll-only plan you must register in each state where remote staff work. Gusto Simple covers one state; more states need Plus.

Gusto includes next-day deposit on Plus and Premium and sells it on Simple for $15/mo + $3 per person. Justworks doesn't state a deposit speed on its pricing or payroll pages.

Justworks offers phone, chat and email on every plan and 24/7 support on the PEO plans. Gusto charges $30/mo + $3 per person for priority phone and chat on Simple and Plus. Justworks bills monthly; Gusto runs month to month.

The traps on each side

Justworks:

• PEO needs at least two W-2 employees and an approved workers' comp application.
• Part-time employees cost the full $79 on PEO and can't get benefits.
• PEO bills every active employee, including staff on leave and seasonal workers who haven't been terminated.
• Time tracking is $8 per employee per month extra.
• Trustpilot: 2.2/5 from 40 reviews.

Gusto:

• A second state means moving from Simple to Plus.
• Same-day pay is $90 per payroll and instant pay $100 per payroll on Simple and Plus.
• New state tax registrations cost extra, priced by state.
• Trustpilot: 3.3/5 from 2,767 reviews.

Choose Justworks if...

Choose Justworks PEO if you want health, dental and vision benefits administered for you (PEO Plus), you want EPLI and HR consulting included, or you want 24/7 support. It suits teams of mostly full-time staff, since part-timers cost the same and get no benefits. If you only need payroll, Justworks Payroll at $90/mo for 5 employees includes multi-state.

Choose Gusto if...

Choose Gusto if you need payroll and tax filing without a co-employer, you employ part-timers or seasonal staff, or you want the lowest published price of the two ($79/mo for 5 employees on Simple). If you have staff in several states, compare Gusto Plus with Justworks Payroll at your headcount.