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Compare/Payroll

I use Gusto

Gusto vs Paychex

Paychex’s entry price can come in lower. Gusto shows every price up front, with no contract, no setup fee, and nothing to negotiate.

Shanin Drucquer

Shanin Drucquer, owner of Iconic LandscapingUpdated October 2026

Where this comes from: I run payroll for my landscaping crew on Gusto. Paychex’s packages are from paychex.com, and its prices from 2026 quotes and pricing reports, since Paychex sells Flex by quote.

On this page

Which to pick

My pick for most small businesses

Gusto

  • Every price is public
  • No contract or setup fee
  • Sign up and run payroll today

You want the full price before you sign

Gusto

Every plan is on its pricing page, from $49 + $6/person. Paychex prices its plans by quote.

You want the lowest quoted monthly price

Paychex Flex

Flex Essentials is widely quoted at $39 + $5/employee, below Gusto Simple. Ask for setup and year-end fees in writing.

You want a dedicated payroll rep

Paychex Flex

Paychex is built around a payroll specialist you can call; Gusto’s dedicated advisor comes with Premium.

You want to cancel anytime

Gusto

Month to month. Paychex agreements are reported to auto-renew, so check the cancellation terms.

$100 Visa gift card after your first payroll, through my referral link.

Is Paychex cheaper than Gusto?

Gusto is list price. Paychex Flex Essentials is the most-cited figure ($39 + $5 per employee); Paychex prices by quote, and buyers report setup fees of $0–$500 and extra charges for year-end forms.

Monthly cost for 8 people

  • Gusto

    Simple

    $97

  • Paychex Flex

    Flex Essentials

    $79

Paychex Flex is $18 a month cheaper, about $216 a year.

“Setup took me about an hour with my EIN, bank account, and state account numbers in hand.”
Shanin Drucquer, Iconic Landscaping

Where they actually differ

Pricing

Gusto

Published on its site (better)

Paychex

By quote

Contract

Gusto

Month to month (better)

Paychex

Agreement, reported to auto-renew

Setup fee

Gusto

$0 (better)

Paychex

$0–$500 reported

Support

Gusto

Phone and chat; dedicated advisor on Premium

Paychex

Dedicated payroll specialist from Select up (better)

Retirement and PEO

Gusto

Gusto 401(k) built in

Paychex

401(k) plans and a PEO from Paychex

QuickBooks sync

Gusto

Included (better)

Paychex

Extra on lower tiers, reported

Both run payroll with federal, state, and local tax filing, pay employees and contractors, and offer time tracking, benefits, and HR tools.

Prices checked: Gusto September 30, 2026, Paychex October 13, 2026. Sources: Gusto pricing, Paychex small business payroll, FitSmallBusiness: Paychex Flex review.

Every plan, side by side

Each plan includes everything in the plans listed before it.

Gusto

  • Simple$49 + $6/person

    Single-state payroll, tax filing, unlimited payrolls, onboarding

  • Plus$80 + $12/person

    Multi-state payroll, next-day pay, time tracking, workforce cost reports

  • Premium$180 + $22/person

    Same-day and instant pay, HR experts, a dedicated advisor, priority support

  • Contractor Only$35 + $6/contractor

    1099 contractors only, with a $0 base fee for the first 6 months

Paychex

  • Flex Essentials$39 + $5/employee

    Payroll and tax filing (most-cited price; quote-only)

Flex Select adds a dedicated payroll specialist and more HR tools, and Flex Pro and Enterprise add more on top. All are priced by quote.

What costs extra

The plan price covers payroll. These come on top, or are the reasons to move up a plan.

Gusto

Year-end W-2s
Included (better)
Time tracking
Included on Plus, or $6/person on Simple
Next-day pay
Plus and Premium, or $15/mo + $3/person on Simple
Leaving
Cancel anytime (better)

Paychex

Year-end W-2s
Extra charge reported
Time tracking
Add-on, priced in your quote
Next-day pay
Priced in your quote
Leaving
Check notice period; early termination fees reported

Ask Paychex for an itemized quote: base fee, per-employee price, setup, year-end forms, QuickBooks sync, and cancellation terms.

Switching from Paychex to Gusto

  1. 1.

    Read your Paychex agreement first

    Check the renewal date and notice period so you don’t roll into another term or pay a termination fee.

  2. 2.

    Pick a quarter start

    Switching on January 1, April 1, July 1, or October 1 keeps each quarter’s filings in one system.

  3. 3.

    Export your payroll history

    Pull year-to-date payroll registers from Paychex. Gusto asks for them during setup so W-2s come out right.

  4. 4.

    Run one payroll, then cancel

    Turn Paychex off after your first Gusto payroll clears, and confirm in writing that Paychex won’t file for the new quarter.

Common questions

Is Paychex cheaper than Gusto?

On the most-cited price, yes: Paychex Flex Essentials at $39 + $5/employee comes to $89 a month for 10 people, against $109 a month on Gusto Simple. Paychex prices by quote, though, and buyers report setup fees and extra charges for year-end forms, so compare full first-year costs.

Is Paychex better than Gusto?

Paychex suits businesses that want a dedicated payroll rep and a big provider for 401(k) and PEO services. Gusto suits owners who want to see every price, skip contracts, and set up payroll themselves in an afternoon.

Does Paychex have a contract?

Paychex works under a service agreement, and buyers report that it auto-renews, with early termination fees if you leave mid-term. Gusto is month to month.

What is Paychex Flex?

Paychex’s payroll and HR software for small and midsize businesses, sold in tiers: Essentials, Select, Pro, and Enterprise, each by quote.

Which is easier to set up?

Gusto is self-serve: setup took me about an hour with my EIN, bank account, and state account numbers. Paychex sets you up through its sales and onboarding team.

Do Gusto and Paychex both offer a 401(k)?

Yes. Gusto’s 401(k) is built in since it acquired Guideline, and Paychex has long offered 401(k) plans alongside payroll.

Sources: Gusto pricing, Paychex small business payroll, FitSmallBusiness: Paychex Flex review. How we research

Start with Gusto if you want a price you can see and a plan you can leave anytime. Get a Paychex quote if you want a dedicated payroll rep, and compare its full first-year cost.

Payroll

Gusto

$100 Visa gift card after your first payroll.

Start with Gusto

Full-service payroll

Paychex

Ask for an itemized quote, including setup and year-end fees.

Get a Paychex quote

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