Gusto alternatives: switch payroll without breaking your tax filings
Nine destinations, one per situation, and an eight-step switch plan.
The short answer: OnPay if your team is in the US and you want one published price with every state included; Patriot if cost comes first; QuickBooks Payroll if your books already live in QuickBooks Online; RUN by ADP or Rippling if you're growing past 50 people; Deel or Remote once anyone works outside the US. If you only pay contractors, you may not need payroll at all: TaxBandits or Avalara 1099 & W-9 file your 1099s for a few dollars a form, and the IRS has a free portal too. We compared all nine and reread their official pricing pages in 2026.
The ranking is editorial: a sponsored spot is always labeled on its card, and no affiliate link changes a score.
Why teams leave Gusto, and what makes it hard
Gusto earned its reputation honestly. Owners pick it over ADP because the base price covers the essentials, W-2s included, and Gusto takes liability for the tax filings it makes. People leave for other reasons: a bill that keeps creeping up, the first hire in a second state, support that's hard to reach, and walls you hit outside the US. Here are the six that come up again and again in user reviews and forum threads in 2026.
Price increases keep coming
The entry plan's base fee has gone up more than once, and users are still reporting a jump of roughly 23% plus legacy plans being moved to pricier tiers. This isn't new: Gusto raised prices for all customers years ago too. Check Gusto's current entry price on its own pricing page, then compare it against your real headcount, base fee plus per-person fee.
A second state means a new plan
Users and comparison sites describe the same scenario: hire one remote employee who lives in another state and your entry plan stops being enough, so the bill goes up. Check whether multi-state payroll is included in your own Gusto plan. OnPay includes as many states as you need in its single plan, which is often the deciding gap for distributed teams.
Support you can't reach
The most common complaint in recent reviews: over an hour on the phone, bounced between departments, and no clear way to speak to a real person. Gusto's score on consumer review sites sits well below its score on software directories, where people mostly rate the product.
State tax accounts that won't close
Users describe state withholding and unemployment accounts they couldn't shut down from inside the app, filing errors, and W-2s that needed fixing at year-end. Some threads report thousands of dollars tied up after a filing mistake. Gusto stands behind the filings it makes, but you're the one spending hours untangling the notices.
Add-ons push the bill past the sticker
Priority support, HSA and FSA administration, R&D tax credit help, benefits: several services cost extra on top of the base. Reviewers call them "a la carte fees" that should be included. Before you compare, add up what your Gusto invoice actually says each month, not the price list.
Outside the US, Gusto runs out of road
Gusto can pay contractors abroad, but it only files 1099-NECs for US contractors, and it has no entity of its own to employ someone abroad on your behalf. Hiring a full-time engineer in Poland or Brazil means a separate employer of record (EOR) such as Deel or Remote.
You're leaving because… go to…
Four situations cover almost every Gusto exit: you stay US-only, you have people abroad, you only pay contractors, or you've outgrown small-business payroll. Find your line, then jump to the full card below.
$49 a month plus $6 per person, every state and free data migration included.
You want the cheapest full-service payrollPatriotFull Service from $37 a month plus $5 per person.
Your books are already in QuickBooks OnlineQuickBooks PayrollPayroll bundled with accounting, unlimited 1099 e-filing.
You're past 50 people or also manage devices and appsRippling or RUN by ADPRippling for HR plus IT, ADP for an established payroll service.
You have people outside the USDeel or RemoteContractors from $29 to $49 a head, EOR from $599 a month.
You only pay US contractors (1099s)TaxBandits or Avalara1099 e-file from $2.75 or $3.10 a form, dropping with volume.
Gusto alternatives, tool by tool
Each card covers why you'd move, who it fits, the catch, how to get there from Gusto, and the price the vendor publishes in 2026. The first five run full US payroll. Deel and Remote cover people abroad. The last two are 1099 e-file tools for businesses that pay contractors but no employees.
OnPay: the most direct replacement
Closest to GustoWhy switch to OnPay. OnPay does the same job as Gusto with a single plan and a price you can read: Payroll Essentials at $49 a month plus $6 per worker. Federal, state and local tax filings are included, so are W-2s, 1099s and year-end filings, and you can pay people in as many states as you need. Owners comparing the two often describe OnPay as just as complete for less.
Best for. US small businesses with 2 to 50 people, especially remote teams spread across states.
Not for. Anyone with employees abroad: OnPay is US payroll only.
The catch. One plan means little choice, and no deep HR suite like Rippling's. The footer's "starts at $55" already counts one worker. For 10 people, expect $109 a month.
Moving from Gusto. OnPay handles data migration for free and charges no implementation or integration fees. Have your Gusto payroll registers for the year (year-to-date totals by employee) and your state tax account numbers ready: that's what their team will ask for.
- Price
- $49/mo + $6/person
- Multi-state
- included
- Migration
- free
- Catch
- US only
Patriot: the cheapest full-service payroll
Budget pickWhy switch to Patriot. Patriot has the lowest published prices among the full-service payroll tools we compared. Full Service costs $37 a month plus $5 per worker and includes federal, state and local tax deposits and filings. Ten employees come to $87 a month. Basic, at $17 plus $4, calculates pay but leaves the tax filing to you.
Best for. Stable US small businesses with a handful of employees and a tight budget.
Not for. Teams that want managed benefits or advanced HR tools.
The catch. Basic is a trap if you're coming from Gusto: it hands tax deposits back to you. Basic customers also pay nominal fees to e-file 1099s. Pick Full Service if you want the same hands-off feel.
Moving from Gusto. Patriot gives you 30 days free, enough to run a shadow payroll next to Gusto. Enter year-to-date totals, compare each employee's net pay with Gusto, then switch at the next quarter.
- Price
- $37/mo + $5/person
- Basic
- $17 + $4, you file
- Trial
- 30 days
- Catch
- light on HR
QuickBooks Payroll: if your books already live in Intuit
Payroll plus accountingWhy switch to QuickBooks Payroll. If you already keep your books in QuickBooks Online, running payroll in the same place removes a sync and a source of mismatches. Intuit now sells payroll bundled with accounting: Workforce Payroll with Simple Start at $88 a month plus $6.50 per employee, with Essentials at $125 plus $6.50, and Workforce Premium with Plus at $203 plus $10. You can create and e-file unlimited 1099-MISC and 1099-NEC forms.
Best for. Businesses already on QuickBooks Online that want one bill for books and payroll.
Not for. Anyone keeping their accounting elsewhere: you'd pay for software you don't use.
The catch. The price includes accounting, so it looks higher than payroll alone: $153 a month for 10 employees with Simple Start. The intro discount halves the price for three months, so don't compare on that number.
Moving from Gusto. Switch at the start of a quarter if you can. Enter year-to-date totals from your last Gusto register and reconcile them before the first live run. If Gusto was syncing to QuickBooks, turn that sync off on switch day to avoid duplicate entries.
- Price
- from $88/mo + $6.50/employee (with accounting)
- 1099s
- unlimited e-file
- Best for
- QuickBooks Online users
- Catch
- bundled with accounting
RUN by ADP: an established payroll provider
Quote onlyWhy switch to RUN by ADP. ADP is the pick for owners who want a long-established provider, strong reporting and room to grow. RUN comes in four packages, from Essential to HR Pro, with HR tools stacking up as you go. Owners who compared it to Gusto describe ADP as great for scaling and reports.
Best for. Businesses with 10 to 50 people that want a payroll contact and plan to add HR.
Not for. Very small teams that want to compare prices online before talking to sales.
The catch. No price is published: everything goes through a quote, and the free months advertised at sign-up say nothing about year two. Get the per-employee price and any year-end fees in writing. If you're on ADP and thinking of leaving it instead, see our guide to switching from ADP.
Moving from Gusto. Have your year-to-date totals by employee, this quarter's filings and your state tax accounts ready for the quote. Ask who files Form 941 for the current quarter, and get it into the contract.
- Price
- quote only
- Packages
- Essential, Enhanced, Complete, HR Pro
- Best for
- growth, reporting
- Catch
- no public price
Rippling: once you pass 50 employees
Built to scaleWhy switch to Rippling. Rippling puts payroll, HR and device and app management in one place. Pricing starts at $8 per employee per month plus a monthly base fee it doesn't list, and payroll is quoted. Venture-backed US startups can get six months free if they qualify. It's where teams land when they say everything broke once they passed 50 people on Gusto.
Best for. Companies of 50+ that want a single flow for a new hire: contract, payroll, laptop, logins.
Not for. Small teams that just need to pay people: you'd pay for modules you won't touch.
The catch. The final price depends on modules and the base fee isn't public, so compare on a full quote. Our page on switching from Rippling covers why some teams later move off it.
Moving from Gusto. Prepare your employee list, year-to-date totals and state tax accounts before the quote, since pricing depends on them. Switch on January 1 if you can: that's when a year-to-date gap costs the least.
- Price
- from $8/employee/mo + base
- Payroll
- quoted
- Best for
- 50+ employees
- Catch
- opaque final price
Deel: for the people you pay outside the US
InternationalWhy switch to Deel. Deel pays contractors anywhere from $49 per contractor per month, and can employ someone for you in a country where you have no entity (employer of record, or EOR) from $599 a month. Contractor of Record runs $325, and a US PEO option costs $125. On software directories, users often name it the top Gusto alternative.
Best for. US companies hiring in Europe, Latin America or Asia, full time or on contract.
Not for. 100% US teams: you'd pay for an international layer you don't need.
The catch. Deel doesn't publish a price for standard US payroll, so keep a dedicated US payroll for domestic staff. Foreign contractors don't get a 1099-NEC: they fill out a W-8BEN, which Deel collects.
Moving from Gusto. Start with the foreign contractors Gusto was paying: recollect their W-8BENs in Deel and keep this year's Gusto payment history. US employees stay on your US payroll, Gusto or its replacement.
- Contractors
- $49/person/mo
- EOR
- from $599/mo
- US PEO
- $125/employee/mo
- Catch
- no US payroll price
Remote: international with a lower entry price
Cheapest per contractorWhy switch to Remote. Remote covers the same ground as Deel with lower entry prices for contractors: Contractor Management at $29 per person per month, $99 on Plus. Employer of record starts at $599 a month on an annual plan, and its US PEO at $99. Global Payroll runs $29 for countries where you already have an entity.
Best for. Teams paying contractors in several countries that want the lowest per-head cost.
Not for. Small US-only teams with nobody abroad.
The catch. The headline EOR price applies to annual contracts, so ask for the monthly price if you won't commit. Our page on switching from Remote covers what happens when you want out later.
Moving from Gusto. Same approach as Deel: recollect W-8BENs and bank details, and keep a dedicated US payroll for your US employees.
- Contractors
- $29/person/mo
- EOR
- from $599/mo (annual)
- US PEO
- $99/employee/mo
- Catch
- annual commitment
TaxBandits: 1099 e-file when you have no payroll
1099 softwareWhy switch to TaxBandits. If you only ever ran contractors through Gusto, or you're moving to accounting software without payroll, you may not need payroll at all, just a way to file 1099s. TaxBandits charges per federal form: $2.75 each for the first 10, $1.75 from 11 to 100, then $1.15, $1.00 and $0.80 as volume grows. State filing alongside the federal form is free, postal mailing is $1.85, and TIN matching is $0.35.
Best for. Small businesses and bookkeepers filing a few dozen 1099-NECs a year.
Not for. Anyone moving to OnPay, QuickBooks, Patriot Full Service or ADP: those already file your US contractors' 1099s.
The catch. You pay per form, and each extra (mail copy, TIN check) adds up. W-9 collection is a separate step to plan.
Moving from Gusto. Export your contractor list, W-9 data and this year's payment totals from Gusto, then import them. For 25 forms, the federal e-file comes to $53.75.
- Price
- $2.75/form (first 10)
- State filing
- free with federal
- TIN matching
- $0.35
- Catch
- per-form extras
Avalara 1099 & W-9: if W-9 collection is your pain
W-9 collectionWhy switch to Avalara 1099 & W-9. Avalara 1099 & W-9, formerly Track1099, pairs 1099 e-filing with built-in W-9 collection, and you can get started for free. IRS e-file costs $3.10 per form for the first 15, $2.30 from 16 to 165, $1.30 up to 500 and $0.63 beyond. State filing is $1.49, e-delivery to recipients is included, mailing is $1.84 and TIN matching $0.45.
Best for. Businesses onboarding new contractors all year who want W-9s and 1099s in one place.
Not for. Very small volumes on a tight budget: TaxBandits is cheaper on the first forms.
The catch. Mail copies cost more in the last days of January, and annual subscriptions start at 100 forms on a quote.
Moving from Gusto. Send W-9 requests to every contractor before year-end, so names and TINs are clean when you file. For 25 forms, federal e-file comes to $69.50.
- Price
- $3.10/form (first 15)
- W-9 collection
- built in
- E-delivery
- included
- Catch
- pricier at low volume
The 9 alternatives side by side
Our default picks: OnPay for a US team, Deel or Remote once anyone works abroad, TaxBandits if you only file 1099s. For scale, take 10 US employees: Patriot Full Service runs $87 a month, OnPay $109, QuickBooks Payroll with Simple Start $153 (accounting included). ADP and Rippling are quoted. For Gusto, add your current add-ons to your invoice and check its entry price on its own pricing page.
| Entry price | Coverage and switch | |
|---|---|---|
| GustoWhere you start | Check the entry price on its pricing page | US payroll; multi-state depends on plan; 1099-NEC for US contractors only |
| OnPayMost direct | $49/mo + $6/person | All states included; W-2s and 1099s included; free data migration |
| PatriotBudget | $37/mo + $5/person (Full Service) | Federal, state and local filings; 30 days free |
| QuickBooks PayrollWith accounting | $88/mo + $6.50/employee (with Simple Start) | US payroll; unlimited 1099 e-file; tied to QuickBooks Online |
| RUN by ADPEstablished | Quote only | Four packages, HR add-ons; set the handover in the quote |
| Rippling50+ employees | From $8/employee/mo + base; payroll quoted | Payroll, HR and IT; best switched on January 1 |
| DeelInternational | Contractors $49/person; EOR from $599 | People abroad; W-8BENs collected; no US payroll price |
| RemoteInternational, lower entry | Contractors $29/person; EOR from $599 (annual) | Global Payroll $29 with your own entity; US PEO $99 |
| TaxBandits1099 only | $2.75/form, first 10 | State filing free with federal; TIN matching $0.35 |
| Avalara 1099 & W-91099 + W-9 | $3.10/form, first 15 | W-9 collection built in; e-delivery included |
Entry prices published by each vendor in 2026, before tax, subject to change. Always run the math on your real headcount.
Leaving Gusto in eight steps
Payroll isn't an email tool. The IRS and every state expect complete returns, filed once, by one provider. This order keeps you out of duplicate filings and IRS notices.
Pick your date: the start of a quarter
Key decisionJanuary 1 is ideal: the new payroll starts a clean year with no year-to-date totals to load. Otherwise aim for April 1, July 1 or October 1. That keeps each quarterly Form 941 and each state return whole, with one provider.
A mid-quarter switch is doable, but that's where errors breed: two systems share one quarter and somebody has to reconcile it.
- Ideal
- January 1
- Otherwise
- start of a quarter
Download everything before you cancel
From Gusto, pull: each employee's payroll register with year-to-date totals, every 941 and state return for the year, your tax deposit history, prior-year W-2s and 1099s, your state account numbers (withholding and unemployment, SUI) and your state unemployment rate.
Do it before you close the account. Afterward, every document request goes through support, the same support reviewers say is hard to reach.
- Format
- PDF and spreadsheet
- If skipped
- lost YTD totals
Load year-to-date totals and reconcile
If you switch mid-year, the new system has to know what each employee has earned and had withheld since January. Without it, wage-base caps go wrong and so does the year-end W-2.
Enter the totals, then compare them employee by employee with your last Gusto register, to the cent, before the first live run.
- Check
- employee by employee
- When
- before the first run
Put in writing who files what
No duplicatesOne provider files a given quarter's 941. One provider issues the year's W-2s and 1099s, usually the new one, since it holds the totals. Gusto's own help center says the same thing in reverse: when you move to Gusto mid-year, the previous provider shouldn't file W-2s.
Get that split in writing from your new provider, quarter by quarter. Two W-2s for one employee is a guaranteed IRS notice.
- 941
- one provider per quarter
- W-2s and 1099s
- one for the year
Sort out your contractors and 1099s
1099Recollect W-9s from US contractors and decide who files their 1099-NECs: your new payroll, which almost always includes them, or dedicated 1099 software if you're moving to accounting without payroll. The IRS also runs IRIS, a free web-based portal that e-files up to 100 returns at a time. E-filing is mandatory once you have 10 or more information returns in a year, all types combined.
The reporting threshold has changed: the IRS instructions for Form 1099-NEC set it at $2,000 for payments made from 2026, with inflation adjustments possible from 2027. Review your contractor list against it, and remember backup withholding can still require one below it. Foreign contractors don't get a 1099 at all.
- Deadline
- end of January
- Free option
- IRS IRIS
Run one shadow payroll side by side
TipBefore the first real payday, run a full payroll in the new system without submitting it, and compare each employee's net pay, withholding and employer taxes with your last Gusto run. A gap of a few dollars usually means a wrong state rate or a missing deduction (health insurance, 401(k)).
- Takes
- one pay period
- Catches
- wrong state rates
Cancel Gusto with the right reason
Per Gusto's help center, pick "switching to a new payroll provider" as your reason. You then skip choosing which filings Gusto keeps: any remaining tax balance is refunded automatically and your new provider handles all filings. Some states require an annual return right after closing, filed outside Gusto, so check the list for each of your states.
- Reason
- new payroll provider
- Tax balance
- refunded
Watch billing and state accounts
Some users say they kept getting charged after they stopped running payroll. Watch your card or bank for two months and keep the cancellation confirmation. Close state tax accounts you no longer need (a state where nobody works anymore), or missing-return notices keep arriving.
- Watch for
- two months
- Keep
- cancellation confirmation
Is your tool missing from this page? Email us: hello@hackceleration.com
What makes a Gusto exit go wrong
The same mistakes show up in user stories and in vendors' own switching guides. None of them is technical: they're calendar and hand-off slips, and each one costs you an IRS notice or hours on hold.
Switching mid-quarter without a plan
Two systems in one quarter means a 941 reconciled by hand. If you must switch mid-quarter, have the new provider confirm in writing that it takes the whole quarter, with the amounts already paid.
Letting two providers issue W-2s
If Gusto and the new system both issue a W-2 for the same year, the employee gets two and the IRS sees wages twice. One provider issues them, with full totals.
Canceling before exporting
Past returns, deposit history and prior-year W-2s get asked for in any audit. Download everything, then cancel.
Forgetting state tax accounts
An open state account with no employees keeps expecting returns. It's a common headache for former Gusto customers: close each one with the state yourself once nobody works there.
Treating a foreign hire as a contractor
A "contractor" working full time for you abroad can be reclassified as an employee by that country. If it looks like a job, use an employer of record (Deel, Remote) instead of contractor payments.
Comparing on intro pricing
Free months and half-price quarters skew the math. Compare the regular price over 12 months, for your real headcount, add-ons included.
- Switch date set at the start of a quarter
- Registers, 941s, state returns and prior W-2s downloaded
- Year-to-date totals loaded and reconciled employee by employee
- Written split: who files the 941, who issues W-2s and 1099s
- W-9s recollected from US contractors
- One shadow payroll compared with the last Gusto run
- Canceled with the "new payroll provider" reason
- Unused state accounts closed, billing watched for two months
Gusto alternatives: frequently asked questions
What is the best alternative to Gusto?
For a small US team, OnPay: one plan at $49 a month plus $6 per person, every state included, free data migration. On a tight budget, Patriot Full Service at $37 plus $5. With people abroad, Deel or Remote. Our payroll software ranking covers the full field.
Who is Gusto's main competitor?
ADP, through RUN for small businesses, followed by Paychex, OnPay and QuickBooks Payroll. ADP and Paychex publish no prices: both are quote only. Paychex Flex comes in four packages, Basic to Complete, and also handles W-2s and 1099s. If ADP is the tool you're leaving, read our ADP switching guide.
Gusto vs QuickBooks Payroll: which should I pick?
QuickBooks Payroll if your books are already in QuickBooks Online: payroll is sold with accounting, from $88 a month plus $6.50 per employee. Gusto or OnPay if your books live elsewhere, since you pay for payroll only. Tip: compare payroll-only costs to see what the switch really saves.
Do I need separate 1099 software after leaving Gusto?
Only if your new setup doesn't file 1099s. OnPay, QuickBooks, Patriot Full Service, ADP and Paychex already file them for your US contractors. If you move to accounting with no payroll, TaxBandits, Avalara 1099 & W-9 or Tax1099 e-file for a few dollars a form. Our 1099 software ranking compares them, and the small business version focuses on low volumes.
Is the free IRS IRIS portal enough to e-file 1099s?
For a few forms, often yes. IRIS is free, web-based, and files up to 100 returns at a time. What it doesn't do: collect W-9s, check TINs in bulk, or mail recipient copies for you. Once you file 10 or more information returns in a year, e-filing is mandatory, and paid tools save time at that point.
Did the 1099-NEC threshold go up to $2,000?
Yes. The official IRS instructions for Form 1099-NEC set the nonemployee compensation threshold at $2,000 (up from $600) for payments made from 2026, with inflation adjustments possible from 2027. Some 1099-MISC boxes, like gross proceeds paid to an attorney, stay at $600. The 1099-K keeps its own threshold, and backup withholding can still require a form below the limit.
Can I switch payroll providers mid-year?
Yes, ideally at the start of a quarter. The new provider needs each employee's year-to-date totals to issue correct W-2s. One provider files each quarter's 941, and one issues the year's W-2s. Get that split in writing before the first live run.
Is Gusto good for international teams?
For paying contractors abroad, it works: Gusto can pay international contractors. For employing someone full time abroad, no: Gusto has no entity there, so you need an employer of record. Our employer of record ranking compares Deel, Remote and others.
How do I cancel Gusto without getting billed afterward?
Choose "switching to a new payroll provider" as the reason: your remaining tax balance is refunded and the new provider takes over filings. Keep the confirmation and watch your statements for two months, since some users report charges after they stopped running payroll.
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