Paying Contractors with Gusto 2026
Contractor Pricing, 1099-NEC, and Multi-State Payments
If you pay 1099 contractors, here's what Gusto charges for them, what happened to the Contractor-Only plan, how the automatic 1099-NEC filing saves your January, and how to get $100 for starting.
| Plan | Who it's for | Cost (2026) | What's included |
|---|---|---|---|
| Simple | Contractors, or a small team in one state | $49/mo + $6 per person | ACH contractor payments, 1099-NEC filing, self-onboarding |
| Plus | Mixed W-2 and 1099 teams, more than one state | $80/mo + $12 per person | Everything in Simple, plus contractor invoice management |
| Premium | Larger teams that want a named advisor | $180/mo + $22 per person | Everything in Plus, plus HR guidance and compliance tools |
| Contractor-Only Closed | Existing customers only | $35/mo + $6 per contractor | Closed to new sign-ups on October 1, 2026 |
List prices checked on November 1, 2026 from Gusto's pricing page and Gusto's contractor billing help article. US contractors are billed at the plan's per-person fee, only in months you pay them. Confirm current rates with Gusto before you buy.
What Gusto charges for contractors
Gusto bills each US contractor at your plan's per-person fee: $6, $12, or $22 per contractor per month on Simple, Plus, or Premium. You're only charged in months you pay that contractor, and having a contractor in your account costs nothing on its own. On Simple, paying five contractors in a month costs $79 ($49 base plus 5 × $6). Global contractor payments carry no monthly per-contractor fee, just a per-payment service and exchange fee.
What happened to the Contractor-Only plan
Gusto closed its Contractor-Only plan to new customers on October 1, 2026. Companies already on it keep it at $35 a month plus $6 per contractor, but nobody can sign up for it or switch back to it. New businesses that only pay contractors start on Simple.
1099-NEC filing that handles itself
The real value isn't the payment — it's the paperwork. Gusto prepares and files 1099-NEC forms with the IRS automatically at year end and makes them available to your contractors. Because contractors onboard themselves through a self-service portal, their legal name, address, and TIN are collected up front — so you're not chasing W-9 details in January. That's the difference between a filing season that's a non-event and one that eats a week.
Multi-state and international contractors
U.S. contractors get paid by ACH direct deposit, and multi-state contractors are handled automatically — there's no separate setup per state for 1099 payments the way there is for W-2 payroll. Gusto also supports contractor payments in 120+ countries, so a mix of domestic and international contractors lives in one place. Contractors get Gusto Wallet access and their full payment history without you fielding "can you resend that?" emails.
How to save $100 on it
Every new Gusto customer can earn a $100 Visa card for running their first payroll — contractor payments included. On Simple, that covers two months of the base fee. It stacks with Gusto's normal pricing: you pay the standard rate and still get the card. See the full cost breakdown on our Gusto pricing page, and how the offer works in the Gusto promo code guide.
Which plan for contractors?
If it's purely 1099 workers today, Simple is the cheapest current plan, and adding a W-2 employee later doesn't mean switching plans. If you work across states or want contractors to upload invoices, Plus adds both. Compare Gusto against other providers on our payroll comparison chart, and if you're an owner-operator, see Gusto for S-corp owners for how to pay yourself.