RBO vs Gusto: Flat-Rate Transparency vs Tiered Plans

Gusto popularized friendly UX and bundled HR. But if you’re price-sensitive or multi-state, small add-ons add up.

Pricing at a Glance

• RBO Full: $50 base + $7 PEPM; extra states $10/mo.
• RBO Basic: $40 base + $6 PEPM.
• Gusto: Simple tier $49 + $6 PEPM; higher tiers $80+ + $12 PEPM; additional states commonly $12/mo. (Gusto)

State Fees & Growth

Opening a payroll in a new state? Gusto often adds $12 per extra state; RBO is $10 per state. (Gusto)

Total Cost Examples (Bi-Weekly)

10 employees, 2 states:

• RBO Full: $50 + (10×$7) + $10 = $180/mo
• Gusto Simple (pub. rates): $49 + (10×$6) + ~$12 = $121/mo (note: HR/time features differ).
  Point: RBO isn’t always the “cheapest,” but it’s fully transparent; CPA-reviewed accuracy is the value hook.

When to Pick Which

• Choose RBO if compliance predictability and published costs matter.
• Choose Gusto if you need broader HR bundles and like its UI.

FAQs

Does Gusto charge extra per state?
Gusto’s pages and comparisons show extra costs for additional states. (Gusto)

Does RBO include W-2/1099 e-delivery?
Yes (mailing optional at $6/form).

Can I switch mid-year?
Yes; import YTD data and run a parallel test before go-live.

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• Payroll Processing Services
• Payroll Processing Services in Texas

Next Steps

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