What you're actually paying Gusto
That's $840/year saved just by switching from Gusto to ZiggyPayroll for a 10-contractor business.
What you're paying Gusto for (but don't need)
Payroll tax filing
Gusto files federal and state payroll taxes for W-2 employees. 1099 contractors pay their own taxes — you never needed this feature.
Benefits administration
Health insurance, 401(k), commuter benefits — all for employees. Your 1099 contractors handle their own benefits.
HR compliance tools
Offer letters, performance reviews, org charts — built for companies with full-time staff, not for contractor-first businesses.
Feature-by-feature comparison
| Feature | ZiggyPayroll | Gusto |
|---|---|---|
| Monthly cost (10 contractors) | $39/mo flat | $109/mo ($49 + $60) |
| Built exclusively for 1099 contractors | ✅ Purpose-built | ❌ W-2 first |
| Contractor portal | ✅ | ✅ |
| Time tracking | ✅ | ✅ |
| Payment approval workflow | ✅ Built-in | ⚠️ Limited |
| 1099-NEC generation | ✅ | ✅ |
| W-9 collection & storage | ✅ Automated | ✅ |
| Contractor onboarding (W-9 + bank + rates) | ✅ All-in-one | ⚠️ Partial |
| Multi-contractor dashboard | ✅ | ✅ |
| ACH direct payments | 🔜 Coming Soon | ✅ |
| W-2 payroll tax filing | ❌ Not needed | ✅ (You don't need this) |
| Benefits administration | ❌ Not needed | ✅ (You don't need this) |
| HR compliance tools | ❌ Not needed | ✅ (You don't need this) |
| Self-serve setup time | < 10 minutes | 30–60 minutes |
The bottom line
Gusto is a full HR platform. If you just need to pay contractors and handle 1099s, you're paying $49 base + $6/contractor for features you'll never use. ZiggyPayroll is built for exactly this — $39/mo flat for up to 10 contractors.
Switch to ZiggyPayroll — Free for 14 DaysCommon questions about switching
Can I migrate from Gusto to ZiggyPayroll?
Yes. Export your contractor list from Gusto, invite them to ZiggyPayroll, and they complete onboarding themselves. Existing payment records in Gusto can stay there for historical reference.
Does ZiggyPayroll support the same 1099 features as Gusto?
Yes — contractor portals, W-9 collection, payment tracking, and 1099-NEC generation are all included. The difference is we don't include W-2 payroll features that don't apply to contractor-only businesses.
What happens if I add more than 10 contractors?
Simple: each contractor over 10 adds $5/mo. 15 contractors = $64/mo, 20 contractors = $89/mo. No tiers, no surprise plan upgrades.
Is ZiggyPayroll right if I have a mix of employees and contractors?
If you have W-2 employees AND 1099 contractors, Gusto may be the better fit (you need the W-2 payroll features). ZiggyPayroll is purpose-built for businesses that work exclusively or primarily with 1099 contractors.
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