Gusto vs Tax1099
We give Gusto a 2.4 GPA and Tax1099 a 1.8, out of 4.0. Gusto grades higher on features and ease of use. Tax1099 grades higher on value for money. They get the same grade on the free plan and platforms.
Price, platforms and features side by side. The table says where each price was read and when.
Gusto
Payroll and HR for small businesses, with apps for owners and staff
Tax1099
E-filing for 1099s, W-2s and other IRS information returns
How we grade them
| 2.4GPAGustoFair | 1.8GPATax1099Weak | |
|---|---|---|
| Value for money | CSimple is $49 a month plus $6 a person, so $79 for a team of five. That sits between the cheapest quarter of this category ($65 or less for five) and the middle ($85). Pay people in more than one state and you need Plus at $80 plus $12 a person, which is $140. | BGraded against its own alternatives, as it files forms rather than running payroll. Essential has no yearly fee: 1099s and W-2s are $2.99 each for the first 20, falling to $0.72, plus $0.50 a copy by eDelivery. Teams is $249 a year. Payroll services like Gusto start at $49 a month. |
| Free plan and trial | FNothing free on record: no free plan and no trial in the listing. You pay from the first month. | FNothing free. Signing up for Essential needs no card or subscription, but every form you file is charged, and there's no trial. That's paying as you go, not trying it out. |
| Features | BRegular and off-cycle payroll, taxes worked out by work location, time tracking, onboarding, document signing and expense claims, with contractors abroad as an add-on. That's the whole payroll job, spread across its three plans. | DNext to its alternatives it does one slice of the job, and does it fully: federal, state and SSA filing, corrections, W-9 collection, TIN checks and recipient copies. But it runs no payroll and pays nobody, so it sits beside your payroll or your books. |
| Ease of use | A4.8 from about 52,000 App Store ratings for Gusto Mobile, where owners approve hours and run payroll and staff see their pay and sign documents. | CNo store rating on record. You'll bring in payee names, tax IDs and amounts from a spreadsheet or QuickBooks, Xero or BILL, then choose how the copies go out. |
| Platforms and integrations | BWeb, iPhone and Android, and you can link your own systems through a command-line tool or an MCP server. No desktop app, and the full API is only for approved partners. | BWeb only, with QuickBooks Online and Desktop, Xero, BILL, FreshBooks, Sage Intacct, NetSuite and Zapier, and an API on Scale at $349 a year. No phone or desktop app. |
| Best for | small US teams that want payroll and HR in one app | filing 1099s without a payroll service |
The GPA is the average of the five grades: an A is 4 points, an F is none. The full reasons are on each tool's page: Gusto and Tax1099. How we grade
Price against what you get
Gusto starts at $49 a month and scores 3.3 out of 4 on features, ease of use and platforms. Tax1099 starts at $20.75 a month when paid by the year and scores 2.0.
Gusto scores higher, and starts $28.25 a month higher: the question is whether the extra is worth that to you. Of the other payroll services on the chart, none scores higher than Gusto for less, and 4 score higher than Tax1099 for less.
Features, ease of use and platforms, averaged
What paid plans start at, a month (each step along is roughly double) →
- The best score at each price
- Has a free plan
- No free plan
Where they differ
- Gusto starts at $49 per month, plus $6 per person paid (Simple). Tax1099 starts at $249 per year (Teams); Essential has no yearly fee and charges per form.
- Tax1099 has a free plan. Gusto does not.
- Only Gusto lists iOS and Android apps.
- Gusto also covers time tracking, expense tracking and payroll.
At a glance
| Gusto | Tax1099 | |
|---|---|---|
| Pricing | Paid | Free plan |
| Starts at | $49 per month, plus $6 per person paid (Simple) | $249 per year (Teams); Essential has no yearly fee and charges per form |
| Free plan | None | Essential plan: no subscription or card needed, but each form filed is charged, from $2.99 for the first 20 1099s or W-2s down to $0.72 each at 501 to 1,000. |
| Free trial | None listed | None listed |
| Web | ||
| iOS | ||
| Android | ||
| Made by | Gusto, Inc. | Zenwork, Inc. |
| Price read from | gusto.com | tax1099.com |
| Checked | Oct 17, 2026 | Oct 18, 2026 |
Who each one suits
Gusto
- Small US businesses paying W-2 employees and contractors
- Owners who want to approve hours and run payroll from a phone
- Teams that want staff to handle their own pay details and documents
Tax1099
- Small businesses filing 1099s for contractors and vendors
- Accountants and CPAs filing for many clients from one login
- Companies that collect W-9s and check tax IDs before filing
Worth knowing
Gusto
- Gusto runs US payroll only: W-2 employees, state and local taxes and US contractors. Paying contractors abroad is a separate add-on covering 120+ countries.
- Many extras cost more on Simple: next-day pay is $15 a month plus $3 a person, same-day pay $90 a payroll and instant pay $100 a payroll.
- Priority phone and chat support is a $30-a-month add-on, plus $3 a person, on Simple and Plus.
- Gusto's API is open only to approved integration and embedded-payroll partners, not to customers building their own links.
Tax1099
- It files information returns and payroll tax forms but does not run payroll or pay anyone, so it is narrower than the payroll services here.
- Each form is charged: $2.99 apiece for the first 20 1099, 1098 or W-2 forms, falling to $0.72 at 501 to 1,000. Over 1,000 forms is quoted.
- Recipient copies cost extra: $0.50 a form by eDelivery, $1.95 printed and mailed in the US, $4.99 abroad. Mail in the season's last 5 days adds $1 each.
- It files only with the IRS, the SSA and US states, runs in a browser with no mobile app, and API access needs Scale at $349 a year.
Key features
Gusto
- Regular and off-cycle payroll
- Runs payroll on a set schedule, including hours, paid time off and bonuses, plus one-off payrolls for corrections or special bonuses.
- Tax withholding and deductions
- Works out federal, state and local taxes by work location, takes pre-tax and post-tax deductions, and pays by direct deposit or check.
- Time and time off
- Employees and contractors clock in and out and request time off in the app; admins review and approve hours before payroll.
- Onboarding and documents
- Add and onboard new team members from the app, and have employees read and sign documents there.
- Expense reimbursements
- Employees photograph receipts and submit expenses, and admins approve them in the app. The App Store listing limits this to Gusto Plus and Premium.
- Gusto CLI and MCP server
- Customers connect their own systems to their Gusto account through a command-line tool or an MCP server; the full API is for approved partners.
Tax1099
- Federal and state e-filing
- Files 1099, 1098, W-2, 94x, 1042-S, 1095 and 990 forms with the IRS and SSA, and state copies through the combined federal and state program or directly.
- Corrections and scheduling
- Files corrected and void forms, schedules filings ahead, resubmits forms the IRS rejected and produces 1096 and W-3 summaries for reference.
- W-9 and W-8 collection
- Requests W-9 or W-8 forms from payees online, priced from $1 for one request to $95 for 1,000, and imports W-9s from PDF.
- TIN matching and address checks
- Checks payee name and tax ID pairs in real time for $1 each or within 24 hours for $0.37, and validates US addresses against USPS records.
- Imports and integrations
- Pulls payee data from CSV or Excel and 12+ no-code integrations such as QuickBooks, Xero, BILL and NetSuite; Scale adds an API for automated filing.
- Recipient copies
- Sends copies to recipients by eDelivery for $0.50 a form, or prints and mails them for $1.95 in the US and $4.99 abroad.
Plans
Gusto
Simple$49
per month, plus $6 per person paid
Payroll in one state: unlimited pay runs, tax filings and payments, and basic time-off and holiday pay rules.
Plus$80
per month, plus $12 per person paid
Adds multi-state payroll, time tracking and scheduling, unlimited next-day pay and contractor invoice handling. Marked best value.
Premium$180
per month, plus $22 per person paid
Adds a named advisor and premium support, HR guidance, Gusto Business Compliance, and unlimited same-day and instant pay.
Tax1099
Essential$0
No yearly fee; pay per form from $2.99 each. Federal, state and SSA filing, corrections, scheduling, USPS address checks and accounting imports.
Teams$249
per year
Formerly eFile Plus. Everything in Essential plus several users, team creation and 250 free TIN matches.
Scale$349
per year
Formerly Enterprise. Adds API filing, workflow and user management, action tracking, IRS notice management and a free first bulk TIN match.
