Gusto to push up payroll service prices from October

Online payroll and health benefits platform Gusto has announced a price increase amid a recent revamp of its product.

The company will ask all existing customers to pay $10 more per month from 1 October when the base price will climb to $39 plus $6 per employee. Monthly base prices currently start from $29 plus $6 per staff member.

Gusto based the increase on new additions and improvements to its offering as well as the streamlining of its pricing model, which it started in June.

The new price is considerably higher in comparison to other products currently in the market.

Payroll platforms such as Zenefits and Simple Payroll would charge $25 plus $4 per employee and $15 plus $3 per employee, respectively, according to VentureBeat.

Speaking with the VC news service, CEO Joshua Reeves defended the price hike saying Gusto does not provide “just a single service” but also “support around human resources, benefits, workers compensation, life and disability insurance, I-9, and more”.

The company has already update its website to reflect the new prices, according to which a business employing 30 people will have to pay $219 a month.

Based in offices in San Francisco and Denver, Gusto currently serves more than 30,000 companies in the US.

Copyright © 2016 FINTECH GLOBAL

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