True cost comparison — not just what the pricing page says
Quick Verdict
Microsoft Teams saves you 90%
Best for Gusto
Payroll, benefits, and HR platform for small businesses. Base at $40/mo + $6/person/mo, but benefits
Best for Microsoft Teams
Bundled with Microsoft 365. 'Free' for M365 subscribers, but standalone and add-ons (Rooms, Phone, W
Payroll, benefits, and HR platform for small businesses. Base at $40/mo + $6/per...
Advertised
$40
/month
True Cost
$136
/month (typical)
Per-Person Fee Scaling
Simple plan: $40/mo + $6/person. Plus: $80/mo + $12/person. Premium: $180/mo + $22/person. A 25-pers...
Benefits Administration Add-On
Health insurance, 401(k), and benefits administration are not included in Simple. Plus plan ($80/mo ...
State Tax Registration Fees
Registering for state taxes in new states costs $35-$100 per state as a one-time fee. Multi-state re...
Bundled with Microsoft 365. 'Free' for M365 subscribers, but standalone and add-...
Advertised
$4
/month
True Cost
$74
/month (typical)
Teams Phone System
Voice calling requires Teams Phone at $8/user/mo + calling plan $12/user/mo. Total: $20/user/mo for ...
Teams Rooms
Conference room integration: $40/room/mo for Teams Rooms Pro. 10 rooms = $400/mo....
Teams Premium
AI meeting recap, custom branding, advanced webinars: $10/user/mo add-on. Not included in any M365 p...
Gusto advertises $40/mo. Microsoft Teams advertises $4/mo.
Gusto has 3 documented hidden fees. Microsoft Teams has 3.
Gusto confidence: 76%. Microsoft Teams confidence: 76%.
| Metric | Gusto | Microsoft Teams | Winner |
|---|---|---|---|
| Advertised Price | $40/mo | $4/mo | Microsoft Teams |
| True Monthly Cost | $136/mo | $74/mo | Microsoft Teams |
| Hidden Fee Total | +$96/mo | +$70/mo | Microsoft Teams |
| # Hidden Fees | 3 | 3 | Gusto |
| Confidence Score | 76% | 76% | Gusto |
| Pricing Tiers | 3 | 0 | — |
| Affiliate Program | None | None | — |
Gusto advertises $40/mo and Microsoft Teams advertises $4/mo. However, when you include hidden fees, Gusto has 3 documented hidden fees adding +$96/mo, while Microsoft Teams has 3 hidden fees adding +$70/mo. Based on true cost, Microsoft Teams is typically 90% cheaper.
Gusto has 3 documented hidden fees: Per-Person Fee Scaling, Benefits Administration Add-On, State Tax Registration Fees. These add approximately +$96/mo on top of the $40/mo advertised price.
Microsoft Teams has 3 documented hidden fees: Teams Phone System, Teams Rooms, Teams Premium. These add approximately +$70/mo on top of the $4/mo advertised price.
Choose Gusto if: Payroll, benefits, and HR platform for small businesses. Base at $40/mo + $6/person/mo, but benefits. Choose Microsoft Teams if: Bundled with Microsoft 365. 'Free' for M365 subscribers, but standalone and add-ons (Rooms, Phone, W. The right choice depends on your team size, usage volume, and which features you need most.
This comparison is based on manual research of official pricing pages, terms of service, and user reports. Gusto data has a 76% confidence score and Microsoft Teams has 76%. Prices were last verified in April 2026. For the most accurate estimate, enter your specific usage in our calculator.
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