Gusto vs Microsoft Teams

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

G

Gusto

Payroll, benefits, and HR platform for small businesses. Base at $40/mo + $6/per...

Advertised

$40

/month

True Cost

$136

/month (typical)

76% confidence

Hidden Fees (+$96/mo)

Per-Person Fee Scaling

Simple plan: $40/mo + $6/person. Plus: $80/mo + $12/person. Premium: $180/mo + $22/person. A 25-pers...

+$6

Benefits Administration Add-On

Health insurance, 401(k), and benefits administration are not included in Simple. Plus plan ($80/mo ...

+$40

State Tax Registration Fees

Registering for state taxes in new states costs $35-$100 per state as a one-time fee. Multi-state re...

+$50

Pricing Tiers

SimplePopular
$40/mo
Plus
$80/mo
Premium
$180/mo
M

Microsoft Teams

Bundled with Microsoft 365. 'Free' for M365 subscribers, but standalone and add-...

Advertised

$4

/month

True Cost

$74

/month (typical)

76% confidence

Hidden Fees (+$70/mo)

Teams Phone System

Voice calling requires Teams Phone at $8/user/mo + calling plan $12/user/mo. Total: $20/user/mo for ...

+$20

Teams Rooms

Conference room integration: $40/room/mo for Teams Rooms Pro. 10 rooms = $400/mo....

+$40

Teams Premium

AI meeting recap, custom branding, advanced webinars: $10/user/mo add-on. Not included in any M365 p...

+$10

Pricing Tiers

Key Differences

1

Gusto advertises $40/mo. Microsoft Teams advertises $4/mo.

2

Gusto has 3 documented hidden fees. Microsoft Teams has 3.

3

Gusto confidence: 76%. Microsoft Teams confidence: 76%.

Cost Comparison Summary

MetricGustoMicrosoft TeamsWinner
Advertised Price$40/mo$4/moMicrosoft Teams
True Monthly Cost$136/mo$74/moMicrosoft Teams
Hidden Fee Total+$96/mo+$70/moMicrosoft Teams
# Hidden Fees33Gusto
Confidence Score76%76%Gusto
Pricing Tiers30
Affiliate ProgramNoneNone

Frequently Asked Questions

Is Gusto or Microsoft Teams cheaper?

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.

What hidden fees does Gusto have?

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.

What hidden fees does Microsoft Teams have?

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.

Should I choose Gusto or Microsoft Teams?

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.

How accurate is this Gusto vs Microsoft Teams comparison?

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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