Microsoft Teams vs Gusto

True cost comparison — not just what the pricing page says

Quick Verdict

Microsoft Teams saves you 90%

Best for Microsoft Teams

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

Best for Gusto

Bundled with Microsoft 365. 'Free' for M365 subscribers, but standalone and add-ons (Rooms, Phone, W

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

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

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

MetricMicrosoft TeamsGustoWinner
Advertised Price$4/mo$40/moMicrosoft Teams
True Monthly Cost$74/mo$136/moMicrosoft Teams
Hidden Fee Total+$70/mo+$96/moMicrosoft Teams
# Hidden Fees33Microsoft Teams
Confidence Score76%76%Microsoft Teams
Pricing Tiers03
Affiliate ProgramNoneNone

Frequently Asked Questions

Is Microsoft Teams or Gusto cheaper?

Microsoft Teams advertises $4/mo and Gusto advertises $40/mo. However, when you include hidden fees, Microsoft Teams has 3 documented hidden fees adding +$70/mo, while Gusto has 3 hidden fees adding +$96/mo. Based on true cost, Microsoft Teams is typically 90% cheaper.

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.

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.

Should I choose Microsoft Teams or Gusto?

Choose Microsoft Teams if: Payroll, benefits, and HR platform for small businesses. Base at $40/mo + $6/person/mo, but benefits. Choose Gusto 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 Microsoft Teams vs Gusto comparison?

This comparison is based on manual research of official pricing pages, terms of service, and user reports. Microsoft Teams data has a 76% confidence score and Gusto 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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