Gusto is a payroll platform that places a health plan in your company’s name. Justworks is a PEO built on co-employment, and it also lists a payroll plan. An independent broker is a third route that works alongside either company’s payroll. The right pick depends on who you want to hold the plan and how much HR you want handed off.

Facts about each company come from its own pages as of October 2026. Both companies change plans and prices, so confirm before you sign.

What each company is

Gusto is payroll and HR software. Your company remains the legal employer, and a group health plan is your company’s own policy, sold through Gusto’s licensed advisors.1 Our guide on whether Gusto is a PEO covers the legal difference.

Justworks runs a PEO, which means a professional employer organization that becomes a co-employer. Its PEO page describes it as IRS-certified and ESAC-accredited.2 Justworks also lists a separate payroll plan alongside its PEO plans.3 If you want the basics first, read what a PEO is.

Comparison table

Gusto Justworks
Legal relationship Software vendor; you’re the only employer PEO plans use co-employment, a shared-employer arrangement; Justworks also lists a separate payroll plan23
Who holds the health plan A group plan is your company’s own policy1 Justworks says its PEO offers small, large, and individual plans through a CHOICE arrangement (formerly ICHRA, where you reimburse employees for coverage they choose)2
Plan pool Your company’s census sets your rates, within ACA rating rules for small groups4 Justworks says small businesses can reach large group plans by joining companies under one shared policy4
Pricing as published Payroll: Simple $49 a month plus $6 per person, Plus $80 plus $12, Premium $180 plus $22; health insurance is premiums only, with no Gusto administration fees5 Payroll $8 per employee per month plus a $50 monthly base fee; PEO Basic $79 per employee per month; PEO Plus $124; no base fee on the PEO plans3
Health plan access in the pricing Through Gusto’s licensed advisors, or your own broker for $6 per eligible employee per month on Plus and included on Premium16 PEO Plus lists medical, dental, and vision administration; a payroll-plan add-on lists health insurance at $8 per benefits-eligible employee per month3
Workers’ comp Pay-as-you-go plans through a partner, per Gusto’s pricing page5 Pricing page lists access to workers’ comp, required for the PEO plans3
Leaving Switch vendors; your plan stays with you Replace the PEO’s coverage and move payroll back to your own tax ID; see leaving a PEO

Health benefits at Gusto

Gusto says its licensed advisors help you compare plans, and that it offers coverage “from group plans to health allowances” across 9,000+ plans and 30+ carriers, in all 50 states and D.C.1 Gusto’s broker disclosure says it earns commissions as your ongoing broker.7 You can also keep an outside broker, who can manage your plans inside Gusto.6 Our Gusto health insurance guide covers this in more detail.

Health benefits at Justworks

Justworks says its PEO gives small businesses a path to large group plans by bringing companies together under one larger shared policy.4 It also lists small group, large group, and individual coverage through a CHOICE arrangement, and says it reviews your options at renewal.24 On its pricing page, PEO Plus includes medical, dental, and vision administration, and the payroll plan offers a health insurance add-on.3

When each one fits

Gusto tends to fit when you want to remain the only employer, keep your own plan, and use one platform for payroll and benefits administration.

Justworks tends to fit when you want a PEO’s co-employment structure, with payroll taxes, workers’ comp access, HR support, and benefits in one relationship. Kingsfoil Health’s guidance puts the PEO sweet spot at 10 to 100+ employees.

An independent broker tends to fit when you want your plan shopped across the carriers the broker is appointed with, in the states it’s licensed in, including fully funded and level-funded structures, and you want a team that stays with you after the sale. You can keep Gusto or Justworks payroll and still use a broker. See PEO vs independent broker and Gusto vs TriNet vs an independent broker.

How to compare for your company

  1. Pick one census. Use the same employee ages, ZIP codes, and enrollment guesses for every quote.
  2. Compare totals. Add the platform or PEO fee to the premium for each route.
  3. Ask each seller the same three questions. What plan structures can you offer me, what claims data will I see, and how are you paid?
  4. Ask about the exit. Find out what year three looks like, whichever route you choose.

We partner with PEOs instead of fighting them. If a PEO is best for you, we recommend it. We run this analysis for every client, free, with no obligation. Kingsfoil Health, a health insurance brokerage for US employers, is paid by commission from carriers and partners, like every broker.

Want your own numbers side by side? We’ll compare a Gusto-placed plan, a Justworks PEO plan, and a broker-placed plan on your census. Compare your options.

Footnotes

  1. Gusto, Health benefits, accessed October 2026. ↩ ↩2 ↩3 ↩4

  2. Justworks, PEO for Small Business, accessed October 2026. ↩ ↩2 ↩3 ↩4

  3. Justworks, Pricing, accessed October 2026. ↩ ↩2 ↩3 ↩4 ↩5 ↩6

  4. Justworks, Small Group vs Large Group Health Insurance, July 3, 2026. ↩ ↩2 ↩3 ↩4

  5. Gusto, Pricing, accessed October 2026. ↩ ↩2

  6. Gusto, Broker integration, accessed October 2026. ↩ ↩2

  7. Gusto, Insurance agency and broker disclosure, accessed October 2026. ↩