Gusto Cost: Full Pricing Breakdown (What You'll Actually Pay)

Looking for Gusto's actual pricing? Here's the short version: Gusto costs between $49 and $180 per month as a base fee, plus $6 to $22 per employee per month depending on which plan you choose. But your real cost depends on team size, add-ons, and which features you actually need.

I've broken down every plan, the add-on costs that can sneak up on you, and what you'll actually pay at different company sizes. Let's get into the numbers.

Gusto Pricing Plans at a Glance

Gusto offers four main pricing tiers. Here's what each one costs:

PlanBase PricePer EmployeeBest For
Simple$49/month$6/monthSmall teams, single-state payroll
Plus$60/month$9/monthGrowing businesses, multi-state
Premium$135-$180/month$16.50-$22/monthComplex HR needs, dedicated support
Contractor Only$35/month$6/contractorBusinesses with only 1099 workers

Note: Gusto's pricing is transparent and available directly on their website. All plans include unlimited payroll runs, automatic tax filing, and no setup fees.

Try Gusto free →

Gusto Simple Plan: $49/month + $6/employee

The Simple plan is Gusto's entry-level option. It works for small businesses with straightforward payroll needs-think under 10 employees in a single state.

What you get:

What you don't get:

Real cost example: A 5-person team on Simple pays $49 + ($6 × 5) = $79/month or $948/year.

Who Should Choose Simple?

The Simple plan works best if you're a small business owner with under 10 employees all working in the same state. You need basic payroll processing, tax filing, and direct deposit, but don't require advanced features like time tracking or multi-state capabilities.

If you're just starting out and want to keep costs low while still getting professional payroll service, Simple delivers the essentials without unnecessary complexity.

Gusto Plus Plan: $60/month + $9/employee

The Plus plan is Gusto's most popular tier. It's designed for growing businesses that need multi-state payroll and more HR tools.

Everything in Simple, plus:

Optional add-on: Priority support and HR resources cost an extra $8/month per person on the Plus plan.

Real cost example: A 15-person team on Plus pays $60 + ($9 × 15) = $195/month or $2,340/year.

Time Tracking Features Explained

The Plus plan includes built-in time tracking, which is a significant upgrade from Simple. Employees can clock in and out using the mobile app or browser. Time entries feed directly into payroll, eliminating manual data entry and reducing errors.

You can set rules for overtime, breaks, and holidays. Geolocation tracking is available for field workers. If you prefer to use a third-party time tracking tool, Gusto integrates with apps like Homebase and Deputy.

Multi-State Payroll Capabilities

One of the biggest reasons businesses upgrade to Plus is multi-state payroll. As soon as you hire someone in a different state, you need to handle that state's specific tax requirements, withholding rules, and compliance obligations.

Gusto handles all of this automatically on the Plus plan. You won't pay extra per state, and the system automatically calculates the correct taxes for each location. This feature alone can save you significant time and potential penalties.

Gusto Premium Plan: $135-$180/month + $16.50-$22/employee

The Premium plan is for larger teams or businesses with complex compliance needs. Pricing varies-you'll need to contact Gusto for an exact quote based on your specific requirements.

Everything in Plus, plus:

Real cost example: A 25-person team on Premium (at $180 base + $22/person) pays $180 + ($22 × 25) = $730/month or $8,760/year.

Dedicated Customer Success Manager

The Premium plan includes a dedicated Customer Success Manager (CSM) who serves as your primary point of contact. Your CSM learns your business, helps optimize your payroll and HR processes, and proactively reaches out with compliance updates relevant to your situation.

This is particularly valuable if you're managing 25+ employees across multiple states or have complex compliance requirements specific to your industry.

Access to Certified HR Experts

Premium plan customers get direct access to certified HR professionals who can help with employee relations issues, compliance questions, and HR strategy. This essentially gives you an on-demand HR department without hiring full-time HR staff.

You can ask questions about terminations, harassment complaints, ADA accommodations, FMLA leave, and other complex HR matters. The experts provide guidance to help you make informed decisions while staying compliant with employment laws.

Full-Service Payroll Migration

Switching payroll providers can be daunting. With Premium, Gusto's team handles the migration for you. They'll transfer your historical payroll data, employee information, tax records, and benefits details from your old system into Gusto.

This white-glove service helps avoid errors and saves you countless hours of manual data entry. For businesses with larger teams and complex payroll histories, this service alone can justify the Premium plan cost.

Gusto Contractor Only Plan: $35/month + $6/contractor

If you only pay 1099 contractors-no W-2 employees-this plan is specifically for you.

What you get:

Current promotion: New users can get the $35 base fee waived for the first 6 months. You'd only pay the $6/contractor fee during that period.

What you don't get: Most add-ons aren't available on this plan (except global contractor payments). No employee payroll features, obviously.

Real cost example: A business with 10 contractors pays $35 + ($6 × 10) = $95/month or $1,140/year. With the promotional discount, you'd pay only $60/month for the first 6 months.

International Contractor Payments

Gusto supports contractor payments in over 120 countries. You can pay international contractors directly through the platform without additional per-contractor fees. Contractors receive payments in their local currency, and Gusto handles the foreign exchange conversion.

This is particularly useful for businesses with remote teams or freelancers working from different countries. The platform tracks all payments and generates the necessary tax documentation.

Contractor Billing Flexibility

One of the smartest features of Gusto's contractor plan is that you're only billed for contractors in months when you actually pay them. If you have seasonal contractors or work with freelancers sporadically, you won't pay fees during inactive months.

This makes Gusto more cost-effective than competitors who charge monthly fees regardless of whether you run contractor payments.

Gusto Add-On Costs That Can Add Up

Here's where your Gusto bill can grow beyond the base pricing. These add-ons are available on Simple and Plus plans (Premium often includes them):

Add-OnCostAvailable On
Next-day direct deposit (Simple plan)$15/month + $3/personSimple only
Priority support & HR resources (Plus)$8/month per personPlus only
Health insurance broker integration$6/month per eligible employeeSimple, Plus
State tax registration (new states)Varies by stateAll plans
International contractor paymentsIncluded (no per-contractor fee)All plans
R&D tax credit services15% of credits identifiedAll plans
HSA administration$2.50/participant/monthAll plans
FSA administration$4/participant/month ($20 minimum)All plans
Commuter benefits$4/participant/month ($20 minimum)All plans

According to multiple sources, these add-ons can increase your total cost by $10-$30 per employee per month. A $49/month Simple plan can easily become $100+ per month once you enable several features.

Health Insurance Broker Integration

If you use Gusto as your health insurance broker, administration is free-you only pay insurance premiums. However, if you want to keep your existing broker and have Gusto manage the payroll deductions and enrollments, it costs $6 per eligible employee per month.

Premium plan customers get the broker integration for free, which can save $150/month or more for a 25-person team.

Tax-Advantaged Accounts (HSA, FSA, Commuter)

Gusto partners with providers to offer Health Savings Accounts (HSA), Flexible Spending Accounts (FSA), and commuter benefits. These accounts allow employees to set aside pre-tax dollars for eligible expenses.

HSA costs $2.50 per participant per month. FSA and commuter benefits each cost $4 per participant per month, with a $20 monthly minimum. If you have fewer than 5 participants, you'll still pay the $20 minimum per benefit type.

R&D Tax Credit Services

Gusto offers R&D tax credit identification services that can help qualifying businesses claim significant tax credits for research and development activities. The service costs 15% of the credits identified.

Premium plan customers receive discounts on this service. For many technology companies, software developers, and manufacturers, these credits can amount to tens of thousands of dollars annually, making the 15% fee worthwhile.

What Does Gusto Cost for Different Team Sizes?

Let's do the math for common team sizes on each plan:

5 Employees

10 Employees

25 Employees

50 Employees

100 Employees

These are base costs only. Add benefits administration, time tracking add-ons (for Simple), or priority support to get your true number.

Cost Per Employee Analysis

As your team grows, your per-employee cost actually stays consistent, which is good for budgeting. However, the base fee becomes less significant as a percentage of your total cost.

For a 5-person team on Plus, the base fee represents 57% of the total cost. For a 50-person team on Plus, it's only 12%. This makes Gusto's pricing structure more favorable for larger teams compared to platforms that scale the base fee with team size.

What's Included in Every Gusto Plan

No matter which plan you choose, Gusto includes:

The no-contract, month-to-month structure is genuinely nice. If Gusto doesn't work out, you're not locked in.

Understanding Gusto's Tax Filing Guarantee

Gusto guarantees 100% accuracy on tax calculations and filings. They handle federal, state, and local payroll taxes automatically, including:

If Gusto makes an error in tax calculations or filing that results in penalties or interest charges from tax authorities, they cover those costs. This guarantee provides significant peace of mind, especially for small business owners without accounting backgrounds.

The platform sends automatic tax notifications and compliance alerts to keep you informed of important deadlines and requirements. They also run automatic tax reconciliation payrolls quarterly to correct any discrepancies before filing.

Gusto vs. Competitors: How Does the Cost Compare?

Quick comparison with other payroll providers:

Gusto vs. ADP RUN

Gusto vs. QuickBooks Payroll

Gusto vs. Paychex

Gusto vs. Justworks

Gusto vs. Rippling

For most small businesses under 50 employees, Gusto offers the best balance of features, ease of use, and cost. ADP and Paychex are better for enterprises. Justworks makes sense if you want a PEO relationship. Rippling works for tech companies that need extensive IT integration.

For detailed comparisons, check out our guides on Gusto vs ADP, Gusto vs QuickBooks Payroll, Gusto vs Paychex, and Gusto vs Justworks.

Hidden Costs to Watch For

Gusto is generally transparent about pricing, but here are potential extra costs people miss:

State Tax Registration Fees

When you hire your first employee in a new state, you'll need to register with that state's tax authority. While Gusto handles the registration process, some states charge one-time registration fees ranging from $0 to $200 depending on the state.

These are government fees, not Gusto charges, but they're easy to overlook when budgeting for multi-state expansion.

Workers' Compensation Premiums

Gusto partners with AP Intego to offer pay-as-you-go workers' compensation insurance. This is convenient because premiums are automatically calculated based on actual payroll rather than estimates, but the premium cost varies significantly by industry and state.

Construction and manufacturing businesses can pay 5-10% of payroll for workers' comp, while office-based businesses might pay 0.5-1%. These premiums are in addition to your Gusto subscription.

401(k) Administration Fees

Gusto integrates with 401(k) providers like Guideline, Fidelity, and Human Interest. The 401(k) providers charge their own fees separate from Gusto.

Guideline, for example, charges a monthly base fee plus a percentage of assets under management (typically 0.08%-0.35% annually per participant). For a 10-person company with $100,000 in 401(k) assets, you might pay $50-100/month for the 401(k) administration.

Health Insurance Premiums and Administration

If you use Gusto as your health insurance broker, administration is free, but you still pay insurance premiums to the carrier. Health insurance costs vary enormously based on coverage level, employee age, location, and carrier.

Small businesses typically pay $500-1,500 per employee per month for health insurance premiums. If you use your own broker instead of Gusto, add $6 per eligible employee per month for the broker integration.

Benefits Premiums Beyond Health Insurance

Additional benefits like life insurance, short-term disability, long-term disability, dental, and vision all have their own premiums beyond Gusto's platform fee. These are typically a few dollars to a few hundred dollars per employee per month depending on coverage levels.

Understanding Gusto's 401(k) Options and Costs

Gusto integrates with several 401(k) providers to offer retirement benefits seamlessly synced with payroll. The main partner is Guideline (which Gusto acquired), but they also integrate with Fidelity, Human Interest, and others.

Guideline Pricing Through Gusto

Guideline offers three pricing tiers:

Employer costs include a monthly base fee (varies by tier) plus a monthly participant fee for active employees with account balances. Employee fees are an annual account fee of 0.08%-0.35% of assets under management, depending on the employer's chosen pricing plan.

Combined fund expense ratios for Guideline's managed portfolios range from 0.067% to 0.069%, which is significantly lower than the industry average of 1.68%.

401(k) Tax Credits

Small businesses can claim significant tax credits for starting a 401(k) plan. The SECURE Act increased these credits substantially:

Total potential credits can reach $16,500 over three years just for startup and auto-enrollment, plus additional credits for employer contributions. For many small businesses, these credits effectively make the 401(k) free for the first few years.

Gusto offers a free 401(k) tax credit service for customers using certain integrated partners, helping you identify and claim all eligible credits automatically.

Gusto's Health Insurance and Benefits Administration

Gusto can serve as your health insurance broker or integrate with your existing broker to manage benefits administration.

Using Gusto as Your Broker

When Gusto acts as your broker, health insurance administration is completely free-no platform fees beyond your standard Gusto plan. You only pay insurance premiums to the carrier.

Gusto provides:

Gusto partners with major carriers and can offer medical, dental, vision, life, and disability insurance. The advisors help you compare plans and choose coverage that fits your budget and employee needs.

Broker Integration Option

If you prefer to keep your existing broker, Gusto can still manage the administrative work through broker integration. This costs $6 per eligible employee per month on Simple and Plus plans (free on Premium).

With broker integration, Gusto handles:

Your broker maintains the relationship with carriers and helps with plan selection and renewals. Gusto just handles the payroll and administrative side.

Ancillary Benefits

Beyond major medical, Gusto facilitates:

All ancillary benefits integrate with payroll for automatic deductions and contributions. Employees can enroll and manage benefits through their Gusto account.

How Gusto Handles Payroll Tax Compliance

One of Gusto's strongest features is comprehensive tax compliance automation. Understanding what's included helps you appreciate the value.

Automatic Tax Calculations

Gusto automatically calculates:

The system stays updated with current tax rates and brackets automatically. When tax laws change, Gusto implements updates immediately so you don't have to worry about staying current.

Tax Filing and Payments

Gusto files all required tax forms on your behalf:

Tax deposits are made automatically on the required schedule (monthly or semi-weekly, depending on your deposit schedule). Gusto debits your account for the tax amounts and sends payments to the appropriate agencies.

Tax Reconciliation

Gusto runs automatic tax reconciliation payrolls quarterly to correct any discrepancies before filing forms. If you owe additional taxes or are due a refund, Gusto processes the adjustment and notifies you.

This proactive approach prevents surprises during tax season and helps avoid penalties for underpayment.

Compliance Alerts and Notifications

The platform sends alerts for:

On the Premium plan, you receive proactive compliance support from your Customer Success Manager and access to certified HR experts for complex compliance questions.

Is Gusto Worth the Cost?

For most small businesses (under 50 employees), yes. Here's the detailed value analysis:

What Gusto Does Well

Modern, intuitive interface: Gusto's design is genuinely easy to use, even for people without payroll or accounting experience. The dashboard is clean, tasks are clearly presented, and the mobile apps work smoothly. Compared to legacy providers like ADP or Paychex, Gusto feels like a modern software product.

Reliable automatic tax filing: The tax compliance automation works consistently. Thousands of businesses trust Gusto with tax filing, and the 100% accuracy guarantee provides real protection. You're not worrying about IRS penalties or state tax issues.

Strong integrations: Gusto connects with popular tools like QuickBooks, Xero, FreshBooks, Expensify, Homebase, Clover, and dozens of others. The integrations actually work well and sync data reliably. If you're already using accounting software, Gusto will probably integrate.

Employee self-service reduces your workload: Employees can access pay stubs, W-2s, update addresses and bank accounts, enroll in benefits, request PTO, and clock time through the employee portal and mobile app. This eliminates constant questions and administrative tasks for you.

Transparent pricing without gotchas: Gusto publishes pricing clearly on their website. While add-ons exist, they're optional and clearly explained. You won't get surprise bills or hidden fees like you might with some enterprise providers.

Month-to-month flexibility: The no-contract structure means you can cancel anytime if Gusto isn't working for your business. You're not locked into annual commitments.

Excellent customer support: User reviews consistently praise Gusto's customer support team. Phone and email support is responsive and knowledgeable. Premium plan customers get dedicated support that's even better.

Where Gusto Falls Short

No international employee payroll: Gusto only handles U.S. employees on W-2. If you need to pay employees internationally, you're limited to Gusto Global (EOR service) in a handful of countries, or contractor payments. Competitors like Deel or Remote are better for international teams.

Limited enterprise features: Companies with 100+ employees or very complex organizational structures might find Gusto lacking advanced features available in enterprise HRIS systems like Workday or SAP SuccessFactors.

Add-ons increase costs quickly: While base pricing is reasonable, adding features like next-day direct deposit, priority support, broker integration, and tax-advantaged accounts can significantly increase your monthly bill.

Per-employee pricing gets expensive at scale: For very large teams (100+ employees), the per-employee model becomes expensive compared to enterprise payroll solutions that charge based on different models.

Time tracking could be better: While Plus and Premium include time tracking, it's fairly basic. Dedicated time tracking apps like When I Work or Deputy offer more sophisticated features for businesses with complex scheduling needs.

Limited industry-specific features: If you're in a highly specialized industry with unique payroll requirements (like construction with certified payroll or restaurants with complex tip reporting), you might need industry-specific software instead.

ROI Calculation

Consider what you're replacing. If you're currently:

For most small businesses, Gusto pays for itself through time savings, error reduction, and avoiding penalties.

For more on Gusto's features and how it stacks up, see our Gusto pricing guide and full Gusto review, or check out user reviews.

How to Choose the Right Gusto Plan

Pick Simple if:

Pick Plus if:

Pick Premium if:

Pick Contractor Only if:

When to Upgrade Plans

You can upgrade or downgrade your Gusto plan anytime. Upgrades take effect immediately, while downgrades apply at the beginning of the next billing cycle.

Consider upgrading from Simple to Plus when:

Consider upgrading from Plus to Premium when:

Getting Started with Gusto: What to Expect

Understanding the setup process helps you budget time and prepare information.

Account Setup (Free)

Gusto doesn't charge setup fees. You can create an account and explore the platform for free. You're only charged when you run your first payroll.

Initial setup takes 30-60 minutes and requires:

The setup wizard guides you through each step with clear instructions and help text.

Data Migration

If you're switching from another payroll provider:

Mid-year switches require accurate YTD data for tax reporting. Take time to ensure numbers are correct.

First Payroll Run

Your first payroll takes 15-30 minutes once setup is complete. For subsequent payrolls, it's typically 5-10 minutes unless you have changes.

Gusto guides you through:

After submission, Gusto handles everything: debiting your account, depositing employee pay, filing taxes, and generating records.

Ongoing Use

After your first payroll, the process becomes routine. You can even set up AutoPilot to run payroll automatically on your schedule with no manual intervention.

Most users spend 5-10 minutes per payroll once established. The platform sends reminders before each payroll deadline so you never miss a pay period.

Real User Cost Experiences

Based on user reviews and feedback, here's what businesses actually pay:

Micro Business (1-3 employees)

"We're a two-person startup using Gusto Simple. We pay $61/month ($49 + $12 for two employees). We added the Contractor Only feature since we use a few freelancers occasionally, which adds about $20/month when we pay them. Total is usually $60-80/month. Totally worth it to not worry about payroll taxes." - Tech Startup Founder

Small Business (10-15 employees)

"Our team of 12 uses Gusto Plus because we're in three different states. Base cost is $168/month ($60 + $108 for 12 employees). We added HSA administration for 5 employees ($12.50/month) and use Gusto for health insurance (no extra fee). Total Gusto cost is about $180/month. Our previous payroll company charged $350/month, so this is a big savings." - Marketing Agency Owner

Mid-Size Business (25-40 employees)

"We have 32 employees on Gusto Premium. Monthly cost is $884 ($180 + $704 for 32 employees). We get broker integration free, dedicated support, and HR expert access included. We also pay for FSA administration ($80/month) and 401(k) through Guideline (about $200/month). Total monthly people cost is around $1,165 for all payroll, HR, and benefits administration. Worth every penny for the time saved and peace of mind." - Manufacturing Company CFO

Restaurant (8 employees + 15 contractors)

"We use Gusto for our restaurant staff and contract waiters for events. We have 8 W-2 employees on Plus ($132/month) and usually pay 10-15 contractors per month ($60-90/month). Total averages $200-220/month. The automatic tip credit calculation and contractor payment tracking are huge for our industry." - Restaurant Owner

Gusto Discount and Promotion Opportunities

While Gusto doesn't typically offer heavy discounting, there are ways to save:

Current Promotions

Referral Credits

Gusto has a referral program. When you refer another business that signs up and runs payroll, both you and the referred business can receive account credits. Check your Gusto account for current referral offers.

Accounting Partner Discounts

If you work with a CPA or bookkeeper who is a Gusto partner, they may have access to discounted rates or extended trial periods for their clients. Ask your accountant if they're a Gusto partner.

Nonprofit Pricing

Gusto offers the same pricing for nonprofits and for-profits, but nonprofits may qualify for additional features or support. Contact Gusto sales to discuss nonprofit-specific needs.

Alternatives to Consider Based on Cost

Depending on your specific situation, these alternatives might be more cost-effective:

If You Need Cheaper Options

If You Need More Features

If You Need International Employees

For most U.S.-based small businesses, Gusto hits the sweet spot of features, ease of use, and cost. But your specific needs might make an alternative better.

Common Questions About Gusto Cost

Does Gusto charge setup fees?

No. Account setup is completely free. You can create an account, add employees, and explore features without paying anything. You're only charged when you run your first payroll.

Can I try Gusto before paying?

Yes. You can set up your entire account, add employee information, and even preview what payroll will look like without being charged. You only pay when you actually run payroll and process payments.

Does Gusto require a contract?

No. All Gusto plans are month-to-month. You can cancel anytime without penalty or termination fees.

What happens if I need to cancel?

You can cancel anytime from your account settings. You'll have access through the end of your current billing period. Gusto doesn't charge cancellation fees. You can export all your payroll data and tax documents before leaving.

How does billing work?

Gusto bills on the first of each month for that month's service. Your first bill will be prorated based on when you sign up. The base fee and per-person fees are charged regardless of how many payrolls you run that month.

What if my team size changes mid-month?

You're only charged for active employees. When you add someone, you start paying their per-person fee. When you deactivate someone, you stop paying for them. Changes are prorated in your next bill.

Are contractors charged the same as employees?

On Simple, Plus, and Premium plans, contractors are charged the same per-person rate as employees. However, you're only billed for contractors in months when you actually pay them. The Contractor Only plan has different pricing: $35/month + $6/contractor.

Can I change plans anytime?

Yes. Upgrades take effect immediately. Downgrades take effect at the beginning of your next billing period (the first of the month). There are no fees for changing plans.

What payment methods does Gusto accept?

Gusto accepts bank account (ACH) and credit card for subscription payments. Payroll funds must be debited from a bank account.

Does Gusto offer discounts for annual payment?

Gusto doesn't advertise annual payment discounts, but some users report getting small discounts by contacting sales and committing to annual payment. It's worth asking if you're certain you'll use Gusto for a full year.

Bottom Line: What You'll Actually Pay

Gusto's cost ranges from $55/month (Simple plan with one employee) to several thousand dollars per month for larger teams on Premium with add-ons. The most common setup-Plus plan for a 10-15 person team-runs about $150-200/month.

The value proposition is strong: you're paying for a modern platform that eliminates payroll headaches, ensures tax compliance, reduces administrative burden, and provides employee self-service that saves you time daily.

For most small businesses, Gusto isn't the absolute cheapest option, but it's the best balance of features, reliability, ease of use, and cost. The transparent pricing, no-contract flexibility, and proven track record make it a safe choice.

Start with the plan that matches your current needs. You can always upgrade as you grow or need more features. The platform scales well from solopreneurs to 100+ employee companies.

Get started with Gusto →

Final Recommendations by Business Type

Solo Entrepreneurs and Side Businesses

If you're paying yourself as an S-corp or have one or two employees, start with Simple. $55-80/month gets you professional payroll with full tax compliance. Worth it to avoid IRS issues and save time.

Startups with 5-15 Employees

Go with Plus if you're in multiple states or need time tracking. Otherwise, Simple works fine and saves $30-60/month. Upgrade to Plus when you hire across state lines or when your team requests better time tracking.

Growing Companies (15-30 employees)

Plus is your sweet spot. You need the multi-state support and time tracking. Add priority support as an add-on if you need it ($8/person). Consider Premium when you hit 25-30 employees or face complex compliance issues.

Established Businesses (30-75 employees)

Premium makes sense here. The dedicated support, HR expert access, and included add-ons (like broker integration) that would cost extra on Plus make the upgrade worthwhile. Your time savings and risk reduction justify the higher cost.

Contractor-Heavy Businesses

Use the Contractor Only plan until you hire your first W-2 employee. Then switch to Simple and continue paying contractors at the same rate. The flexibility of only paying for contractors in months you use them is valuable.

For more detailed guidance on Gusto's features, integration options, and how to maximize value, check out our comprehensive Gusto review and comparison guides: Gusto vs ADP, Gusto vs QuickBooks, and best payroll software for small business.

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