Choosing between Gusto vs ADP Run for payroll is simple once you have a clear picture of what each system offers. They both give you tools to pay your employees, automate payroll tax management, and meet your HR needs. ADP is best for companies intending to grow past 100 employees and is more expensive because it offers robust features that can support companies of any size (even 1,000+ employees). Gusto is best for small businesses (less than 100 employees) that need consistent, reliable customer service and some HR support for half the cost of ADP.
Features Gusto and ADP Have in Common
Before we dive into all of the differences between Gusto and ADP let’s take a look at what they have in common.
Even if you know how to do payroll, Gusto and ADP are both great payroll services that:
- Run payroll and pay employees on a pay cycle you choose
- Pay employees using direct deposit at no additional cost
- Process and file federal, state, and local payroll taxes
- Handle year-end tax reporting (W2s and 1099s) if you pay extra
- Give you access to provide employee benefits
- Provide onboarding and compliance support
- Handle state new hire reporting
Decide which payroll service is right for your business by answering four Gusto vs ADP quiz questions.
Gusto vs ADP Which Is Best for You?
Gusto vs ADP
Features | Gusto vs ADP |
|---|---|
Cost | Gusto |
Most Flexible Pay Schedules | Gusto |
Best Customer Service Experience | Gusto |
Best Customer Reviews | Gusto |
Cheapest Software Integrations | Gusto |
Features Tailored to Small Businesses | Gusto |
Accessible Employee Benefits | Gusto |
Scalable Plan Options | ADP |
Most Customizable | ADP |
Strongest HR Tools | ADP |
Mobile App | ADP |
Features Tailored to Large Businesses | ADP |
When to Use Gusto as a Payroll Processing Company
Gusto is the best payroll processing company for small businesses with under 100 employees because it delivers services comparable to big-name competitors at a significantly lower price—as low as a $19 base monthly price, plus $6 per employee (with a free 30-day trial). Unlike ADP, Gusto prepares year-end tax reports (W-2 and 1099s), integrates with other software, and gives you onboarding and compliance support at no additional cost.
Gusto Strengths | Gusto Weaknesses |
|---|---|
Payroll and HR features all in one package | Only offers insurance in 27 states |
Affordable | Doesn’t work well for businesses with >100 employees |
Unlimited pay runs | |
Automation |
When to Use ADP Run as a Payroll Processing Company
ADP Run is a great payroll option for small businesses that have growth plans in place or are already in the 500+ employee range. It has eight product plans to choose from, designed to support businesses as they grow from 10 employees to 1,000. It performs all of the basic payroll functions and offers a robust set of HR and compliance features, much more comprehensive than Gusto. You can pay extra for tools like talent acquisition and performance management.
ADP Strengths | ADP Weaknesses |
|---|---|
Personalized payment options | Pricey |
Customizable with lots of add-ons | Customer service can be inconsistent |
Fit for small and large companies | |
Strong HR features |
Now, let’s take a closer look at Gusto and ADP’s features, so you can really see how they compare.
An In-Depth Look at Gusto vs ADP Features
Features | Gusto | ADP Run |
|---|---|---|
*Cost for 10 employees | $1,188 per year | $3,079 per year |
Pay Options | Manual check (in-house), direct deposit, pay card | Paper checks signed and delivered, direct deposit, pay card |
Health Insurance | Only in 27 states; Packaged with payroll | In all 50 states; Separate from payroll |
Other Employee Benefits | Health insurance, flexible spending accounts, retirement, commuter, tuition savings | Health insurance and retirement |
Workers’ Comp | Pay-as-you-go plans | Pay-as-you-go plans |
Payroll on Autopilot |  | |
HR Support | Onboarding, new hire support, advising | Background checks, onboarding, new hire support, handbooks, advising |
Software Integrations | Wide range of popular software | Wide range of popular software |
Customer Service | Phone support 5 days/week; reliable, consistent | 24/7 phone support; can take a while to resolve issues |
Add-ons | Time tracker | Time and attendance, benefits, advising, PTO tool, software integration |
For In-Depth Reviews From Real Users | 4.8 out of 5 stars Gusto User Reviews | 4.2 out of 5 stars |
*Pricing estimates are for 10 employees with biweekly payroll. However, Gusto charges monthly based on the number of active employees you have, whereas ADP prices by payroll run. Therefore, your actual price with ADP may change from month to month.
Gusto vs ADP Pricing
Comparing prices among Gusto and ADP can be a little tricky, since ADP doesn’t post pricing on its website. ADP representatives may or may not offer discounts once you get on the phone.
For example, when we contacted them for quotes, ADP’s sales team offered a 20% discount and waived the setup fee. Discounts are usually time-limited though and the lack of transparency with big providers like ADP makes it hard to project what offers might be available.
We received an annual quote of $3,079 from ADP for a total of 10 employees paid biweekly vs Gusto’s $1,188 (at regular/non-Covid19 pricing). With the discounts ADP offered, the quote decreased to $2,098 per year.
If you want to take a look at Gusto and ADP’s pricing plans up close, see below:
Gusto Pricing Plans
Features | Contractors Only | Core | Complete | Concierge |
|---|---|---|---|---|
Monthly Price | $6 per contractor, per month | $19 + $6 per employee, per month | $39 + $12 per employee, per month | $149 + $12 per employee, per month |
Plan Comparison | Unlimited payments, self-service portal, 1099 forms and filing | Full-service payroll and benefits features | Core + Time management, onboarding, and employee engagement tools | Complete +HR Pro advising and resources, templates, training, and dedicated support team |
ADP Run Product Plans (1-49 employees)
Features | Essential Payroll | Enhanced Payroll | Complete Payroll Plus HR | HR Pro |
|---|---|---|---|---|
Price | Contact for Quote | Contact for Quote | Contact for Quote | Contact for Quote |
Plan Comparison | Full-service payroll, taxes, and reporting | Essential+ check signing +unemp insurance audit + background checks + job Board | Enhanced + Handbook and HR support + HR forms + advanced reporting + dedicated support | Complete + legal assistance + extra support + employer/employee trainings |
ADP Run Product Plans (50+ employees)
Features | Payroll Essential | HR Plus | Hiring Advantage | Performance Plus |
|---|---|---|---|---|
Price | Contact for Quote | Contact for Quote | Contact for Quote | Contact for Quote |
Plan Comparison | Full-service payroll, taxes | Essential+ check signing + compliance + reporting + onboarding + digital storage | HR Plus+ Talent acquisition tools (job boards, interview scheduling, etc.) | Hiring Advantage + Performance management + Compensation management |
ADP Add-Ons
ADP also has add-on features, which is what makes it customizable. The kicker is that some of these are free with Gusto, like benefits and PTO management tools.
- Time and attendance
- PTO management
- Software integration
- HR Help desk
- Employee handbook help
- Compliance reporting
- Benefits administration
- Customizable reporting
There is no concrete pricing on any of ADP’s add-ons. Your sales rep will bundle it into your services and provide you with a custom quote.
Bottom Line
Gusto and ADP offer many of the same types of payroll products, but their services are very different. We recommend you choose the best payroll solution based on both your current and expected future needs. ADP is best if you’re planning to scale your business and/or foresee a need for top-notch HR support. Gusto is much cheaper and works well for small businesses that primarily need payroll support with some introductory HR services included.
peter picataggio
I switched after two payrolls on Gusto to ADP.
Gusto is great if you have 10 or less employees.
We have over 50 and Gusto should have not taken us on as a client as they can not handle this.
They do not have GL capability. Which is huge. What payroll provider now a days can not produce a GL for most accounting systems.
We had to manually do this when on GUSTO our bookkeepers wanted to walk out when they found this out. To be fair they can produce a GL as long as you use QuickBooks, again this is fine if you are a small coffee shop.
In the end we found way to many needed features missing for us. ADP is a bit more expensive but they also have been doing it a long time and have all the features plus.
They make it fairly easy for you though you do have to push a bit 🙂
Laura Handrick
Hi Peter,
Thanks for sharing your feedback. Yes, Gusto has GL interfaces, but doesn’t do GL accounting as it’s designed for payroll, benefits and HR. What makes it stand out for small businesses is it’s full-service offerings, including allowing the smallest of businesses to offer health benefits to their employees.
We’d love to have you share your insights on our reviews pages.
Laura, HR Writer
https://reviews.fitsmallbusiness.com/
Matthew Oppriecht
There are better alternatives out there. WorXsiteHR provides all the services of an ADP, Paychex and Gusto at NO COST.
Plus, they are able to write the health, workers comp and general liability insurance in-house. If an employer wants to save money, it doesn’t get any cheaper than free.
Jeremy Marsan
Hi Matthew,
I would be weary of any company that offers such a substantial service for free. Especially considering you’re providing them sensitive information, like SSNs and bank account numbers. I was not able to find any user reviews for WorXsiteHR, so I can’t confirm whether or not its a legitimate service.
Kim
Thanks for some very useful information! Would anyone be able to tell me if any of these 3 services offer “blind” payroll entry? In other words, can I set up my assistant to enter payroll hours for our weekly payroll without being able to see rates of pay, etc.?
Laura Handrick
Hi Kim,
That’s a great question and one we’ll have to research before our next update. What you might consider is not giving your assistant access to payroll itself, but instead using a timekeeping system that uploads the data to your payroll system. She could then manage the time keeping aspect, — input or verify hours and do the upload, but not process the payroll run. You might consider Gusto because they partner with Homebase for time keeping (at no additional cost), and cost only $39 per month plus $6 per month per employee. More details are available in the articles below, and I’ve attached a link to a pre-recorded webinar that may help you choose.
Laura, HR Writer
https://fitsmallbusiness.com/adp-payroll-competitors/
https://reviews.fitsmallbusiness.com/gusto/
https://fitsmallbusiness.com/free-business-webinars/#payroll
Philip Dana
I would encourage anyone to connect with me prior to partnering with ADP.
Laura Handrick
Philip,
Although we can’t post your contact information here, since comments are made through Facebook, readers may be able to look you up there.
Laura, HR
Sandra Acox
We currently have Paychex and there services seem to keep getting more and more expensive, when we have issues (which is often) we have called several people and our frustration level is growing. So we are looking for a similar service and it looks like Gusto is going to be the service for us at a fraction of the cost!!
Thank you
Laura Handrick
Hi Sandra,
We agree.
You might consider attending our free “Introduction to Small Business payroll” webinar co-hosted by Fit Small Business and Gusto. By registering, you’ll get a free 30 day trial. Thanks for posting your feedback!
Laura, HR
https://fitsmallbusiness.com/free-business-webinars/#payroll
https://fitsmallbusiness.com/free-business-webinars/
Yari Rostamian
Hey Sandra-
I’m a manager at ADP, I know I’m a little late in responding but i just stumbled upon this article.
I can definitely have a conversation with you about your business needs. This article is very biased toward Gusto, there are so many other things about ADP that AREN’T listed here. ADP is known for investing millions in technology for the best experience for our clients. I’d love to show you our technology and our platform.
Laura Handrick
Hi Yari,
We’ve saved your email contact info for the next time we update this article as we want to ensure we’re reflecting each software option correctly.
You may also want to check out our reviews section on the site or claim ADP reviews so that you can provide information to our small business owners looking for software.
Here’s a link to our payroll software reviews.
Overall, you’ll see that our small business readers and online reviewers rate Gusto higher than ADP, Paychex, Intuit (QuickBooks) and Square.
Thanks for responding to this thread.
Laura, HR Staff Writer