2023 Gusto vs QuickBooks Payroll: Which Is Better for Your Business?
Charlette has over 10 years of experience in accounting and finance and 2 years of partnering with HR leaders on freelance projects. She uses this extensive experience to answer your questions about payroll.
Robie has more than five years of content writing experience and specializes in writing about payroll and human resources software for small businesses.
This article is part of a larger series on Payroll Services.
Gusto and QuickBooks Payroll are affordable software options for small business owners. Both offer full-service payroll with unlimited pay runs and direct deposit payments, including payroll tax processing and filing. However, Gusto has contractor-only pricing, a wider selection of benefits options, and more human resources (HR) tools. QuickBooks Payroll, on the other hand, provides faster direct deposits, connects seamlessly with other Intuit QuickBooks products, and slightly better health insurance coverage (available in 48 states vs Gusto’s 39 states).
Here’s where we particularly recommended Gusto vs QuickBooks Payroll:
- Gusto: Best for small businesses needing to run payroll―for employees and/or contractors―plus access to some complementary HR tools and services
- QuickBooks Payroll: Best for small businesses already using other Intuit Quickbooks software and looking for fast direct deposits
There are times when neither Gusto nor QuickBooks Payroll is best. We found a good alternative if you need a payroll solution with a wide range of HR tools.
- Rippling: Best for tech-heavy companies looking for an all-in-one HR platform with robust integrations, global payroll, and IT tools to manage apps and company-assigned computers
Gusto vs QuickBooks Payroll Compared
Both providers offer full-service payroll in 50 states, unlimited pay runs, and automated taxes and forms, employee onboarding, time tracking, reporting, and self-service tools. Here are some key features and pricing information.
 |  | |
|---|---|---|
Starter Monthly Pricing | $6 per employee plus $40 base fee; $6 per person (contractor-only businesses) | $5 per employee plus $45 base fee |
Direct Deposit Processing Timelines | Minimum two and four days; next-day process with higher plans | Minimum next-day process; same-day with higher plans |
Health Benefits Coverage | 39 states only | Not available in Vermont, Hawaii, and District of Columbia |
Workers' Compensation | Can purchase and manage within all plans | Can purchase and manage only in higher plans |
Payroll Tax Payments, Filings, and Year-end W2/1099 Reports | ✓ | Local tax payments and filings available in higher tiers only |
Other HR Features | Job postings, applicant tracking, performance reviews, employee surveys, HR resource center, and HR advisers | HR support center and HR advisers |
Software Integration | Robust | Limited to Intuit products; requires QuickBooks Accounting to unlock all integrations |
Customer Service | Phone, email, and chat support from Monday to Friday; premium support available in higher tiers | 24/7 chat; phone support from Monday to Saturday; premium support available with Elite plan |
When to Use Gusto & QuickBooks Payroll
Best in Pricing: QuickBooks Payroll
| | |
|---|---|---|
Monthly Pricing | Simple: $40 + $6 per employee Plus: $80 + $12 per employee\Premium: Contact Gusto for quote | Core: $45 + $5 per employee Premium: $75 + $8 per employee Elite: $125 + $10 per employee |
Contractor-only Payroll Plan | $6 per person monthly | ✕ |
Multiple State Tax Filings | No extra cost but included in Plus and Premium plans only | All plans include 1 state filing; $12 for each additional state monthly for Core and Premium plan holders (Elite plan supports multiple state filings at no extra cost) |
Both Gusto and QuickBooks Payroll offer affordably priced product plans that come with unlimited pay runs. At first look, Gusto’s lower base fees for its Simple plan may seem more affordable than QuickBooks Payroll’s Core plan. However, QuickBooks Payroll’s lower per-employee pricing makes it more cost-efficient than Gusto once you have more than five employees. Here’s a comparison of the two providers’ pricing for 10 employees for their starter plans:
- Gusto: $100 per month, calculated as ($6 per employee x 10 employees) + $40
- QuickBooks Payroll: $95 per month, calculated as ($5 per employee x 10 employees) + $45
For $45 plus $5 per employee monthly with QuickBooks Payroll’s Core plan, you get full-service payroll, next-day direct deposit, federal and state tax payments and filings, and access to 401(k) plans and health benefits. You get similar features with Gusto’s Core plan for $40 plus $6 per employee.
However, if you only employ contractors, Gusto offers a contractor-only plan costing $6 per month, per person. QuickBooks Payroll doesn’t have a special pricing scheme for contractors, so you have to pay the same rates as indicated in its three plans.
Gusto vs QuickBooks Payroll Pricing Calculator
If you want to quickly compare costs, use our online calculator to compute the estimated monthly and annual fees for these two providers.
Best for Payroll Features: Gusto
| | |
|---|---|---|
Full-service Payroll With Unlimited Pay Runs | ✓ | ✓ |
Automated Tax Filings and Payments | ✓ | Local tax payments and filings available in higher tiers |
Year-end Tax Report Prep and Online Delivery (W2s/1099s) | ✓ | ✓ |
Multistate Payroll | Available in higher tiers | ✓ |
Direct Deposit Timelines | Next-day, two days, and four days | Next-day and same-day |
Manual Paychecks and Pay Card Option | ✓ | Manual paychecks only |
Pay on Demand | ✓ (via Gusto Cashout) | ✕ |
Wage Garnishment Deductions and Payments | ✓ (payment services unavailable in South Carolina) | Wage garnishment payments not included |
International Contractor Payroll | Costs extra* | ✕ |
When it comes to payroll processing, Gusto and QuickBooks Payroll have similar feature sets. Both offer automated payroll and tax processing, including year-end tax report preparation and online delivery of Form W-2s and 1099s. However, QuickBooks Payroll doesn’t have Gusto’s pay-on-demand option, which allows your employees early access to their earned wages whenever they want. Plus, it lacks the global contractor payroll services that Gusto offers (although this is a paid add-on).
Also, with QuickBooks Payroll’s Core plan, you get payroll tax payments and filings only for state and federal taxes. For local taxes, you have to print the forms and file them with or upload them to the applicable local sites yourself. QuickBooks will only handle local tax payments and filings for you if you subscribe to either its Premium or Elite plans.
With Gusto, you can run payroll in four easy steps.
(Source: Gusto)
When to Consider QuickBooks Payroll for Payroll
If you require same-day direct deposits, then you may want to consider QuickBooks Payroll. Gusto provides two-day direct deposits for its Simple package and next-day processing for its higher tiers. Also, if your business is located in more than one state, Gusto offers its multistate payroll functionalities only for Plus and Premium plans—this is available in QuickBooks Payroll’s starter tier.
With QuickBooks Payroll, you can process employee payments with just a few clicks.
(Source: Gusto)
If you would like to try other options, check our best payroll services guide for small businesses.
Best for HR Features & Employee Benefits: Gusto
| | |
|---|---|---|
Workers’ Compensation | Can purchase and manage within all plans | Can purchase and manage only in higher plans |
Employee Benefits | Health insurance, retirement, flexible savings accounts (FSA) and health savings accounts (HSA), and commuter benefits | Health and retirement plans |
Health Insurance Coverage | 39 states | 48 states |
Non-standard Benefits | College savings plans; free Gusto Wallet app with “Cashout” option for early access to earned wages | ✕ |
Employee Onboarding and Self-service Tools | ✓ | ✓ |
New Hire Reporting | ✓ | Only generates new hire reports |
Time Tracking | Available in higher tiers | ✓ |
Offer Letters | ✓ | ✕ |
Job Postings and Applicant Tracking | Available in higher tiers | ✕ |
Performance Reviews | Available in higher tiers | ✕ |
Employee Surveys | Available in higher tiers | ✕ |
With Gusto and QuickBooks Payroll, you get a self-service portal that employees can use to view their pay slips and employee benefits online. Both providers also offer access to expert professionals who you can contact to get HR, payroll, and compliance advice.
However, we’ve found Gusto to have better HR functionality. Some of Gusto’s essential HR features include new hire state reporting, hiring, performance review management, and a wide range of employee benefits options, such as health insurance, commuter benefits, and flexible spending accounts. It even has workers’ compensation administration, a functionality that QuickBooks Payroll only offers in its higher tiers. Additionally, you get access to job postings, online offer letters, customizable onboarding tools, and employee surveys.
QuickBooks Payroll, on the other hand, can only generate new hire state reports, and you have to file the actual reports yourself. Its benefits options are also limited to health insurance plans, and while it does offer workers’ compensation administration, it is available only for Premium and Elite subscribers.
When to Consider QuickBooks Payroll for HR & Employee Benefits
While Gusto’s benefits options are robust, you may end up not having access to health plans if your business is located in one of the 11 states that it doesn’t cover (Alabama, Alaska, Hawaii, Louisiana, Mississippi, Montana, Nebraska, North Dakota, South Dakota, West Virginia, and Wyoming). This is unlike QuickBooks Payroll’s health plans, which are unavailable only in two states—Vermont and Hawaii—and the District of Columbia.
Best for Ease of Use, Customer Support & Integrations: Gusto
| | |
|---|---|---|
Ease of Use | Good | Good |
Access to HR Advisers | Included in highest plan | Included in highest plan |
How-to Guides | ✓ | ✓ |
Setup Help | Included in highest plan | Included in highest plan |
Third-party Software Integrations | 130+ options | Limited to Intuit products; requires QuickBooks Accounting to access all integrations |
Access to a Community Forum | ✕ | ✓ |
Customer Support | Phone, email, and chat; premium support available in higher tiers | 24/7 chat; phone and email; premium support available in higher tiers |
Support Hours | Monday–Friday, from 6 a.m. to 5 p.m. Pacific time | Monday–Friday, from 6 a.m. to 6 p.m. Pacific time Saturday from 6 a.m. to 3 p.m. Pacific time |
When it comes to ease of use, Gusto and QuickBooks Payroll have user-friendly and intuitive platforms. Both offer phone support, including access to HR advisers and how-to guides. However, for third-party software integrations, Gusto has a more robust selection.
Meanwhile, QuickBooks Payroll primarily offers integration with Intuit products. If you use your existing accounting software, you’ll have to manually input data from your accounting software into QuickBooks Payroll. With Gusto, you can integrate with accounting, POS, business operations, and time tracking solutions.
Gusto’s W-2 employee information setup (Source: Gusto)
When to Consider QuickBooks Payroll
QuickBooks Payroll is a great option if you’re a QuickBooks user or are considering using other Intuit products. The integration with QuickBooks solutions are seamless, making it easy for you to manage data across multiple Intuit products—from employee attendance (via QuickBooks Time) to pay processing (through QuickBooks Payroll) and general ledger updates (with QuickBooks Accounting).
QuickBooks Payroll’s main dashboard has a to-do list to help you complete your account setup.
(Source: QuickBooks Payroll)
Best for Popularity Among Users: Gusto
| | |
|---|---|---|
User Feedback | Mostly positive | Mostly positive |
Average User Ratings* | 4.45 out of 5 | 4 out of 5 |
Average Number of Reviews* | More than 2,100 | Nearly 400 |
To compare Gusto vs Intuit QuickBooks Payroll on user popularity, we looked at each providers’ average overall ratings and the number of reviews on third-party review sites like G2 and Capterra. For user ratings, Gusto outscored QuickBooks Payroll with its average rating of 4.45 out of 5 versus the latter’s 4 out of 5 score. Gusto’s number of user reviews online is also higher—it has more than 2,100 average reviews versus QuickBooks Payroll’s nearly 400 reviews.
What Users Think: Gusto vs QuickBooks Payroll
How We Evaluated Gusto vs QuickBooks Payroll
To compare Gusto vs QuickBooks Payroll, we looked at both providers’ payroll solutions and HR services for small businesses. Apart from looking at employee pay and payroll tax processing functionalities, we checked whether HR tools and employee benefits are part of their offerings. Ease of use, pricing, and customer support are also key criteria, including whether users have access to expert professionals who can provide HR and payroll advice.
Based on our evaluation, QuickBooks Payroll and Gusto are both easy to use and have similar customer support tools. However, Gusto offered more robust payroll, HR, and benefits features. Gusto also integrates with more third-party software while QuickBooks Payroll is more affordable for small businesses.
Bottom Line
To help you choose a payroll solution that’s best for your business—be it Gusto or QuickBooks Payroll—start by assessing how many employees you have and plan to have in the future, along with your need for HR support and software integrations. You should also determine if you want to offer benefits and, if so, consider if any are negotiable.
If you’re already using QuickBooks’ accounting software, then QuickBooks Payroll may be a better option. The learning curve will be much lower than you’d get with other small business software, and you can provide your employees with health insurance benefits in any state.
However, if you need more than just health insurance benefits to build a quality team or your business and employees are in an eligible state, consider Gusto. You’ll get more onboarding and HR support plus more affordable plan options.
