Gusto and QuickBooks Payroll are both affordable software options for small business owners who want to access their payroll from anywhere. QuickBooks Payroll is best for small businesses that want to offer health insurance to employees and even better for those using QuickBooks accounting software. Gusto is an all-in-one solution that’s best for new small businesses needing both payroll and HR support.
Gusto and QuickBooks Payroll are both great payroll services that:
- Offer three product plans that all include full-service payroll and direct deposit
- Allow businesses to process an unlimited number of pay runs at no additional cost
- Process and file federal, state, and local taxes
- Give employers access to offer health insurance
- Have HR advisers available to premium users who have questions on how to do payroll or handle HR issues
Gusto vs QuickBooks Payroll
Features | Gusto vs QuickBooks Payroll |
|---|---|
Cost | Gusto Wins: If you’re only paying contractors OR opting for the mid-tier plan QuickBooks Payroll Wins: If you want the most basic or premium plan |
Automation | Gusto |
Strongest HR Support | Gusto |
Most Software Integrations | Gusto |
Best Customer Service Experience and Reviews | Gusto |
Workers’ Comp Administration Availability | Gusto |
Robust Selection of Employee Benefits | Gusto |
Health Insurance for All | QuickBooks Payroll |
Quickest Direct Deposit Processing Time | QuickBooks Payroll |
Best Tax Penalty-free Guarantee | QuickBooks Payroll |
Strongest Time Tracking Tool | QuickBooks Payroll |
Most Community Support | QuickBooks Payroll |
Decide which payroll service is right for your business by answering just four Gusto vs QuickBooks quiz questions. Then continue reading the article to learn more about the software.
When to Use Gusto
Gusto is the winner when it comes to overall value and customer service for small businesses. Its plans offer enough features to help small businesses from the time they decide to hire a new employee—with offer letters and onboarding support—to the day the employee is terminated. Gusto ensures employees and taxes are paid correctly, makes your business more attractive with its robust benefit options, and offers advising on payroll and HR compliance issues so you don’t end up in court.
Gusto Strengths | Gusto Weaknesses |
|---|---|
All-in-one payroll and HR solution | Doesn’t offer insurance in all states |
Automated payroll for any employee | Doesn’t scale well for businesses with >100 employees |
Employee benefits selection | |
Software Integrations |
When to Use QuickBooks Payroll
With QuickBooks Payroll, you can offer the most popular benefit that employees usually want—health insurance—in any state; this means you don’t have to worry about not being eligible as you would with Gusto. And if you have hourly workers, the time and attendance tool is top-notch, with built-in GPS tracking so you know your team is on-site when they clock in.
QuickBooks Payroll Strengths | QuickBooks Payroll Weaknesses |
|---|---|
Built-in integration within QuickBooks accounting software | Doesn’t offer benefits outside of insurance and workers’ comp |
Community support | Inconsistent customer service |
Fast direct deposit processing (slowest is next-day) | |
Unlimited pay runs |
When to Use an Alternative
If your company is subject to more regulations than the average business, i.e., you employ minors, have a construction business, etc., and need more human resource and compliance support, you may want to consider Zenefits as an alternative. Gusto and QuickBooks Payroll both have premium features that help you comply with payroll laws, but Zenefits offers a full-suite of HR tools in its most basic plan.
All users receive HR support and a time and scheduling tool. An HR advising service, onboarding help, and electronic storage are also available. You will have to add payroll as an add-on for an additional $6 per employee per month. If this sounds like it fits your business, sign up to get started today.
An In-Depth Look at Gusto vs QuickBooks Payroll Features
Features | Gusto | QuickBooks Payroll |
|---|---|---|
Cost | From $45 to $155 monthly for one employee | From $49 to $135 monthly for one employee ($13.50 to $37.50 for the first three months) |
Direct Deposit Processing Time | Standard 2-day | Minimum next-day process; same-day with premium plans |
Employee Benefits | Health insurance, disability, the commuter, flexible spending accounts, retirement accounts | Health insurance |
Health Insurance | Available in 27 states | Available in all 50 states |
Workers’ Comp | Can purchase and manage within all plans | Can only purchase and mange in most premium (Elite) plan |
Payroll Automation | For salaried and hourly workers | Only for salaried workers |
HR Support | Self-onboarding, state new hire reporting, offer letters, employee directory and surveys, advising | HR Support Center, advising |
Software Integrations | QuickBooks Online, Xero, FreshBooks, When I Work, TSheets, Homebase + | TSheets and primarily other Intuit products |
Customer Service | Good overall | Inconsistent; trend of unreliable customer service |
For In-Depth Reviews From Real Users |
Gusto vs QuickBooks Payroll Pricing Plans
Gusto and QuickBooks Payroll are very similar in pricing options, unless you’re only paying contractors. If contractors are your only workers, Gusto will only charge you $6 per worker and only during months in which you process a paycheck. The base price for Gusto’s core plan is $39 per month, plus $6 per month, per employee or contractor.
Gusto Pricing Plans
Features | Contractors Only | Core | Complete | Concierge |
|---|---|---|---|---|
Monthly Price | $6/contractor, per month | $39 + $6/employee, per month | $39 + $12/employee, per month | $149 + $12/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 |
QuickBooks Payroll Pricing Plans
QuickBooks Payroll offers a discount, but only for the first three months of service. Both regular and discounted pricing are shown in the table below.
Features | Core | Premium | Elite |
|---|---|---|---|
Monthly Price | $45 + $4/employee, per month 3-month discount rate: $13.50 + $4/employee, per month | $75 + $8/employee, per month 3-month discount rate: $22.60 + 8/employee, per month | $125 + $10/employee, per month 3-month discount rate: $37.50 + $10/employee, per month |
Plan Comparison | Full-service payroll + health benefits + next-day direct deposit | Core + same-day direct deposit + mobile time tracking + HR support center workers’ comp | Premium + 24/7 support + professional setup + HR advisor +tax penalty protection |
Bottom Line
To help you choose the payroll solution that’s best for your business—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 focused on hiring the best and need more than just health insurance benefits to build a quality team, consider Gusto. It’s also the most affordable option if you’re only paying contractors. If you’re already using QuickBooks and have (or plan to have) 50 or more employees, QuickBooks Payroll may be a better option. When you reach the equivalent of 50 full-time employees, you’ll need to offer health insurance. And it’s a given that QuickBooks users will have a much easier time using QuickBooks Payroll.
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