Gusto vs Square Payroll: Which One Better?

When it comes to small business payroll processing, two of the popular payroll solutions available on the market are Gusto and Square Payroll. While both can help streamline the way you pay employees, Gusto offers more HR payroll solutions, such as international contractor payments, applicant tracking, and performance management. Square Payroll may not have advanced HR features but it provides better value for your money if you only need to process employee payments.

To help you gauge whether Gusto vs Square Payroll is right for your business, here are our recommendations.

• Gusto: Best for small businesses looking for full-service payroll with solid HR support
• Square Payroll: Best for restaurants and Square POS users needing low-cost pay runs

There are instances where neither Gusto nor Square Payroll is the best option. If you’re looking for HR payroll software with 24/7 customer support, we recommend:

• Justworks: Best for companies that need low-cost professional employer organization (PEO) services to outsource HR and payroll administration

Featured Partner Justworks has paid for this placement. However, our team of experts approved Justworks as an appropriate product and our content remains editorially independent.
Don’t have an in-house HR team or need expert help managing day-to-day HR and payroll tasks? Consider Justworks
User-friendly interface with 24/7 customer support Unlimited employee, contractor, and vendor payments Payroll tax payments and filings, including year-end reporting Offers an affordable PEO package with monthly fees that start at $59 per employee Visit Justworks

Square Payroll and Gusto appear in several of our buyer’s guides for small businesses given the HR and payroll tools that each offer. Both are on our lists of best small business payroll software, top payroll services, and best HR payroll systems.

Gusto vs Square Payroll Compared

• Overview
• When To Use Gusto
• When To Use Square Payroll

	Visit Gusto	Visit Square Payroll
Starter Pricing($/Month)	$40 base fee + $6 per employee	$35 base fee + $6 per employee
Contractor-only Payroll Plan($/Month)	US contractors: $35 base fee + $6 per worker   Global contractors: Call for a quote	US contractors only: $6 per worker
Add-on Solutions($/Month)	Health insurance: Pay only for premiums   Benefits plans: Pricing varies, depending on benefit	Health insurance and retirement plans: Call for a quote
Standout Payroll Features	Unlimited and automatic pay runs Payroll tax services Wage garnishment services Time tracking and time-off management Expense management Employee self-service tools	Unlimited and automatic pay runs Payroll tax services Time tracking and time-off management Employee self-service tools
Standout HR Features	Job posting, hiring, and onboarding tools State new hire reporting Background checks Built-in benefits with Gusto-administered plans Performance reviews Employee engagement surveys Software and email account provisioning	Basic employee profiles State new hire reporting Employee benefits plans (via its partner broker) Simple onboarding tools Staff scheduling
Customer Support	Chat, phone, and email support Access to HR advisors if you’re on the Premium plan	Chat and phone support Access to HR online resources and advisory services (paid add-on)
For More Information	Read our Gusto review	Read our Square Payroll review

Consider using Gusto if:

• You’re a small to midsize business (SMB) looking for an HR payroll software: While Gusto’s core platform is payroll, its wide suite of HR solutions make managing employee-related processes easy for employers and HR professionals. It can help you recruit and pay workers, track staff attendance, manage performance reviews, and run surveys to measure employee engagement.
• You want multiple payment options: With Gusto, you can pay workers via pay card and direct deposit (with four-, two-, and next-day options). If you prefer check payments, you can use Gusto to print the paychecks yourself and manually distribute these to employees.
• You need to pay both US and global workers: Gusto payroll is designed to pay workers across all US states, but it also has an international contractor payment service that covers more than 120 countries. If you have global workers, Gusto’s partnership with Remote grants you access to employer of record (EOR) services to help you hire and pay international workers in 75+ countries.

Want to know more about EOR services? Read our EOR guide to understand how it works.

Check out the box below to learn more about the advantages and drawbacks of using Gusto’s payroll solutions and services.

Pros

• Full-service payroll with unlimited and automatic pay runs
• Solid HR solutions for hiring, time tracking, and performance management
• International contractor payments in 120+ countries; global hiring and payroll (via Remote) in 75+ countries
• Dedicated customer success manager and HR advisors are included in the highest tier

Cons

• Limited health insurance coverage (only covers 37 states, at the time of writing this)
• Starter plan only has basic payroll and HR tools (you have to upgrade to higher tiers to get advanced features and services)
• Multi-state payroll and next-day direct deposits are available only in Plus and Premium plans

Consider using Square Payroll if:

• You use Square POS for your small restaurant or retail shop: Square Payroll connects seamlessly with Square POS to capture the employee tip data for payroll processing. You can also use Square POS to track staff clock-ins/outs and Square Payroll will collect the attendance information it needs to pay employees—no manual data entry required.
• You’re looking for an affordable payroll solution: In comparing Square Payroll vs Gusto in terms of pricing, the former is slightly less expensive than the latter. To pay one employee, Square Payroll will only charge you $35 + $6 per worker monthly; whereas Gusto will bill you $40 + $6 per worker monthly.
• You only pay contract workers: Businesses that only hire and pay contract workers will save a lot of money with Square Payroll. Its contractor payroll plan only costs $6 per worker monthly. Gusto may have a similar plan, but it’s priced at $35 + $6 per worker monthly.
• You require fast employee payments: Similar to Gusto, Square Payroll supports payments via pay card, manual check, and direct deposit (with four-, two-, and next-day options). However, if you and your employees use Square’s Cash App (for iOS and Android devices), you can pay workers instantly.

To know more about Square Payroll pros and cons, check out the box below.

Pros

• Affordable payroll plans; has a low-cost contractor-only payroll package
• Connects seamlessly with Square products
• Multiple payment options with instant payments via Square’s Cash App
• Unlimited and automatic pay runs

Cons

• Lacks advanced HR features (only offers basic onboarding, scheduling, and time tracking
• Doesn’t offer a dedicated customer success manager
• HR advisory services cost extra
• Doesn’t handle international payroll

Top Alternatives

There may be times when neither Square Payroll nor Gusto’s HR and payroll functionalities fit your requirements. We recommend the following options:

	Visit Rippling	Visit ADP	Visit Paychex
Best For	Companies looking for an all-in-one HR, payroll, and IT solution	Fast growing businesses that want flexible payroll tools	Startups and SMBs that need customizable HRIS and payroll tools
US & Global Payroll Tools	✓	✓	✓ (Global payroll via partner solution)
Starter Pricing ($/Month)	US payroll*: $35 base fee + $8 per employee	Call for a quote	$39 base fee + $5 per employee
Contractor Payments Plan ($/Month)	US contractors: included in US payroll plan	Included in payroll plan	Included in payroll plan
For More Information	Read our Rippling review	Read our ADP Run review	Read our Paychex Flex review
*Pricing is based on a quote we received

Best for Value: Square Payroll

Free Trial	One month*	None
Pricing Plans ($/Month)	Simple: $40 base fee + $6 per employee Plus: $80 base fee + $12 per employee Premium: Call for a quote	Full-service Payroll: $35 base fee + $6 per employee
Contractor-Only Payroll ($/Month)	US contractors: $35 base fee + $6 per worker Global contractors: Call for a quote	$6 per worker (US contractor payroll only)
Add-ons	Health insurance and workers’ comp: Pay only for premiums 401(k) plans: Call for a quote State payroll tax registration: Pricing varies per state Priority support and HR advisory services for Plus plan only This is included for free in Gusto's Premium tier. : $8 per employee monthly	Health, workers’ comp, and retirement plans: Call for a quote HR resources and advisory services: Call for a quote Employee handbook builder: Call for a quote
	Visit Gusto	Visit Square Payroll

*Get one month free when you run your first payroll. Offer will be applied to your Gusto invoice(s) while all applicable terms and conditions are met or fulfilled.

In comparing Gusto vs Square Payroll in terms of pricing transparency, both providers are relatively straightforward with their monthly payroll plans and add-on costs of additional services. However, if you only need payroll software to pay employees and don’t need all the bells and whistles of an HR payroll software like Gusto, then Square Payroll is for you.

Pricing Calculator: Compare Monthly & Annual Fees

For a quick cost comparison, use our online calculator to compute the estimated fees for Gusto vs Square Payroll.

It should be noted that Gusto occasionally offers special promotions, such as discounts. At the time of writing this, new clients get a discounted base price for the first six months. They only need to pay the per-worker monthly fee of $6 during the said period. However, they will be billed both the base price and per-worker monthly rates once the promo ends.

Best for Payroll: Gusto

Handles Payroll & Payroll Taxes	✓	✓
Global Payroll	✓	✕
Multiple Pay Schedules	✓	✓
Unlimited and Automated Pay Runs	✓	✓
Payment Methods	Pay card, direct deposits, and manual checks you print yourself	Pay card, direct deposits, manual checks, and via Square’s Cash App
Direct Deposit Options	Four-, two-, and next-day options	Four-, two-, and next-day options; instant payments via the Cash App
Wage Garnishment Services	South Carolina excluded	✕
Expenses and Reimbursements	✓	Via manual data entry of approved reimbursements
Tip Processing	✓ (includes built-in compliance for tipped minimum wage workers)	✓ (with direct tip imports from Square POS)
	Visit Gusto	Visit Square Payroll

Square Payroll and Gusto payroll functionalities are very similar to each other. Their platforms support flexible pay schedules, multiple payment options, and unlimited pay runs. Aside from calculating payroll taxes, they will also handle tax payments and filings for you.

However, in comparing Square Payroll vs Gusto for payroll processing, Gusto has robust solutions and services. It offers wage garnishment payment services (except in South Carolina) and can process reimbursements for business expenses that employees file (and approve) through its system. An international payroll service is also available if you need to pay global contract workers. And if you plan to expand your business outside of the US, Gusto’s partnership with Remote will allow you to compliantly hire and pay international employees.

Gusto lets you manage both US and global payroll from just one platform. (Source: Gusto)

Square Payroll may not have global payroll capabilities, but it can help you pay US workers faster than Gusto. If you use Square to accept client credit card payments, you can store and use the funds in your Square Balance to instantly pay employees via Square’s Cash App. With Gusto, the fastest payment option you get is a next-day payout.

You can even select Square Balance as Square Payroll’s payment source and set up automatic next-day direct deposits for pay runs.
(Source: Square Payroll)

Further, Square Payroll automatically syncs with Square POS to get the tip information needed for payroll. While Gusto also connects with point-of-sale solutions, it doesn’t integrate with Square POS.

Best for HR Features: Gusto

Online Employee Profiles	✓	Basic profiles only
Onboarding and Offboarding Tools	✓	Simple onboarding only
Health Insurance and Retirement Benefits	✓	✓
Health Insurance Coverage in All US States	✓	Unavailable in six states Square Payroll's health plans are unavailable in Hawaii, Minnesota, North Dakota, South Dakota, Vermont, and the District of Columbia (as of this writing).
Job Postings and Applicant Tracking	✓	✕
Time Off Requests & Approvals	✓	✓
Time Tracking & Scheduling	Time tracking only	✓
Performance Reviews	✓	✕
Employee Surveys	✓	✕
Self-Service Portal for Managers & Employees	✓	✓
Business Software & Email Account Management	Includes provisioning and deprovisioning tools This feature lets you activate and deactivate the email and business software access of employees.	✕
	Visit Gusto	Visit Square Payroll

Gusto wins in this category given its wider suite of HR solutions. Unlike Square Payroll, its platform is equipped with job posting and applicant tracking tools to recruit employees. Online offer letters, self-onboarding features, and electronic signature capabilities make new hire onboarding easy for HR teams. It can even help you manage the business software and email account access of both new hires and leavers.

You also get advanced HR features for managing performance reviews and staff surveys. Gusto-administered benefits plans are available and you can manage employee benefits directly through its platform.

On the other hand, if you don’t need all the bells and whistles included in an HR payroll platform like Gusto, then Square Payroll’s basic HR solutions are right for you. It only has the essential HR functionalities for onboarding new hires, tracking employee attendance, creating staff schedules, and storing worker information.

It also provides access to employee benefits plans but through partner brokers. As of this writing, Square Payroll offers health insurance via SimplyInsured and retirement plans via Guideline.

You can select, track, and manage employee benefits plans through Square Payroll. (Source: Square Payroll)

Best for Ease of Use & Customer Support: Gusto

Learning Curve	Relatively easy	Relatively easy
Ease of Use	Good	Good
Setup Help	✓	✓
Dedicated Customer Success Manager	Included in the Premium plan	✕
Customer Support	Via chat, email, and phone	Via chat and phone
Access to HR Advisers	Included in Premium plan (costs extra for the Plus tier)	Paid add-on
Third-Party Software Integrations	Accounting Background checks Learning solutions Expense management Point of sale (POS) tools via API	Square products (such as Square POS) Accounting, specifically QuickBooks Online Time tracking via API
Online Guides & Tools	How-to guides Online FAQs Payroll and business planning calculators	How-to guides Online FAQs Video tutorials “Seller Community” forum
	Visit Gusto	Visit Square Payroll

Gusto and Square Payroll both have platforms that are relatively easy to learn and use, but what sets Gusto apart from Square is the customer support that it offers. You can contact its support team via email, chat, and phone; whereas Square only provides chat and phone assistance. And if you upgrade to Gusto’s Premium tier, you even get HR advisory services and a dedicated customer success manager (costs extra for Plus plan subscribers).

With Square Payroll, you don’t get a dedicated support manager and you have to pay extra for HR advisory services. It also charges additional fees if you need help creating an employee handbook (this service is included in Gusto’s HR advisory services).

However, if you want to connect with other Square users, the provider has a “Seller Community” forum where you can ask other business owners questions about using Square. The forum also provides updates about its various products and services.

Best for Popularity Among Users: Gusto

User Feedback	Mostly positive	Mostly positive
Average User Ratings*	4.55 out of 5	4.4 out of 5
Average Number of Reviews*	Nearly 3,000	More than 300
	Visit Gusto	Visit Square Payroll
*Data from third-party review sites (such as G2 and Capterra) as of this writing

To assess Square Payroll vs Gusto for user popularity, we looked at each provider’s average number of user reviews and average overall ratings on third-party review sites. Gusto wins in this category as it has more user reviews and a higher average rating.

What Users Think

How We Evaluated Gusto vs Square Payroll

To evaluate the differences between Square Payroll and Gusto, we compared the HR and payroll features of both providers, including the global payment options that they offer. We also checked both platforms’ popularity among users, ease of use, third-party software integrations, and customer support options. Lastly, we considered pricing transparency and monthly costs.

Bottom Line

In deciding whether to use Gusto vs Square Payroll, take a look at the payroll and HR features that your business needs. If you have simple payroll and HR requirements and are using or planning to use Square products (like Square POS), we recommend Square Payroll. For those who want integrated HR and payroll tools to handle a wide range of employee management processes, Gusto is a better option.