ADP, Paychex, and Gusto are all popular payroll software, but for different reasons. ADP and Paychex are established providers that offer comprehensive HR and payroll services for businesses of all sizes, while Gusto is a newer provider (established just over 10 years ago) that gives small businesses an affordable full-service payroll option with features that users would pay extra for with other services. ADP, Gusto, and Paychex are very similar overall but have some different products that might make one a better fit for certain businesses over the other.
- ADP: Best for fast-growing companies that want scalable HR and payroll solutions
- Paychex: Best for small to midsize businesses needing strong payroll support
- Gusto: Best for small businesses looking for full-service payroll with basic HR tools
There are instances where neither Paychex, Gusto, nor ADP 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 PEO services to outsource HR and payroll administration
Take our quiz below to determine which provider is right for you.
Gusto vs ADP vs Paychex Compared
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4.19 out of 5 | 4.35 out of 5 | 4.72 out of 5 | |
Free Trial | ✓* | ✓* | ✓** |
Starter Pricing | $3 per employee + $40 per weekly pay run*** | $5 per employee + $39 base fee monthly | $49 per month + $6 per person per month |
Contractor-only Payroll Plan | ✕ | ✕ | ✓ |
Year-end Tax Reporting (W-2/1099) | Costs extra | ✓ | ✓ |
Health Insurance Coverage in all 50 States | ✓ | ✓ | ✓ |
Customer Support |
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*Free Trial for ADP and Paychex are for payroll services only.
**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.
***Pricing is based on a quote we received.
Consider ADP if:
- You have US and international payroll needs: Its comprehensive payroll solution suite can handle salary payouts for both US and global employees. Paychex has a similar feature but via a third-party partner. Gusto supports global payments in more than 120 countries but only for contractors.
- You prefer to pay employees via paychecks: ADP has a more robust paper check feature than its competitors. It can sign checks, stuff them in envelopes, and deliver them to your office. Gusto doesn’t offer this, while Paychex only has check signing and stuffing services.
- You don’t have budget constraints and are looking for a large variety of plan options: ADP has twice as many payroll and HR product plans as Paychex and Gusto. However, those come at a higher rate.
- You don’t run payroll weekly: Given ADP’s per-pay run charges, processing employee payments won’t be as costly if you only do it once or twice a month.
Pros
- Wide range of HR solutions (includes hiring, job postings, salary benchmarks, and training tools)
- Automatic payroll and tax calculations
- Offers secure paychecks with advanced fraud protection
- International payroll
Cons
- Non-transparent pricing (you have to call ADP to request a quote)
- Year-end tax reporting and form delivery cost extra
- Benefits plans and time tracking are paid add-ons
While Paychex may also offer multiple HR solutions and payroll packages that cater to different business sizes, ADP has a wider selection of products and plans that help companies scale their HR operations quickly. Its packages are tailored to accommodate companies at various scales, from those with fewer than 50 employees to those with 1,000+ employees. Its midsize to large business offerings include hands-on implementation assistance and expert support from certified payroll and HR professionals.
In addition, ADP can handle international payments and hiring—perfect for those with plans to expand their business outside of the US. While Gusto also supports international payments, the service is only for contractors. Paychex, on the other hand, offers this feature through a third-party partner.
Consider Paychex if:
- You’re self-employed and need expert help to manage payroll for one person: Paychex offers a robust solopreneur payroll plan. While ADP and Gusto also offer similar payroll plans, Paychex is the only provider that has a self-employee product with payroll, a retirement plan, and business incorporation services.
- You have a small team: Its starter Essentials plan is designed for companies with up to 19 employees. The monthly fee that Paychex charges for its basic plan is also slightly lower than Gusto’s ($39 plus $5 per employee vs $40 plus $6 per employee), so you end up saving money.
- You need dedicated customer support: What sets Paychex apart from ADP and Gusto is the dedicated payroll specialist that it assigns to its clients. With only one point person to contact for payroll and tax concerns, you can easily get expert advice without having to go through different customer service reps. You also have access to online guides and 24/7 phone support.
Pros
- Payroll package for solopreneurs includes business incorporation support, payroll, and a 401(k) plan
- Dedicated payroll specialist
- Offers basic to advanced HR solutions for handling hiring to retiring processes
Cons
- Pricing isn’t all transparent
- Recruiting, document management, performance reviews, employee benefits, time tracking, and HR advisory services are paid add-ons
- Learning management and free garnishment payments are available in higher tiers
Paychex is an excellent resource for small to midsize companies because it offers basic and advanced HR and payroll features to help you manage payroll, benefits, and many HR processes. This includes the option to report tips and handle multiple pay rates, making it perfect for smaller businesses, like restaurants and retail shops.
Aside from regular payroll processing, Paychex offers time-tracking tools with clock-in/out functions, comprehensive benefits plans, and new hire onboarding. And, if your business needs full HR and payroll assistance, Paychex has a professional employer organization (PEO) option where they become the employer-of-record and take on all legal aspects of payroll, with the ability to secure large company benefits at an affordable price.
Plus, Paychex is the only provider that offers a robust solopreneur payroll service. On top of direct deposit payments and Forms W-2/W-4 filings, self-employed business owners get expert assistance in establishing their companies as S-corporations. This enables them to save on self-employment taxes by making the most out of tax breaks on deductible contributions (like retirement). Solopreneurs can start with its Paychex Solo solution and easily transition to Paychex Flex once they start managing employees and need more HR, payroll, and compliance support.
Consider using Gusto if:
- You employ contract workers: Gusto offers a contractor-only plan at $6 per contractor + $35 base fee monthly—cheaper than its regular plan—something ADP and Paychex don’t have. This allows you to hire not just regular employees but also freelance workers and Gusto will prepare and file 1099 forms at year-end for you.
- You need affordable payroll functions: With Gusto you get full-service payroll, including all tax solutions and multiple pay options at one low price. It can handle both single and multi-state payroll and will allow you to set employees up on separate pay schedules.
- You need custom reporting: Everything from payroll summaries to tax information, contractor costing, and workforce analysis can be analyzed through Gusto’s customized report templates. This allows you to stay on top of company trends and forecast the future.
Pros
- Full-service payroll with tax payments and filings included in all plans
- Has a reasonably-priced contractor-only plan (perfect for those who only pay 1099 workers)
- Unlimited and automatic pay runs; also supports international contractor payments
- Offers basic HR solutions to manage recruiting, time tracking, benefits, and performance reviews
Cons
- Multi-state pay processing isn’t available in the starter plan
- No dedicated payroll specialist; you have to upgrade to the most premium plan to get a dedicated CSM
- Many of its HR tools (like job postings and time tracking) are included in higher tiers
Gusto’s payroll platform is designed specifically for small businesses. It offers its payroll solutions at a reasonable cost while providing you with all the basics—like unlimited and automatic pay runs, payroll tax payment and filing services, year-end tax reporting, and employee benefits. If you need to hire new employees, job posting and applicant tracking tools are available in its higher tiers. You also don’t have to worry about new hire reporting as it will handle this for you.
Self-service tools are available so your new hires can self-onboard. Employees can easily access payslips, tax forms, and HR documents online. It even has performance reviews and simple time-tracking tools. Gusto doesn’t charge extra for payroll tax administration services—ADP has add-on fees for year-end tax reporting.
Alternatives to Gusto vs Paychex vs ADP
If you’re looking for functionalities or services that Gusto, Paychex, and ADP don’t offer, you may want to consider the following alternatives:
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Best For | Tech-heavy companies needing HR, payroll, finance, and IT tools | QuickBooks users and small businesses that want fast direct deposits | Businesses in highly regulated industries looking for solid compliance support |
Starter Monthly Pricing | $8 per employee plus a $35 base fee* | $6 per employee plus $50 base fee* | $16 per employee** |
*Base fee comes with a 30-day free trial or you can choose to buy now and save 50% off for three months.
**Includes payroll add-on ($6 per employee monthly); requires at least five employees
Want to know how ADP, Paychex, and Gusto compare with the above providers and other competitors? Check out some of our articles below.
- Gusto vs QuickBooks Payroll
- Rippling vs Paychex
- Paychex vs QuickBooks Payroll
- Best Gusto Competitors
- Best Paychex Alternatives
- Best ADP Competitors
Best for Value: Gusto
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Pricing Score | 1.5 out of 5 | 2.88 out of 5 | 5 out of 5 |
Pricing Transparency | ✕ | Limited | ✓ |
Special Promotion for New Clients* | Three months free payroll | Three months free payroll |
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Starter Pricing | Essential: $3 per employee + $40 per weekly pay run** Enhanced: Call for quote Complete: Call for quote HR Pro: Call for quote | Essentials: $5 per employee + $39 base fee monthly Select: Call for quote Pro: Call for quote | Simple: $49 per month + $6 per person per month Plus: $12 per employee + $80 base fee monthly Premium: Custom-priced |
Contractor-only Payroll Plan | ✕ | ✕ | $6 per contractor + $35 base fee |
Year-end Tax Reporting | Costs extra (call for quote) | ✓ | ✓ |
Garnishment Payment Services | Costs extra (call for quote) | Free for Pro plan holders; costs extra for Essentials and Select subscribers | ✓ |
State Unemployment Insurance (SUI) Management | Included in higher tiers | Free for Pro plan holders; costs extra for Essentials and Select subscribers | ✓ |
Paid Add-ons*** | Applicant Tracking: Custom-priced Performance Management: Custom-priced Benefits administration: Custom-priced Health insurance: Custom-priced 401(k) retirement savings: Custom-priced HR Advisory Services: Custom-priced | Applicant Tracking: Included in higher tiers Benefits administration: Custom-priced Health insurance: Custom-priced 401(k) retirement savings: Custom-priced International payroll: Custom-priced HR Advisory Services: Included in Complete and HR Pro plans | Applicant Tracking: Included in higher tiers Benefits administration using own broker: $6 per eligible employee monthly Health insurance: pay for premium only 401(k) retirement savings: Pricing varies by 401(k) integration 529 college savings: $6 per participant monthly (with an $18 monthly minimum) International contractor payroll: Custom-priced HR Advisory Services: Included in Premium plan; costs $8 per employee monthly for Plus subscribers |
*This may change at any time. Visit the provider’s website to check the latest promos on offer. For Gusto,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.
**Pricing is based on a quote we received; rates can vary depending on the payroll frequency—the more often you pay employees, the greater the base cost fee.
***These are just some of the add-on solutions and services that these providers offer.
When comparing Gusto vs ADP vs Paychex for pricing transparency, Gusto wins because its plans are fully transparent. You can easily do a cost comparison between its options to see which one fits your budget and payroll needs. Paychex may publish the monthly fees of its Paychex Flex’s basic plan on its website, but the pricing details of its higher packages and other products (like hiring services) follow a call-for-a-quote scheme. ADP also requires you to contact its sales team to get pricing information, and it charges fees based on the number of pay runs.
Gusto’s basic tier has features that you only get in the other two providers’ higher plans, such as SUI management and garnishment payment services. Payroll tax payment and filing services and year-end tax reporting are included in Gusto’s full-service payroll solution, so you don’t have to worry about handling these transactions yourself. With ADP, you have to pay extra for end-of-year tax reporting.
Plus, small businesses that only pay 1099 workers will benefit from Gusto’s contractor-only package ($35 + $6 per contractor monthly). Paychex and ADP don’t have plans for paying contract workers.
Pricing Calculator: Check Potential Costs
Need a quick way to compare costs? Use our online calculator to compute the estimated monthly and annual fees.
Best for Payroll: Gusto
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Payroll Features Score | 4.5 out of 5 | 4.5 out of 5 | 4.75 out of 5 |
Unlimited and Automatic Payroll | Automatic pay runs only | Automatic pay runs only | ✓ |
Multistate Payroll | ✓ | ✓ | Available in higher tiers |
Payroll Tax Calculations, Payments, and Filings | ✓ | ✓ | ✓ |
Generates, Prints, and Files W-2/1099 Tax Reports | ✓* | ✓ | ✓ |
International Payroll | ✓ | Via FMP Global | For global contractors only |
Dedicated Payroll Specialist | ✕ | ✓ | ✕ |
* May require additional fees
Gusto is an excellent choice for small businesses in terms of payroll. What prevented ADP and Paychex from matching their competitors is the additional fees it charges for year-end tax reporting (Gusto doesn’t charge extra for this).
Gusto, which holds the top spots on our lists of best payroll services and best payroll software for small businesses, provides the best value for the features it offers. It has payroll functionalities that are slightly better than ADP and Paychex. These two providers have automatic payroll capabilities but don’t offer unlimited pay runs—Gusto offers automatic payroll with unlimited pay runs and off-cycle.
While you get standard two-day direct deposits with Paychex and ADP, Gusto has two- and four-day options and even provides next-day direct deposits in higher tiers. Best of all, Gusto has tax services that cover everything—from tax payments to form filings and year-end reporting.
With Gusto, you can run payroll in four easy clicks.
(Source: Gusto)
If you require multistate payroll, Paychex is a better choice than Gusto and ADP. Gusto will require you to upgrade to its Plus plan (at a minimum) for multi-state payments. ADP, on the other hand, offers this in its basic plan, but you may end up paying a lot more than Paychex or Gusto because it charges fees on a per-pay run basis.
Plus, Paychex’s payroll assistance is more robust than ADP and Gusto, as it offers the services of a dedicated payroll specialist. You can even submit payroll to your dedicated specialist via phone if you want to.
Paychex “payroll center” dashboard
(Source: Paychex)
Best for HR Features: ADP
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HR Features Score | 5 out of 5 | 4.75 out of 5 | 4.75 out of 5 |
Job Postings* | Posts to 25,000+ job sites | Posts to dozens of job sites | Posts to 100+ job boards |
Health Insurance Coverage | All 50 states | All 50 states | Only 38 states + DC |
Health Insurance, Retirement, and Workers’ Comp** | ✓ | ✓ | ✓ |
Early Access to Wages | ✓ | ✓ | ✕ |
Employee Handbook Builder | ✓ (also offers handbook creation support) | ✓ | ✓ |
HR Advisory Services | Available in higher tiers | Paid add-on | Included in the Premium tier; costs extra for Plus plan holders |
Other HR Tools* |
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*Some tools are paid add-ons or available only in higher tiers
**Some plans may require participation fees or premium payments.
ADP, Paychex, and Gusto all offer onboarding tools, allowing workers to complete new hire requirements online. Self-service portals for accessing payslips, staff information, and forms are available to all employees. Aside from offer letters, all three providers will handle state new hire reporting for you.
When comparing Paychex vs ADP vs Gusto just on HR features and health benefits options, ADP and Paychex offer a wider range of HR tools and better health insurance coverage. Their health insurance options are available across the US.
Aside from the basics (such as applicant tracking, onboarding, and employee attendance monitoring), ADP offers additional HR solutions and services, like salary benchmarks and employee handbook creation support. Its partnership with ZipRecruiter even allows it to post job ads to more than 25,000 job sites.
You can access ZipRecruiter directly from your ADP dashboard. (Source: ADP)
Similar to Paychex, ADP has a learning management module to help you track and assign online training courses on HR compliance, skills development, and sexual harassment prevention programs. Plus, its benefits plans consist of options that companies usually offer to their workers, such as health, retirement, and disability insurance plans. While it lacks Gusto’s college savings plan and Paychex’s financial wellness tools, ADP makes up for it by providing an employee perk that allows your staff to get discounts from popular brands and retail shops.
Best for Reporting: Tie
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Reporting Score | 5 out of 5 | 5 out of 5 | 5 out of 5 |
Basic Reports | Available | Available | Available |
Report Customizations | ✓ | ✓ | ✓ |
Paychex, ADP, and Gusto are all tied when it comes to reporting given the basic reports provided and the customization options offered.
Best for Ease of Use & Customer Support: Tie
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Ease of Use Score | 4 out of 5 | 4.5 out of 5 | 4.5 out of 5 |
Learning Curve | Relatively easy | Relatively easy | Relatively easy |
Ease of Use | Good | Good | Good |
Dedicated Representative | Dedicated support team available in higher tiers | None, but provides dedicated payroll specialists | Available in higher tiers |
24/7 Customer Service | ✓ | ✓ | Weekdays only |
Support Type | Chat and phone | Chat and phone | Email, chat, and phone |
How-to Guides | ✓ | ✓ | ✓ |
Integration Options | Connects with:
| Connects with:
| Connects with:
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All three have online how-to guides and intuitive interfaces with tools that are cloud-based and generally easy to use. Both ADP and Gusto provide access to HR advisors if you need assistance managing HR compliance and employee-related issues. While they don’t have Paychex’s dedicated payroll specialist, you get a dedicated customer success manager (in the highest tier with Gusto). Customer support is also available via phone, email, or chat.
Best for User Popularity: Tie
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Popularity Score | 4.13 out of 5 | 4.13 out of 5 | 4.13 out of 55 |
User Feedback | Mostly positive | Mostly positive | Mostly positive |
Average User Ratings* | 4.5 out of 5 | 4.15 out of 5 | 4.6 out of 5 |
Average Number of Reviews* | More than 2,000 | More than 3,000 | Close to 5,800 |
*Data from third-party review sites like G2 and Capterra (as of this writing)
To compare ADP vs Paychex vs Gusto on user popularity, we looked at each provider’s average overall ratings and the number of reviews on third-party review sites like G2 and Capterra. While they all scored 4.13 out of 5 in our scoring metric, on third-party sites Gusto scored the highest (4.6 out of 5), with ADP just behind (4.5 out of 5), and Paychex coming in last (4.15 out of 5). Click through the tabs below to see what users think about each provider.
What Users Think
How We Evaluated Paychex vs ADP vs Gusto
We evaluated Paychex vs ADP vs Gusto by looking at each provider’s pricing structures, features, and ease of use. We also checked whether HR professionals are available to give expert advice. Customer support was also an important factor, since small business owners may need help navigating through the software.
Frequently Asked Questions (FAQs)
Gusto is considered ADP’s biggest competitor due to its affordability and range of HR and payroll features included in its pricing. Plus, Gusto offers contractor-only services—something ADP doesn’t offer.
That depends on your specific payroll and HR needs. Paychex is perfect for small teams due to its affordable starter pricing, however, it truly shines for midsize businesses because of its advanced HR and payroll features. Gusto is also affordable for small businesses but offers only basic HR and payroll features. However, Gusto does have a contractor-only plan for those businesses that hire only contractors.
Bottom Line
Deciding between ADP vs Paychex vs Gusto can be challenging since they have a lot of similar payroll and HR tools. However, we recommend you choose the best HR payroll software based on both your current and expected future business needs.
ADP can support large growth plans given its multiple yet flexible payroll tiers. If you need a special solopreneur package or if you plan to stay a midsize employer, Paychex can provide you with a more personalized payroll experience and service. If you’re a small business with simple HR needs, Gusto’s full-service plans would likely be a better fit.
