ADP vs Paychex vs Gusto: Pricing, Features & What’s Best

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

Take our quiz below to determine which provider is right for you.

Gusto vs ADP vs Paychex Compared

OverviewWhen to Use ADPWhen to Use PaychexWhen to Use Gusto

HR Payroll Software Evaluation	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	24/7 phone and chat support	24/7 chat and phone support	Weekday support via email, chat, and phone
	Read our ADP Review	Read our Paychex Review	Read our Gusto Review

*Free Trial for ADP and Paychex are for payroll services only.
**Pricing is based on a quote we received.

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:

	Visit Rippling	Visit QuickBooks Workforce (formerly QuickBooks Payroll)	Visit TriNet Zenefits
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*	$50 per month + $6.50 per employee monthly	$16 per employee**
	Read our Rippling Review	Read our QuickBooks Workforce Review	Read our TriNet Zenefits Review

*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

Best for Value: Gusto

Pricing Score	1.5 out of 5	2.88 out of 5	5 out of 5
Pricing Transparency	✕	Limited	✓
Starter Pricing	Essential: $3 per employee + $40 per weekly pay run*Enhanced: Call for quoteComplete: Call for quoteHR Pro: Call for quote	Essentials: $5 per employee + $39 base fee monthlySelect: Call for quotePro: Call for quote	Simple: $49 per month + $6 per person per monthPlus: $12 per employee + $80 base fee monthlyPremium: 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 Resources: Included in Premium plan; costs $50 + $5 per employee monthly for Simple and Plus subscribers

*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

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

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	All 50 states + D.C.
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*	Applicant tracking Background checks Time tracking Learning management Salary benchmarks	Applicant tracking Background checks Time tracking Performance reviews Learning management	Applicant tracking Background checks Time tracking Performance reviews Email and software provisioning

*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

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

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: Recruiting and onboarding Time and attendance Compensation Performance management POS systems Collaboration tools	Connects with: Recruiting and HR Time and attendance Finance and accounting Point-of-sale (POS) systems	Connects with: Recruiting and onboarding Time and attendance Accounting Learning management POS systems Collaboration tools

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

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)

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.