Paychex, ADP, 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 that gives small businesses an affordable full-service payroll option with features that users would pay extra for with other services. ADP and Paychex are very similar overall but have some different products that might make one a better fit for certain businesses over the other.
- Paychex: Best for one-person to midsize businesses needing strong HR payroll support
- ADP: Best for fast-growing companies that want scalable HR payroll solutions
- Gusto: Best for small businesses looking for full-service payroll with basic HR tools
Paychex vs ADP vs Gusto Compared
ADP, Paychex, and Gusto all offer automatic pay runs, payroll tax payments and filings, and employee self-service tools. Access to employee benefits is also available, although Gusto’s health insurance plans are available only in 37 states (as of this writing). In addition, these three providers have online onboarding solutions and even handle state new hire reporting for you. Below are some of the standout features.
 |  |  | |
|---|---|---|---|
4.32 out of 5 | 3.96 out of 5 | 4.53 out of 5 | |
Special Promotion for New Clients* | Three months free payroll | Three months free payroll | 30-day free trial; six months waived base fees for the contractor plan |
Starter Pricing | $5 per employee + $39 base fee monthly | $3 per employee + $40 per weekly pay run** | $6 per employee + $40 base fee monthly |
Contractor-only Payroll Plan | ✕ | ✕ | $6 per employee + $35 base fee monthly |
Year-end Tax Reporting (W-2/1099) | ✓ | Costs extra | ✓ |
Pay Options |
|
|
|
Health Insurance Coverage | 50 states | 50 states | 37 states |
Employee Perks | Cashflow assistance and financial wellness tools | Discounts with retail shops and restaurants | Financial management tools via the free Gusto Wallet app |
Job Postings and Applicant Tracking | Costs extra | Included in higher tiers | Included in higher tiers |
Ease of Use | Good | Good | Excellent |
Customer Support |
|
|
|
*This may change at any time. Visit the providers’ websites to check the latest promos on offer.
**Pricing is based on a quote we received.
NOTE: Paychex is offering 6 months of free payroll for new clients who sign up before 11/30/2023 and run their first payroll by 12/7/2023.
ADP vs Paychex vs Gusto: When to Use Each
If you’re self-employed and need expert help in managing 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. ADP and Gusto only offer payroll and benefits support to self-employed businesses.
Plus, 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. Its wide suite of HR tools, which includes hiring, onboarding, new hire reporting, background checks, time and attendance, and learning management, is well-suited for midsize businesses.
Pros
- Payroll package for solopreneurs includes business incorporation support, payroll, and a 401(k) plan
- Multiple payment options
- 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 may also offer multiple HR solutions and payroll packages that cater to different business sizes, but ADP has a wider selection of products and plans that help companies scale their HR operations quickly. Its packages are targeted toward companies with fewer than 50 employees to those with 1,000+ employees; its midsize to large business offerings even 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.
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
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 also available so your new hires can self-onboard themselves. Plus, employees can easily access payslips, tax forms, and HR documents online. It even has performance reviews and simple time-tracking tools. What’s more, Gusto doesn’t charge extra for payroll tax administration services—ADP has add-on fees for year-end tax reporting.
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
- Health insurance coverage limited to 37 states (as of this writing)
- 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
- Multi-state pay processing isn’t available in the starter plan
Quiz: Determine the Best HR Payroll Solution for You
If you want more information about which options to look for when choosing a payroll service, check our guide on finding the right payroll service for your business.
Alternatives to Paychex, ADP, and Gusto
If you’re looking for functionalities or services that Paychex, ADP, and Gusto don’t offer, you may want to consider the following alternatives:
 |  |  | |
|---|---|---|---|
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 $45 base fee | $16 per employee** |
*Pricing is based on a quote we received
**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
- Gusto vs Zenefits
- Paychex vs QuickBooks Payroll
- Best Gusto Competitors
- Best Paychex Alternatives
- Best ADP Competitors
Best for Value: Gusto
|  |  | |
|---|---|---|---|
Pricing Score | 2.88 out of 5 | 0.5 out of 5 | 5 out of 5 |
Pricing Transparency | Limited | ✕ | ✓ |
Special Promotion for New Clients* | Three months free payroll | Three months free payroll |
|
Starter Pricing | Essentials: $5 per employee + $39 base fee monthly Select: Call for quote Pro: Call for quote | Essential: $3 per employee + $40 per weekly pay run** Enhanced: Call for quote Complete: Call for quote HR Pro: Call for quote | Simple: $6 per employee + $40 base fee monthly Plus: $12 per employee + $80 base fee monthly Premium: Custom-priced |
Contractor-only Payroll Plan | ✕ | ✕ | $6 per employee + $35 base fee |
Solopreneur Payroll Plan | Paychex Solo (call for quote) | Call for quote | Call for quote |
Year-end Tax Reporting | ✓ | Costs extra (call for quote) | ✓ |
Garnishment Payment Services | Free for Pro plan holders; costs extra for Essentials and Select subscribers | Costs extra (call for quote) | ✓ |
State Unemployment Insurance (SUI) Management | Free for Pro plan holders; costs extra for Essentials and Select subscribers | Included in higher tiers | ✓ |
*This may change at any time. Visit the provider’s website to check the latest promos on offer.
**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.
| | | |
|---|---|---|---|
Applicant Tracking | Cost extra (call for quote) | Included in higher tiers | Included in higher tiers |
Time Tracking | Cost extra (call for quote) | Cost extra (call for quote) | Included in higher tiers |
Performance Management | Cost extra (call for quote) | ✕ | Included in higher tiers |
HR Advisory Services | Cost extra (call for quote) | Included in Complete and HR Pro plans | Included in Premium plan; costs $8 per employee monthly for Plus subscribers |
Other Paid Add-ons* | Benefits administration: Custom-priced Health insurance: Custom-priced 401(k) retirement savings: Custom-priced | Benefits administration: Custom-priced Health insurance: Custom-priced 401(k) retirement savings: Custom-priced International payroll: Custom-priced | 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 |
*These are just some of the add-on solutions and services that these providers offer. Please check the Paychex, ADP, and Gusto websites for a list of all its products.
When comparing Gusto vs ADP vs Paychex for pricing transparency, Gusto wins because its plans are fully transparent. You can easily do cost comparisons 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 also outscored ADP and Paychex in this criterion because its basic tier has features that you only get in the two providers’ higher plans, such as SUI management and garnishment payment services. Payroll tax payment and filing services, as well as year-end tax reporting, are even 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, which is a little cheaper than its starter Simple plan ($35 + $6 per contractor monthly vs $40 + $6 per employee monthly). Paychex and ADP don’t have separate plans for paying contract workers.
When to Consider ADP & Paychex
It’s difficult to compare Gusto vs Paychex and Gusto vs ADP for affordability because many, if not all, of ADP’s and Paychex’s products and plans are custom-priced. However, there are a few instances where either ADP or Paychex may be a more suitable option for you.
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 and Paychex
| | | |
|---|---|---|---|
Payroll Features Score | 4.75 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 |
Direct Deposit Timelines | Two days | Two days | Standard is two and four days; next-day option in higher tiers |
Pay Card and Pay On-demand | ✓ | ✓ | Pay card only |
Paper Checks with Signing and Stuffing Services | ✓ | ✓ Includes paychecks with fraud protection features | Manual checks (printed in-house) |
Wage Garnishment Payments in All States | ✓ | ✓ | South Carolina not included |
Dedicated Payroll Specialist | ✓ | ✕ | ✕ |
*May require additional fees
Gusto and Paychex both earned 4.75 out of 5 in this criterion, with ADP trailing close behind at 4.50 out of 5. What prevented ADP from getting the same rating or even outscoring its competitors is the additional fees it charges for year-end tax reporting (Gusto and Paychex don’t charge extra for this).
However, given the slight differences in the types of payroll services that these three providers offer, there may be instances where one is better than the others. Click through the tabs below to know when it’s best to use Paychex, Gusto, and ADP for pay processing.
Gusto, which holds the top spots on our lists of best payroll services and best payroll software for small businesses, earned a high score here because it 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 its 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)
Among the three companies, Paychex is the only provider that offers a robust solopreneur payroll service. Aside from 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).
If you require multistate payroll, Paychex is a better choice than Gusto and ADP. Gusto will require you to upgrade to at least its Plus plan 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)
ADP is great for those who have US and international payroll needs. Its comprehensive payroll solution suite can handle salary payouts for both US and global employees. Paychex may have a similar feature but via a third-party partner. Gusto supports global payments in more than 120 countries but only for contractors.
For US-based businesses that 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.
ADP lets you input work hours and bonus amounts directly into its payroll tool. (Source: ADP)
Best for HR Features: ADP
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. Below are some of the standout HR features.
| | | |
|---|---|---|---|
HR Features Score | 4.75 out of 5 | 5 out of 5 | 4.38 out of 5 |
Job Postings* | Posts to dozens of job sites | Posts to 25,000+ job sites | Posts to 100+ job boards |
Health Insurance Coverage | All 50 states | All 50 states | Only 37 states |
Health Insurance, Retirement, and Workers’ Comp** | ✓ | ✓ | ✓ |
Other Benefits** | Premium-only plan*** | Premium-only plan*** | 529 college savings plan |
Employee Discounts with Retail Shops | ✕ | ✓ | ✕ |
Early Access to Wages | ✓ | ✓ | ✕ |
Financial Wellness Program | ✓ | ✕ | Free financial management app (Gusto Wallet) |
Employee Handbook Builder | ✓ | ✓ (also offers handbook creation support) | ✓ |
HR Advisory Services | Paid add-on | Available in higher tiers | Included in the Premium tier; costs extra for Plus plan holders |
Other HR Tools* |
|
|
|
*Some tools are paid add-ons or available only in higher tiers
**Some plans may require participation fees or premium payments.
***Premium-only plans help you and your employees to save on certain payroll taxes by allowing your staff to prepay a portion of health insurance premiums using pretax dollars.
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, while Gusto’s plans are limited to 37 states (unavailable in Alabama, Alaska, Hawaii, Louisiana, Mississippi, Montana, Nebraska, North Dakota, Rhode Island, South Dakota, Vermont, West Virginia, and Wyoming).
ADP even received perfect marks here because, aside from the basics (such as applicant tracking, onboarding, and employee attendance monitoring), it 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, it 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, it makes up for it by providing an employee perk that allows your staff to get discounts from popular brands and retail shops.
When to Consider Paychex & Gusto
On the other hand, Paychex and Gusto may not have gotten perfect ratings in this criterion, but both providers still received high marks for HR features. Click through the tabs below to know more about their HR solutions.
Paychex offers a better selection of financial wellness tools on top of the typical benefits options (such as workers’ comp, medical, dental, vision, and retirement plans). Aside from short-term loans, your employees are granted advanced access to their earned salaries between paydays in case of emergencies. Educational resources are also available to help your workers manage their finances and meet their savings goals.
Paychex’s learning management module even contains training sessions designed to enhance your employees’ business acumen, soft skills, and functional competencies. This is essential for fostering a company culture of continuous improvement and boosting employee retention.
Paychex has a catalog of learning sessions to help improve your employees’ skills. (Source: Paychex)
Gusto provides all of the basic HR tools that small businesses need—from online offer letters and onboarding checklists to document management and state new hire reporting. It even offers software provisioning tools to help you set up business systems that new employees will use.
Time tracking tools for capturing your workers’ clock-ins/outs are also available in higher tiers (ADP and Paychex charge extra for this). It works seamlessly with Gusto’s payroll module, removing the need for manual data uploads since the system will automatically do this for you.
If you need to hire qualified candidates, Gusto has applicant tracking and job posting capabilities. However, its job posting reach isn’t as wide as that of ADP (posts jobs to more than 25,000 job sites). Job posts you create in Gusto only appear on Google Jobs and in over 100 job boards.
For benefits, Gusto is a great choice if your business isn’t located in one of the 13 states (see map below) not covered by its health plans. It offers a wide variety of employee benefits with unique options, like college tuition savings plans. Your employees can also download the free Gusto Wallet app if they want financial management tools to help them track their spending, manage funds, and save money by automatically tucking a small amount every time they get paid.
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 all received perfect marks in this criterion given the basic reports it provides and the customization options it offers.
Best for Ease of Use & Customer Support: ADP and Gusto
| | | |
|---|---|---|---|
Ease of Use Score | 3.88 out of 5 | 4 out of 5 | 4 out of 5 |
Learning Curve | Relatively easy | Relatively easy | Relatively easy |
Ease of Use | Good | Good | Good |
Dedicated Representative | None, but provides dedicated payroll specialists | Dedicated support team available in higher tiers | 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:
|
While all three have online how-to guides and intuitive interfaces with tools that are cloud-based and generally easy to use, ADP and Gusto received higher ratings than Paychex in this criterion.
In our evaluation of Paychex vs ADP vs Gusto for ease of use, Paychex lagged a little behind, scoring 3.88 vs the 4 out of 5 ratings that ADP and Gusto both earned. What prevented Paychex from getting the same or higher score here includes its lack of a dedicated customer success manager (CSM) and the limited types of third-party software that it connects to.
However, the different support services that these providers offer make it a better choice for specific users and businesses. Click through the tabs below to know more.
Best for User Popularity: Paychex and Gusto
| | | |
|---|---|---|---|
Popularity Score | 5 out of 5 | 3.75 out of 5 | 5 out of 5 |
User Feedback | Mostly positive | Mostly positive | Mostly positive |
Average User Ratings* | 4.15 out of 5 | 4.5 out of 5 | 4.3 out of 5 |
Average Number of Reviews* | More than 1,400 | Around 950 | Close to 2,300 |
*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 providers’ average overall ratings and the number of reviews on third-party review sites like G2 and Capterra. Paychex and Gusto received perfect marks in this criterion, but in terms of ratings from actual users, ADP’s average score is higher than those of Gusto and Paychex (4.5 vs 4.3 and 4.15 out of 5).
What Users Think: Paychex vs ADP vs Gusto
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.
Click through the tabs below for a detailed breakdown of our evaluation criteria.
15% of Overall Score
We checked to see if the provider has transparent pricing, zero setup fees, and multiple plan options with unlimited pay runs. We also gave additional points to those with plans that cost $1,200 or less per year for 10 employees.
20% of Overall Score
We gave the most credit to solutions that process direct deposits in two days or less, have multiple payment options, handle year-end tax reporting, manage tax payments and filings (federal, state, and local taxes), and offer a penalty-free guarantee.
35% of Overall Score
5% of Overall Score
Preference was given to software with built-in basic payroll reports and customization options.
20% of Overall Score
We looked for features that make the software easy to use, such as having an interface that’s intuitive and customizable. Extra points were given to providers that offer integration options, set-up assistance, live phone support, and a dedicated representative.
5% of Overall Score
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 you’re planning to stay a midsize employer, then 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.
