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

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, and Gusto is a newer provider that gives small businesses an affordable full-service payroll option with features they’d 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 looking for strong HR and payroll support
• ADP: Best for growing companies that plan to scale quickly and need flexible plans
• Gusto: Best for small businesses looking for an affordable payroll and HR software

Paychex vs ADP vs Gusto Compared

Starter Monthly Pricing	Starts at $39 plus $5 per employee	Custom-priced	Starts at $39 plus $6 per employee
Automatic Pay Runs	✓	✓	✓
Pay Options	Pay-on-demand, paper check, pay card, and direct deposit	Pay card, direct deposit, and paper checks signed and delivered	Pay card, direct deposit, and manual check (printed in-house)
Payroll Tax Calculations, Payments, and Filings	Some services may have additional fees	✓	✓
Year-End Tax Reporting (W-2/1099)	Costs extra	Costs extra	✓
Health Insurance Covers All US States	✓	✓	Limited to 39 states
Retirement, Medical, Dental, and Vision Plans	✓	✓	✓
Employee Discounts	X	✓	X
Workers’ Comp (pay-as-you-go plans)	✓	✓	✓
State New Hire Reporting and Onboarding Tools	✓	✓	✓
Job Postings and Background Checks	✓	✓	X
Performance Reviews and Learning Management Tools	✓	✓	Only performance reviews
Ease of Use	Good	Good	Good
Customer Support	24/7 phone support; dedicated payroll specialist	Email and 24/7 phone support; access to HR advisors	Email and chat; phone support five days per week; access to HR advisors
	Visit Paychex	Visit ADP	Visit Gusto

If you’re unsure about which payroll provider is best for your business, answer a few questions in our ADP vs Paychex vs Gusto quiz, and we will help you decide.

Why Paychex Is Best for One-person to Midsize Businesses

Paychex is the only provider of the three that has a self-employed product that comes with payroll, a retirement plan, and business incorporation services. Solopreneurs can start with its Paychex Solo solution and transition to Paychex Flex once they start managing employees and need more HR, payroll, and compliance support. Its robust suite of HR tools, which includes new hire reporting, onboarding, background checks, time and attendance, and more, is well-suited for midsize businesses.

Why ADP Is Best for Quickly Scaling Companies

While Paychex also offers multiple tiers 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 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.

Why Gusto Is Best for Small Businesses

At a low cost, Gusto provides all the basics—like unlimited and automatic pay runs, payroll tax payment and filing services, year-end tax reporting, and employee benefits. Aside from payroll, it offers basic hiring and onboarding tools plus performance reviews and simple time tracking tools. Gusto doesn’t charge extra for payroll tax administration services—both ADP and Paychex have add-on fees for some of its tax services.

Best for Affordability: Gusto

Paychex, ADP, and Gusto all have multiple plans with month-to-month billing. However, only Gusto offers fully transparent pricing and pay processing tools that let you run payroll and off-cycle payments as many times as you need and want. Plus, it doesn’t charge add-on fees for payroll tax filings and year-end reporting.

Pricing Transparency	Limited	✕	✓
Base Monthly Pricing	Starts at $39*	Call ADP for quote	$39–$149
Per-Employee Fees	$5 per month*	Call ADP for quote	$6 and $12 per month
Special Payroll Plan	Paychex Solo (Custom-priced)	✕	Contractor plan** ($6/person monthly)
Payroll Tax Payments and Filings	Add-on (call for quote)	✓	✓
Year-end Tax Reporting	Add-on (call for quote)	Add-on (call for quote)	✓
	Visit Paychex	Visit ADP	Visit Gusto

*Pricing is for Paychex Flex’s starter plan. Its other tiers (Select and Pro) are custom-priced.
**Gusto will only bill you for the months that you processed contractor payroll.

Why We Recommend Gusto for Affordability

Subscribing to Gusto makes more sense if your company needs to do payroll for fewer than 100 employees. All of its plans come with full-service payroll, unlimited and automatic pay runs, tax filings, and year-end reporting. Plus, its basic tier has features that you only get in Paychex’s and ADP’s higher plans.

• When comparing Paychex vs ADP vs Gusto for pricing transparency, Gusto is the winner among the three 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 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.
• Even with its basic Core plan, Gusto offers features (such as State Unemployment Insurance management and time-off policy tracking) that Paychex and ADP either include in its higher tiers or as part of a paid add-on solution. With Gusto, you only have to pay $39 plus $6 per employee monthly for both features.
• The starter per-employee fees of Paychex’s payroll solution, Paychex Flex, may be slightly lower than Gusto’s but you end up paying more with Paychex. This is because of the add-on fees it collects for handling your payroll tax filings and year-end reporting. ADP also charges extra for generating, delivering, and filing W-2/1099 tax forms at year-end. However, if you’re a midsize business with over 100 employees and need advanced HR solutions for managing workers, Paychex (monthly fees start at $39 plus $5 per employee) would be a more cost-effective option than Gusto—provided you don’t mind paying extra for payroll tax filings.
• Gusto is also great for small businesses that employ mostly contract workers because it has a low-cost contractor-only payroll plan ($6 per contractor monthly). With ADP and Paychex, you have to pay monthly base and per-employee fees even if you’re only processing contractor payments.

When to Consider ADP & Paychex

It’s difficult to compare ADP vs Paychex with Gusto 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.

If you don’t have budget constraints and are looking for a payroll provider that offers a large variety of plan options that will fit your business at every stage, ADP will be a good fit. It has twice as many payroll and HR product plans as Paychex and Gusto.

Paychex, on the other hand, provides solopreneurs with a payroll plan (Paychex Solo) that has all the basic tools to process salary payouts and comply with the applicable tax rulings. With ADP and Gusto, you essentially pay more as its starter tiers come with functionalities (like employee onboarding and online document management) that aren’t helpful for the self-employed.

For owner-only businesses that plan to expand into a midsize company with minimal changes, then its Paychex Flex payroll and HR plans may provide enough flexibility for you. With monthly fees that start at $39 plus $5 per employee, you also save a little bit more with Paychex as you would with Gusto—although the former charges extra for some of its payroll tax administration services.

Best Payroll Features: Gusto

Unlimited Pay Runs	✕	✕	✓
Automatic Payroll	✓	✓	✓
International Payroll	✕	✓	✕
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	✓	✕	✓
Paper Checks with Signing, Stuffing, and Delivery Services*	On-site printing with check logo and signing services	✓	Manual checks (printed in-house)
Payroll Tax Calculations, Payments, and Filings	✓**	✓	✓
Generates, Prints, and Files W-2/1099 Tax Reports	✓**	✓**	✓
Wage Garnishment Services	✓	✓	Child-support payments to South Carolina not included
State Unemployment Insurance Management	✓*	✓*	✓
Digital Pay Stubs	✓	✓	✓
Employee Self-Service Portal		✓	✓
	Visit Paychex	Visit ADP	Visit Gusto

*Some solutions and services are available only in higher tiers
**May require additional fees

Why We Recommend Gusto for Payroll Features

Gusto is our top-recommended payroll software for small businesses because it has the best value for the payroll features it offers. Plus, some of its pay processing functionalities are slightly better than those from Paychex and ADP.

• Paychex and ADP have automatic payroll capabilities but don’t offer unlimited pay runs—Gusto offers automatic payroll with unlimited pay runs and off-cycle payments.
• While you get standard two-day direct deposits with Paychex and ADP, Gusto has two- and four-day options, but provides next-day direct deposits in its higher tiers.
• Paychex and ADP both charge extra for some of its payroll tax administration services (like tax filings and year-end reporting)—you get this for free with Gusto.

When to Consider ADP for Payroll

ADP is great for those who have US and international payroll needs as it has a comprehensive payroll solution suite that can handle salary payouts for both US and global employees. It made our list of best international payroll services because its ADP GlobalView Payroll product not only pays global staff in their local currencies but also provides strong compliance support to ensure that you are always up-to-date with country tax rulings and labor regulations.

In addition, ADP has a more robust paper check feature as it can sign checks, stuff them in envelopes, and deliver them to your office. Gusto doesn’t offer this, while Paychex only has check logo and signing services.

When to Consider Paychex for Payroll

Among the three companies, Paychex is the only provider that offers solopreneur payroll services. 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).

Best Employee Benefits: Paychex & ADP

Health Insurance Coverage*	All 50 states	All 50 states	Only 39 states**
Retirement Plans*	✓ Plus a 401(k) option for solopreneurs	✓	✓
Life and Disability Insurance*	✓	✓	✓
Workers’ Compensation	Pay-as-you-go plans	Pay-as-you-go plans	Pay-as-you-go plans
HSA and FSA Options*	✓	✓	✓
College Tuition Savings Plan*	✕	✓	✓
Commuter Benefits*	✕	✓	✓
Premium Only Plans (POP)	✓	✓	✕
Employee Discounts with Retail Shops	✕	✓	✕
Financial Assistance	Early access to earned wages (via PayActiv)	✕	Access to money between paydays (via Gusto Cashout)
Financial Wellness Program	✓	✕	✕
Benefits Administration	✓	✓	✓
Online Benefits Enrollment	✓	✓	✓
	Visit Paychex	Visit ADP	Visit Gusto

*Some plans may require participation fees or premium payments.
**Gusto’s health insurance is unavailable in Alabama, Alaska, Hawaii, Louisiana, Mississippi, Montana, Nebraska, North Dakota, South Dakota, West Virginia, and Wyoming.

Why We Recommend Paychex & ADP for Employee Benefits

When comparing Paychex vs ADP vs Gusto just on health benefits, both ADP and Paychex offer the best coverage. Their health insurance options are available across the US, while Gusto’s health plans are limited to 39 states (as of this writing). Paychex and ADP are also our top picks for employee benefits because they have helpful perks (like discounts and financial wellness tools) that your staff will appreciate.

• Paychex is the only provider in this guide that 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.
• ADP also provides employee benefits that companies usually offer to their workers such as health, retirement, FSA/HSA, and disability insurance plans. While it lacks 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 Gusto for Employee Benefits

If your business is located in one of the 39 states that are covered by its health plans, then Gusto is a great choice. It offers a wide variety of employee benefits with unique options, like college tuition savings plans. Similar to Paychex, workers who need money for emergencies can use its Gusto Cashout feature to get a portion of their average salary, max 40% or up to $500 ($200 for the first transaction).

Best HR Features: ADP

Applicant Tracking	✓*	✓*	✕
Job Postings	Posts to dozens of job sites*	Posts to 25,000+ job sites	✕
Background Screening	Limited number of screens	✓	✕
Online Offer Letters and Document Storage	✓	✓	✓
Employee Self-Onboarding	✓	✓	✓
Software Provisioning	✕	✕	✓
State New Hire Reporting	✓	✓	✓
Time Tracking	✓*	✓*	✓**
Compensation Planning	✓*	✓*	✕
Learning Management	✓	✓	✕
Performance Management	✓*	✓*	✓**
	Visit Paychex	Visit ADP	Visit Gusto

*Paid add-on
**Available in higher tiers

Why We Recommend ADP for HR

Comparing ADP vs Paychex’s HR tools is a bit difficult since both have many similar features. They offer robust HR solution suites for managing the entire employee lifecycle. However, ADP has a few key advantages over Paychex—it can post job listings to over 25,000 job sites and doesn’t have a limit to the number of background screens you can run. This makes ADP ideal for employers who want efficient hiring tools that are bundled in payroll software.

When to Consider Paychex for HR

If you’re focused on upskilling employees to build a high-performing workforce, then having access to coaching programs and training tools is critical. This is where Paychex comes in. With its learning management module, you can access online 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 for improving employee retention.

While ADP also offers employee training programs, you have to get the most premium tier of its small business HR payroll solution, ADP Run. With Paychex, you just need to subscribe to either the Select or Pro plan of its Paychex Flex product.

When to Consider Gusto for HR

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.

Gusto is also a good fit for those who employ mostly hourly workers as it has built-in time tracking tools for capturing clock-ins/outs. In addition, you don’t have to manually upload time data into Gusto payroll since the system will automatically do this for you.

Best for Ease of Use & Customer Support: Paychex

Ease of Use	GoodGood	GoodGood	Excellent
24/7 Customer Service	✓	✓	Weekdays only
Support Type	Phone	Email and phone	Email, chat, and phone
How-to Guides	✓	✓	✓
Access to HR Advisery Services	✕	✓*	✓*
Dedicated Payroll Specialist	✓	✕	✕

*Available in higher tiers

Why Paychex Is Best for Ease of Use & Customer Support

Paychex, ADP, and Gusto all have intuitive interfaces with tools that are cloud-based and generally easy to use. However, what sets Paychex apart from the other two 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.

When to Consider ADP

If you have an in-house payroll expert and won’t need a dedicated specialist, then ADP is for you. It offers 24/7 support and you can contact its customer service reps either through email or phone. In case you need expert HR advice, ADP has a team of HR professionals who can help you manage complicated issues.

When to Consider Gusto

Gusto may lack the 24/7 support that both Paychex and ADP offer, but it provides multiple options for contacting customer service. You can call them via phone or use email and live chat. Gusto also has HR advisers you can contact if you have questions about labor laws and HR compliance.

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.

Bottom Line

Deciding among 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 mid-size employer, Paychex can provide you with a more personalized payroll experience and service. If your business has a simple structure with fewer than 100 employees, Gusto’s full-service plans would likely be a better fit.

You May Also Like …

• Best Paychex Competitors
• Best ADP Competitors
• Best Gusto Competitors