Paychex vs ADP vs Gusto: Pricing, Features & What’s Best in 2023
Charlette has over 10 years of experience in accounting and finance and 2 years of partnering with HR leaders on freelance projects. She uses this extensive experience to answer your questions about payroll.
Robie has more than five years of content writing experience and specializes in writing about payroll and human resources software for small businesses.
This article is part of a larger series on Payroll Services.
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 looking for strong HR and payroll support
- ADP: Best for growing companies that plan to scale quickly and need a flexible plan option that changes with their growth
- Gusto: Best for small businesses with 100 or fewer employees looking for an affordable payroll and HR software
Paychex vs ADP vs Gusto Compared
ADP, Paychex, and Gusto all offer automatic pay runs, payroll tax payments and filings, employee self-service tools, and access to benefits plans (although Gusto’s health insurance plans are available only in 39 states). These three providers have online onboarding solutions and even handle state new hire reporting for you. Below are some of the standout features.
 |  |  | |
|---|---|---|---|
4.16 out of 5 | 3.96 out of 5 | 4.66 out of 5 | |
Special Promotion for New Clients* | Three months free payroll | Three months free payroll | One month free payroll |
Starter Monthly Pricing | $5 per employee plus $39 base fee | $3 per employee plus $40 per pay run** | $6 per employee plus $40 base fee |
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) |
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) |
Year-end Tax Reporting (W-2/1099) | Costs extra | Costs extra | ✓ |
Employee Discounts | ✕ | ✓ | ✕ |
Job Postings and Applicant Tracking | Costs extra | Included in higher tiers | Included in higher tiers |
Ease of Use | Good | Good | Excellent |
Customer Support | 24/7 phone support; dedicated payroll specialist | Email and 24/7 phone support; access to HR advisers | Email and chat; phone support five days per week; access to HR advisers |
*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.
Paychex vs ADP vs Gusto Quiz
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Is ADP, Paychex, or Gusto Right for You?
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, and time and attendance, 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 reasonable 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, as well as performance reviews and simple time tracking tools. What’s more, Gusto doesn’t charge extra for payroll tax administration services—both ADP and Paychex have add-on fees for year-end tax reporting.
Alternatives to Paychex, ADP, and Gusto
Best For | Starter Monthly Pricing | Our Review | |
|---|---|---|---|
 | Tech-heavy companies needing HR, payroll, and IT tools | $8 per employee plus a $35 base fee* | |
 | QuickBooks accounting small business users | $5 per employee plus a $45 base fee | |
 | Square POS users, particularly retailers and restaurants | $5 per employee plus a $35 base fee | |
*Pricing is based on a quote we received
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.
Best for Value: 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 year-end reporting.
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|---|---|---|---|
Pricing Score | 2.88 out of 5 | 0.5 out of 5 | 5 out of 5 |
Special Promotion for New Clients* | Three months free | Three months free | One months free |
Pricing Transparency | Limited | ✕ | ✓ |
Base Monthly Pricing | Starts at $39** | Starts at $40 per pay run*** | Starts at $40 |
Per-Employee Fees | $5 per month** | Starts at $3 per employee*** | Starts at $6 per month |
Special Payroll Plan | Paychex Solo (Custom-priced) | ✕ | Contractor-only payroll plan ($35 plus 6 per person monthly) |
Payroll Tax Payments and Filings | Some services cost extra (call for quote) | ✓ | ✓ |
Year-end Tax Reporting | Costs extra (call for quote) | Costs extra (call for quote) | ✓ |
*This may change at any time. Visit the provider’s website to check the latest promos on offer.
**Pricing is for Paychex Flex’s starter plan. Its other tiers (Select and Pro) are custom-priced.
***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.
Paychex vs ADP vs Gusto Pricing Calculator
Need a quick way to compare costs? Use our online calculator to compute the estimated monthly and annual fees.
Why We Recommend Gusto
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. However, while it has a feature-rich platform with solid pay processing tools, Gusto lacks the advanced HR functionalities (such as robust hiring and learning management tools) that businesses with large teams need.
- When comparing Paychex vs ADP vs Gusto 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.
- Even with its basic Simple plan, Gusto offers features (such as PTO policies and State unemployment insurance management) 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 $40 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 end-of year tax 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 mostly employ contract workers because it has a reasonably priced contractor-only payroll plan ($35 plus $6 per contractor monthly).
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.
Best for Payroll Features: Gusto
| | | |
|---|---|---|---|
Payroll Features Score | 3.88 out of 5 | 4.5 out of 5 | 4.75 out of 5 |
Unlimited Pay Runs | ✕ | ✕ | ✓ |
Automatic Payroll | ✓ | ✓ | ✓ |
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 | ✓ | ✓ | ✓ |
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 | ✓** | ✓** | ✓ |
*May require additional fees
**Some solutions and services are available only in higher tiers
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 charge extra for its year-end reporting services—you get this for free with Gusto.
With Gusto, you can run payroll in four easy clicks. (Source: Gusto)
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; 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.
ADP lets you input work hours and bonus amounts directly into its payroll tool. (Source: ADP)
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).
Paychex “payroll center” dashboard (Source: Paychex)
Best for HR Features: ADP and Paychex
| | | |
|---|---|---|---|
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** | ✓ | ✓ | ✕ |
Employee Discounts with Retail Shops | ✕ | ✓ | ✕ |
Financial Assistance | Early access to earned wages (via PayActiv) | ✕ | Early access to earned wages (via Gusto Cashout) |
Financial Wellness Program | ✓ | ✕ | |
Benefits Administration | ✓ | ✓ | ✓ |
Online Benefits Enrollment | ✓ | ✓ | ✓ |
*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.
Why We Recommend Paychex & ADP for HR
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 39 states (unavailable in Alabama, Alaska, Hawaii, Louisiana, Mississippi, Montana, Nebraska, North Dakota, South Dakota, West Virginia, and Wyoming). 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 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.
- ADP’s partnership with ZipRecruiter allows it to post your job listings to more than 25,000 job sites. Gusto and Paychex only post to 100+ and 10+ job boards, respectively.
- Unlike Gusto, Paychex and ADP provide access to online training for you and your employees, such as workplace harassment prevention, HR recordkeeping, and sales courses. 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.
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 (ADP and Paychex charge extra for time tracking). In addition, you don’t have to manually upload time data into Gusto payroll 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 11 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. 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).
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Best for Reporting: Tie
Reporting Score5 out of 55 out of 55 out of 5Basic ReportsAvailableAvailableAvailableReport Customizations✓✓✓Paychex, ADP, and Gusto all received perfect marks in this criterion given the basic reports it provides and the customization options it offers. However, if you plan to create or update your company handbook, consider either ADP or Paychex. Both have an online employee handbook wizard. ADP even provides additional employee handbook support if you need help creating your own.
Best for Ease of Use & Customer Support: Tie
Ease of Use Score4 out of 54 out of 54 out of 5Learning CurveRelatively easyRelatively easyRelatively easyEase of UseGoodGoodGood24/7 Customer Service✓✓Weekdays onlySupport TypeChat and phoneEmail and phoneEmail, chat, and phoneHow-to Guides✓✓✓Access to HR Advisery Services✕✓*✓*Dedicated Payroll Specialist✓*✕✕*Available in higher tiers
In our evaluation of Paychex vs ADP vs Gusto for ease of use, these providers earned a 4 out of 5 rating in this criterion. All three have intuitive interfaces with tools that are cloud-based and generally easy to use. Online how-to guides and FAQs are available, as well as integration options with third-party software.
Best for User Popularity: ADP
Popularity Score5 out of 53.75 out of 55 out of 5User FeedbackMostly positiveMostly positiveMostly positiveAverage User Ratings*4.15 out of 54.5 out of 54.4 out of 5Average Number of Reviews*More than 1,300Around 850Close to 2,200*Data from third-party review sites (such as G2 and Capterra)
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 Gusto and Paychex (4.5 vs 4.4 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.
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 your business has a simple structure with fewer than 100 employees, Gusto’s full-service plans would likely be a better fit.
