Rippling vs Gusto: Which Is Best for Payroll in 2022
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.
Rippling and Gusto both offer easy-to-use payroll and HR solutions for small businesses. Although Rippling’s core product is HR and Gusto’s specialty is payroll, they have similar features like unlimited pay runs, tax filing services, and benefits administration. However, Rippling provides a wider solution suite that includes IT tools, while Gusto is more affordable and has a robust selection of employee benefits, including 529 college savings plans and Gusto Cashout for employees needing early access to earned wages.
Here are our recommendations to help you determine whether Rippling vs Gusto is right for your business.
- Gusto: Best for small businesses looking for affordably priced payroll tools to automate processes
- Rippling: Best for tech-heavy companies and small businesses with plans to scale and wanting help managing their growing employee data, payroll, HR, and IT needs
Rippling vs Gusto Compared
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Pricing | $10 per employee ($8 if billed annually) for the core “Rippling Unity” workforce platform | $39 plus $6 per employee |
Payroll with Tax Filing Services | $8 per employee monthly* | Included in all plans |
Direct Deposit Processing Time | Two days | Two and four days; next-day with premium plans |
Payroll Coverage | Employees, contractors, international workers | $6 per eligible employee monthly if using your own broker |
Employee Benefits | Health insurance, 401(k), commuter benefits, FSA, HSA, ACA and COBRA compliance** | Health insurance, 401(k), HSA, FSA, commuter benefits, ACA and COBRA compliance, college savings plan, Gusto Cashout (early access to wages)** |
Health Insurance Coverage | 50 states | 39 states |
Workers’ Compensation (Pay-as-you-go Plans) | ✔ | ✔ |
Time Tracking | Paid add-on | Included in higher tiers |
Learning Management | Paid add-on | N/A |
Performance Reviews | N/A | Included in higher tiers |
IT Tools | App management: $8 per employee monthly Device management: $8 per employee monthly | Included in higher tiers (device management limited to MacBooks) |
Third-party Software Integrations | 500+ | 130+ |
Customer support | Online help center; chat and email support; HR advisers and live phone support for an extra cost | Online help center; chat, email, and phone support; HR advisers; access to a dedicated support team |
*Rippling’s pricing is based on a quote we received
**Some benefits plans cost extra or have participation fees
Best for Affordability: Gusto
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Monthly Pricing* | Core: $39 + $6 per employee Complete: $39 + $12 per employee Concierge: $149 + $12 per employee Select: Custom-priced; requires at least 25 employees; includes all of Gusto’s features (customized to fit your needs) | “Rippling Unity” workforce management platform: $10 per employee ($8 if billed annually) |
Paid Add-ons* | Benefits administration using own broker: $6 per eligible employee monthly Health insurance: pay for premium only 401(k) retirement savings: Starts at $49 + $8 per participant monthly 529 college savings: $6 per participant monthly (with an $18 monthly minimum) Device management: Custom-priced International contractor payroll: 1.5%–2% administration fee | Payroll: $8 per employee monthly Benefits administration: $6 per employee monthly Flex benefits (HSA, FSA, commuter): $6 per employee monthly ACA and COBRA administration: Custom-priced App management: $8 per employee monthly Device management: $8 per employee monthly |
Special Payroll Plan | Contractors-only plan: $6 per contractor monthly | N/A |
Time and PTO Tracking | Included in higher tiers | Custom-priced |
Applicant Tracking and Job Postings | Included in higher tiers | Custom-priced |
Time and Attendance | Included in higher tiers | Custom-priced |
Learning Management | N/A | Custom-priced |
Performance Reviews | Included in higher tiers | N/A |
HR Advisory Services* | Included in most premium tiers | $100 monthly |
*Rippling’s pricing is based on a quote we received
When comparing Rippling vs Gusto in terms of pricing, the former may look more affordable given its modular solutions that cost anywhere from $6–$10 per employee, per module monthly (except for its HR help desk add-on, which is priced at $100 per month).
Gusto, however, is more budget-friendly (monthly fees start at $39 + $6 per employee) because its system already includes payroll, time tracking, and basic HR tools—features that cost extra with Rippling. Plus, you can’t buy the Rippling solutions you need without purchasing its core workforce management platform first.
Let’s compute:
Gusto’s starter plan, Core, is priced at $39 plus $6 per employee monthly; Rippling’s core workforce management platform, payroll, and two benefits modules (employee benefits and flex benefits) cost $30 per employee monthly. Both come with full-service payroll, tax filing services, year-end reporting, and access to employee benefits—although Gusto’s health insurance is limited to 39 states.
For a small business with 20 employees, the monthly fees would be as follows:
- Gusto: $159 per month; computed as $39 + ($6 x 20 employees)
- Rippling: $600 per month; calculated as $30 x 20 employees
If you want live phone support, Rippling offers a HR help desk solution, which is a $100 add-on to the monthly fees (which would bring the total above to $700 per month). On the other hand, Gusto provides unlimited phone support to all clients—and if you subscribe to its higher tiers, you get HR advisory services.
If you employ mostly contractors, Gusto has a low-cost plan that comes with year-end tax reports—Rippling doesn’t have a contractor-only option. And you don’t have to worry about paying contractor payroll fees every month as Gusto will charge you only for months that you processed salary payouts for contract workers.
When to Use Rippling
If you’re unsure whether to get Rippling vs Gusto, take a look at your HR needs and budget. If you don’t have a limited budget and you need a feature-rich platform with robust third-party software integrations to fit your growing HR needs, consider Rippling. Aside from its HR, payroll, and IT tools that work well with one another, its efficient workflows make running reports and managing processes across multiple data sets and systems easy for users.
Best for Payroll: Gusto
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Full-Service Payroll | ✔ | ✔ |
Unlimited Pay Runs | ✔ | ✔ |
Payroll Tax Payment and Filing Services | ✔ | ✔ |
Year-end Tax Reports (W-2/1099s) | ✔ | ✔ |
Direct Deposit Processing Timelines | Two and four days; next-day with premium plans | Two days |
Manual Paychecks | ✔ | ✔ |
Paycard and Pay-on-Demand Options | ✔ | N/A |
Wage Garnishment Services | South Carolina not included | ✔ |
Global Payroll Capability | International contractors only | International employees and contractors |
Early Access to Earned Wages | via Gusto Cashout | N/A |
In the battle between Gusto vs Rippling, Gusto has the upper hand in this area. While the two providers both offer unlimited payroll, tax filing services, year-end tax reporting, and wage processing for employees and contractors, Gusto has more to offer in terms of payment options and direct deposit timelines.
Running payroll with Gusto is easy, and you can pay employees through paychecks, pay cards, pay-on-demand, and direct deposits (Rippling has limited payment options). Its processing timelines for direct deposits are four and two days, but if you sign up for its higher tiers, you get a next-day option. Plus, if your employees need early access to their earned wages during emergencies, they can use the Cashout feature of the Gusto Wallet app—a functionality that Rippling doesn’t offer.
When to Use Rippling
Rippling may not have Gusto’s multiple payment and direct deposit options, but if you have international staff or plan to set up office locations outside of the US, Rippling can help you manage global payroll. Rated as one of our top international payroll software, Rippling lets you pay both employees and contractors, wherever they are working, be it from your corporate headquarters in the US or a satellite office somewhere else in the world (Gusto only handles payroll for international contractors).
If you’re primarily looking for help with payroll and want to consider providers other than Gusto, check out the other top payroll services we recommend.
Best for HR & Employee Benefits: Rippling
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Job Postings | Posts jobs to popular job boards and job sites | Job postings appear in Google Jobs; provides links for sharing job posts |
Applicant Tracking | ✔ | ✔ |
Online Onboarding | ✔ | ✔ |
State New Hire Reporting for Employees | ✔ | ✔, plus includes new hire reporting for contractors |
Time Tracking | ✔ | ✔ |
Standard Benefits Options | Medical, dental, vision, 401(k), FSA, HSA, commuter benefits, ACA and COBRA compliances | Medical, dental, vision, 401(k), FSA, HSA, commuter benefits, ACA/HIPAA/ERISA and COBRA compliances |
Non-standard Benefits Options | N/A | College savings plan, free Gusto Wallet (financial management app), early access to earned wage via Gusto Cashout |
Health Insurance Coverage | 50 states | 39 states |
Learning Management | ✔ | N/A |
Performance Reviews | N/A | ✔ |
PEO Option | ✔ | N/A |
Self-Service Portal | ✔ | ✔ |
While Gusto specializes in payroll, Rippling’s core product is HR. Aside from its workforce management platform, it offers a wide suite of solutions for managing the entire employee lifecycle—from recruiting and new hire onboarding to benefits administration and learning management. Gusto may have hiring tools, but it has limited job posting reach, unlike Rippling, which posts jobs to popular job sites like Indeed and LinkedIn.
Rippling’s health insurance plans also have a wider coverage compared to Gusto’s. Its health plans are available across the US, while Gusto’s medical, vision, and dental options are limited to 39 states as of this writing.
In addition, you can outsource payroll and day-to-day HR tasks to Rippling through its PEO option. This is great for employers whose HR needs have grown but they either don’t have an in-house HR staff or are not willing to expand their current HR team.
When to Use Gusto
If you need health insurance and are not in one of the states Gusto hasn’t yet expanded to (Montana, Wyoming, North Dakota, South Dakota, Nebraska, Louisiana, Alabama, Mississippi, West Virginia, Alaska, and Hawaii), signing up for benefits plans will be easy for you and your employees.
Gusto is also an ideal option for those looking for non-standard benefits, such as college savings plans. Your employees can even download the Gusto Wallet if they want free access to financial management tools, including the option to get a salary advance (via Gusto Cashout) if they need financial assistance in between paydays.
Best for Reporting: Tie
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Basic Reports | Available | Available |
Large Library of Pre-formatted Reports (60+) | No | No |
Report Customizations | Yes | Yes |
Capability to Create New Reports Directly in the System | Yes | Yes |
We found that the two providers have similar tools in this area. They offer customizable reports and the capability of creating new ones within the system. Reports can also be exported for use within multiple departments. However, neither provides a large selection of canned (preformatted) reports.
Best for Ease of Use & Customer Support: Gusto
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Ease of Use | Good | Good |
Customizable Platform | X | X |
Customer Support | Chat, email, and phone support | Chat and email; phone support (via its paid HR help desk solution) |
HR Advisory Services | Paid add-on | Paid add-on |
Access to a Dedicated Support Team | Available in higher tiers | X |
Online How-to Guides | ✔ | ✔ |
Software Integration Options | 130+ | 500+ |
Rippling and Gusto have easy-to-use and intuitive (but not customizable) platforms. Both have setup wizards to help new users get the software up and running in no time. Online how-to guides are available, including access to HR advisers—although Rippling charges extra for it, whereas Gusto offers it in its higher tiers.
Rippling has a larger network of partner apps (500+) than Gusto (130+), but Gusto still wins in this category primarily because of its customer support. All of its plans come with unlimited phone, chat, and email assistance, whereas Rippling only has chat and email support. Gusto also provides access to a dedicated support team if you subscribe to its higher tiers—Rippling doesn’t offer dedicated support.
When to Use Rippling
If you use a lot of business software and want to integrate those with your HR platform to ensure that employee-related data sync seamlessly, then consider Rippling. It can connect to a wide variety of business systems—from accounting, expense management, and legal solutions to helpdesk and ticketing, sales, and collaboration tools.
Rippling is also a good option for those with HR personnel who are experts in managing HR, payroll, and a cloud-based system—hence, they don’t need constant support. And if you have the budget to spend $100 monthly for its HR help desk solution (which includes phone support), Rippling may just be what you need. It’s even our top-recommended HR software for small businesses.
Best for Popularity Among Users: Rippling
Based on the number of user reviews and the average overall rating on third-party review sites like G2 and Capterra, Rippling and Gusto scored well for popularity among users, with Rippling outscoring Gusto by a few points. As of this writing, Rippling’s average rating on those sites is 4.85 out of 5, while Gusto scored 4.50 out of 5.
Many users commended both Rippling and Gusto for having user-friendly and intuitive interfaces, including solid tools for processing payroll. Reviewers who seem to prefer Rippling appreciate its scalable and feature-rich platform. On the other hand, those who like Gusto said that it offers robust features for a reasonable price.
What users don’t like is both providers’ inconsistent customer support quality. Some reviewers reported having experienced long wait times, while others said they received excellent support.
How We Evaluated Rippling vs Gusto
We compared Rippling vs Gusto by using a five-star scale designed to assess payroll solutions and services for small businesses. We compared both providers’ features—from pay processing and tax filings services to HR tools and employee benefits options. We also looked into other key criteria like ease of use, pricing, and customer support, including whether users have access to expert professionals who can provide HR and payroll advice.
In our evaluation, Gusto scored higher than Rippling—with an overall rating of 4.69 out of 5 versus Rippling’s 4.39. Click through the tabs below for the detailed breakdown of our evaluation criteria.
25%
Pricing
25%
Payroll features
25%
Ease of use
10%
HR features
10%
Popularity
5%
Reporting
25% of Overall Score
Preference was given to providers with transparent pricing, multiple plan options, and unlimited pay runs. We also checked if they charge setup fees and offer a plan that costs less than $50 per employee. Gusto won in this criterion given its multiple full-service payroll plans and transparent pricing. Rippling only has one option for its payroll solution, plus not all of its pricing is available on its website.
25% of Overall Score
Automatic payroll runs, automated tax filing services, year-end tax report prep, and two-day direct deposits are just some of the features that we consider essential payroll services. Providers also get points if they offer both employee and contractor payroll services, including a tax penalty-free guarantee. Compared to Rippling, Gusto scored higher here given its multiple employee payment options.
25% of Overall Score
We looked for user-friendly, intuitive, and customizable platforms, including those that integrate with common small business software like QuickBooks, Homebase, and When I Work. Points were also given to providers with how-to guide options and live phone support. Gusto received higher marks here, mainly because of its unlimited phone, chat, and email support—Rippling only has live chat and email.
10% of Overall Score
Having access to a professional who can provide expert advice on compliance issues is one of the top criteria, including new hire state reporting, online onboarding, and a self-service portal. We also favored providers who offer multiple benefits options, health insurance available in all US states, and a time tracking solution. Rippling won in this criterion—Gusto would have scored higher here if not for the limited coverage of its health insurance plans (only 39 states).
10% of Overall Score
We took the average review ratings from G2 and Capterra, which are also based on a five-star scale; any option with an average of 4+ stars is ideal. Also, any software with 1,000+ reviews on any third-party site is preferred. While both Rippling and Gusto earned perfect marks here, Rippling received a higher average rating (4.85 out of 5) on G2 and Capterra (Gusto earned an average score of 4.50 out of 5).
5% of Overall Score
Aside from offering basic payroll reports, we considered whether these are customizable and if you could create new reports to fit your specific needs. Rippling and Gusto both earned perfect marks in this criterion.
*Percentages of overall score
Bottom Line
Choosing between Rippling vs Gusto may not be as easy as it seems because both have outstanding features that your company can utilize to make your payroll more efficient. However, in finding the right payroll solution, you should first consider the types of features your business currently needs and what it will need in the near future.
Start by assessing the level of HR and IT support you need. If you’re actively hiring, need robust job postings, require an applicant tracking system, want help purchasing and setting up new computer devices, or have international employees, consider Rippling. It’s also a great choice if offering health insurance in all US states is a priority—Gusto’s is limited to 39 states.
However, if your company is a small business wanting a solid set of payroll features with basic HR tools and multiple employee benefits choices, consider Gusto. It offers reasonably priced plans, including a low-cost contractor-only tier, and is the more affordable option between the two payroll software providers.
