Gusto VS ADP Comparison

Are you wondering why you should choose Gusto or ADP, or ADP versus Gusto?

Keep reading for our side-by-side comparison of ADP and Gusto, which includes an in-depth look at each payroll software’s features, pricing, and benefits.

Gusto VS ADP AT A Glance

In the head-to-head Gusto vs. ADP battle, it’s important to note that both software options offer strong payroll solutions for businesses.

Both Gusto and ADP possess an array of features to take care of payroll as well as employee and HR management. They also pack many of the same features, including full-service payroll, tax filing, direct deposit, time tracking, new hire reporting, generating reports, and employee management.

There are two distinguishing features. First, ADP offers health insurance in every state, whereas Gusto’s coverage is limited to 38 states and D.C. Second, Gusto supports free unlimited pay runs, while ADP charges extra for the frequency of payment.

Gusto features a slightly lower price point, and its user-friendliness may serve smaller to mid-sized businesses better. In contrast, ADP’s rich feature set may better fit larger operations with more complex payroll needs. But how do you know which is right for you?

Let’s dive into the nitty gritty to see which payroll software could benefit your business the most.

Where Gusto Wins

Gusto is a cloud-based payroll platform that offers all the essential nuts and bolts of payroll, unlimited payroll runs, a straightforward interface, and automatically calculates payroll and tax filings. Gusto sets itself apart with competitive, transparent pricing and a slew of HR resources and features. Additionally, Gusto can integrate with many third-party applications, making it a good option for small businesses.

Gusto takes the cake for:

Where Gusto Falls Short

Gusto has a lot going for it but does have some significant shortcomings — the highest being the lack of benefits administration in every state.

Where ADP Wins

Automatic Data Processing, Inc. (ADP for short) offers software that delivers payroll and HR solutions to small businesses and major corporations alike. Across all its plans, ADP Payroll handles core payroll functions, including payroll processing, direct deposit, tax filing, and new hire reporting. This feature set makes ADP a great option for large or growing businesses.

ADP wins when it comes to:

Where ADP Falls Short

One of ADPs biggest drawbacks is the fact that you can’t see its pricing plans upfront. It’s easy enough to get a quote, but the lack of transparency is an antiquated approach to SaaS products and makes it difficult for small businesses to budget for.

A couple of cons include:

Gusto VS ADP: Pricing Comparison

Gusto’s clear and transparent pricing structure lets users know exactly how much they can expect to pay each month and offers discounts to new customers. ADP, on the other hand, does not publish its prices online and requires businesses to get in touch with a sales rep to generate a custom quote.

It’s challenging to determine whether Gusto is cheaper than ADP because ADP does not publish its prices online and creates a custom pricing plan for each business. So you’ll need to get a quote from ADP to compare costs effectively.

While both Gusto’s pricing plans and ADP Payroll’s plans include essential payroll tools, Gusto’s packages are generally more robust, with unlimited payroll runs, free W-2 and 1099 filing, time-tracking integrations, and benefits administration included in the lowest employee payroll tier. It’s also worth noting that ADP users complain of hidden fees and add-on costs.

Gusto VS ADP Feature Comparison

Overall, Gusto offers better HR features, while ADP offers more customizable payroll and reporting plus a mobile app. Here’s a breakdown of some of the other feature differences between ADP and Gusto.

Only Gusto Features:

• Handles garnishments on any plan (not just the most expensive like ADP)
• Can handle multiple pay rates and schedules, which can come in handy if employees earn a commission or bounce between multiple company roles
• In-house printing of paychecks (ADP Run can only mail checks through the Enhanced, Complete, and HR Pro plans)
• Built-in time tracking feature at no extra cost
• HSAs, 529 college savings accounts, FSAs, & commuter benefits
• W-2s and 1099s to employees and contractors at no extra cost

Only ADP Features:

• Has a mobile app for running payroll on the go
• Much more in-depth reporting
• Dozens of payroll, taxes, benefits, and HR reports
• Has HR features available with all four plans (Gusto’s priciest Premium plan comes with HR)
• An optional ZipRecruited subscription

Which Payroll Software Should I Choose: Gusto Or ADP?

Both Gusto and ADP have earned their spot as one of the best payroll software options on the market, so your business’s payroll operation will be in good hands regardless of your choice.

Gusto is best for small businesses that are looking for affordable, easy-to-use payroll software with built-in time tracking and HR. Small businesses and startups stand to benefit from its straightforward features, pricing, and integrations with other software and applications.

Since ADP doesn’t disclose pricing, the time demand and uncertainty of negotiating a price (plus hidden fees) may not be right for smaller businesses. Instead, mid-size businesses with greater HR needs, including custom payroll, and growth plans may better afford and appreciate ADP Run’s added features.

Choose Gusto If…

Choose ADP If…

For more small business payroll help, check out our complete guide on how to choose small business payroll. Or, if neither ADP or Gusto make the cut for your business, check out the cheapest payroll software for businesses instead.