Gusto VS QuickBooks Payroll Comparison

It’s challenging to determine which payroll software comes out on top in the Gusto vs. QuickBooks Online Payroll debate, as both options are among the best payroll software solutions on the market. Fortunately, this means that you’ll have a solid payroll solution, regardless of which option you go with.

Despite an overwhelming overlap in features, Gusto and QuickBooks Online Payroll differ significantly in their plans, pricing, ideal business, and standout features. Understanding these differences will help you determine which payroll software solution makes the most sense for your business.

Keep reading for an in-depth comparison of Gusto and QuickBooks Online Payroll, including a feature breakdown, pricing comparison, and much more.

Gusto VS QuickBooks Comparison At A Glance

When comparing Gusto Payroll vs. QuickBooks Payroll, Gusto offers more HR resources and support, starts at a lower price, and has a contractor-only plan available. QuickBooks Payroll has stronger built-in time tracking than Gusto, more robust reporting, and can process payroll faster with next-day and same-day payroll run options.

While both QuickBooks and Gusto offer health benefits, QuickBooks’ health benefits are available across all 50 states. In contrast, Gusto’s are only available in 38 states and DC.

Where Gusto Wins

Gusto shines against QuickBooks Payroll in terms of third-party integrations, HR features, and overall cost. The combination of combination of benefits administration, 401(k)s, and HR resources makes Gusto a great small business payroll and HR solution for businesses.

Gusto wins when it comes to:

Where Gusto Falls Short

While Gusto has a lot going for it, there are a few issues with the primary one being lack of benefits administration in all 50 states. Also, some of Gusto’s most robust features, such as time-tracking capabilities and an on-call center with HR professionals, are limited to its higher-level (read: more expensive) plans. Other drawbacks include:

Where QuickBooks Payroll Wins

QuickBooks Online Payroll makes it particularly easy for businesses to track and provide benefits for employees who operate in multiple states. Unlike with Gusto, businesses can use QuickBooks Payroll to cover employees with health insurance benefits in any US state. QuickBooks Online Payroll has highly robust time-tracking tools that businesses can use for non-salaried, hourly employees.

QuickBooks Online Payroll is most attractive to businesses that don’t want to focus so much on their HR-related processes and services as much as they do on their accounting-specific needs.

QuickBooks Payroll takes the cake with:

Where QuickBooks Payroll Falls Short

While QuickBooks Payroll has a lot going for it, there are a few places where QuickBooks Payroll falls short.

If you’re using QuickBooks Payroll with your QuickBooks Online accounting software, then you’ll have access to all of QBO’s 650+ third-party integrations.

Gusto VS QuickBooks: Pricing Comparison

With full-service plans starting at $40/month with a $6 monthly per person, Gusto has cheaper monthly plans than QuickBooks Online Payroll’s pricing plans starting at $50 per month with a $6 per-employee monthly fee. However, QuickBooks has lower per-person fees on its higher-tier pricing, so choosing which software is cheaper will vary significantly based on which plan level you choose and how many employees your business has.

A few add-on payments are available for both QuickBooks Online Payroll and Gusto pricing plans. Gusto members can purchase add-ons for certain benefits, such as 401(k) retirement plans and savings accounts. QuickBooks Online Payroll users can also purchase add-on features, including 1099 e-filing and multistate payroll processing.

While you pay contractors using both Gusto and QuickBooks Online Payroll, only Gusto has a dedicated Contractors-Only plan at a lower price and simpler feature set. Additionally, Gusto’s Contractors-Only plan doesn’t limit the number of contractors your business can pay, while QuickBooks Payroll caps out at 150 contractors paid.

That said, QuickBooks Payroll could still be worth it, as it offers faster payments, a mobile payroll app, and a more robust reporting system than Gusto.

Gusto VS QuickBooks Payroll: Features Comparison

The features that come with both QuickBooks Payroll and Gusto include all the essentials you’d likely expect from a modern, cloud-based payroll solution. QuickBooks has recently expanded the options it provides for reports and features. However, Gusto also offers a large number of features, such as an employee portal, HR resources, and options for employee management. Take a look at the main features you can expect with QuickBooks Online Payroll and Gusto.

(Want to take a deeper dive into the world of QuickBooks Payroll and Gusto? Our QuickBooks Online Payroll review and Gusto review provide an in-depth look at both software options, including a pricing breakdown, features explanations, and much more.)

Only Gusto:

• Has third-party integrations
• Users can edit and update their employee information without contacting an admin
• Includes local state tax support
• Offers on-call, certified HR professionals with the premium plan

Only QuickBooks Payroll:

• Has a direct integration with QuickBooks (Gusto has a third-party integration with QuickBooks
• Let’s you set up the employee portal to display only the information you want employees to see
• Supports benefits administration in all 50 states
• Has a mobile payroll app
• Can track projects by hour and/or billable labor expenses
• Allows for reports that generate activity feeds complete with notes, custom project updates, and photos

Is Gusto Or QuickBooks Payroll Better For My Business?

Gusto and QuickBooks Online Payroll overlap each other in more ways than one. But at the end of the day, whether you choose QuickBooks Online Payroll vs. Gusto for your business depends on your immediate and long-term focus, what you’ll be using the software for most often, and how many contractors and/or employees you have.

Businesses that require reliable and customizable HR resources and payroll processes should consider purchasing a plan with Gusto. Gusto works best for newer companies that need full-service payroll processing and HR resources, and its basic plan is cheaper than QuickBooks Payroll.

If your company staffs more than 100 employees, then QuickBooks Online Payroll is likely your best bet. QuickBooks’ strong accounting, time-tracking, project management, and health insurance options are great for companies with lots of hourly employees who work in multiple states.

Choose Gusto If…

Choose QuickBooks Online Payroll If…

While QuickBooks and Gusto are great payroll software solutions, they may not be the best fit for your business. If you’re still not sold on either solution and want something that seems custom-tailored to your business’s payroll needs, check out the best small business payroll software options on the market this year.